Durham, North Carolina-based Cree, Inc., reported that executive vice president and Chief Financial Officer (CFO) Mike McDevitt will retire from his executive positions after a transition period. Mr. McDevitt plans to stay on until a successor is appointed. Thereafter Mr. Devitt intends to remain available as a consultant to the company to ensure a seamless transition of leadership responsibilities.
Since joining Cree in 2002, Mr. McDevitt has held numerous executive financial positions with the Company, helping grow Cree from less than $200 million to approximately $1.5 billion in annual revenue at its peak, with about 6,900 employees worldwide. Mr. McDevitt has served as the Company’s CFO since May 2012.
Gregg Lowe, CEO, said, “Mike has made significant contributions to the continued success of the Company during his role as CFO, and we appreciate his dedication to helping us solidify and introduce the new business strategy. Now that we have made our pivot, we are gaining traction in the market with the new strategy and believe that we have collectively positioned the Company to support our growth plans and achieve a successful future.”
Cree Driving Adoption of GaN and SiC Power and RF Products
Mr. McDevitt said, “I am confident that it is the appropriate time to begin this CFO transition as the team continues executing the new strategic direction going forward. It has been a privilege working with Cree’s many talented employees and our Board for the last 16 years, first driving the adoption of LEDs, then LED Lighting and more recently our Power and RF products.”
Mr. McDevitt added, “The Company is on healthy financial footing to enable its future growth. I appreciate the opportunity that Gregg and Chuck gave me to serve as their CFO. I look forward to working with Gregg and the team to find our next CFO and to ensure a smooth transition.”
The company also reaffirmed its previously stated business outlook for the fourth quarter of fiscal 2018 ending June 24, 2018. As announced on April 24, 2018, for the fourth quarter Cree expects revenue in the range of $390 million to $410 million with a GAAP net loss of $34 million to $38 million.
In the statement about the CFO transition and the reaffirmed outlook, Cree pointed to several uncertainties in these fourth quarter results. In addition to the differences in results due to the usual production and demand issues, the company explained that the result could also differ markedly due to “the announced CFO transition plan and could differ materially due to a number of factors, including risks inherent in a CFO transition, including timing of retaining a new CFO and transition and integration risks.”
Another unique risk of not achieving projected results that the company mentioned included the potential of U.S. tariffs on Chinese goods and the Chinese tariffs in response.