Cree, Inc. (CREE) swung to a net loss for the quarter ended Mar. 26, 2017. The company has made a net loss of $99.01 million in the quarter, against a net profit of $0.15 million in the last year period. On the other hand, adjusted net income for the quarter stood at $0.75 million, or $0.01 a share compared with $17.20 million or $0.17 a share, a year ago.
Revenue during the quarter dropped 6.93 percent to $341.50 million from $366.92 million in the previous year period. Gross margin for the quarter contracted 451 basis points over the previous year period to 25.20 percent. Operating margin for the quarter stood at negative 5.83 percent as compared to a negative 1.24 percent for the previous year period.
Operating loss for the quarter was $19.90 million, compared with an operating loss of $4.54 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $5.63 million compared to operating profit of $16.78 million in prior year period.
"Q3 non-GAAP results were within our target range," stated Chuck Swoboda, Cree chairman and chief executive officer. "Our Wolfspeed and LED Products businesses performed at or above their targets for the quarter, while Lighting Products came in a little below plan due to softer market conditions and the lingering effects of the third party product driver issue that we mentioned in Q2. We believe the factors that impacted our lighting business are temporary and we target improvement in all three businesses in Q4."
For the fourth-quarter 2017, Cree forecasts revenue to be in the range of $340 million to $360 million. The company projects net loss to be in the range of $16 million to $22 million. The company expects diluted loss per share to be in the range of $0.16 to $0.23.
Working capital declines Cree, Inc. has witnessed a decline in the working capital over the last year. It stood at $891.97 million as at Mar. 26, 2017, down 8.56 percent or $83.47 million from $975.44 million on Mar. 27, 2016. Current ratio was at 5.30 as on Mar. 26, 2017, down from 5.47 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 102 days for the last year period. Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 52 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding was almost stable at 47 days for the quarter, when compared with the previous year period.
Debt comes down significantly Cree, Inc. has recorded a decline in total debt over the last one year. It stood at $153 million as on Mar. 26, 2017, down 32 percent or $72 million from $225 million on Mar. 27, 2016. Cree has recorded a decline in long-term debt over the last one year. It stood at $153 million as on Mar. 26, 2017, down 32 percent or $72 million from $225 million on Mar. 27, 2016. Total debt was 5.80 percent of total assets as on Mar. 26, 2017, compared with 8 percent on Mar. 27, 2016. Debt to equity ratio was at 0.07 as on Mar. 26, 2017, down from 0.10 as on Mar. 27, 2016. 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: [email protected]
