Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Cree, Inc. (NASDAQ:CREE)

August 18, 2011 8:00 am ET

Executives

John Kurtzweil - Chief Financial Officer, Chief Accounting Officer, Executive Vice President of Finance and Treasurer

Raiford Garrabrant - Director of Investor Relations

Charles Swoboda - Chairman of the Board, Chief Executive Officer and President

Analysts

Carter Shoop - KeyBanc Capital Markets Inc.

Jonathan Dorsheimer - Canaccord Genuity

Benjamin Schuman - Pacific Crest Securities, Inc.

Andrew Huang - Sterne Agee & Leach Inc.

Stephen Chin - UBS Investment Bank

Min Xu - Jefferies & Company, Inc.

Hans Mosesmann - Raymond James & Associates, Inc.

Olga Levinzon - Barclays Capital

Shawn Lockman - Piper Jaffray Companies

Joshua Paradise - Morgan Stanley

Alex Gauna - JMP Securities LLC

Dale Pfau - Cantor Fitzgerald & Co.

Satya Kumar - Crédit Suisse AG

Avinash Kant - D.A. Davidson & Co.

Jesse Pichel - Jefferies & Company, Inc.

Steven Milunovich - BofA Merrill Lynch

Harsh Kumar - Morgan Keegan & Company, Inc.

Christopher Blansett - JP Morgan Chase & Co

Operator

Good morning. My name is Tracy, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Cree Inc. conference call to discuss the acquisition of Ruud Lighting. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded today, Thursday, August 18, 2011. Thank you.

I would now like to introduce Raiford Garrabrant, Director of Investor Relations of Cree Inc. Mr. Garrabrant, you may begin your conference.

Raiford Garrabrant

Thank you, Tracy, and good morning. Welcome to Cree's conference call and webcast to discuss the acquisition of Ruud Lighting. By now, you should have all receive a copy of the press release. If you did not receive a copy, please call our office at (919) 287-7895, and we will be pleased to assist you or you can find it on our website under the tab entitled Press Room.

Today, Chuck Swoboda, our Chairman and CEO; and John Kurtzweil, Cree CFO, will discuss the strategic rationale and financial details of the acquisition. For those of you listening in via the phone, we encourage you to also log on to the webcast at www.cree.com under the Investor Relations tab in order to view the presentation that accompanies our prepared remarks.

Please note that we will be discussing both GAAP and non-GAAP financial measures in our remarks during today's call, which are reconciled in our press release posted at www.cree.com under the tab titled Press Room. Today's presentation includes forward-looking statements about our business outlook and we may make other forward-looking statements during the call. These may include comments concerning trends in revenue, gross margin, operating expenses, tax rate and earnings, plans for new products and other forward-looking statements indicated by words like anticipate, expect, target and estimate. Such forward-looking statements are subject to numerous risks and uncertainties.

Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially. Also, we'd like to note that we will be limiting our comments regarding Cree's acquisition of Ruud Lighting to a discussion of the information included in our press release and our prepared remarks. We will not be able to answer any questions that would involve providing additional financial information about the quarter or the acquisition beyond the comments made in the prepared remarks.

This call is being recorded on behalf of the company. The presentations and the recording of this call are copyrighted property of the company and no other recording, reproduction or transcription is permitted unless authorized by the company in writing.

Consistent with our previous conference calls, we are requesting that only sell-side analysts ask questions during the Q&A session. Also, since we plan to complete the call in the allotted time of one hour, we ask that analysts limit themselves to one question and one follow-up.

We recognize that other investors may have additional questions, and we welcome you to contact us after the call by email or phone at (919) 287-7895. We're also webcasting our conference call, and a replay will be available on our website under the Investor Relations tab through September 1, 2011.

Now I'd like to turn the call over to Chuck.

Charles Swoboda

Thank you, Raiford. I'm delighted to have the opportunity to provide an overview of the next step in our strategy to lead the LED Lighting Revolution, which is the acquisition of Ruud Lighting. Ruud Lighting, with their well-known BetaLED brand, is one of the pioneers in LED lighting and a market-leading innovator for outdoor lighting applications.

As a reminder, this presentation and my comments include forward-looking statements about our business outlook, future results and other items. Please be aware of the risks and uncertainties that affect our business and this transaction, which are included in the press release announcing this transaction, as well as our most recent Annual Report filed with the SEC.

Before I get into specifics of the acquisition, I want to remind everyone of Cree's company mission, which is to lead the LED Lighting Revolution to obsolete old energy-wasting lighting. I believe you will see that the combination of Cree and Ruud Lighting aligns completely with our mission and puts Cree in an even better position to lead the market and drive LED adoption.

I'd like to give you an overview of the transaction. Cree is acquiring Ruud Lighting for a consideration of $372 million in cash, 6.1 million shares of Cree stock with a value of $211 million at yesterday's closing price and the payoff of $85 million in Ruud Lighting debt. The deal has been structured for tax purposes as a deemed asset purchase, which provides an expected tax benefit to Cree, with an estimated net present value of $143 million. This results in a net cost to Cree of $525 million. This transaction is targeted to be neutral to our non-GAAP earnings per share in fiscal Q1 and accretive for fiscal 2012.

There are numerous synergies that we are targeting from the combination of Cree and Ruud: create the market leader for both indoor and outdoor LED lighting; accelerate adoption of LED lighting, which expands the market for Cree's LED component products; combine channels to increase access to the lighting market; and enable operating leverage from increased scale and operations; and leverage R&D across products and applications.

While these are important, the most important synergies go beyond business metrics. One of the keys to our success at Cree in past transactions is that our first criteria was synergy in terms of people and culture. We have had the chance to work closely with the Ruud team over the last 6 years, and I think the combined results demonstrate the similarities of our cultures and what we can accomplish working together.

Our goal is for the 2 teams to now work together as one lighting team, leveraging the strengths from both as we continue to invest in driving the market In this spirit, Al Ruud, who is Co-Founder, Chairman and CEO of Ruud Lighting, will be joining the Cree board. Chris Ruud will continue on as President of Ruud Lighting, which will now be a subsidiary of Cree and part of our overall lighting business. We believe the net result of this combination is the leading innovator of LED lighting systems.

Cree and Ruud have a great track record of innovation in setting new standards in LED lighting. Cree introduced the first lighting-class LED components in 2006; released the first commercially viable LED downlights; launched the LED Lighting Revolution campaign; and more recently, launched our game-changing CR troffer product line; and demonstrated a prototype lamp that produces more than 150 lumens per watt.

Ruud has had an equally impressive track record of innovation, including the first viable LED streetlight, the second generation LEDWay products that enabled the first major retrofit projects, like the city of Los Angeles, and the 304 Series luminaires, which were the first 100 lumen per watt fixtures for parking and canopy applications.

As I mentioned in my investor comments last week, we have only scratched the surface in what is possible at the lighting systems level. By combining the companies, we believe we can accelerate the adoption of LED lighting by providing first-to-market leadership, best-in-class performance, quality and reliability, unmatched technology innovation and LED products that can truly compete with traditional lighting and deliver a better payback.

The acquisition is an extension of our current lighting strategy. We are using LED systems to lead the market and set new standards for both indoor and outdoor applications to accelerate LED adoption through better payback, which drives overall market growth. We continue to develop market-leading LED components that enable our customers to deliver higher performance and lower cost lighting systems that went into market against conventional lighting technology. And we continue to develop the core LED chip and materials technologies to enable innovation at both the components and systems level.

Over the last 5 years, Ruud Lighting has transformed into a true LED company and established their BetaLED product line as a market leader in LED outdoor lighting. The company has grown to over $200 million, with more than 60% of their sales in LED-based products and more than 4,000 installations in over 1,000 cities. As one of the true industry innovators, Ruud has developed patented NanoOptic technology to deliver industry-leading efficiency, proprietary thermal management for longer life times and a strong patent portfolio. They have established a solid channel for the BetaLED business and also has strong direct-to-customer and direct-to-contractor channels with their Ruud Lighting and E-conolight brands.

In terms of driving LED adoption, there is probably no better example than the city of Los Angeles project. The BetaLED LEDWay product helped enable the largest LED lighting retrofit undertaken to date. The city is replacing 140,000 streetlights with LED streetlights and estimates that they will save $10 million per year with a payback of 6 years or less and 55% energy savings. The energy savings and payback are better than the initial targets for the project due in part to the ongoing innovation and improved performance of the BetaLED products and the Cree excellent LEDs inside. Our goal of combining the 2 companies is to further accelerate the rate of innovation.

It is important to keep in mind that although we have taken off, we have had a lot of success over the last several years getting the LED Lighting Revolution started, overall adoption is still quite low and there remains a tremendous market opportunity in front of us. There are numerous barriers to adoption, as with any disruptive technology, and innovation is the key to driving the market forward. Our strategy is not to wait for the market to happen but to make it happen ourselves.

By investing further in vertical integration, we believe we are better positioned to overcome some of the challenges to drive LED adoption. Today, expertise is fragmented and quality and performance are inconsistent. Cree is now positioned to set the standards for both indoor and outdoor LED systems.

Today, there's a significant lag time between components innovation and systems implementation. Cree will now have tighter integration between components and systems to accelerate product development for outdoor applications.

Today, LED technology is causing significant change to the traditional lighting sales process. Cree will now have the product breadth and channels to better sell against traditional products.

Today, LED products typically have a higher upfront cost. Cree will now able to gain scale benefits to reduce cost, increase the value and, therefore, improve the payback and expand the market for both systems and components.

When Cree first entered the LED lighting systems business with our acquisition of LLF in 2008, there were questions raised as to how this would benefit our LED components business. 3.5 years later, we have demonstrated that our integrated approach to LED systems drives faster innovation; leads to application optimized LED components; and enables better payback on lighting versus conventional technology for both our customers, systems and our own.

I am sometimes asked if this approach leads to conflict with our LED component customers. The answer is, in the short term, there are concerns raised by some customers, but longer term, we believe this is how we grow the market for everyone. The reality of the lighting industry is that integrated system and component companies are the norm.

Look at the market today. Philips is the largest lighting systems company in the world and they sell LED and other lighting components to their systems competitors. OSRAM sells systems and components. Zumtobel sells systems and components. Even several of the Asian players are now selling both components and systems. With LED technology, which changes many of the basic parameters around the core value proposition for LED lighting, the integration between systems and components is even more important to drive innovation and enable adoption. In the end, we believe the customers will buy their components based on which products work best in their systems and make their products the most competitive in the market.

When you look at the financial profile and the mix of business for Cree and Ruud, you realize we are combining 2 highly complementary businesses. The result is a company with almost $1.2 billion in revenue, a track record of growth and a balance between LED systems and components, as well as across geographies. The combination of the 2 companies offers a number of compelling financial benefits.

First, we believe the acquisition will be accretive to non-GAAP earnings per share for fiscal 2012. We target revenue synergies to accelerate revenue growth through increased share by leveraging Cree's scale and credibility in the market, cross-selling opportunities and increase channel effectiveness from the combination of indoor and outdoor products and an expanded market opportunity for LED components by accelerating the market adoption of LED lighting.

We target cost synergies to help drive lighting systems gross margins into a similar range as Cree's overall margins over time by leveraging Ruud's manufacturing capabilities to produce some of Cree's indoor lighting products.

We target OpEx synergies in the lighting business to support Cree's overall operating model, while increasing operating income. We believe we can leverage R&D, sales and marketing across lighting product lines and we can leverage integrated R&D between systems and components and across both indoor and outdoor applications.

We have successfully executed this approach in the pass with our acquisition of LED Lighting Fixtures in 2008. Since 2008, we increased LLF revenues from $5 million to more than $80 million, gross margins increased significantly and we were able to leverage the systems expertise we gained into a range of application optimized XLamp component products including EasyWhite LEDs, MPL, high CRI and TrueWhite modules.

In summary, it is clear that systems drive adoption and we need to continue to lead the market to drive the LED Lighting Revolution, and our expanded systems expertise should allow us to further enable our LED components business. Cree plus Ruud accelerates our lighting strategy with market-leading products, channels, technology and scale. We are now better positioned to set the standards, build brand preference and increase the overall market opportunity for LED lighting.

I'll now turn the call over to John Kurtzweil to review our updated targets for fiscal Q1.

John Kurtzweil

Thank you, Chuck. As a result of our acquisition of Ruud Lighting, we are revising our targets for the first quarter of fiscal 2012 on both a GAAP and non-GAAP basis, which is consistent with how management measures Cree's results internally. However, non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to and not a substitute for financial information prepared in accordance with GAAP.

As previously mentioned, the Ruud Lighting acquisition closed yesterday. We will be consolidating the results of Ruud Lighting from this point forward, which for the first fiscal quarter is about 40% of a full quarter's results. Overall, we target this transaction to be slightly accretive to the non-GAAP earnings for the fiscal year. On a GAAP basis, when you take into account incremental amortization of intangibles, incremental stock-based compensation and transaction costs, this transaction will be slightly dilutive for the fiscal year.

We now target our fiscal Q1 revenue to be in a range of $265 million to $275 million, which is an increase from our prior target range of $245 million to $255 million. This increase in revenue includes the incremental revenue from Ruud Lighting for the balance of the quarter and the reduced revenue from the elimination of sale of LED components to Ruud Lighting.

Please note that we plan to start providing a revenue breakdown between lighting revenue and LED revenue when we pour out our first quarter results in October.

Non-GAAP gross margins are targeted to be at the low end of our targeted range of 38% to 39%. This target factors in the incremental revenue from Ruud Lighting, which is slightly below the corporate average. Our overall company gross margin targets, which we outlined last week, have not changed. We remain focused on our goal to drive margins back into the low-40s in the short to mid-term, with the long-term goal to be in the mid-40s.

GAAP gross margin targets are approximately 130 basis points below our non-GAAP target and include approximately $2.1 million of stock-based compensation expense, which is the same as our prior target, plus a onetime acquisition-related expense of approximately $1.4 million related to the step-up value of the Ruud Lighting finished goods inventory, which will flow to COGS during the first quarter.

With the addition of Ruud Lighting, our overall non-GAAP operating expense targets for fiscal Q1 will now be as follows: R&D expense is targeted to increase by approximately $3 million sequentially in Q1, which is $1 million higher than our previous targets; selling expense is targeted to increase by approximately $5 million sequentially, which is $4 million higher than our previous targets; and G&A expense is targeted to be flat sequentially, which is approximately $2 million higher than our previous targets. These targets include both the normal operating costs, as well as some incrementally higher SG&A costs during the transition.

In addition to the targeted $7 million of incremental non-GAAP operating expenses, there will be an additional targeted GAAP operating expense increase of $6 million for a total of $13 million of higher operating expenses than our previous targets for the first fiscal quarter. Our GAAP operating expenditures include noncash stock-based compensation expense of $2.6 million in R&D, $8 million in SG&A, $5.9 million for amortization of acquired intangibles and $2.3 million of onetime acquisition-related expenses.

Net interest income and other is now targeted to be approximately $1.7 million, which is $0.5 million lower than our previous target of $2.2 million. This is related to the lower cash balance, post transaction. We now target our tax rate to be 21.5% for fiscal Q1 and 23.5% for the fiscal year 2012. This is an annual increase of 3.5 points from our previous target of 20% and is related to the majority of the incremental income being taxed at higher U.S. rates.

For the quarter, we now target diluted shares to be $112.9 million. This is $2.7 million higher than our previous target and reflects a prorated effect of dilution on the balance for Q1. Beginning in our fiscal second quarter, this transaction will add 6.1 million diluted shares.

Based on an estimated 112.9 million diluted shares outstanding, our GAAP EPS target is $0.08 to $0.11 per diluted share. On a non-GAAP basis, net income is targeted to be at the lower end of the previous range of $0.25 to $0.28 per diluted share. Our non-GAAP EPS target excludes amortization of acquired intangibles, noncash stock-based compensation and onetime acquisition-related expenses in the amount of $0.17 per diluted share.

Our cash balance is targeted to be approximately $630 million at the end of our fiscal first quarter, which takes into account the cash acquisition costs of this transaction. The balance sheet remains strong and debt-free.

Thank you. I will now turn the discussion back to Chuck.

Charles Swoboda

Thanks, John. We will now take analyst questions.

Question-and-Answer Session

Operator

[Operator Instructions] Your first question comes from Steve Milunovich with Merrill Lynch.

Steven Milunovich - BofA Merrill Lynch

Chuck, could you comment on a couple potential concerns, specifically, first, what this does to your business in terms of kicking off your customers? Are you assuming anything in terms of your component business in effect? And then second, are you emphasizing the systems business because you're increasingly concerned about the margins on the component side?

Charles Swoboda

Steve, yes. So I think from a component standpoint, I think, obviously, change is always going to have people ask themselves some questions. But the reality is we've been in the systems business for 3.5 years. So we've grown a nice LED lighting business with the former LLS subsidiary, which is now called Cree Lighting. And in effect, we've had that challenge. And over the last 3 years, what we've shown is that we can grow systems business and grow components at the same time. And in fact, despite the initial concerns, those are net benefit to our components customers because it really accelerates innovation. We think we see that same opportunity on the outdoor. That being said, we have factored in that there may be some short-term concerns. But we really believe that given the long design cycle nature of that, at the end of the day, most fixture companies are going to buy the components that make their products best in the market, and that's what we're out to do and the reality is, is just about every other LED company in the systems business anyway. So I think it's a market reality we're all dealing with. What was your second question on components, Steve?

Steven Milunovich - BofA Merrill Lynch

If you're doing this because you're concerned about the margins coming down on the component side over time, are you still confident that, that is going to get back into the 40s?

Charles Swoboda

I think we look at this as a way to really accelerate the strategy we have. It gives us the ability to move both outdoor and indoor applications faster. At the same time, the components business remains an important piece and we have not changed our short- to mid-term margin targets that we laid out last week. We're still targeting to get the business back into the low-40s in the short to mid-term, and longer term, our model is still targeted to go towards the mid-40s. So I think that the -- as you can see based on our targets, this business is similar to what Cree is running today, a little bit below, and we think there's an opportunity to improve those over time.

Operator

Your next question comes from the line of Jesse Pichel with Jefferies.

Min Xu - Jefferies & Company, Inc.

This is Min Xu for Jesse Pichel. So Chuck, a quick question. When Cree acquired LLF, many investors worried about your customers would perceive Cree getting to downstream lighting as a threat. Now with Ruud Lighting, you further expanding your push into the outdoor lighting. Do you expect similar pushback from your customers and how do you plan to address that?

Charles Swoboda

Look, as I said earlier, I think there is always an initial reaction and I think the best example I can give anyone is that we actually did it with LLF. We made both work. It doesn't mean that doesn't create some tension. But the reality in the market is most lighting companies need to make the best product they can to succeed, and they're going to buy the LEDs that help them do that. And that's what we've seen over the last 3.5 years, and I think that's what we intend to do again here on outdoor. So I think there's going to be some initial concerns, sure. But the -- it is -- the fact is, is that if we can accelerate adoption, then we can expand the market and that not only helps our ability to sell systems but everyone else. And if you go back 3.5 years ago, there was essentially no market for indoor lighting and look at the market there is today. So the strategy has worked, and we continue to do that going forward. And it's a commitment on our part that we think leading the market and changing it is more important than managing these near-term things because what we've shown is we can work through them and drive the growth in both businesses. The reality is, is that the competition out there is really not the other LED systems, it's the traditional lighting technology. We're barely adopted this market, and this is about how do we compete against traditional technology. And if that's what people are concerned about, hey, everyday we wake up trying to obsolete every conventional light source that's out there and then we're going to do more things we can to make that happen.

Jesse Pichel - Jefferies & Company, Inc.

Well, that is very helpful. Can you also help us understand what is Ruud Lighting's sales strategy, and what will be the synergy coming from cross-selling each other's product?

Charles Swoboda

So Ruud Lighting is -- their biggest business and the one that's really most people know about is BetaLED, which is really their outdoor LED product line. And it is sold through reps and agents, primarily in North America, although they do have international exposure as well through their Ruud Europe subsidiary. What we see is an opportunity that's between the Cree product line and the BetaLED LED product line. We can now really give those reps and agents an even broader offering to really move the market and drive adoption. I think one of the things we've learned is that when you're trying to -- we've been training the sales force not to sell traditional lighting but to sell LED lighting, which is a fundamentally different value proposition, and they've been doing the same thing. And I think combined, we can get more momentum on how you really compete against through fixture [ph] traditional technology that's out there.

Operator

Your next question comes from Chris Blansett with JPMorgan.

Christopher Blansett - JP Morgan Chase & Co

Chuck, I wanted to touch on the comment you just made about selling through the Ruud channel. Could you put into context how much broader that channel is than your current -- the one you've developed within Cree?

Charles Swoboda

I would say it's actually more parallel than it is broader. They have a probably slightly larger number of reps and agents just because they have a longer history and experience in the business. But I would say it's more about how do you give that channel a better portfolio to be more successful in the market. And so I think it's a combination of what Cree is doing and what they're doing. I think the net result will actually be really a strength in channel. I mean, today, we're selling primarily in North America, so are they. It's really a combination of how do we make that channel more effective because the reality is, is what we're competing against most days is the technology that has been around for 20 or 50 years.

Christopher Blansett - JP Morgan Chase & Co

And then when you think about the manufacturing synergies between the 2 companies, obviously, combined, you're kind of looking at about a $200 million run rate for lighting kind of using your basic numbers. And putting those 2 together to get that to $200 million, what kind of leverage does it give you on your COGS? And is that the primary reason why you think you can get the margins back up, or you can improve the overall lighting division margins over in a relatively reasonable period of time?

Charles Swoboda

Well, what you have to remember is, is that you can see from our targets this quarter that their margins are very similar to ours already. It's slightly below our corporate average for this quarter. That's why our targets are not changing. We're just targeting more of the low end of our margin range. So they have a successful business today. And keep in mind, that their business has both -- the bigger piece is LEDs, but they still have a traditional business that's not growing, so all the growth is in the LED piece. And as that continues to grow, the LED margins are better than in the non-LED segments. So the mix is moving towards higher margins, as well as there's a lot of product innovation coming that we think we can reduce the cost and actually drive adoption on the other side. So I think it's as much about they're closer than people think already, and we think that that's how it fits nicely in our model today. And we can grow with that just like we are targeting the overall company. From a manufacturing standpoint, so there is some benefits and they'll be primarily benefits frankly to the Cree lighting product line. So today, we make some of our products in Asia and bring them over. We're going to continue with that strategy. However, there are a number of larger products, specifically troffers and other things where we think there's some leverage by working together to really bring those costs down and making them even more successful in the market from both a price standpoint but also more successful internally from a margin standpoint. So I think of it more as a -- there are some cost synergies but I guess what I would say is, they're already mostly an LED company. They've made that transition. And so I think their margins from an LED product standpoint are already down that curve to being similar to where Cree is at today.

Christopher Blansett - JP Morgan Chase & Co

Quick follow-up on that, would that imply that some of your newer products will probably go through the Ruud manufacturing kind of side as opposed to maybe your -- what you've been doing in Asia so far?

Charles Swoboda

No. I think we will continue to do what we're doing in Asia. I think there are new products that we are currently actually building in the U.S. and some of those, we'll probably use the Ruud capability to make those going forward.

Operator

Your next question comes from the line of Dale Pfau with Cantor Fitzgerald.

Dale Pfau - Cantor Fitzgerald & Co.

Housekeeping and then a real question. Housekeeping is, I think you said that you're lighting revenues are in the $80 million annualized run rate and Ruud is in about $200 million. So that puts the 2 together roughly annualized, slightly below $300 million. Is that correct?

Charles Swoboda

Yes, what we said, Dale, is that we've grown our lighting business to over $80 million since we acquired it. And what we've given you insight into is that their business over the last 12 months was a little over $200 million. So you're close, it's a little off on our lighting numbers.

Dale Pfau - Cantor Fitzgerald & Co.

Okay. Let's talk about patents for a moment. You have developed a considerable patent portfolio for chips, components, optics and so on, which you have used in the market to prevent other entrants from getting into that side of the business. Now you also have developed quite a patent portfolio for lighting systems and you're acquiring considerable patent knowledge here with Ruud. How do you look forward in the market with those patents? Are you going to sell those license free with people who buy your components? Let's talk about both sides of the business and your patent strategy.

Charles Swoboda

So our patent strategy has been -- as you've seen occasionally, we end up in litigation at the components level. But I think from a systems standpoint, I think it puts us in a great position in terms of how we may use that position and to drive the success of our business and also try to build a competitive advantage. I'm not sure I'm ready to go out and kind of walk people through that. I would say that it certainly strengthens our position. When you take one of the pioneers in indoor lighting, which is Cree through their LLF acquisition, and then you add in the pioneer in outdoor lighting, which is the Ruud or BetaLED product line, we certainly have some really nice base portfolio. With that being said, I think we'll have to look at what is it that drives the market and enables adoption. I think we're interested in making both the systems and the components business successful. But I think probably the bigger question is what does it mean to those companies out there that don't have the deep portfolios in this area. And I think there's -- that's all to be figured out going forward.

Dale Pfau - Cantor Fitzgerald & Co.

Okay. And one final question. When you take a look, you've mentioned that most of your competitors, top-tier LED competitors, are already in the lighting business and have distribution at one form or another. How do you see that competitive landscape out there compared to both indoor and outdoor?

Charles Swoboda

I think it's the nature of the lighting business, it's interesting. If you go back and you look at the lamp manufactures, they've always been vertically integrated, and then you realize that even the systems companies typically have not only a fixture business but a lot of the subsystems built into them. I think as a component company and from a semiconductor standpoint, that seems unusual but reality is it's how the lighting industry has been working for quite a number of years. So look, I think, you can look at it 1 or 2 ways. You can look at how does Cree's LED products stack up against other LED products or you can look it the way we do, which is this is not about how -- what are the other guys doing in LED. The fact is, is that almost every other lighting company in the world fell well over 70%, 80% and, in many cases, 90% of their sales today are traditional lighting products. We are focused on LED. Our goal is to go out and make LED products better than whatever conventional technology is out there. We can't do that in every application today but that's our focus. And so our competitor is whoever is making a traditional lighting fixture, and our goal is how do we provide an LED product that is fundamentally better from a value proposition and a payback than what's out there today. And so I think you have to look at it a little bit differently. We really -- this is such an early stage of the technology development for LED lighting. We're so early in adoption. This is much more about going after the traditional technology than how those other pieces stack up. Our strategy is to go really fast, try to be the leader from an innovation standpoint, really set some market standards and, frankly, fully expect lots of other companies to be in this business going forward. In fact, it's critical to our strategy because at the end of the day, our components business has a lot bigger market opportunity if we expand the market for LED lighting than if we don't. And so the 2 work hand-in-hand, and that's been our strategy over the last several years and it's continue to be our strategy for the foreseeable future going forward.

Operator

Your next question comes from the line of Joshua Paradise with Morgan Stanley.

Joshua Paradise - Morgan Stanley

This is a much larger acquisition than either COTCO or LLF. So can you talk about how you thought about valuation and what you're getting for the over $500 million purchase price, and how you get comfortable that this is the best use of shareholder dollars?

Charles Swoboda

Well, I think the way you get your head around that is you have to first think about what are we trying to do. And we really believe that by changing the lighting industry to LED and being the leader of that, we create a fundamentally better position for Cree as a company and for our shareholders. So the idea is we want to drive the revolution and accelerate adoption and by doing that, create a leadership position for Cree. When you add in the best outdoor LED lighting company, really the pioneer in the marketplace, I think it gives us an opportunity to really create a market leadership to go faster. That's the basic strategic rationale that then leads to the rest of it. In terms of the basic numbers, when you look at their business, they're really the first lighting company that we've seen that's truly made this transformation to an LED company. Over 60% of their revenues is LED-based, that's the part that's been growing rapidly, not only last year, but going forward. And if you look at those growth rates you realize, they really are a relatively fast-growing LED company. And so once you get your head around that, you realize that the valuations are going to be LED valuations. And when you add it to Cree, you can see that the net and the math works, it's accretive. So when I look at it, I say, here's a business that we paid around 2.5x trailing revenues and based on their growth rate, probably just slightly over 2x on forward revenues. And if you look at that, those growth rates, their market position, I think it's completely logical and fits very nicely with what Cree is trying to do. Our goal is to be the leader.

Joshua Paradise - Morgan Stanley

Okay, and then one follow-up if can. This is focused on outdoor lighting and really focused on North America. So does this get you where you need to be? Or to continue to pursue that strategy, do you need to go after other markets besides outdoor and other markets beside North America?

Charles Swoboda

Well, I think today, our focus, our real focus in the near term is going to be is how do you take this integration and get the benefits we described and be successful. So our focus in the short-term is on how do we make this work and be successful. With that being said, the Ruud guys do have a small footprint outside of North America. I think we're going to evaluate where we can add value there and what we might do differently going forward. But in the short term, it's really about going after a market that I think we understand the best. And I think we have to keep in mind that, I want to say, if you look at that $108 billion market that gets thrown around for lighting, I think the North American portion of that is probably about $20 billion to $25 billion of that. So I feel like there's a pretty large market opportunity sitting in front of us, and that's just the markets we can see today and that doesn't include the fact that when you really start doing LED lighting, there's probably market opportunities that aren't there in terms of upgrading or retrofitting existing installation. So I really think it puts us in a great position. And one of the things we've tried to stress in the past is if we're going to do one of these, focus, execute on it, make it successful. And we'll worry a couple of years down the road what might come next, at least that's our strategy at this point.

Operator

Your next question comes from the line of Andrew Huang with Sterne Agee.

Andrew Huang - Sterne Agee & Leach Inc.

So first, it seems to me that over the next 5 years, the systems business should be much less cyclical than the components business. Would you agree with that?

Charles Swoboda

So Andrew, I think it's going to depend. If you call systems one big business, I think we'll have to let you know. I think there are parts of the systems business that have actually cycles to them that I think we're going to have to keep in mind. For example, when you make outdoor lighting products, I got to tell you, there's not a lot of outdoor lighting installations in the dead of winter, just doesn't happen a lot. So for example, that's the cycle we have to factor in. That being said, that doesn't slow down the indoor markets. So I think we'll see what the nature of that is going forward. I think -- really come probably to your bigger question, I think the combination of a more balanced portfolio between systems and components, that probably does give us more balance across the business than we've had in the past.

Andrew Huang - Sterne Agee & Leach Inc.

Okay, great. And then second, on one of the slides, I think I briefly saw that Ruud's gross margin was 40%. Do you happen to know offhand if gross margins for the non-LED business are above or below the corporate average?

Charles Swoboda

Yes, Andrew, I think if you go back and check that slide, you'll find that, that is what we're targeting the gross margins would have if we would have had the 2 companies combined in FY '11. Their margins in fiscal '11 are actually lower than that. I think more importantly though, where we target them this quarter is they should be just below our corporate average in the short term, and we would expect this business to be able to operate in line with our corporate average going forward. That's the target.

Operator

Your next question comes from the line of Jed Dorsheimer from Canaccord Adams.

Jonathan Dorsheimer - Canaccord Genuity

First, I guess my question is, I'd like to just understand your views of the channel. It's interesting that you chose Ruud to purchase here and integrate in and there have a much more direct channel than some of the other fixture manufacturers. Is it -- is that on purpose? I assume it is. But if you could elaborate on how Cree's view of the channel will be sort of 5 years down the road, it might be helpful.

Charles Swoboda

Yes, well, so, Jed, first of all, I think one of the keys -- and I think I mentioned earlier and you probably are familiar with this is, is that when we look at an acquisition in addition to the business, we're looking at a combination of the people, right? So for us, this was a both business and a team that we thought we could really bring into Cree and become one larger team because we were pretty well aligned to start with. So I think that's kind of an overriding factor that sits behind this. But in terms of the channel strategy, specifically, I think you have think about Ruud as really 2 businesses. Their BetaLED product line sells through a very similar lighting channel as most other companies. It's primarily based on reps and agents. That's where most of the business is driven from an LED standpoint today. They do have their Ruud Direct and E-conolight brands that are more direct businesses but those have tended to be focused more on the traditional products in the past. There's a small number of LED products in the E-conolight brand but that's really been more their traditional business. And Beta has really been built very similar to how we try to build our business, which is really around reps, agents, distributors. So I would say it's more similar than maybe you might think to what the traditional model is. In terms of where it goes in the future, I mean Cree's strategy is we're not sure there's any one answer. I think we see the traditional model being important. We, obviously, as a company, have embraced the idea of selling products through Home Depot. That's pretty nontraditional for a lot of companies. As well as we have some direct business from national accounts, which I think pretty much all of the lighting companies do. So I think what we see is different customers and different markets are going to want something -- are going to each have a preferred way to buy the product, and I don't think we're trying to pick the answer. I think we're going to try to make them all available.

Operator

Your next question comes from the line of Harsh Kumar with Morgan Keegan.

Harsh Kumar - Morgan Keegan & Company, Inc.

Couple of questions. Could you give us an idea how fast Ruud is growing just based on some preliminary map? I think it's about 40%. Am I even on the ballpark with your expectations? Is it higher or lower than that?

Charles Swoboda

Harsh, I can tell that the LED portion of their business grew a little over 50% over the last 12 months. And I would target it to continue to grow at a pretty healthy rate going forward. So that kind of gives you a benchmark of their growth rate. What was -- is there a second question there?

Harsh Kumar - Morgan Keegan & Company, Inc.

Yes, yes, there is a second question. When I was doing the math, Chuck, I was getting more like a price around $668 million. Does your $525 million price exclude the $143 million that you're getting in tax benefit? And if so, that puts a multiple at 3.3x sales. I'm trying to figure out how you came up with that sort of evaluation or am I wrong in my assumptions here?

Charles Swoboda

The $525 million is the net cost to Cree, so that includes the tax benefits. So that's how you come up with those numbers. And that's kind of how we looked at it, what was Cree net paying for the business and how does that then translate to what makes sense in the market. And at the end of the day, Harsh, we're talking about trying to buy -- we are looking at the market leader. We are looking at trying to grow really fast and I think those things -- that's how you get into a more LED-like valuation in a traditional lighting company. I think the things people maybe are missing here is Ruud was a lighting company in 2007. Ruud is an LED company today, and I think there is a tremendous benefit to having really probably the first lighting company that's transform themselves and really learned how to compete in the LED business instead of in the old business.

Harsh Kumar - Morgan Keegan & Company, Inc.

Fair enough. And if I can slide one more. I thought you would be getting a tax benefit. I'm sort of surprised to see your tax rate go up, a little percentage [ph] to geography, and where you're getting your mix from?

Charles Swoboda

Yes. So remember the tax benefit we talked about is a cash benefit in terms of their cash tax rate. This primarily a North American business. Those are primarily higher tax rate jurisdictions. What you're seeing is the blend of that business on our overall tax rate. Is that accurate, John?

John Kurtzweil

Yes, it is.

Operator

Your next question comes from the line of Carter Shoop with KeyBanc.

Carter Shoop - KeyBanc Capital Markets Inc.

Just a quick clarification on LLS sales and also Ruud's business with the LA streetlight project. With LLS, are you saying that it's $80 million in annualized sales or $80 million for the last 12 months, $30 million in aggregate? In regards to LA streetlight project, can you remind us how far along we are with that?

Charles Swoboda

The LLS business, which is called Cree Lighting now, had over -- just a little over $80 million sales over the last 12 months. And as far as the LA project, I think we're in year 2 of that project right now.

Carter Shoop - KeyBanc Capital Markets Inc.

And when should that be completed?

Charles Swoboda

I think it has several more years left. I don't have the specifics in front of me.

Carter Shoop - KeyBanc Capital Markets Inc.

Great. And then as a last question here, regards to the...

Charles Swoboda

Carter? Excuse me, Carter? Just real quick to clarify. I think you should also keep in mind that while that is a very high-profile piece of business, it's a relatively small percentage of the total. This is a very broad-based business. And so they don't have -- for example, there are no 10% customers in their business portfolio.

Carter Shoop - KeyBanc Capital Markets Inc.

That's actually very helpful, thanks. As a follow-up question, can you actually comment if this is a competitive bid or if this is an ongoing conversation that you've been having with the company over the past year or so?

Charles Swoboda

They had definitely been approached in the past, but this is really the result of an ongoing conversation that really occurred over 6 years of building a relationship and then, over the last year, deciding that this is the time and the opportunity to really start to accelerate the outdoor market in addition to indoor.

Carter Shoop - KeyBanc Capital Markets Inc.

Was there anyone else bidding on the asset with you here?

Charles Swoboda

In the short term, this was really worked out between our 2 companies. But there have been people approaching in the past, but it was not a traditional bidding.

Operator

Your next question comes from the line Ahmar Zaman with Piper Jaffray.

Shawn Lockman - Piper Jaffray Companies

This is Shawn for Ahmar. I was wondering if you could just comment a bit on what your expected share in the market is going to be after this acquisition?

Charles Swoboda

I don't have a specific number for you. We believe that in the segments we compete in, which is in our LED lighting business, that from an LED standpoint, that we have probably market leadership share in both our downlights, our troffer is too new to really measure yet, and in outdoor, they would be the market leader. So I think we have probably the leading market share in the applications we compete in. As far as how that rolls up overall in a North American or global basis, I don't have a specific number for you. But I'm confident that combined, we have market leader in the applications we're competing in.

Shawn Lockman - Piper Jaffray Companies

Great. And if you could talk a little bit -- I know that this is at least immediately sort of a drag on the gross margin, but can you talk a little bit about this, just sort of slow out the roadmap a bit to hitting back into the mid-40s or how should we think about that?

Charles Swoboda

It's interesting. I'm not so sure where the perception is coming from. Obviously, we're talking about only a slight change to our near-term margins just to being in the low end. I think there's an opportunity in systems to have margins that fit in with our target model. And the reason I believe that is that, that I think people like to compare this to the traditional fixture business and I think they're missing the point. LED lighting is not the traditional fixture business. The traditional fixture business sell a fixture without a light source and someone else sells a light source. So you have 2 separate companies selling different parts to the value proposition, each of them having to make their own margins and model work. We have an integrated solution in LEDs. It is an integrated light source and fixture product. And I think if you combine those 2 and you add the value and paybacks we're talking about, there's no reason these margins can't continue to be similar to where we're at today and grow with the company in line with our targets going forward.

Operator

Your next question comes from the line of Avinash Kant with D.A. Davidson.

Avinash Kant - D.A. Davidson & Co.

Quick question. I believe, of course, you were the component supplier to Ruud. Could you talk a little bit about what percentage of their component needs are being met by Cree? Were you sole there?

Charles Swoboda

I think we pretty much had all their business, at least, over the last several years. So we've been the primary supplier for all their BetaLED products.

Avinash Kant - D.A. Davidson & Co.

Okay. And also, do they have a presence in Asia. You talked a little bit about that. Could you talk about if they have any manufacturing in Asia?

Charles Swoboda

They have in some of their -- not in their BetaLED but in some of their other product lines, in the Ruud and the E-conolight, they do actually use Asia manufacturing for some of those products. It's a relatively small percentage, but they do have that in their model today.

Avinash Kant - D.A. Davidson & Co.

But they have no component business, right?

Charles Swoboda

No. This is their purely a systems level company today.

Operator

Your next question comes from the line of Satya Kumar with Credit Suisse.

Satya Kumar - Crédit Suisse AG

I was wondering if you can help me understand the math on the margins. If I assumed that all the incremental revenues in Q1 occurring from Ruud and the gross margin guidance change is also coming from Ruud, again, an incremental gross margin contribution of more like 25%. I think you mentioned that Ruud is only slightly below your average. I was wondering if you can help me think through the math in incremental margins?

Charles Swoboda

Well, I'm not sure how you're getting your math. So if you take a business that when -- and when it's a part of Cree, will have margins that are slightly below the corporate average, you add in that percentage of revenue, it just takes the center of our margin guidance and slides it down just a little bit. I'm not sure what you're factoring in. I think the key would be is what your assumptions and where they're at. But if you look at that business, we target for the balance of this quarter that it's margins will be slightly below our corporate average and when you add those in it, it just changes the average for the total balance slightly.

Satya Kumar - Crédit Suisse AG

Perhaps, think about why -- you mentioned that most of the components purchase by Ruud are from Cree. Is that vertical stacking part of the reason why you're thinking that the gross margin is going to be only slightly lower. And that's sort of a big driver in the gross margin for Ruud for the rest of the quarter?

Charles Swoboda

Yes. I'm not sure -- the reason we think they're going to be slightly below our corporate average is that's how they're running today. So that's just a function of what their business is. And there, obviously, is not any margin on the Cree LED sales anymore, right? Obviously, once we make this one company, we don't charge a margin to ourselves before we sell it. So it's all on their systems level business. But I'm not sure what your question is or what your -- where we got off here on the math?

Satya Kumar - Crédit Suisse AG

Okay, maybe I'll follow with you guys offline.

Operator

Your next question comes from the line of Olga Levinzon with Barclays Capital.

Olga Levinzon - Barclays Capital

I guess can you help us think about the medium to longer-term view on how OpEx and specifically SG&A is going to trend now that the lighting systems business is a bigger part of your overall mix and whether you plan to more aggressively develop the downstream channel?

Charles Swoboda

So if you look at operating margins, really, I think you'll see a business that's similar to where Cree is today and what our model is. What you will see within their business is a little higher on SG&A and a little lower on the R&D percentage and that's not just similar to what we see in our own lighting business. So it's pretty similar, but you end up in a similar operating margin range. I think we will invest but I think where we invest is a function of revenues so I don't see that percentage having a dramatic skew on our plans one way or another. We will be investing though. What we see is this is a little different than ways people think about acquisitions. We're putting 2 teams together to build one larger team and I think we'll be continuing to invest on both sides to drive the business but not outside the model that we've been looking at, at least, not at this time.

Olga Levinzon - Barclays Capital

Got it. And then specifically to their LED product portfolio, you mentioned some proprietary micro-optics technology. Is there anything else that they have inherent in their LED lighting systems that might be beneficial for your products, or is this just a matter of leveraging expertise?

Charles Swoboda

I think there is both expertise clearly but from a technology standpoint. What's pretty interesting is that you have 2 companies that have spent the last 4 or 5 years, both figuring out how to create a market for LED lighting when there wasn't one. And so there's lots of basic technology that had to be developed along the way. And I do think we will find that there are synergies between the 2 where there is technology. For example, is there a possibility that Cree's TrueWhite technology could be useful at outdoor applications or is there a possibility that some of their micro-optics technology or thermal design could work their way to some more. So I think the answer to that is going to be absolutely. Those potentials exist, and I think we're going -- those will be things we will figure out going forward. So I think it's both a combination of expertise, but also really some pretty deep understanding of the basics of these systems that could be leveraged.

Operator

Your next question comes from the line of Benjamin Schuman with Pacific Crest.

Benjamin Schuman - Pacific Crest Securities, Inc.

Can you just address the timing of the tax benefit with the cash flow there and the confidence that those will be realized?

Charles Swoboda

John? I'll call in John to jump in on when the timing of that is.

John Kurtzweil

Okay. The way that works is that what we're able to do is amortized the goodwill and the acquired intangibles over a 15-year period for tax purposes, and it doesn't affect the effective tax rate on a GAAP basis or non-GAAP basis. It's just a tax return and it's a pure cash benefit over 15 years.

Benjamin Schuman - Pacific Crest Securities, Inc.

Okay, great. And then similar to the previous caller, if I take the gross margin guidance down by 100 basis points on $20 million incremental revenue, that gets me to 25% incremental gross margin. So again, to follow-up on him, help with that math would be great.

Charles Swoboda

Sure. And I guess, maybe what we have to take you through is where all the different expenses are. But the net result is, is that just having done the math to bottoms up when you put the 2 together, you get there. But we're happy to take you through that offline.

Operator

Your next question comes from the line of Hans Mosesmann with Raymond James.

Hans Mosesmann - Raymond James & Associates, Inc.

Sorry about that. All my questions have been answered. Thanks.

Operator

Your next questions comes from the line of Stephen Chin with UBS.

Stephen Chin - UBS Investment Bank

My question was with this acquisition, Chuck, will Cree look to provide or think about providing projects financing to some of the cities on Ruud's target list to make some of the big projects work for them?

Charles Swoboda

You know, I think that's something obviously that as part of Cree that can be considered. With that being said, I really think the focus is how do we...

[Technical Difficulty]

I think we have a small gap on the call there. Okay, here we go. So let me try to answer that question anyways. There is an opportunity to be -- as part of Cree, that we could do that. But I don't see that as a near-term need. Our real focus is how do we drive to payback down to the point where financing might be necessary but, frankly, is not nearly as needed in some large projects because our goal is how do we take paybacks from 6 years and cut those in half.

Stephen Chin - UBS Investment Bank

Okay. The second question Chuck is how long are Alan and Chris set to stay on for Cree? I would assume they probably have the deep customer relationships with the local cities and municipalities. Is there a minimum duration that they need to stay on for?

Charles Swoboda

The minimum duration is more related to, I think, their interest in being part of the team and recognizing the benefit of the fact that as employee shareholders, they have a lot to gain by making Cree more successful. And if you notice in some of the details of the transaction that were on the slides, their stock will basically be released 25% every 6 months. For the next couple of years, they have, certainly, a clear financial interest in staying involved. But I think for anyone who knows those guys, they are very passionate about what we're doing here and this was as much about how do we go really change the industry even faster. And so I feel pretty confident that these guys are excited to be on the Cree team and are just as passionate as we are about changing the industry.

Operator

Your final question comes from Alex Gauna with JPM Securities.

Alex Gauna - JMP Securities LLC

Just wanted really quickly -- you touched on, Chuck, about how it came together, the discussions over the last year. What put you over-the-top, why now on this acquisition?

Charles Swoboda

You know, when we look at the market, I think, the last year, one of the things we've seen is the success that in the applications we were focused on from a systems standpoint, I think we became even more confident that we were able to push adoption and change entire categories of the traditional lighting market with our systems business. And so as we looked out and looked at the rate of adoption, we realized that although we've had tons of success, we are looking at roughly 5%, plus or minus, adoption, we're really still in the beginning. And so the question to us was, we want to drive that adoption faster and what could we do to make that happen. And obviously, part of that is better components and enabling our customers and we're still committed to that. But I think we recognize that in the outdoor market, despite the early success, there was an opportunity to really push it to the next level, and that's really what drove us down this road. And again, it gets back to the same basic strategy. If we drive adoption faster, that it creates an opportunity not only for us as a systems company, but more importantly, from a components standpoint as well.

Stephen Chin - UBS Investment Bank

Okay. And if I heard you right, I believe you talked about Ruud being a market share leader in the outdoor market. Are they the entirety of the L.A. project right now, or is that a shared project? And then, do you have new marketing strategies now that you're a larger entity because I would assumed that in going after some of these municipalities, scale matters?

Charles Swoboda

I would say that in L.A., they are the major contractor but there is -- it is dual-source project. So I believe there is a second source company on there, but they have the majority of that and really helped set up steps [ph] for that job. As far as working together, I think absolutely. The combination of the 2 companies, as part of Cree, I think adds a lot of credibility to what we're doing. You are selling projects based on -- we think these projects will have lifetimes of the 7-, 10-year range, 100,000 hours, 70,000 hours, whatever the different guarantees and warranties that are out there. And I think it makes a lot of difference depending on who's standing behind those things. And what's amazing is not just financial. We will clearly be able to show people that between the 2 companies, we have, by far, the most experienced and, frankly, real data and knowledge about what is possible in LED lighting, what are the lifetimes and I think be able to really push the limits for what we're willing to guarantee to the market.

Operator

There are no further questions in the queue at this time.

Raiford Garrabrant

Thank you for your time this morning. We appreciate your interest and support and look forward to reporting our first quarter results on October 18.

Charles Swoboda

Thank you.

Operator

This now concludes today's conference call. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Cree Inc. M&A Call
This Transcript
All Transcripts