(Image: Cree)

Cree yesterday updated financial results for its second quarter of fiscal 2018, ended December 24, 2017.

Revenue for the second quarter of fiscal 2018 was $368 million, which represents an 8% decrease compared to revenue of $401 million for the second quarter of fiscal 2017 and a 2% increase compared to the first quarter of fiscal 2018. GAAP net income for the second quarter of fiscal 2018 was $14 million, or $0.14 per diluted share. This compares to GAAP net income of $6 million, or $0.06 per diluted share, for the second quarter of fiscal 2017. On a non-GAAP basis, net loss for the second quarter of fiscal 2018 was $1 million, or $0.01 per diluted share, compared to non-GAAP net income for the second quarter of fiscal 2017 of $30 million, or $0.30 per diluted share.

“The second quarter results were within our targeted range, and we have made significant progress in our strategic assessment process,” stated Gregg Lowe, Cree CEO. “Over the last few months, I’ve traveled extensively to meet with customers, partners and employees, and I come away from that convinced there is meaningful upside for each of our businesses.” 

Business Outlook:

For its third quarter of fiscal 2018 ending March 25, 2018, Cree targets revenue in a range of $335 million to $355 million. GAAP net loss is targeted at $20 million to $26 million, or $0.20 to $0.26 per diluted share. Non-GAAP net income is targeted to be in a range of $3 million loss to a $3 million profit, or $0.03 loss per diluted share to $0.03 earnings per diluted share. Targeted non-GAAP income excludes $23 million of expenses, net of tax, related to stock-based compensation expense and the amortization or impairment of acquisition-related intangibles. The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree’s Lextar investment.