CREE announces restructuring LED Products Division

LED maker Cree announced late in the US stock market on the 24th, the Board of Directors has resolved reforming LED Products Division and authorized in fiscal year 2016 (July 2015-June 2016) spent $ 500 million (equivalent to about 3.1 billion million) to buy back its own shares. Cree forecast fiscal 2016 revenue will rise to $ 1.8 billion (equivalent to about 11.17 billion yuan) or so; this industry operating profit rate will rise to about 8%; free cash flow amounted to about $ 75 million (equivalent to approximately 4.65 million).

Given the average price fell more than originally anticipated LED plant capacity utilization continues to remain low, so the company decided to cut excess capacity and recurrent expenditure to improve the cost structure. In addition, the decision by mentioning Cree LED products to reflect the decline in value of the loss of the season more intense pricing environment and lowered the price outlook this year.

Cree organization before restructuring costs estimated $ 85 million. Among them, the production capacity and the recurrent expenditure accounted for $ 47 million cost reduction, inventory impairment loss of each pathway and $ 27 million, $ 11 million.

Career In fiscal year 2015 the company bought 1600 shares of its own stock, the average price of $ 34.33.

MarketWatch reported that Cree estimated quarter (ending June 28, 2015) on revenue of $ 375 million, below the average estimate of $ 431 million FactSet survey market.

The Philadelphia Semiconductor Index constituent stocks Cree 24th in the normal plate fell 1.55% to close $ 30.56; continued to fall 5.37% after-hours to $ 28.92.