COMPANY PRESS RELEASE: Cree has reported second quarter fiscal year 2002 revenue of $41,092,000 compared to the $41,494,000 reported in the comparable quarter in the year ago period. Gross margins for the second quarter increased to 47 percent of revenue while product margins rose to 50 percent of product revenue.
Adjusted net income for the second quarter was $5,836,000, or $0.08 per diluted share, excluding intangible amortization and two one-time charges. During the quarter ended December 23, 2001, Cree took two charges consisting of an $18,085,000 write off of non-performing fixed assets due to technology changes, and a $12,352,000 reserve taken against the company’s investments in privately held companies. Reported, or generally accepted accounting principles (GAAP), net loss for the period was $17,376,000, or a loss of $0.24 per diluted share.
For the six-month period ended December 23, 2001, Cree reported revenue of $84,258,000, an increase of 6 percent over the $79,136,000 reported for the comparable period in fiscal year 2001. Adjusted net income for the six-month period, excluding intangible amortization and the two one-time charges, was $14,502,000, or $0.19 per diluted share, compared to $26,515,000, or $0.35 per diluted share, in the year ago period. Reported, or GAAP, net loss for the six-month period was $10,915,000, or a loss of $0.15 per diluted share.
Chuck Swoboda, President and Chief Executive Officer of Cree stated, We anticipated that this quarter would be challenging and are very excited that we have been able to deliver strong operating earnings and increase gross margins. We have received strong customer feedback from our new product introductions, and we believe these new products will be incorporated into additional new applications going forward which should provide leverage for increasing revenue growth.