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Cree misses by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus (numbers excluding sale of WolfSpeed)
- Reports Q1 (Sep) earnings of $0.09 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.10; revenues fell 15.8% year/year to $321.3 mln vs the $322.77 mln Capital IQ Consensus.
- Co issues downside guidance for Q2, sees EPS of $0.04-0.10 vs. $0.13 Capital IQ Consensus Estimate; sees Q2 revs of $310-330 mln vs. $336.73 mln Capital IQ Consensus Estimate.
- Gross margin from continuing operations increased from 26.4% in Q4 of fiscal 2016 to 26.9% on a GAAP basis and decreased from 28.2% to 27.7% on a non-GAAP basis.
- Wolfspeed Sale Update: As previously announced, Cree reached an agreement to sell the Wolfspeed business to Infineon Technologies (IFNNY). The parties are continuing to work together to obtain the customarily required regulatory approvals in various jurisdictions, including foreign and domestic antitrust approvals, as well as CFIUS approval. The parties received a second request for additional information from the United States Federal Trade Commission in late September. Cree and Infineon continue to target closing the transaction around the end of calendar 2016.