© Cree Business | April 06, 2020
Cree: COVID-19 has had a greater impact than first anticipated
Cree says that the COVID-19 pandemic has had a greater impact than originally anticipated when the company provided the third quarter outlook back in late January.
Revenue for the third quarter of fiscal 2020 is expected to be approximately USD 216 million, compared to USD 274 million in the third quarter of fiscal 2019 and USD 240 million in the second quarter of fiscal 2020. Cree expects GAAP net loss for the third quarter of fiscal 2020 to be USD 63 million to USD 65 million In its previous outlook guidance update, Cree said it was expecting to record third quarter revenues of USD 221 million to USD 229 million. “The health and well-being of our employees, customers and partners remains our top priority during this unprecedented time. We are closely monitoring the rapidly evolving COVID-19 situation, as well as guidelines from federal, state and local officials. Our manufacturing facilities in the U.S. are operating as essential businesses in states that have issued “shelter-in-place” orders and we have instituted strict measures that balance employee safety with meeting the needs of our customers. These measures include increasing the number of employee sick days, robust screening, social distancing and cleaning protocols to ensure the safety of our employees and the protection of our customers, suppliers, and partners,” says Cree CEO Gregg Lowe, in a press release. The company says it will provide a more detailed review of its business when it reports its third quarter fiscal 2020 results on April 29, 2020. “Our strong balance sheet allows us to navigate the current environment while maintaining capital expenditure plans, including the construction of our new facilities in New York and North Carolina, to support future growth. In addition, in light of the current operating environment, we'll continue to be diligent in the management of our liquidity position to meet the needs of the business. While near-term market conditions are fluid, we believe the long-term opportunities for silicon carbide remain significant and we are committed to expanding our capacity to meet the anticipated long-term demand,” Lowe concludes.
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