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BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. Declares Distribution

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On November 25, 2020, BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. (Ticker: XALCX) today declared a distribution of $1.75 per share of common stock, payable on December 23, 2020 to shareholders of record at the close of business on December 9, 2020. The ex-dividend date is December 8, 2020. The previous dividend declared in August was $1.75 per share of common stock.

The Fund intends to distribute all or a portion of its net investment income to common shareholders on a quarterly basis. To permit the Fund to maintain a more stable quarterly distribution, the Fund may from time to time distribute less than the entire amount of income earned in a particular period. The undistributed income would be available to supplement future distributions. Under normal market conditions, the Fund is managed in a manner such that the Funds distributions are reflective of the Funds current and projected earnings levels. Various factors will affect the Funds earnings, including the Funds asset mix, the average maturity of the Funds portfolio and the Funds use of hedging, as well as broader market conditions and interest rate levels. As portfolio and market conditions may change, the distribution rate, the composition of the distribution and the Fund’s policy to declare and pay distributions quarterly may be subject to change, including by the Board of Directors.

Important Information

BNY Mellon Investment Adviser, Inc., the investment adviser for the Fund, is part of BNY Mellon Investment Management. BNY Mellon Investment Management is one of the worlds leading investment management organizations and one of the top U.S. wealth managers, with US $2.0 trillion in assets under management as of September 30, 2020. BNY Mellon Investment Management encompasses BNY Mellons affiliated investment management firms, wealth management organization and global distribution companies. Through an investor-first approach, BNY Mellon Investment Management brings to clients the best of both worlds: specialist expertise from eight world-class investment firms offering solutions across every major asset class, backed by the strength, stability, and global presence of The Bank of New York Mellon Corporation (NYSE: BK), one of the worlds most trusted investment partners, which has US $38.6 trillion in assets under custody and/or administration as of September 30, 2020.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Additional information on BNY Mellon Investment Management is available on www.im.bnymellon.com. BNY Mellon Investment Managements website is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate the website in this release.

The Fund’s investment returns and principal values will fluctuate so that an investors shares may be worth more or less than the original cost. There is no assurance that the Fund will achieve its investment objective.

This release is for informational purposes only and should not be considered as investment advice or a recommendation of any particular security.

For Press Inquiries:

BNY Mellon Investment Adviser, Inc.

Benjamin Tanner

(212) 635-8676

For Other Inquiries:

BNY Mellon Securities Corporation

The National Marketing Desk

240 Greenwich Street

New York, New York 10286

1-800-334-6899

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ACI Worldwide, Inc. Announces Preliminary 2020 Results

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ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time digital payment software and solutions, today announced preliminary unaudited financial results for the full year ended December 31, 2020.

Based on preliminary information available at this time, for the year ended December 31, 2020, the Company currently expects revenue of between $1.280 billion and $1.295 billion, and adjusted EBITDA of between $350 million and $360 million.

Our focus on maximizing profitability, coupled with our resilient business model, is delivering results. We are pleased to have achieved year-over-year growth and significant margin improvement for 2020, despite the ongoing challenges of the COVID-19 pandemic, said Odilon Almeida, president and CEO of ACI Worldwide. We have entered the new year with a clearly defined three-pillar strategy and execution plan for continuous profitable growth and transformational value creation for shareholders.

Reaffirming Long Term Outlook

ACI is reaffirming its long-term outlook of mid-single-digit organic revenue growth combined with gradual net adjusted EBITDA margin improvement annually, as discussed at its November 2020 Analyst Day. ACI currently expects COVID-19-related headwinds to persist through the first half of 2021, with growth accelerating in the second half.

Mr. Almeida continued, Looking ahead, 2021 will be a milestone year as we expect to achieve the ˜Rule of 40 for the first time as a company. We look forward to updating you on our progress throughout the year.

Conference Call

ACI will host a conference call in which members of the management team will present preliminary 2020 results tomorrow, January 28, 2021, at 8:30 am EST. There will be no Q&A. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, International/Local: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference ID code 9873636. There will be a replay available for two weeks on (855) 859-2056 for US/Canada and +1 (404) 537-3406 for International/Local dial-In participants.

About ACI Worldwide ACI Worldwide is a global software company that provides mission-critical real-time payment solutions to corporations. Customers use our proven, scalable and secure solutions to process and manage digital payments, enable omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with local presence to drive the real-time digital transformation of payments and commerce.

Copyright ACI Worldwide, Inc. 2021.

ACI, ACI Worldwide, ACI Payment Systems, the ACI logo and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties trademarks referenced are the property of their respective owners.

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures discussed above, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

¢ Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).

¢ Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).

FORWARD LOOKING STATEMENTS This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as believes, will, expects, anticipates, intends, and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to, expectations regarding: (i) Our focus on maximizing profitability, coupled with our resilient business model, is delivering results, (ii) our long-term financial outlook, (iii) our achievement of the Rule of 40.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the success of our strategy, demand for our products, consolidations and failures in the financial services industry, customer reluctance to switch to a new vendor, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, the complexity of our products and services and the risk that they may contain hidden defects or be subjected to security breaches or viruses, compliance of our products with applicable legislation, governmental regulations and industry standards, our compliance with privacy regulations, our ability to protect customer information from security breaches or attacks, our ability to adequately defend our intellectual property, exposure to credit or operating risks arising from certain payment funding methods, business interruptions or failure of our information technology and communication systems, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, exposure to unknown tax liabilities, adverse changes in the global economy, worldwide events outside of our control, failure to attract and retain key personnel, litigation, future acquisitions, strategic partnerships and investments, integration of and achieving benefits from the Speedpay acquisition, impairment of our goodwill or intangible assets, restrictions and other financial covenants in our debt agreements, our existing levels of debt, replacement of LIBOR benchmark interest rate, the accuracy of managements backlog estimates, exposure to unknown tax liabilities, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, volatility in our stock price, and the COVID-19 pandemic. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

For more information contact:

John Kraft

ACI Worldwide

239-403-4627

[email protected]

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Cree Reports Financial Results for the Second Quarter of Fiscal Year 2021

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Cree, Inc. (Nasdaq: CREE) today announced revenue from continuing operations of $127.0 million for its second quarter of fiscal 2021, ended December 27, 2020. This represents a 5% increase compared to revenue from continuing operations of $120.7 million reported for the second quarter of fiscal 2020, and a 10% increase compared to the first quarter of fiscal 2021. GAAP net loss from continuing operations for the second quarter of fiscal 2021 was $54.3 million, or $0.49 per diluted share, compared to GAAP net loss from continuing operations of $57.9 million, or $0.54 per diluted share, for the second quarter of fiscal 2020. On a non-GAAP basis, net loss from continuing operations for the second quarter of fiscal 2021 was $26.6 million, or $0.24 per diluted share, compared to non-GAAP net loss from continuing operations for the second quarter of fiscal 2020 of $21.8 million, or $0.20 per diluted share.

As previously announced, on October 18, 2020, Cree executed a definitive agreement to sell the LED Products business unit to SMART Global Holdings, Inc. (SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration. The transaction is subject to satisfaction of customary closing conditions, and is targeted to close in the first calendar quarter of 2021.

We delivered strong results for the second quarter, including sequential growth in revenue from continuing operations, underscoring the momentum we continue to see for our silicon carbide solutions, said Cree CEO, Gregg Lowe. While we continue to confront some of the challenges associated with the broader macroenvironment, we continue to invest for the future to support several growth opportunities across multiple sectors.”

Business Outlook:

For its third quarter of fiscal 2021, Cree targets revenue from continuing operations in a range of $127 million to $133 million. GAAP net loss from continuing operations is targeted at $66 million to $71 million, or $0.59 to $0.64 per diluted share. Non-GAAP net loss from continuing operations is targeted to be in a range of $23 million to $28 million, or $0.21 to $0.25 per diluted share. Targeted non-GAAP net loss from continuing operations excludes $43 million of estimated expenses, net of tax, related to stock-based compensation expense, amortization or impairment of acquisition-related intangibles, factory optimization restructuring and start-up costs, net accretion on convertible notes, and project, transformation, transaction and transition costs. The GAAP and non-GAAP targets from continuing operations do not include any estimated change in the fair value of Crees ENNOSTAR (formerly Lextar) investment.

Quarterly Conference Call:

Cree will host a conference call at 5:00 p.m. Eastern time today to review the highlights of the second quarter results and the fiscal third quarter 2021 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. For webcast details, visit Cree’s website at investor.cree.com/events.cfm.

Supplemental financial information, including the non-GAAP reconciliation attached to this press release, is available on Cree’s website at investor.cree.com/results.cfm.

About Cree, Inc.

Cree is an innovator of Wolfspeed power and radio frequency (RF) semiconductors and lighting class LEDs. Crees Wolfspeed product families include silicon carbide materials, power-switching devices and RF devices targeted for applications such as electric vehicles, fast charging inverters, power supplies, telecom and military and aerospace. Crees LED product families include blue and green LED chips, high-brightness LEDs and lighting-class power LEDs targeted for indoor and outdoor lighting, video displays, transportation and specialty lighting applications.

For additional product and Company information, please refer to www.cree.com.

Non-GAAP Financial Measures:

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 and expenses that 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.

Presentation:

The Company revised income tax expense for the three and six months ended December 29, 2019 to correct the income tax provision calculation for the second quarter of fiscal 2020. The Company increased income tax expense for the three and six months ended December 29, 2019, resulting in a net increase to net loss of $1.5 million in each period. The Company concluded these errors were not material individually or in the aggregate to any of the periods impacted.

Forward Looking Statements:

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 Crees actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about our plans to grow the Wolfspeed business, the completion of the sale of our LED Products business and our ability to achieve our targets for the third quarter of fiscal 2021. Actual results, including with respect to our ability to complete the divestiture of the LED Products business on time or at all, could differ materially due to a number of factors, including but not limited to, risks associated with divestiture transactions generally; issues, delays or complications in completing required carve-out activities to allow the LED Products business to operate on a stand-alone basis after the closing, including incurring unanticipated costs to complete such activities; risks associated with integration or transition of the operations, systems and personnel of the LED Products business, each, as applicable, within the term of the post-closing transition services agreement between SMART and Cree; unfavorable reaction to the sale by customers, competitors, suppliers and employees; the risk that costs associated with the transaction will be greater than we expect; risks relating to the COVID-19 pandemic, the risk of new and different government restrictions that limit our ability to do business, the risk of infection in our workforce and subsequent impact on our ability to conduct business, the risk that our supply chain or customer demand may continue to be negatively impacted, the risk that the current outbreak or continued spread will lead to a global recession and the potential for costs associated with our operations during the fiscal 2021 third quarter and future quarters to be greater than we anticipate as a result of all of these factors; the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs, lower yields and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor’s products instead; product mix; risks associated with the ramp-up of production of our new products, and our entry into new business channels different from those in which we have historically operated; risks associated with our factory optimization plan and construction of a new fabrication facility, including design and construction delays and cost overruns, issues in installing and qualifying new equipment and ramping production, poor production process yields and quality control, and potential increases to our restructuring costs; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that the economic and political uncertainty caused by the tariffs imposed by the United States on Chinese goods, and corresponding Chinese tariffs and currency devaluation in response, may negatively impact demand for our products; risks related to international sales and purchases, including the risk that U.S. government actions with respect to Huawei Technologies Co. and its affiliates or other foreign customers or vendors may have a greater impact on our business and results of operations than our expectations; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; 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 risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our remaining goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development; 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 ongoing litigation; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10-K for the fiscal year ended June 28, 2020, and subsequent reports filed with the SEC. These forward-looking statements represent Cree’s judgment as of the date of this release. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Cree disclaims any intent or 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 and Wolfspeed are registered trademarks of Cree, Inc.

 

CREE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three months ended

 

Six months ended

(in millions of U.S. Dollars, except per share data)

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

Revenue, net

$127.0

 

 

$120.7

 

 

$242.5

 

 

$248.4

 

Cost of revenue, net

85.7

 

 

85.1

 

 

165.7

 

 

160.3

 

Gross profit

41.3

 

 

35.6

 

 

76.8

 

 

88.1

 

Gross margin percentage

33

%

 

29

%

 

32

%

 

35

%

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

45.5

 

 

38.7

 

 

86.7

 

 

73.9

 

Sales, general and administrative

46.8

 

 

45.0

 

 

90.8

 

 

94.0

 

Amortization or impairment of acquisition-related intangibles

3.6

 

 

3.6

 

 

7.2

 

 

7.2

 

Loss on disposal or impairment of other assets

0.4

 

 

0.8

 

 

0.7

 

 

1.6

 

Other operating expense

2.6

 

 

10.9

 

 

11.2

 

 

17.0

 

Operating loss

(57.6)

 

 

(63.4)

 

 

(119.8)

 

 

(105.6)

 

Operating loss percentage

(45)

%

 

(53)

%

 

(49)

%

 

(43)

%

 

 

 

 

 

 

 

 

Non-operating (income) expense, net

(3.1)

 

 

(5.0)

 

 

10.8

 

 

(6.6)

 

Loss before income taxes

(54.5)

 

 

(58.4)

 

 

(130.6)

 

 

(99.0)

 

Income tax benefit

(0.2)

 

 

(0.5)

 

 

(1.0)

 

 

(1.8)

 

Net loss from continuing operations

(54.3)

 

 

(57.9)

 

 

(129.6)

 

 

(97.2)

 

Net (loss) income from discontinued operations

(28.4)

 

 

3.9

 

 

(137.2)

 

 

5.4

 

Net loss

(82.7)

 

 

(54.0)

 

 

(266.8)

 

 

(91.8)

 

Net income from discontinued operations attributable to noncontrolling interest

0.3

 

 

0.3

 

 

0.6

 

 

0.3

 

Net loss attributable to controlling interest

($83.0)

 

 

($54.3)

 

 

($267.4)

 

 

($92.1)

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share

 

 

 

 

 

 

 

Continuing operations

($0.49)

 

 

($0.54)

 

 

($1.18)

 

 

($0.90)

 

Net loss attributable to controlling interest

($0.75)

 

 

($0.50)

 

 

($2.42)

 

 

($0.86)

 

 

 

 

 

 

 

 

 

Weighted average shares – basic and diluted (in thousands)

110,688

 

 

107,925

 

 

110,297

 

 

107,519

 

 

CREE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

(in millions of U.S. Dollars)

December 27, 2020

 

June 28, 2020

Assets

 

 

 

Current assets:

 

 

 

Cash, cash equivalents, and short-term investments

$968.7

 

 

$1,239.7

 

Accounts receivable, net

82.0

 

 

72.4

 

Inventories

144.3

 

 

121.9

 

Income taxes receivable

8.0

 

 

6.6

 

Prepaid expenses

26.1

 

 

26.2

 

Other current assets

11.2

 

 

8.7

 

Current assets held for sale

1.7

 

 

1.3

 

Current assets of discontinued operations

237.3

 

 

116.0

 

Total current assets

1,479.3

 

 

1,592.8

 

Property and equipment, net

1,036.3

 

 

770.8

 

Goodwill

359.2

 

 

349.7

 

Intangible assets, net

148.9

 

 

156.9

 

Other long-term investments

66.1

 

 

55.9

 

Deferred tax assets

1.2

 

 

1.2

 

Other assets

33.9

 

 

33.6

 

Long-term assets of discontinued operations

 

 

270.1

 

Total assets

$3,124.9

 

 

$3,231.0

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$267.3

 

 

$189.8

 

Accrued contract liabilities

18.0

 

 

14.2

 

Income taxes payable

2.9

 

 

1.2

 

Finance lease liabilities

0.4

 

 

3.6

 

Other current liabilities

26.3

 

 

22.2

 

Current liabilities of discontinued operations

70.7

 

 

60.2

 

Total current liabilities

385.6

 

 

291.2

 

 

 

 

 

Long-term liabilities:

 

 

 

Convertible notes, net

803.5

 

 

783.8

 

Deferred tax liabilities

4.1

 

 

1.8

 

Finance lease liabilities – long-term

10.2

 

 

11.4

 

Other long-term liabilities

49.9

 

 

43.8

 

Long-term liabilities of discontinued operations

 

 

9.8

 

Total long-term liabilities

867.7

 

 

850.6

 

 

 

 

 

Shareholders equity:

 

 

 

Common stock

0.1

 

 

0.1

 

Additional paid-in-capital

3,155.9

 

 

3,106.2

 

Accumulated other comprehensive income

15.5

 

 

16.0

 

Accumulated deficit

(1,306.6)

 

 

(1,039.2)

 

Total shareholders equity

1,864.9

 

 

2,083.1

 

Noncontrolling interest from discontinued operations

6.7

 

 

6.1

 

Total equity

1,871.6

 

 

2,089.2

 

Total liabilities and shareholders equity

$3,124.9

 

 

$3,231.0

 

 

CREE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

Six months ended

(in millions of U.S. Dollars)

December 27, 2020

 

December 29, 2019

Operating activities:

 

 

 

Net loss

($266.8)

 

 

($91.8)

 

Net (loss) income from discontinued operations

(137.2)

 

 

5.4

 

Net loss from continuing operations

(129.6)

 

 

(97.2)

 

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:

 

 

 

Depreciation and amortization

56.2

 

 

46.2

 

Amortization of debt issuance costs and discount, net of capitalized interest

18.1

 

 

11.4

 

Stock-based compensation

27.4

 

 

27.1

 

Loss on disposal or impairment of long-lived assets

1.5

 

 

1.6

 

Amortization of premium/discount on investments

3.2

 

 

0.2

 

Realized gain on sale of investments

(0.2)

 

 

(0.1)

 

Gain on equity investment

(7.0)

 

 

(9.9)

 

Foreign exchange gain on equity investment

(3.2)

 

 

(1.3)

 

Deferred income taxes

2.3

 

 

(2.4)

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

(9.5)

 

 

(11.7)

 

Inventories

(21.1)

 

 

9.8

 

Prepaid expenses and other assets

(1.8)

 

 

7.7

 

Accounts payable, trade

9.9

 

 

(5.0)

 

Accrued salaries and wages and other liabilities

17.9

 

 

(26.0)

 

Accrued contract liabilities

3.8

 

 

10.0

 

Net cash used in operating activities of continuing operations

(32.1)

 

 

(39.6)

 

Net cash provided by operating activities of discontinued operations

6.2

 

 

27.8

 

Cash used in operating activities

(25.9)

 

 

(11.8)

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

(257.5)

 

 

(100.3)

 

Purchases of patent and licensing rights

(1.9)

 

 

(1.4)

 

Proceeds from sale of property and equipment

0.1

 

 

1.7

 

Purchases of short-term investments

(85.8)

 

 

(295.3)

 

Proceeds from maturities of short-term investments

268.5

 

 

212.6

 

Proceeds from sale of short-term investments

24.1

 

 

61.8

 

Net cash used in investing activities of continuing operations

(52.5)

 

 

(120.9)

 

Net cash provided by investing activities of discontinued operations

2.7

 

 

0.4

 

Cash used in investing activities

(49.8)

 

 

(120.5)

 

 

 

 

 

Financing activities:

 

 

 

Payments on long-term debt borrowings, including finance lease obligations

(0.2)

 

 

(0.1)

 

Proceeds from issuance of common stock

39.2

 

 

29.3

 

Tax withholding on vested equity awards

(24.0)

 

 

(14.7)

 

Commitment fee on long-term incentive agreement

(0.5)

 

 

 

Cash provided by financing activities

14.5

 

 

14.5

 

Effects of foreign exchange changes on cash and cash equivalents

0.5

 

 

(0.1)

 

Net change in cash and cash equivalents

(60.7)

 

 

(117.9)

 

Cash and cash equivalents:

 

 

 

Cash and cash equivalents, beginning of period

448.8

 

 

500.5

 

Cash and cash equivalents, end of period

$388.1

 

 

$382.6

 

 

Cree, Inc. Non-GAAP Measures of Financial Performance

To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, Cree uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross margin, non-GAAP operating (loss) income, non-GAAP non-operating income (expense), net, non-GAAP net (loss) income, non-GAAP diluted (loss) earnings per share from continuing operations and free cash flow.

Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release. Both our GAAP targets and non-GAAP targets do not include any estimated changes in the fair value of our ENNOSTAR (formerly Lextar) investment.

Non-GAAP measures presented in this press release are not in accordance with or an alternative to measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cree’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Cree’s results of operations in conjunction with the corresponding GAAP measures.

Cree believes that these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors’ and management’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future, including cash flows available to pursue opportunities to enhance shareholder value. In addition, because Cree has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company’s financial reporting.

For its internal budgeting process, and as discussed further below, Cree’s management uses financial statements that do not include the items listed below and the income tax effects associated with the foregoing. Cree’s management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company’s financial results.

Cree excludes the following items from one or more of its non-GAAP measures when applicable:

Stock-based compensation expense. This expense consists of expenses for stock options, restricted stock, performance stock awards and employee stock purchases through its Employee Stock Purchase Program. Cree excludes stock-based compensation expenses from its non-GAAP measures because they are non-cash expenses that Cree does not believe are reflective of ongoing operating results.

Amortization or impairment of acquisition-related intangibles. Cree incurs amortization or impairment of acquisition-related intangibles in connection with acquisitions. Cree excludes these items because they arise from Cree’s prior acquisitions and have no direct correlation to the ongoing operating results of Cree’s business.

Factory optimization restructuring. In May 2019, the Company started a significant, multi-year factory optimization plan to be anchored by a state-of-the-art, automated 200mm silicon carbide fabrication facility. In September 2019, the Company announced the intent to build the new fabrication facility in Marcy, New York to complement the factory expansion underway at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company will incur restructuring costs associated with the movement of equipment as well as disposals on certain long-lived assets. Because these charges relate to assets which had been retired prior to the end of their estimated useful lives, Cree does not believe these costs are reflective of ongoing operating results. Similarly, Cree does not consider the realized net losses on sale of assets relating to the restructuring to be reflective of ongoing operating results.

Severance and other restructuring. For the six months ended December 27, 2020 and December 29, 2019, these costs relate to the Company’s realignment of certain resources as part of the Company’s transition to a more focused semiconductor company. Cree does not believe these costs are reflective of ongoing operating results.

Project, transformation and transaction costs. The Company has incurred professional services fees and other costs associated with completed and potential acquisitions and divestitures, as well as internal transformation programs focused on optimizing the Company’s administrative processes and upgrading the Company’s enterprise resource planning (ERP) system to support the Company’s expected future growth. Cree excludes these items because Cree believes they are not reflective of the ongoing operating results of Cree’s business.

Factory optimization start-up costs. The Company has incurred and will incur start-up costs as part of the factory optimization plan. Cree does not believe these costs are reflective of ongoing operating results.

Non-restructuring related executive severance. The Company has incurred costs in conjunction with the termination of key executive personnel. Cree excludes these items because Cree believes they have no direct correlation to the ongoing operating results of Cree’s business.

Transition service agreement costs. As a result of the sale of the Lighting Products business unit, the Company is providing certain information technology services under a transition services agreement which will not be reimbursed. Cree excludes the costs of these services because Cree believes they are not reflective of the ongoing operating results of Cree’s business.

Asset impairment. In fiscal 2019, the Company incurred impairment charges in conjunction with the sale of the Lighting Products business unit for assets excluded from the purchase agreement. Cree excludes these items because Cree believes they are not reflective of the ongoing operating results of Cree’s business.

Net changes in fair value of our ENNOSTAR (formerly Lextar) investment. The Company’s common stock ownership investment in Lextar Electronics Corporation is accounted for utilizing the fair value option. As such, changes in fair value are recognized in income, including fluctuations due to the exchange rate between the New Taiwan Dollar and the United States Dollar. Cree excludes the impact of these gains or losses from its non-GAAP measures because they are non-cash impacts that Cree does not believe are reflective of ongoing operating results. Additionally, Cree excludes the impact of dividends received on its Lextar investment as Cree does not believe it is reflective of ongoing operating results. In January 2021, Lextar completed its previously announced restructuring under a holding company named ENNOSTAR Inc. (ENNOSTAR) with EPISTAR Corporation (EPISTAR) via a share swap pursuant to which the Company received 0.275 shares of common stock of ENNOSTAR for each of share of Lextar common stock.

Accretion on convertible notes, net of capitalized interest. The issuance of the Company’s convertible senior notes in August 2018 and September 2020 results in interest accretion on the convertible notes’ issue costs and discount. Cree considers these items as either limited in term or having no impact on the Company’s cash flows, and therefore has excluded such items to facilitate a review of current operating performance and comparisons to the Company’s past operating performance.

Income tax adjustment. This amount reconciles GAAP tax (benefit) expense to a calculated non-GAAP tax (benefit) expense utilizing a non-GAAP tax rate. The non-GAAP tax rate estimates an appropriate tax rate if the listed non-GAAP items were excluded. This reconciling item adjusts non-GAAP net (loss) income to the amount it would be if the calculated non-GAAP tax rate was applied to non-GAAP (loss) income before taxes.

Cree may incur some of these same expenses, including income taxes associated with these expenses, in future periods. In addition to the non-GAAP measures discussed above, Cree also uses free cash flow as a measure of operating performance and liquidity. Free cash flow represents operating cash flows from continuing operations less net purchases of property and equipment and patent and licensing rights. Cree considers free cash flow to be an operating performance and a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, a portion of which can then be used to, among other things, invest in Cree’s business, make strategic acquisitions and strengthen the balance sheet. A limitation of the utility of free cash flow as a measure of operating performance and liquidity is that it does not represent the residual cash flow available to the company for discretionary expenditures, as it excludes certain mandatory expenditures such as debt service.

 

CREE, INC.

Reconciliation of GAAP to Non-GAAP Measures

(in millions of U.S. Dollars, except per share amounts and percentages)

(unaudited)

 

Non-GAAP Gross Margin

 

Three months ended

 

Six months ended

 

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

GAAP gross profit

$41.3

 

 

$35.6

 

 

$76.8

 

 

$88.1

 

GAAP gross margin percentage

33

%

 

29

%

 

32

%

 

35

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

3.7

 

 

2.4

 

 

7.1

 

 

4.4

 

Factory optimization restructuring

 

 

 

 

1.0

 

 

 

Non-GAAP gross profit

$45.0

 

 

$38.0

 

 

$84.9

 

 

$92.5

 

Non-GAAP gross margin percentage

35

%

 

31

%

 

35

%

 

37

%

 
 

Non-GAAP Operating Loss

 

Three months ended

 

Six months ended

 

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

GAAP operating loss

($57.6)

 

 

($63.4)

 

 

($119.8)

 

 

($105.6)

 

GAAP operating loss percentage

(45)

%

 

(53)

%

 

(49)

%

 

(43)

%

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

 

Cost of revenue, net

3.7

 

 

2.4

 

 

7.1

 

 

4.4

 

Research and development

2.2

 

 

2.0

 

 

4.6

 

 

4.1

 

Sales, general and administrative

7.8

 

 

7.2

 

 

15.7

 

 

18.6

 

Total stock-based compensation expense

13.7

 

 

11.6

 

 

27.4

 

 

27.1

 

Amortization or impairment of acquisition-related intangibles

3.6

 

 

3.6

 

 

7.2

 

 

7.2

 

Factory optimization restructuring

1.3

 

 

1.2

 

 

3.9

 

 

2.4

 

Severance and other restructuring

 

 

 

 

2.8

 

 

0.8

 

Project, transformation and transaction costs

1.8

 

 

7.9

 

 

3.0

 

 

9.4

 

Factory optimization start-up costs

1.2

 

 

1.5

 

 

4.2

 

 

2.9

 

Non-restructuring related executive severance

 

 

0.3

 

 

 

 

1.5

 

Transition service agreement costs

2.6

 

 

5.2

 

 

4.9

 

 

8.2

 

Asset impairment

 

 

 

 

 

 

0.2

 

Non-GAAP operating loss

($33.4)

 

 

($32.1)

 

 

($66.4)

 

 

($45.9)

 

Non-GAAP operating loss percentage

(26)

%

 

(27)

%

 

(27)

%

 

(18)

%

 
 

Non-GAAP Non-Operating (Expense) Income, net

 

Three months ended

 

Six months ended

 

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

GAAP non-operating income (expense), net

$3.1

 

 

$5.0

 

 

($10.8)

 

 

$6.6

 

Adjustments:

 

 

 

 

 

 

 

Net changes in the fair value of ENNOSTAR (formerly Lextar) investment

(13.1)

 

 

(7.8)

 

 

(10.2)

 

 

(11.2)

 

Accretion on convertible notes, net of capitalized interest

8.7

 

 

5.8

 

 

18.1

 

 

11.4

 

Non-GAAP non-operating (expense) income, net

($1.3)

 

 

$3.0

 

 

($2.9)

 

 

$6.8

 

 
 

Non-GAAP Net Loss

 

Three months ended

 

Six months ended

 

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

GAAP net loss from continuing operations

($54.3)

 

 

($57.9)

 

 

($129.6)

 

 

($97.2)

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

13.7

 

 

11.6

 

 

27.4

 

 

27.1

 

Amortization or impairment of acquisition-related intangibles

3.6

 

 

3.6

 

 

7.2

 

 

7.2

 

Factory optimization restructuring

1.3

 

 

1.2

 

 

3.9

 

 

2.4

 

Severance and other restructuring

 

 

 

 

2.8

 

 

0.8

 

Project, transformation and transaction costs

1.8

 

 

7.9

 

 

3.0

 

 

9.4

 

Factory optimization start-up costs

1.2

 

 

1.5

 

 

4.2

 

 

2.9

 

Non-restructuring related executive severance

 

 

0.3

 

 

 

 

1.5

 

Transition service agreement costs

2.6

 

 

5.2

 

 

4.9

 

 

8.2

 

Asset impairment

 

 

 

 

 

 

0.2

 

Net changes in the fair value of ENNOSTAR (formerly Lextar) investment

(13.1)

 

 

(7.8)

 

 

(10.2)

 

 

(11.2)

 

Accretion on convertible notes, net of capitalized interest

8.7

 

 

5.8

 

 

18.1

 

 

11.4

 

Total adjustments to GAAP net loss from continuing operations before provision for income taxes

19.8

 

 

29.3

 

 

61.3

 

 

59.9

 

Income tax adjustment – benefit (expense)

7.9

 

 

6.8

 

 

15.2

 

 

8.0

 

Non-GAAP net loss from continuing operations

($26.6)

 

 

($21.8)

 

 

($53.1)

 

 

($29.3)

 

 

 

 

 

 

 

 

 

Non-GAAP diluted loss per share from continuing operations

($0.24)

 

 

($0.20)

 

 

($0.48)

 

 

($0.27)

 

Non-GAAP weighted average shares (in thousands)

110,688

 

 

107,925

 

 

110,297

 

 

107,519

 

 

Free Cash Flow

 

Three months ended

 

Six months ended

 

December 27, 2020

 

December 29, 2019

 

December 27, 2020

 

December 29, 2019

Net cash used in operating activities from continuing operations

($29.0)

 

 

($5.5)

 

 

($32.1)

 

 

($39.6)

 

Less: PP&E spending

(144.0)

 

 

(59.1)

 

 

(257.5)

 

 

(100.3)

 

Less: Patents spending

(0.7)

 

 

(0.3)

 

 

(1.9)

 

 

(1.4)

 

Total free cash flow

($173.7)

 

 

($64.9)

 

 

($291.5)

 

 

($141.3)

 

 

CREE, INC.

Business Outlook Unaudited GAAP to Non-GAAP Reconciliation

 

 

 

Three Months Ended

(in millions of U.S. Dollars)

 

March 28, 2020

GAAP net loss from continuing operations outlook range

 

($71) to ($66)

Adjustments:

 

 

Stock-based compensation expense

 

13

Amortization or impairment of acquisition-related intangibles

 

4

Factory optimization restructuring and start-up costs

 

5

Accretion on convertible notes, net of capitalized interest

 

8

Project, transformation, transaction and transition costs

 

4

Total adjustments to GAAP net loss before provision for income taxes

 

34

Income tax adjustment

 

9

Non-GAAP net loss from continuing operations outlook range

 

($28) to ($23)

 

Tyler Gronbach

Cree, Inc.

Vice President, Investor Relations

Phone: 919-407-4820

[email protected]

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News

Central Valley Community Bancorp Reports Earnings Results for the Year and Quarter Ended December 31, 2020, and Quarterly Dividend

gbafNews28

The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ: CVCY), the parent company of Central Valley Community Bank (Bank), reported today results for the year and quarter ended December 31, 2020, and quarterly dividend. For the full release, please visit one of the following:

CVCB News Room https://www.cvcb.com/about-us/news-room or CVCB Investor Relations https://ir.cvcb.com/news-market-information/press-releases/default.aspx.

About Central Valley Community Bank

Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank operates 20 full-service offices throughout Californias San Joaquin Valley and Greater Sacramento Region. Additionally, the Bank maintains Commercial Real Estate, Agribusiness and SBA Lending Departments. Central Valley Investment Services are provided by Raymond James Financial, Inc.

Members of Central Valley Community Bancorps and the Banks Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. Tommy Elliott, IV, James M. Ford, Robert J. Flautt, Gary D. Gall, Steven D. McDonald, Louis C. McMurray, Andriana Majarian, Karen Musson, Dorothea D. Silva, and William S. Smittcamp. Sidney B. Cox is Director Emeritus.

More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter and Facebook.

Investor Contact:

Dave Kinross

Executive Vice President and Chief Financial Officer

Central Valley Community Bancorp

559-323-3420

Media Contact:

Debbie Nalchajian-Cohen

Marketing Director

Central Valley Community Bancorp

559-222-1322

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

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