In a call with investors, CEO Mark Admas stated, “Now turning to Cree LED which exceeded expectations recording revenue of $102 million versus a guide of $90 million to $95 million. Non-GAAP gross margins were almost 30%, well ahead of guidance despite operating in a supply constrained environment, a testament to the team’s focus and ability to execute. The manufacturing transformation that Claude outlined during our recent Analyst Day is progressing well with the transition from silicon carbide to sapphire wafers and the migration to a fab-light model with our key strategic partners driving our operating performance. The LED team continued to drive technology leadership across their product portfolio. For example, Cree LED’s flagship outdoor lighting LED product, the XLamp XP-G3 S Line is one of the brightest and most reliable LEDs available in its class. This product line is optimized for directional, high lumen lighting applications where efficacy and optical control are critical.
Demand across Cree LED’s targeted end market segments continues to improve. We saw new customer wins in general lighting, specialty lighting, video and horticulture lighting. We remain confident in the team’s ability to deliver strong results and couldn’t be more excited to have the Cree team onboard, fully engaged in driving growth and profitability as part of SGH.”