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

To: slacker711 who wrote (10434)8/31/2021 7:13:37 AM
From: slacker7111 Recommendation

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Cree Q4 2021 Earnings

Revs of $146m

Power saw strong growth constrained by COVID shutdown in Malaysia

Power device revs up 46% YoY

RF rev increased

Materials saw “better order flow”

Fiscal ‘21 rev of $526m, 12% up Yoy

Fiscal rev growth driven by growth in device business while materials were down

$475m in capex net of reimbursements

Guidance of $144 to $154m

GM of 31.5% to 33.5% Modest improvements in Durham offset by Malaysia

$80m in startup costs at MVF $60m in cash costs

Slightly more than $1 billion in design-ins

Materials expansion to 2nd building

$800m agreement with STM runs into the 2nd half of the decade (2026?)

LTA for 150mm total $1.3 billion


$1 billion design ins with ? automotive. Doesnt include materials

Automotive customers ramping right now and ramping in ‘23

Malaysia cost 1 point of GM in this and next quarter

Durham to MVF

- Wafer cost 50% lower (doesnt include all benefits of 150 to 200mm transition)

- Cycle times will be >50% greater

- Yields will be higher than 20 to 30% higher than Durham

- Devices will grow faster than materials through ‘24 and even faster after that as the $1 billion in designs ins this quarter ramp.

- $5-$7 million impact from Malaysia, $3-$5m last quarter

- inflection point used to be ‘23/’24, now in FY‘22

- Need to drive more capacity out of Durham to serve demand.

- Pulling in about $100m in capex from ‘23/’24

- Put in 100 tools into Durham