Exhibit 99.1
For Immediate Release | Press Release |
Contact: | Raiford Garrabrant |
Cree, Inc. | |
Director, Investor Relations | |
Ph: 919-287-7895 | |
Fax: 919-313-5615 | |
Email: raiford_garrabrant@cree.com |
Cree Reports Financial Results for the Third Quarter of Fiscal Year 2008
DURHAM, N.C., April 22, 2008 – Cree, Inc. (Nasdaq: CREE), a market-leading innovator of lighting-class LEDs, LED lighting retrofit solutions, and semiconductor solutions for backlighting, wireless and power applications, today announced revenue of $125.0 million for its fiscal third quarter ended March 30, 2008. This represents a 5% increase compared to the fiscal second quarter of 2008 and a 38% increase compared to revenue of $90.3 million reported for the third fiscal quarter last year. GAAP net income for the third quarter was $5.7 million, or $0.06 per diluted share, compared to net income of $21.1 million or $0.27 per diluted share for the third quarter of fiscal 2007. The acquisition of LED Lighting Fixtures, Inc., which closed during the quarter, increased revenue by $0.7 million and reduced earnings by $0.01 per diluted share.
The remainder of this press release highlights the company’s financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain costs, charges, gains and losses which are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the company’s performance, core results and underlying trends. Cree’s management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.
GAAP earnings of $0.06 per diluted share includes expenses totaling $6.4 million, net of tax, or $0.07 per diluted share due to certain items. These items consist of amortization of acquired intangibles of $0.04 per diluted share and stock-based compensation expense of $0.03 per diluted share. On a non-GAAP basis, adjusted to exclude these items, net income for the third quarter of fiscal 2008 was $12.0 million, or $0.14 per diluted share. On a non-GAAP basis, adjusted to exclude similar items as in fiscal 2008 and a non-recurring tax benefit of $0.22 per diluted share, net income for the third quarter of fiscal 2007 was $4.7 million, or $0.06 per diluted share.
“Cree’s strategy to drive revenue growth by focusing on LED lighting continued to pay dividends in Q3, as we delivered financial performance that was in line with our previously announced guidance,” stated Chuck Swoboda, Cree Chairman and CEO. “Revenue growth was led by higher sales of LED components, which exceeded sales of LED chips for the first time. In addition, we took another bold step in leading the LED lighting revolution with our acquisition of LED Lighting Fixtures, which positions us even better to drive the adoption of LED lighting going forward. For Q4, we target growth from XLamp® LEDs, high-brightness LED components and our new LED lighting solutions, all of which are benefitting from the rising demand for energy-efficient LED lighting.”
Recent Business Highlights:
Ø | Acquired LED Lighting Fixtures, which is recognized in the lighting industry as the first company to develop a viable, energy-efficient, “no-compromise” retrofit LED down light for general illumination. The acquisition: |
· | Expands Cree’s market opportunity by providing direct access to the lighting market |
· | Enables Cree to drive retrofit solutions to convert existing lighting infrastructure to energy-efficient lighting and to accelerate the adoption of LED lighting |
· | Sets the stage for Cree to help obsolete the light bulb |
Ø | Announced that Austin, TX, and the Tianjin Economic Development Area (TEDA) in China, will join the growing LED City™ initiative. Austin plans to evaluate and deploy state-of-the-art LED lighting technology across its municipal infrastructure, and is offering rebates that cover approximately 30 percent of the upfront cost of LEDs to help businesses explore the benefits of this new technology. The TEDA is the first city area in China to join the program, and has partnered with Tianjin Polytechnic University to develop the expertise necessary to accelerate the adoption of LED lighting in China. |
Q3 2008 Financial Metrics:
Ø | Gross margin was 35% of revenue. |
Ø | Cash flow from operations was $5.5 million. |
Ø | Cash and investments increased $36.4 million to $398.3 million from Q2. |
Business Outlook:
For its fourth quarter of fiscal 2008 ending June 29, 2008, Cree targets revenue in a range of $129 million to $133 million with GAAP earnings of $0.04 to $0.06 per diluted share and non-GAAP earnings of $0.12 to $0.14 per diluted share, based on an estimated 91 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $3.6 million, net of tax, and stock based compensation expense of $3.6 million, net of tax. Our GAAP and Non-GAAP earnings targets reflect approximately $0.04 and $0.03 per diluted share, respectively, representing expected lower interest income, higher patent litigation expense and the dilution resulting from our acquisition of LED Lighting Fixtures, Inc.
Cree will host a conference call at 5:00 p.m. Eastern time today to review the highlights of the fiscal third quarter 2008 results and the fiscal fourth quarter 2008 business outlook, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the Internet. Log on to Cree’s website at www.cree.com and go to “Investor Relations — Overview” for webcast details. The call will be archived and available on the website through May 6, 2008.
Supplemental financial information, including the non-GAAP reconciliation discussed below, is available in the “Investor Relations” section of Cree’s website, under “Financial Metrics,” “Quarter ending March 30, 2008”, at http://www.cree.com/investor/metrics.htm.
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About Cree, Inc.
Cree is leading the LED lighting revolution and setting the stage to obsolete the incandescent light bulb through the use of energy-efficient, environmentally friendly LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting retrofit solutions, and semiconductor solutions for backlighting, wireless and power applications.
Cree’s product families include blue and green LED chips, high brightness LEDs, lighting-class power LEDs, power-switching devices and radio-frequency/wireless devices. Cree solutions are driving improvements in applications such as general illumination, backlighting, electronic signs and signals, variable-speed motors, and wireless communications. For additional product specifications please refer to www.cree.com.
The schedules attached to this release are an integral part of the release. This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including our ability to complete development and commercialization of products under development, such as our pipeline of brighter LED chips, LED components and LED lighting retrofit solutions; our ability to lower costs; potential changes in demand; increasing price competition in key markets; the risk that, due to the complexity of our manufacturing processes and transition of production to larger wafers, we may experience production delays that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; risks associated with the ramp-up of our production for our new products, as well as production at our Huizhou facility and subcontractors; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with our recent acquisition; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission, including our report on Form 10-K for the fiscal year ended June 24, 2007, and subsequent reports filed with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Cree disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.
Cree, the Cree logo and XLamp are registered trademarks, and LED City is a trademark, of Cree, Inc.
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CREE, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
3/30/2008 | 3/25/2007 | 3/30/2008 | 3/25/2007 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Product revenue | $ | 118,160 | $ | 82,318 | $ | 335,464 | $ | 261,258 | ||||
Contract revenue | 6,826 | 7,935 | 21,907 | 21,695 | ||||||||
Total revenue | 124,986 | 90,253 | 357,371 | 282,953 | ||||||||
Cost of product revenue | 75,935 | 55,279 | 219,766 | 163,778 | ||||||||
Cost of contract revenue | 5,502 | 6,002 | 17,520 | 16,934 | ||||||||
Total cost of revenue | 81,437 | 61,281 | 237,286 | 180,712 | ||||||||
Gross margin | 43,549 | 28,972 | 120,085 | 102,241 | ||||||||
Operating expenses: | ||||||||||||
Research and development | 15,405 | 15,619 | 43,083 | 44,272 | ||||||||
Sales, general and administrative | 21,076 | 13,115 | 57,449 | 37,636 | ||||||||
Amortization of acquisition related intangibles | 4,225 | 186 | 12,321 | 528 | ||||||||
(Gain) loss on disposal and impairment of long-lived assets | (722 | ) | (154 | ) | 487 | 28 | ||||||
Total operating expenses | 39,984 | 28,766 | 113,340 | 82,464 | ||||||||
Operating income | 3,565 | 206 | 6,745 | 19,777 | ||||||||
Non-operating income: | ||||||||||||
Gain on sale of investments, net | - | - | 14,117 | 11,411 | ||||||||
Interest and other non-operating income, net | 3,884 | 3,993 | 12,193 | 11,838 | ||||||||
Income from continuing operations before income taxes | 7,449 | 4,199 | 33,055 | 43,026 | ||||||||
Income tax expense (benefit) | 1,787 | (9,846 | ) | 7,885 | (649 | ) | ||||||
Net income from continuing operations | 5,662 | 14,045 | 25,170 | 43,675 | ||||||||
(Loss) income from discontinued operations, net of related tax effect | (2 | ) | 7,085 | (176 | ) | 7,224 | ||||||
Net income | $ | 5,660 | $ | 21,130 | $ | 24,994 | $ | 50,899 | ||||
Diluted earnings per share: | ||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.18 | $ | 0.29 | $ | 0.56 | ||||
(Loss) income from discontinued operations | $ | (0.00 | ) | $ | 0.09 | $ | (0.00 | ) | $ | 0.09 | ||
Net income | $ | 0.06 | $ | 0.27 | $ | 0.29 | $ | 0.65 | ||||
Weighted average shares of common | ||||||||||||
stock outstanding, basic | 87,211 | 76,417 | 85,695 | 76,809 | ||||||||
Weighted average shares of common | ||||||||||||
stock outstanding, diluted | 88,905 | 77,134 | 87,506 | 77,729 |
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CREE, INC. | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands) | ||||||||||
3/30/2008 | 12/30/2007 | |||||||||
(Unaudited) | (Unaudited) | 6/24/2007 | ||||||||
Assets: | ||||||||||
Current assets: | ||||||||||
Cash, cash equivalents and short term investments | $ | 336,965 | $ | 295,121 | $ | 242,655 | ||||
Accounts receivable, net | 111,604 | 90,520 | 79,668 | |||||||
Inventory, net | 83,328 | 75,063 | 71,068 | |||||||
Income taxes receivable and prepaid income taxes | 2,000 | 3,246 | 7,947 | |||||||
Deferred income taxes | 20,886 | 19,939 | 23,573 | |||||||
Prepaid expenses and other current assets | 11,918 | 10,389 | 8,920 | |||||||
Assets of discontinued operations | 133 | 150 | 301 | |||||||
Total current assets | 566,834 | 494,428 | 434,132 | |||||||
Property and equipment, net | 351,222 | 354,252 | 372,345 | |||||||
Long-term investments | 61,369 | 66,828 | 68,363 | |||||||
Intangible assets, net | 129,643 | 89,573 | 96,138 | |||||||
Goodwill | 187,874 | 144,334 | 141,777 | |||||||
Other assets | 9,349 | 3,526 | 3,475 | |||||||
Total assets | $ | 1,306,291 | $ | 1,152,941 | $ | 1,116,230 | ||||
Liabilities and Shareholders' Equity: | ||||||||||
Current liabilities: | ||||||||||
Accounts payable, trade | $ | 44,797 | $ | 36,612 | $ | 32,940 | ||||
Accrued salaries and wages | 14,337 | 10,197 | 10,241 | |||||||
Income taxes payable | - | 6,856 | 4,504 | |||||||
Other current liabilities | 8,101 | 6,212 | 6,259 | |||||||
Liabilities of discontinued operations | 541 | 572 | 505 | |||||||
Total current liabilities | 67,776 | 60,449 | 54,449 | |||||||
Long-term liabilities: | ||||||||||
Deferred income taxes | 55,937 | 36,499 | 38,758 | |||||||
Contingent tax reserves | 4,852 | 5,792 | 5,792 | |||||||
Other long-term liabilities | 162 | 173 | 129 | |||||||
Long-term liabilities of discontinued operations | 835 | 924 | 1,103 | |||||||
Total long-term liabilities | 61,786 | 43,388 | 45,782 | |||||||
Shareholders' Equity: | ||||||||||
Common stock | 112 | 107 | 106 | |||||||
Additional paid-in-capital | 851,362 | 736,242 | 713,778 | |||||||
Accumulated other comprehensive income | 8,008 | 1,168 | 9,826 | |||||||
Retained earnings | 317,247 | 311,587 | 292,289 | |||||||
Total shareholders' equity | 1,176,729 | 1,049,104 | 1,015,999 | |||||||
Total liabilities and shareholders' equity | $ | 1,306,291 | $ | 1,152,941 | $ | 1,116,230 |
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The following is a reconciliation showing how Cree, Inc.'s third quarter income statements for fiscal 2008 and 2007 would appear if they were adjusted for the items noted below. | ||||||||||||||||||||
CREE, INC. | ||||||||||||||||||||
Reconciling Items to Q3 2008 & 2007 Financial Statements - GAAP to Non-GAAP | ||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 30, 2008 | March 25, 2007 | |||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||
Product revenue | $ | 118,160 | $ | - | $ | 118,160 | $ | 82,318 | $ | - | $ | 82,318 | ||||||||
Contract revenue | 6,826 | - | 6,826 | 7,935 | - | 7,935 | ||||||||||||||
Total revenue | 124,986 | - | 124,986 | 90,253 | - | 90,253 | ||||||||||||||
Cost of product revenue | 75,935 | (569 | ) | (a) | 75,366 | 55,279 | (580 | ) | (a) | 54,699 | ||||||||||
Cost of contract revenue | 5,502 | - | 5,502 | 6,002 | - | 6,002 | ||||||||||||||
Total cost of sales | 81,437 | (569 | ) | 80,868 | 61,281 | (580 | ) | 60,701 | ||||||||||||
Gross margin | 43,549 | 569 | 44,118 | 28,972 | 580 | 29,552 | ||||||||||||||
Gross margin percentage | 35 | % | 35 | % | 32 | % | 33 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 15,405 | (1,095 | ) | (a) | 14,310 | 15,619 | (831 | ) | (a) | 14,788 | ||||||||||
Sales, general and administrative | 21,076 | (2,466 | ) | (a) | 18,610 | 13,115 | (1,331 | ) | (a) | 11,784 | ||||||||||
Amortization of acquisition related intangibles | 4,225 | (4,225 | ) | (b) | - | 186 | (186 | ) | (b) | - | ||||||||||
Gain on disposal of assets | (722 | ) | - | (722 | ) | (154 | ) | - | (154 | ) | ||||||||||
Total operating expenses | 39,984 | (7,786 | ) | 32,198 | 28,766 | (2,348 | ) | 26,418 | ||||||||||||
Operating income | 3,565 | 8,355 | 11,920 | 206 | 2,928 | 3,134 | ||||||||||||||
Non-operating income: | ||||||||||||||||||||
Gain (loss) on investments in securities | - | - | - | - | - | - | ||||||||||||||
Interest and other non-operating income, net | 3,884 | - | 3,884 | 3,993 | - | 3,993 | ||||||||||||||
Income from continuing operations before income taxes | 7,449 | 8,355 | 15,804 | 4,199 | 2,928 | 7,127 | ||||||||||||||
Income tax expense (benefit) | 1,787 | 2,005 | (c) | 3,792 | (9,846 | ) | 12,036 | (d) | 2,190 | |||||||||||
Net income from continuing operations | 5,662 | 6,350 | 12,012 | 14,045 | (9,108 | ) | 4,937 | |||||||||||||
(Loss) gain from discontinued operations, net of related tax | (2 | ) | - | (2 | ) | 7,085 | (7,286 | ) | (e) | (201 | ) | |||||||||
Net income | $ | 5,660 | $ | 6,350 | $ | 12,010 | $ | 21,130 | $ | (16,394 | ) | $ | 4,736 | |||||||
Earnings per diluted share: | ||||||||||||||||||||
From continuing operations | $ | 0.06 | $ | 0.07 | $ | 0.14 | $ | 0.18 | $ | (0.12 | ) | $ | 0.06 | |||||||
From discontinued operations | $ | (0.00 | ) | $ | - | $ | (0.00 | ) | $ | 0.09 | $ | (0.09 | ) | $ | (0.00 | ) | ||||
From net income | $ | 0.06 | $ | 0.07 | $ | 0.14 | $ | 0.27 | $ | (0.22 | ) | $ | 0.06 | |||||||
Weighted average shares of common | ||||||||||||||||||||
stock outstanding, basic | 87,211 | - | 87,211 | 76,417 | - | 76,417 | ||||||||||||||
Weighted average shares of common | ||||||||||||||||||||
stock outstanding, diluted | 88,905 | - | 88,905 | 77,134 | - | 77,134 | ||||||||||||||
(a) Non-cash stock-based compensation expense of $569 in costs of product revenue, $1,095 in research and development and $2,466 in sales, general and administrative for the three months ended March 30, 2008 and $580 in costs of product revenue, $831 in research and development and $1,331 in sales, general and administrative for the three months ended March 25, 2007. | ||||||||||||||||||||
(b) Amortization expense of $4,225 for the three months ended March 30, 2008 and $186 for the three months ended March 25, 2007 recognized on intangible assets resulting from acquisitions. | ||||||||||||||||||||
(c) Tax effects of non-cash stock-based compensation expense and amortization related to acquisition related intangible assets. | ||||||||||||||||||||
(d) Tax effects for non-cash stock-based compensation, tax benefit related to the change in estimate of contingent tax reserves associated with our research and experimentation tax credit benefit related to the completion of Internal Revenue Service audits of fiscal 2003, 2004 and 2005 Federal tax returns, tax benefit related to the release of valuation allowances on deferred tax assets related to Federal capital loss carry forwards and income tax return to provision adjustments associated with the filing of our fiscal 2006 federal tax returns. | ||||||||||||||||||||
(e) Tax benefit related to the the release of contingent tax reserves associated with the completion of Internal Revenue Service audits of fiscal 2003, 2004 and 2005 Federal tax returns. |
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The following is a reconciliation showing how Cree, Inc.'s year to date income statements for fiscal 2008 and 2007 would appear if they were adjusted for the items noted below. | ||||||||||||||||||||
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CREE, INC. | ||||||||||||||||||||
Reconciling Items to Nine Months Financial Statements - GAAP to Non-GAAP | ||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
March 30, 2008 | March 25, 2007 | |||||||||||||||||||
GAAP | Adjustments | As Adjusted | GAAP | Adjustments | As Adjusted | |||||||||||||||
Product revenue | $ | 335,464 | $ | - | $ | 335,464 | $ | 261,258 | $ | - | $ | 261,258 | ||||||||
Contract revenue | 21,907 | - | 21,907 | 21,695 | - | 21,695 | ||||||||||||||
Total revenue | 357,371 | - | 357,371 | 282,953 | - | 282,953 | ||||||||||||||
Cost of product revenue | 219,766 | (2,209 | ) | (a) | 217,557 | 163,778 | (2,787 | ) | (a) | 160,991 | ||||||||||
Cost of contract revenue | 17,520 | - | 17,520 | 16,934 | - | 16,934 | ||||||||||||||
Total cost of sales | 237,286 | (2,209 | ) | 235,077 | 180,712 | (2,787 | ) | 177,925 | ||||||||||||
Gross margin | 120,085 | 2,209 | 122,294 | 102,241 | 2,787 | 105,028 | ||||||||||||||
Gross margin percentage | 34 | % | 34 | % | 36 | % | 37 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 43,083 | (3,031 | ) | (a) | 40,052 | 44,272 | (2,606 | ) | (a) | 41,666 | ||||||||||
Sales, general and administrative | 57,449 | (7,122 | ) | (a)(b) | 50,327 | 37,636 | (3,774 | ) | (a) | 33,862 | ||||||||||
Amortization of acquisition related intangibles | 12,321 | (12,321 | ) | (c) | - | 528 | (528 | ) | (c) | - | ||||||||||
Loss on disposal and impairment of long-lived assets | 487 | - | 487 | 28 | - | 28 | ||||||||||||||
Total operating expenses | 113,340 | (22,474 | ) | 90,866 | 82,464 | (6,908 | ) | 75,556 | ||||||||||||
Operating income | 6,745 | 24,683 | 31,428 | 19,777 | 9,695 | 29,472 | ||||||||||||||
Non-operating income: | ||||||||||||||||||||
Gain (loss) on investments in securities | 14,117 | (14,117 | ) | (d) | - | 11,411 | (11,351 | ) | (d) | 60 | ||||||||||
Interest and other non-operating income, net | 12,193 | - | 12,193 | 11,838 | - | 11,838 | ||||||||||||||
Income from continuing operations before income taxes | 33,055 | 10,566 | 43,621 | 43,026 | (1,656 | ) | 41,370 | |||||||||||||
Income tax expense | 7,885 | 2,552 | (e) | 10,437 | (649 | ) | 13,706 | (f) | 13,057 | |||||||||||
Net income from continuing operations | 25,170 | 8,014 | 33,184 | 43,675 | (15,362 | ) | 28,313 | |||||||||||||
(Loss) gain from discontinued operations, net of related tax | (176 | ) | - | (176 | ) | 7,224 | (7,566 | ) | (g) | (342 | ) | |||||||||
Net income | $ | 24,994 | $ | 8,014 | $ | 33,008 | $ | 50,899 | $ | (22,928 | ) | $ | 27,971 | |||||||
Earnings per diluted share: | ||||||||||||||||||||
From continuing operations | $ | 0.29 | $ | 0.09 | $ | 0.38 | $ | 0.56 | $ | (0.20 | ) | $ | 0.36 | |||||||
From discontinued operations | $ | (0.00 | ) | $ | - | $ | (0.00 | ) | $ | 0.09 | $ | (0.10 | ) | $ | (0.01 | ) | ||||
From net income | $ | 0.29 | $ | 0.09 | $ | 0.38 | $ | 0.65 | $ | (0.29 | ) | $ | 0.36 | |||||||
Weighted average shares of common | ||||||||||||||||||||
stock outstanding, basic | 85,695 | - | 85,695 | 76,809 | - | 76,809 | ||||||||||||||
Weighted average shares of common | ||||||||||||||||||||
stock outstanding, diluted | 87,506 | - | 87,506 | 77,729 | - | 77,729 | ||||||||||||||
(a) Non-cash stock-based compensation expense of $2,209 in costs of product revenue, $3,031 in research and development and $6,074 in sale, general and administrative for the nine months ended March 30, 2008 and $2,787 in costs of product revenue, $2,606 in research and development and $3,774 in sale, general and administrative for the nine months ended March 25, 2007. | ||||||||||||||||||||
(b) Personal property assessment of $1,048 related to finalizing the audits of our 2002 through 2007 property tax returns. | ||||||||||||||||||||
(c) Amortization expense of $12,321 for the nine months ended March 30, 2007 and $528 for the nine months ended March 25, 2007 recognized on intangible assets resulting from prior year acquisitions. | ||||||||||||||||||||
(d) Gain on the sale of 500,000 shares of Color Kinetics Incorporated common stock during the nine months ended March 30, 2008 and on the sale of 931,000 shares of Color Kinetics Incorporated common stock during the nine months ended March 25, 2007. | ||||||||||||||||||||
(e) Tax effects for non-cash stock-based compensation expense, personal property tax assessment, the amortization of acquisition related intangible assets and on the sale of Color Kinetics Incorporated common stock. | ||||||||||||||||||||
(f) Tax effects for non-cash stock-based compensation, tax benefit related to the change in estimate of contingent tax reserves associated with our research and experimentation tax credit benefit related to the completion of Internal Revenue Service audits of fiscal 2003, 2004 and 2005 Federal tax returns, tax benefit of the release of valuation allowances on deferred tax assets related to Federal capital loss carry forwards and income tax return to provision adjustments associated with the filing of our fiscal 2006 federal tax returns. | ||||||||||||||||||||
(g) Tax benefit related to the the release of contingent tax reserves associated with the completion of Internal Revenue Service audits of fiscal 2003, 2004 and 2005 Federal tax returns, and Gain realized as a result of entering into a sublease agreement at Cree Microwave. |
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