This morning, Cree updated its financial guidance for the current quarter (Q4 of fiscal 2019) to reflect the impact of the Huawei export ban, as well as softness in the LED market. Cree’s new revenue range is from $245 million to $252 million compared to the prior guidance of $263 million to $271 million. At the midpoint, this represents a decline of $18 million or 7 percent.
In the release updating the forecast, Cree said the revenue for its subsidiary Wolfspeed (included in Cree's numbers) is expected to range between $132 million and $135 million, $133.5 million at the midpoint. During the Q3 earnings call, CFO Neill Reynolds said Wolfspeed’s Q4 revenue was expected to increase 1 percent sequentially, which would have been $142.7 million. The new guidance reflects a decrease of approximately $8 million to $11 million.
Cree also said the revenue from Huawei in Q4 could have been as high as $15 million without the export ban.
This roughly $15 million impact to Cree adds to the $50 million reported by Qorvo and $60 million at Skyworks, now totaling $125 million this quarter from just these three suppliers. As a former colleague would say, “That’s adult money.”