Edition:
United Kingdom

Cree To Sell Lighting Business To Ideal Industries, Inc.


Friday, 15 Mar 2019 

March 15 (Reuters) - Cree Inc ::PRESS RELEASE - CREE TO SELL LIGHTING BUSINESS TO IDEAL INDUSTRIES, INC..PROPOSED DEAL FOR APPROXIMATELY $310 MILLION BEFORE TAX IMPACTS.EXPECTS TO RECEIVE AN INITIAL CASH PAYMENT OF $225 MILLION.BASED ON AGREEMENT TO SELL CREE LIGHTING, IT WILL BE CLASSIFIED AS DISCONTINUED OPERATIONS AS OF FY19 3Q.BASED ON AGREEMENT TO SELL CREE LIGHTING, IT WILL BE CLASSIFIED AS DISCONTINUED OPERATIONS AS OF FY19 3Q.CREE IS UPDATING ITS GUIDANCE TO REFLECT CONTINUING OPERATIONS ONLY..CREE TARGETS REVENUE FROM CONTINUING OPERATIONS IN A RANGE OF $271 MILLION TO $277 MILLION FOR Q3.WOLFSPEED REVENUE IS TARGETED IN A RANGE OF $139 MILLION TO $141 MILLION FOR Q3.LED PRODUCTS REVENUE IS TARGETED IN A RANGE OF $132 MILLION TO $136 MILLION FOR Q3.CREE - HAS POTENTIAL TO RECEIVE TARGETED EARN-OUT PAYMENT OF ABOUT $85 MILLION BASED ON ADJUSTED EBITDA METRIC FOR CREE LIGHTING A 12-MONTH BEGINNING 2 YEARS AFTER DEAL CLOSE.GAAP NET LOSS FROM CONTINUING OPERATIONS IS TARGETED AT $14 MILLION TO $9 MILLION, OR $0.14 TO $0.09 PER DILUTED SHARE FOR Q3.EXPECTS TO INCUR GAAP IMPAIRMENT CHARGE ON CREE LIGHTING INTANGIBLE ASSETS, WHICH CHARGE WILL BE REFLECTED IN DISCONTINUED OPERATIONS IN Q3 RESULTS.NON-GAAP NET INCOME FROM CONTINUING OPERATIONS IS TARGETED TO BE IN A RANGE OF $0.14 TO $0.18 PER DILUTED SHARE FOR Q3.Q3 EARNINGS PER SHARE VIEW $0.17, REVENUE VIEW $396.5 MILLION -- REFINITIV IBES DATA. 

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