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Cree, Inc. (CREE) has reported 53.73 percent plunge in profit for the quarter ended Dec. 25, 2016. The company has earned $6.22 million, or $0.06 a share in the quarter, compared with $13.44 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.94 million, or $0.30 a share compared with $28.49 million or $0.28 a share, a year ago. Revenue during the quarter dropped 11.88 percent to $346.96 million from $393.76 million in the previous year period. Gross margin for the quarter expanded 374 basis points over the previous year period to 31.96 percent. Total expenses were 97.50 percent of quarterly revenues, down from 99.18 percent for the same period last year. This has led to an improvement of 169 basis points in operating margin to 2.50 percent.
Operating income for the quarter was $8.68 million, compared with $3.21 million in the previous year period.
However, the adjusted operating income for the quarter stood at $25.29 million compared to $25.03 million in the prior year period. At the same time, adjusted operating margin improved 93 basis points in the quarter to 7.29 percent from 6.36 percent in the last year period.
"We delivered very good results in fiscal Q2, as revenue and non-GAAP earnings were significantly above our targeted range due to the settlement of our patent infringement and false advertising lawsuit with Feit Electric," stated Chuck Swoboda, Cree chairman and chief executive officer. "The fundamentals in our business have improved over the last several quarters, and we remain focused on building a larger and more valuable LED lighting company by bringing better light to our customers."
For the third-quarter, Cree, Inc. forecasts revenue to be in the range of $340 million to $370 million. Cree, Inc. expects adjusted net income to be in the range of $10 million to $18 million for the third-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.10 to $0.18 for the third-quarter.
Working capital increases sharplyCree, Inc. has recorded an increase in the working capital over the last year. It stood at $1,285.05 million as at Dec. 25, 2016, up 36.77 percent or $345.51 million from $939.54 million on Dec. 27, 2015. Current ratio was at 6.99 as on Dec. 25, 2016, up from 4.99 on Dec. 27, 2015. Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 89 days for the last year period. Days sales outstanding went down to 43 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 48 for the same period last year.
Debt comes down
Cree, Inc. has recorded a decline in total debt over the last one year. It stood at $170 million as on Dec. 25, 2016, down 17.07 percent or $35 million from $205 million on Dec. 27, 2015. Cree has recorded a decline in long-term debt over the last one year. It stood at $170 million as on Dec. 25, 2016, down 17.07 percent or $35 million from $205 million on Dec. 27, 2015. Total debt was 6.28 percent of total assets as on Dec. 25, 2016, compared with 7.27 percent on Dec. 27, 2015. Debt to equity ratio was at 0.07 as on Dec. 25, 2016, down from 0.09 as on Dec. 27, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
