Cree announced an update to its financial outlook for the fourth quarter of fiscal 2019.
Prior financial guidance was released in the company's third quarter financial results on May 1, 2019. This update is based on the BIS decision of May 15, 2019.
On May 15, 2019, BIS issued a statement, adding huawei and its subsidiaries to the "entity list", on which enterprises or individuals are required to obtain relevant licenses to purchase or transfer U.S. technology.
Cree expects revenue from products and materials related to huawei's wireless infrastructure to reach $15 million in the fourth quarter of fiscal 2019.
In addition, Cree expects business demand for LED products to be weaker than originally expected due to continued global trade uncertainty.
For the fourth quarter of fiscal year 2019 (ending June 30, 2019), Cree expects:
● revenues between $245m and $252m;
● Wolfspeed's estimated revenues range from $132m to $135m.
● LED revenue is expected to be between $113m and $117m;
● a net loss target of $23m to $28m, or $0.23 to $0.27 per diluted share, based on GAAP;
● non-gaap net income target of $8 million to $13 million, or $0.08 to $0.12 per diluted share.