Cree Inc (CREE) has released its second-quarter financial report for the fiscal year 2021. Cree grew its revenue and sold off its LED business, responsible for its global fame in the past.
The Cree company’s revenue increased by 5% to $127 million in the quarter ended December 27, 2020. For the non-GAAP loss, the company lost $26.6 million, or $ 0.24 per diluted share. Demand for silicon carbide semiconductors keeps growing for the company, increasing revenue through repetitive transactions. There is a lot of interest in the latest generation of semiconductors, specifically in power electronics. An electric vehicle manufacturer in China is particularly excited to be receiving silicon carbide chips from Cree.
When high-performance LEDs first became available, the company made the correct strategic investment. As a result, the silicon carbide business at Cree is becoming more economical. A large silicon carbide plant in the United States enables Cree to become a semiconductor market leader.
The LED business of Cree Inc (CREE) has been sold this past quarter. During the latter half of 2020, the deal was announced, and now it has been completed. Cree has agreed to sell its LED business for $300 million to acquire Wolfspeed, the name of the chip brand developed by the company as a result of the sale.
Cree expects third-quarter revenues of $ 127- $ 133 million and non-GAAP recurring losses in the $ 23- $28 million range or $0.21- $0.21-$0.25 per share.
By taking this step, Cree is putting itself on a new path of growth.
Cree Inc (CREE) has performed well over the past year. For a year, the stock has gone up 145.52%, and for the last six months, it has gone up by 65.61%. The company’s quarterly performance is currently 80.57%, and it increased by 9.34% in the previous month. The weekly performance figures are positive, which currently reads 2.72%.