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Technology Stocks : Cree Inc. -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (9954)3/15/2019 10:03:12 AM
From: Lou Weed  Respond to of 10450
Good move offloading that business. Market action fairly muted though -


To: slacker711 who wrote (9954)3/15/2019 10:06:49 AM
From: slacker711  Read Replies (2) | Respond to of 10450
For its third quarter of fiscal 2019 ending March 31, 2019, Cree targets revenue from continuing operations in a range of $271 million to $277 million. Wolfspeed revenue is targeted in a range of $139 million to $141 million, and LED Products revenue is targeted in a range of $132 million to $136 million.

Guidance was for Wolfspeed to be up a few percent from $135m and LED revenue to be down 5% from $145m so it looks like Wolfspeed was on track in the quarter but LED revenue was going to come in light.

GAAP gross margin from continuing operations is targeted at approximately 35%, with non-GAAP gross margin from continuing operations targeted at approximately 36%.

It looks like non-GAAP margins will also be light versus previous guidance presumably because of the LED margins getting hit based on lower revenue.

Of course, the importance of this quarter pales in comparison with offloading the Lighting division. I wonder if Cree will talk about transitioning LED capacity to Wolfspeed on Monday (and maybe update their long-term Wolfspeed targets).