Cree, Inc. (NASDAQ: CREE) stock lost over 8.1% on 19th August, 2020 (as of 10:34 am GMT-4; Source: Google finance) after the company posted mixed results for the fourth quarter of FY 20. CREE in the fourth quarter of FY 20 has reported the adjusted loss per share of 18 cents, beating the analysts’ estimates for the adjusted loss per share of 20 cents, according to the Zacks Consensus Estimate. The company had reported 18 percent fall in the adjusted revenue to $203 million in the fourth quarter of FY 20, missing the analysts’ estimates for revenue of $205.6 million.
For the fourth quarter, days sales outstanding increased to 37 days and inventory days on hand was 104 days. The company generated cash from operations of $10 million and incurred capital expenditures of $70 million in the fourth quarter, resulting in negative free cash flow of $60 million.
LED segment revenue during the quarter has fallen by 17% year-over-year, mainly due to global trade events and events related to the pandemic. And Wolfspeed revenue fell by 19% year-over-year due to continued softness for China EVs in EV sales and supply and demand challenges tied to the pandemic. Wolfspeed quarterly revenue fell by 5% sequentially to $108 million. This was mainly driven by lower demand from a non-semiconductor customer in the materials business due to the pandemic and some push out of product by several LTA customers, which more than offset improved performance in power and RF during the quarter. For materials, the revenue fell sequentially as the company was not able to ship to one non-semiconductor customer that was not designated as an essential business during the quarter. The company also had a few of the wafer supply customers defer shipment of some product during the fourth quarter, which is permitted under their agreement with the company. Wolfspeed posted gross margin of 35.3%. The sequential decline was mainly due to decreased factory efficiency due to pandemic. LED product revenue decreased approximately 4% sequentially to $97 million due to supply constraints. LED gross margin was 22.8%, mainly due to favorable product and customer mix.
For the first quarter of fiscal 2021, the company expects revenue to be in a range of $203 million to $217 million. Wolfspeed revenue is projected to be between $107 million and $117 million. LED revenue is anticipated to be between $96 million to $100 million.