Cree announces CFO transition plan

Cree, Inc. (Nasdaq: CREE) today announced that Executive Vice President and Chief Financial Officer (CFO) Mike McDevitt will retire from his executive positions following a transition period. Mr. McDevitt intends to stay on until a successor is appointed, and thereafter will remain available as a consultant to the Company to ensure a seamless transition of leadership responsibilities.

Since joining Cree in 2002, Mr. McDevitt has held numerous executive financial positions with the Company, helping grow Cree from less than $200 million to approximately $1.5 billion in annual revenue, with approximately 6,900 employees worldwide. Mr. McDevitt has served as the Company’s CFO since May 2012.

Gregg Lowe, CEO, said, “Mike has made significant contributions to the continued success of the Company during his role as CFO, and we appreciate his dedication to helping us solidify and introduce the new business strategy. Now that we have made our pivot, we are gaining traction in the market with the new strategy and believe that we have collectively positioned the Company to support our growth plans and achieve a successful future.”

Mr. McDevitt added, “I am confident that it is the appropriate time to begin this CFO transition as the team continues executing the new strategic direction going forward. It has been a privilege working with Cree’s many talented employees and our Board for the last 16 years, first driving the adoption of LEDs, then LED Lighting and more recently our Power and RF products. The Company is on healthy financial footing to enable its future growth. I appreciate the opportunity that Gregg and Chuck gave me to serve as their CFO. I look forward to working with Gregg and the team to find our next CFO and to ensure a smooth transition.”

The Company today also reaffirmed its previously announced business outlook for the fourth quarter of fiscal 2018 ending June 24, 2018. As announced on April 24, 2018, for the fourth quarter Cree targets:

  • Revenue in a range of $390 million to $410 million.
  • GAAP net loss of $34 million to $38 million, or a $0.34 to $0.38 loss per diluted share.2
  • Non-GAAP net income in a range of $5 million to $9 million, or $0.05 to $0.09 per diluted share.1,2

1 Targeted non-GAAP income excludes $43 million, net of tax, of expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles, the inventory basis step-up from the previously reported Infineon RF Power acquisition, transition and integration costs associated with the Infineon RF Power acquisition and charges associated with the restructuring of our Lighting Products business.

2 The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree’s Lextar investment, any potential reserve for ZTE specific inventory or impact from a potential Chinese LED tariffs.

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