Cree announced preliminary results for its third quarter of fiscal 2020 ended March 29, 2020 and provided a business update in light of the COVID-19 pandemic, which has had a greater impact than originally anticipated when the company provided the third quarter outlook on January 29, 2020.

Revenue for the third quarter of fiscal 2020 is expected to be approximately US$216 million, compared to US$274 million in the third quarter of fiscal 2019 and US$240 million in the second quarter of fiscal 2020. The Company expects GAAP net loss for the third quarter of fiscal 2020 to be US$63 million to US$65 million. On a non-GAAP basis, net loss is expected to be in a range of US$15 million to US$17 million. These preliminary financial results are subject to completion of the company’s customary quarterly closing and review procedures.

Cree will provide a more detailed review of its business when it reports its third quarter fiscal 2020 results on April 29, 2020.

The company noted that its manufacturing facilities in the U.S. are operating as essential businesses with strict measures applied to balance employee safety with meeting the needs of th customers.

Gregg Lowe, CEO of Cree, said, “Our strong balance sheet allows us to navigate the current environment while maintaining capital expenditure plans, including the construction of our new facilities in New York and North Carolina, to support future growth. In addition, in light of the current operating environment, we'll continue to be diligent in the management of our liquidity position to meet the needs of the business. While near-term market conditions are fluid, we believe the long-term opportunities for silicon carbide remain significant and we are committed to expanding our capacity to meet the anticipated long-term demand.”