Cree, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 29, 2013. The company announced revenue of $415.1 million for its second quarter of fiscal 2014, ended December 29, 2013. This represents a 20% increase compared to revenue of $346.3 million reported for the second quarter of fiscal 2013. GAAP net income for the second quarter was $35.7 million or $0.29 per diluted share, an increase of 75% year-over-year compared to GAAP net income of $20.4 million, or $0.18 per diluted share, for the second quarter of fiscal 2013. Operating income was $35.4 million against $25.1 million and income before income taxes was $38.8 million against $27.6 million reported last year. On a non-GAAP basis, net income for the second quarter of fiscal 2014 was $56.8 million, or $0.46 per diluted share, an increase of 54% year-over-year compared to non-GAAP net income for the second quarter of fiscal 2013 of $36.9 million, or $0.32 per diluted share. Non-GAAP operating income was $58.3 million against $47.4 million reported last year.

For the six months, the company reported net income of $66.2 million or $0.54 per diluted share on net revenue of $806.1 million compared to net income of $36.5 million or $0.31 per diluted share on net revenue of $662.04 million reported in the same period last year. Operating income was $72.2 million against $42.4 million and income before income taxes was $78.4 million against $48.25 million reported last year. Non-GAAP net income was $104 million or $0.85 per diluted share against $68.6 million or $0.59 per diluted share reported last year. Non-GAAP operating income was $117 million against $84.8 million reported last year. Cash flow from operations was $168 million against $178.3 million reported last year. Spending on property, plant and equipment was $83.5 million against $30.4 million reported last year.

For its third quarter of fiscal 2014 ending March 30, 2014, Cree targets revenue in a range of $390 million to $420 million with GAAP gross margin targeted to be 37.7%+/- and non-GAAP gross margin targeted to be 38.5%+/-. Operating expenses are targeted to be similar to second quarter. The tax rate is targeted at 21.0%+/- for the third quarter of fiscal 2014. GAAP net income is targeted at $24 million to $32 million, or $0.19 to $0.26 per diluted share. Non-GAAP net income is targeted in a range of $42 million to $51 million, or $0.34 to $0.41 per diluted share.