Cree reports record quarterly revenue for the Q1 of fiscal 2010

Oct. 21, 2009
Date Announced: 21 Oct 2009 -- Quarterly Revenue increased 20% year-over-year to $169 MillionDURHAM, N.C., -– Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting, today announced record revenue of $169.1 million for its first quarter of fiscal 2010, ended September 27, 2009. This represents a 20% increase compared to revenue of $140.4 million reported for the first fiscal quarter last year and a 14% increase compared to the fourth quarter of fiscal 2009. GAAP net income for the first quarter increased 255% year-over-year to $21.0 million, or $0.23 per diluted share, compared to GAAP net income of $5.9 million, or $0.07 per diluted share, for the first quarter of fiscal 2009. On a non-GAAP basis, net income for the first quarter of fiscal 2010 increased 107% year-over-year to $27.4 million, or $0.30 per diluted share, compared to non-GAAP net income for the first quarter of fiscal 2009 of $13.2 million or $0.15 per diluted share. Cree generated $61.2 million of operating cash flow and $40.8 million of free cash flow (cash flow from operations less capital expenditures) during the first quarter. “We got off to a very good start in Q1, as both revenue and profits exceeded our targets,” stated Chuck Swoboda, Cree Chairman and CEO. “We are benefitting from continued LED lighting adoption and high factory utilization and are well positioned for solid growth in Q2. As a result of the recent equity offering, we have the balance sheet to invest in the growth of our business as we look to continue to lead the LED lighting revolution.”Q1 2010 Financial Metrics:* Cash and investments increased $441.2 million to $888.5 million, with cash flow from operations of $61.2 million and free cash flow of $40.8 million.* Accounts receivable (net) decreased $10.0 million from Q4 of fiscal 2009 to $93.1 million, resulting in days sales outstanding of 50, a decrease of 13 days from Q4 of fiscal 2009.* Inventory (net) increased $7.1 million from Q4 of fiscal 2009 to $86.0 million and represents 81 days of inventory, an increase of 2 days from Q4 of fiscal 2009.Recent Business Highlights:* Lighting for Tomorrow Grand Prize Winner with the LR6-DR1000 recessed downlight.* Released the XLamp® XP-G, the industry’s brightest and highest-efficiency lighting-class LED.* Announced that Cree offers the most lighting-class LEDs for designing Energy Star® –compliant LED fixtures.* Completed a common stock offering of 12.65 million shares with net proceeds of $434.2 million.* Announced plans to add 575 green jobs in North Carolina by the end of 2012.Business Outlook:For its second quarter of fiscal 2010 ending December 27, 2009, Cree targets revenue in a range of $180 million to $190 million with GAAP net income of $21 million to $23 million, or $0.20 to $0.22 per diluted share. Non-GAAP net income is targeted to increase quarter-over-quarter to $29 million to $32 million, or $0.28 to $0.30 per diluted share, based on an estimated 105 million diluted weighted average shares, which includes 12.65 million shares issued in our recent equity offering. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $0.02 per diluted share, and stock-based compensation expense of $0.06 per diluted share.

Raiford Garrabrant Director, Investor Relations Ph: 919-287-7895 Fax: 919-313-5615

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