Wolfspeed, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Cree Incorporated second quarter fiscal year 2020 earnings conference call. At this time, all participants' lines are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Tyler Grombach. VP of Investor Relations. Thank you. Please go ahead, sir.

Thank you, Daniel, and good afternoon, everyone. Welcome to Cree's second quarter fiscal 2020 conference call. Today, Cree's CEO, Greg Lowe, and Cree's CFO, Neil Reynolds, will report on the results for the second quarter of fiscal year 2020. Please note that we will be presenting non-GAAP financial results during today's call, which is consistent with how management measures Cree's results internally. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to and not a substitute for financial statements prepared in accordance with GAAP. A reconciliation to the most directly comparable GAAP measures is in our press release and posted in the investor relations section of our website, along with a historical summary of other key metrics. Today's discussion includes forward-looking statements about our business outlook, and we may make other forward-looking statements during the call. Such forward-looking statements are subject to numerous risks and uncertainties. Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially. During the Q&A session, we would ask that you limit yourself to one question and one follow-up so that we can accommodate as many questions as possible during today's call. If you have any additional questions, please feel free to contact us after the call. And now I'd like to turn the call over to Greg.

Thanks, Tyler, and good afternoon, everyone. In the fiscal second quarter, we delivered revenue at the upper end of our guidance range. We were recently notified by the Department of Commerce that our license to ship to Huawei would not be granted. As such, we have taken an inventory reserve on Huawei-related products. If you adjust for the impact of the reserve, we exceeded the midpoint of the guidance for revenue, gross margin percentage, and EPS. Neil will provide some additional context on the inventory reserve in a couple minutes. We continued our transformation to position Cree for the tremendous growth opportunities ahead of us. We are investing to support numerous growth opportunities across multiple industries, underscoring our competence in our business and its prospects. Those of you who joined us at our November Investor Day were able to hear about some of these opportunities, and in the short time since then, we've continued to see growing momentum for silicon carbide adoption. Despite the Huawei license denial and the short-term headwinds related to the geopolitical and macroeconomic environment, the long-term outlook that we outlined at our November Investor Day remains unchanged. We continue to receive strong validation for our technology by many significant customers who are leaders in their respective industries. Cree's expertise in silicon carbide is unmatched, and we're building on this leadership to accelerate the transition from silicon to silicon carbide. I'll now turn it over to Neil to provide some additional color on our second quarter financial results and the outlook for next quarter.