CREE expects FQ1 revenue of $380M-$400M and EPS of $0.36-$0.41, mostly below a consensus of $398.4M and $0.43.
FQ4 gross margin was 38.2% (-60 bps Q/Q, +190 bps Y/Y), below guidance of 39.5%. An FQ1 gross margin of 39% is expected.
While LED products (components) had a 45.7% gross margin (+190 bps Q/Q), lighting products only had a 25.1% GM (-550 bps Q/Q). Cree recently introduced relatively cheap consumer LED bulbs.
LED products 58% of revenue vs. 56% in FQ4. Lighting products 36% vs. 37%, power/RF 6% (unchanged).
Opex +12% Y/Y, less than rev. growth of 22%. SG&A +18% to $61.7M as LED lighting sales/marketing efforts ramp.
FQ4 results, PR