CREE 2015 fiscal year third quarter results announcement

CREE Inc. (Nasdaq: CREE) in the United States Eastern time April 21, 2015 announced that as of March 29, 2015, the company's fiscal 2015 third quarter revenue of $409 million 500 thousand, which is more than 2014 fiscal year third quarter revenue of $405 million 300 thousand increased by 1%. 2015 in the third quarter of fiscal year (GAAP) GAAP net income of $700 thousand (or $0.01 per diluted share), and 2014 in the third quarter of fiscal year (GAAP) GAAP net income of $28 million 200 thousand (or $0.23 per diluted share) compared, down 98%. According to the non GAAP (non-GAAP) calculation, net income for the third quarter of fiscal year 2015 of $25 million (or $0.22 per diluted share), and the third quarter of fiscal 2014 $47 million 700 thousand non GAAP (non-GAAP) net income (or diluted earnings per share of $0.39) compared to 48% decline.

Cree Inc., chairman and chief executive officer Chuck Swoboda said: "we are in the third quarter of fiscal revenue and non GAAP (non-GAAP) operating profit is still within our target range, despite the impact of extreme winter weather in the quarter. We are confident that we are on the right track and remain optimistic about the future growth of lighting and the rise in power and rf. "

2015 fiscal year third quarter financial indicators:

(in addition to the amount and percentage of each unit, the other units are $1000)

The according to GAAP (GAAP) calculation, gross margin by 250 basis points to 30.6% lower than the second quarter of fiscal year 2015. According to non US GAAP (non-GAAP), gross profit decreased by 250 basis points to $31.4% in the 2015 quarter of fiscal year second;

The total investment is cash and $782 million in fiscal year 2015, than the second quarter fell $47 million 900 thousand;

The net accounts receivable of $216 million 200 thousand, compared with the 2015 fiscal year second quarter net fell $2 million 700 thousand, accounts receivable turnover was 48 days;

The inventory was $299 million 400 thousand, compared to the 2015 quarter of fiscal second decreased to $33 million 200 thousand, equivalent to 95 days of inventory.

Recent business highlights:

The launched RUL (Rural Utility Light) series, redefining the performance in outdoor lighting in rural areas, realizing the excellent combination of price, performance, quality of design, the rate in rural area of North America accelerated LED lighting;

The launch of the XLamp CXA2 LED array device, continue to expand the industry-leading XLamp CXA LED array products series, Cree SC5 technology platform to achieve the 33% elements based on optical efficiency promotion in the same size in;

The launched TW series T8 lamp replacement, continue to expand the product portfolio to meet consumer demand. Product design is easy to implement and wireless installation, providing industry-leading compatibility, highlight the quality and performance of light, and the price close to the people;

The launch of the XLamp MHD-E LED and XLamp MHD-G LED devices, the continuation of the groundbreaking XLamp MH series LED success. These new LED devices, based on the Cree SC5 technology platform, effectively combine the high density and reliability of ceramic based COB, and surface mount SMT design and production advantages;

- the United States International Trade Commission (ITC) submitted in January 12, 2015 in response to the Cree suit for Feit Electric and Company agreed to Asian suppliers infodisc (Unity Opto Technology Co., Ltd) to investigate unfair trade practices.

Business outlook:

In the fourth quarter of fiscal year 2015 (as of June 28, 2015), $420 million to $440 million revenue target to achieve Cree Inc. plan, GAAP (GAAP) gross profit target in 31.3%+/-, non GAAP gross profit target (non-GAAP) in 32.0%+/-. The U.S. general accounting standards (GAAP) gross profit target includes a stock compensation expense of approximately $3 million 300 thousand, while the non GAAP (non-GAAP) target does not include. Operating expenses increased $5 million in the third quarter. 2015 fiscal year fourth quarter tax rate is expected at 9.0%+/-. U.S. GAAP (GAAP) net income target of $4 million to $9 million, or diluted earnings per share of $0.04 to $0.08. Non US GAAP (non-GAAP) net income target of $26 million to $31 million, or diluted earnings per share of $0.24 to $0.28. U.S. GAAP (GAAP) and non GAAP (non-GAAP) diluted net income per share target is based on the estimated 108 million 500 thousand diluted weighted average shares. Non GAAP (non-GAAP) target income does not include the acquisition of intangible assets amortization costs, Luanda investment fair value changes, stock compensation expense and asset retirement costs ($0.20 per diluted share).

Quarterly conference call:

Cree Inc. EDT on April 21, 2015 at 5 pm held a conference call, prospect of the fiscal year 2015 performance in the third quarter results and fourth quarter results for fiscal year 2015, including the important factors related to performance goals and ideas. The conference call will be broadcast via the Internet to the public in real time. Welcome to log on Cree Inc. related web page investor.cree.com/events.cfm, learn about the webcast details. For more information on the financial statements included in this press release, including non GAAP (non-GAAP) accounts, please refer to the Cree Inc. page investor.cree.com/results.cfm.

Non US GAAP (Non-GAAP) Finance