EVP and CFO Mike McDevitt to Retire Upon the
Appointment of His Successor
Company Reaffirms Guidance for the Fourth
Fiscal Quarter of 2018
Cree, Inc. (Nasdaq: CREE), a technology market leader, today
announced that Executive Vice President and Chief Financial Officer
(CFO) Mike McDevitt will retire from his executive positions
following a transition period. Mr. McDevitt intends to stay on
until a successor is appointed, and thereafter will remain
available as a consultant to the Company to ensure a seamless
transition of leadership responsibilities.
Since joining Cree in 2002, Mr. McDevitt has held numerous
executive financial positions with the Company, helping grow Cree
from less than $200 million to approximately $1.5 billion in annual
revenue, with approximately 6,900 employees worldwide. Mr. McDevitt
has served as the Company’s CFO since May 2012.
Gregg Lowe, CEO, said, "Mike has made significant contributions
to the continued success of the Company during his role as CFO, and
we appreciate his dedication to helping us solidify and introduce
the new business strategy. Now that we have made our pivot, we are
gaining traction in the market with the new strategy and believe
that we have collectively positioned the Company to support our
growth plans and achieve a successful future.”
Mr. McDevitt added, “I am confident that it is the appropriate
time to begin this CFO transition as the team continues executing
the new strategic direction going forward. It has been a privilege
working with Cree’s many talented employees and our Board for the
last 16 years, first driving the adoption of LEDs, then LED
Lighting and more recently our Power and RF products. The Company
is on healthy financial footing to enable its future growth. I
appreciate the opportunity that Gregg and Chuck gave me to serve as
their CFO. I look forward to working with Gregg and the team to
find our next CFO and to ensure a smooth transition.”
The Company today also reaffirmed its previously announced
business outlook for the fourth quarter of fiscal 2018 ending June
24, 2018. As announced on April 24, 2018, for the fourth quarter
Cree targets:
- Revenue in a range of $390 million to
$410 million.
- GAAP net loss of $34 million to $38
million, or a $0.34 to $0.38 loss per diluted share.2
- Non-GAAP net income in a range of $5
million to $9 million, or $0.05 to $0.09 per diluted share.1,2
1 Targeted non-GAAP income excludes $43 million, net of tax, of
expenses related to stock-based compensation expense, the
amortization or impairment of acquisition-related intangibles, the
inventory basis step-up from the previously reported Infineon RF
Power acquisition, transition and integration costs associated with
the Infineon RF Power acquisition and charges associated with the
restructuring of our Lighting Products business.
2 The GAAP and non-GAAP targets do not include any estimated
change in the fair value of Cree's Lextar investment, any potential
reserve for ZTE specific inventory or impact from a potential
Chinese LED tariffs.
About Cree, Inc.
Cree is an innovator of WolfspeedTM power and radio frequency
(RF) semiconductors, lighting class LEDs and lighting products.
Cree’s Wolfspeed product families include SiC materials,
power-switching devices and RF devices targeted for applications
such as electric vehicles, fast charging, inverters, power
supplies, telecom and military and aerospace. Cree’s LED product
families include blue and green LED chips, high-brightness LEDs and
lighting-class power LEDs targeted for indoor and outdoor lighting,
video displays, transportation and electronic signs and signals.
Cree’s LED lighting systems and lamps serve indoor and outdoor
applications.
For additional product and company information, please refer to
www.cree.com.
Non-GAAP Financial Measures:
This press release includes the Company's business outlook for
its fiscal fourth quarter on both a GAAP and a non-GAAP basis. The
GAAP targets include certain costs, charges and expenses which are
excluded from our non-GAAP targets. By publishing these non-GAAP
targets, management intends to provide investors with additional
information to further analyze the Company's performance, core
results and underlying trends. Cree's management evaluates results
and makes operating decisions using both GAAP and non-GAAP measures
included in this press release. Non-GAAP results or targets are not
prepared in accordance with GAAP and non-GAAP information should be
considered a supplement to, and not a substitute for, financial
statements or targets prepared in accordance with GAAP. Please see
our Press Release dated April 24, 2018 for a reconciliation of our
GAAP to non-GAAP targets.
Forward Looking Statements:
This press release contains forward-looking statements involving
risks and uncertainties, both known and unknown, that may cause
actual results to differ materially from those indicated in the
forward-looking statements. Actual results, including with respect
to our targets and prospects or our announced CFO transition plan,
could differ materially due to a number of factors, including risks
inherent in a CFO transition, including timing of retaining a new
CFO and transition and integration risks; and with respect to our
targets, the risk that we may not obtain sufficient orders to
achieve our targeted revenues; price competition in key markets;
the risk that we or our channel partners are not able to develop
and expand customer bases and accurately anticipate demand from end
customers, which can result in increased inventory and reduced
orders as we experience wide fluctuations in supply and demand; the
potential impact from proposed tariffs by the United States on
Chinese goods, and any corresponding Chinese tariffs in response,
which may negatively impact demand for our products; the risk that
our commercial Lighting Products results will continue to suffer if
new issues arise regarding issues related to product quality for
this business; the risk that we may experience production
difficulties that preclude us from shipping sufficient quantities
to meet customer orders or that result in higher production costs
and lower margins; our ability to lower costs; the risk that our
results will suffer if we are unable to balance fluctuations in
customer demand and capacity, including bringing on additional
capacity on a timely basis to meet customer demand; the risk that
longer manufacturing lead times may cause customers to fulfill
their orders with a competitor's products instead; product mix;
risks associated with the ramp-up of production of our new
products, and our entry into new business channels different from
those in which we have historically operated; the risk that we are
not able to enter into acceptable contractual arrangements with the
significant customers of the recently acquired Infineon RF Power
business or otherwise not fully realize anticipated benefits of the
transaction; the risk that customers do not maintain their
favorable perception of our brand and products, resulting in lower
demand for our products; the risk that our products fail to perform
or fail to meet customer requirements or expectations, resulting in
significant additional costs, including costs associated with
warranty returns or the potential recall of our products; the risk
that retail customers may alter promotional pricing, increase
promotion of a competitor's products over our products or reduce
their inventory levels, all of which could negatively affect
product demand; the risk that our investments may experience
periods of significant stock price volatility causing us to
recognize fair value losses on our investment; the risk posed by
managing an increasingly complex supply chain that has the ability
to supply a sufficient quantity of raw materials, subsystems and
finished products with the required specifications and quality;
ongoing uncertainty in global economic conditions, infrastructure
development or customer demand that could negatively affect product
demand, collectability of receivables and other related matters as
consumers and businesses may defer purchases or payments, or
default on payments; the risk we may be required to record a
significant charge to earnings if our goodwill or amortizable
assets become impaired; risks relating to confidential information
theft or misuse, including through cyber-attacks or cyber
intrusion; our ability to complete development and
commercialization of products under development, such as our
pipeline of Wolfspeed products, improved LED chips, LED components,
and LED lighting products; risks resulting from the concentration
of our business among few customers, including the risk that
customers may reduce or cancel orders or fail to honor purchase
commitments; risks related to our multi-year warranty periods for
LED lighting products; risks associated with acquisitions,
divestitures, joint ventures or investments generally; the rapid
development of new technology and competing products that may
impair demand or render our products obsolete; the potential lack
of customer acceptance for our products; risks associated with
ongoing litigation; and other factors discussed in our filings with
the Securities and Exchange Commission (SEC), including our report
on Form 10-K for the fiscal year ended June 25, 2017, and
subsequent reports filed with the SEC. These forward-looking
statements represent Cree's judgment as of the date of this
release. Except as required under the U.S. federal securities laws
and the rules and regulations of the SEC, Cree disclaims any intent
or obligation to update any forward-looking statements after the
date of this release, whether as a result of new information,
future events, developments, changes in assumptions or
otherwise.
Cree® is a registered trademark and WolfspeedTM is a trademark
of Cree, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20180607006137/en/
Cree, Inc.Raiford Garrabrant, 919-407-7895Director, Investor
Relationsinvestorrelations@cree.comorClaire Simmons,
919-407-7844Corporate Marketingmedia@cree.com
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