SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 3, 2000
CREE, INC.
(Exact name of registrant as specified in its charter)
North Carolina 34-21154 56-1572719
(State or other (Commission File No.) I.R.S. Employer
jurisdiction Identification Number
of incorporation)
4600 Silicon Drive, Durham, North Carolina 27703
(Address of principal executive offices)
(919) 313-5300
(Registrant's telephone number, including area code)
CREE RESEARCH, INC.
(Former name or former address, if changed since last report)
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Item 5. Other Events.
On January 3, 2000, Cree, Inc. (the "Company") issued a press release
regarding its financial results for the period ended December 26, 1999. A copy
of the press release is attached hereto as Exhibit 99.01 and incorporated by
reference herein. Separately, the Company announced that its name changed from
"Cree Research, Inc." to "Cree, Inc." effective January 1, 2000.
Item 7.
(c) Exhibits
Exhibit No. Description of Exhibit
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99.01 Press release dated January 3, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CREE, INC.
By: /s/ Cynthia B. Merrell
----------------------------------------
Dated: January 3, 2000 Cynthia B. Merrell
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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99.01 Press release dated January 3, 2000
FOR IMMEDIATE RELEASE NEWS RELEASE
Contact: Fran Barsky
Investor Relations Manager
Cree, Inc.
(T) 919-313-5397
(F) 919-313-5452
CREE REPORTS RECORD SECOND QUARTER RESULTS
Earnings Per Share Rises 80 Percent
Gross Margin Increases to 53 Percent
Durham, NC, January 3, 2000 - Cree, Inc. (Nasdaq: CREE), reported today record
second quarter fiscal year 2000 revenue of $23,930,000, a 19 percent increase,
sequentially, and a 70 percent increase over the $14,038,000 reported in the
year ago period. Earnings per share rose 80 percent to $0.18, per diluted share,
over the $0.10, per diluted share, reported in the comparable period in the
prior year (as adjusted for the company's 2-for-1 stock split in July 1999). Net
income increased 103 percent to $5,784,000 compared to $2,851,000 in the year
ago period. Product revenue grew 73 percent on a year-over-year basis, and 21
percent, sequentially. The high brightness light emitting diode (LED) devices
accounted for 71 percent of LED sales during the second fiscal quarter. Gross
margins increased to 53 percent from the 47 percent reported for the first
quarter of fiscal year 2000.
For the six-month period, the company reported record revenue of $43,977,000
compared to $26,317,000, an increase of 67 percent over the comparable period in
the prior year. Net income rose 100 percent to $10,421,000, or $0.33 per diluted
share, and compares with net income of $5,217,000, or $0.19 per diluted share,
for the corresponding period. Product revenue increased 72 percent for the
six-month period.
"We continue to achieve strong sales and earnings growth that reflect the
strength and vitality of our business," said Neal Hunter, Chairman and Chief
Executive Officer. "Of particular note is the improvement we've experienced in
our gross margin, and the level of market acceptance for our high brightness
LEDs, as evidenced by the 60 percent sequential increase in sales of our high
brightness LED product."
-- more --
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The company today also announced a proposed offering of 2.6 million shares of
common stock. Second quarter results are being reported earlier than usual to
coincide with the proposed offering.
North Carolina-based Cree, Inc. is the world leader in developing and
manufacturing semiconductor materials and electronic devices made from silicon
carbide. The company uses proprietary technology to make enabling compound
semiconductors such as blue and green LEDs, SiC crystals used in the production
of unique gemstones and SiC wafers that are sold for device production and
research. Cree has new product initiatives based on its expertise in SiC,
including radio frequency and microwave transistors for use in wireless
infrastructure applications and radar, blue laser diodes for optical storage
applications and high power devices for power conditioning and switching. For
more information on Cree, visit http://www.cree.com.
This press release contains forward-looking statements involving risks and
uncertainties that may cause actual results to differ materially from those
indicated. Actual results could differ due to a number of factors, such as the
risk our customers may fail to honor contractual purchase commitments; the risk
we may be unable to increase capacity quickly enough to meet delivery
obligations; the risk that demand for our products may be less than we expect;
the risk of price reductions or other actions by competitors that may impair
sales; uncertainty whether we can continue to meet our margin goals; the risk of
manufacturing delays or increased costs due to variability in the complex
processes used to manufacture our products; the risk posed by concentration of
our business among a few customers; uncertainty whether our intellectual
property rights will provide adequate protection and the risk of intellectual
property claims asserted against us by others; and other factors discussed in
our filings with the Securities and Exchange Commission, including our report on
Form 10-K for the year ended June 27, 1999 and our registration statement on
Form S-3 filed today.
-- Tables Follow --
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FINANCIAL STATEMENT HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended Six Months Ended
12/26/99 12/27/98 12/26/99 12/27/98
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Product Revenue $ 22,136 $ 12,805 $ 40,392 $ 23,525
Contract Revenue 1,794 1,233 3,585 2,792
Total Revenue 23,930 14,038 43,977 26,317
Cost of Product Sales 10,075 6,377 19,572 11,792
Cost of Contract Sales 1,122 1,045 2,258 2,252
Total Cost of Sales 11,197 7,422 21,830 14,044
Gross Profit 12,733 6,616 22,147 12,273
Operating Expenses:
Research & Development 1,911 1,121 2,843 1,927
Sales, General &
Administrative 2,639 1,450 4,565 2,668
Other (8) 298 92 567
Income from Operations 8,191 3,747 14,647 7,111
Net Interest Income 573 20 1,142 135
Income Before Income Taxes 8,764 3,767 15,789 7,246
Income Taxes 2,980 916 5,368 2,029
Net Income $ 5,784 $ 2,851 $10,421 $ 5,217
Net Income Per Share
(Diluted) $0.18 $0.10 * $0.33 $0.19 *
Weighted Average Shares of
Common Stock Outstanding
(Diluted) 31,594 27,668* 31,404 27,082*
Balance Sheet Highlights
12/26/99 6/27/99
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Current Assets $ 67,710 $ 69,767
Total Assets 160,912 144,218
Current Liabilities 14,050 9,545
Long Term Debt - -
Shareholders' Equity $142,182 $130,022
* Reflects the impact of a two-for-one split of common stock effective July 26,
1999.
