CREE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts and percentages) (unaudited) Three Months Ended June 30, June 24, 2013 2012 Revenue, net Cost of revenue, net Gross profit Gross margin percentage $ 375,009 234,284 140,725 37.5% $ 306,759 199,856 106,903 34.8% Year Ended June 30, June 24, 2013 2012 $ 1,385,982 862,722 523,260 37.8% $ 1,164,658 755,196 409,462 35.2% Operating expenses: Research and development Sales, general and administrative Amortization of acquisition-related intangibles 39,365 61,696 7,715 36,921 52,303 7,614 155,889 236,581 30,823 143,357 197,092 26,274 Loss on disposal or impairment of long-lived assets Total operating expenses 1,088 109,864 1,393 98,231 3,473 426,766 3,481 370,204 Operating income Operating income percentage 30,861 8.2% Other non-operating income, net Income from operations before income taxes Income tax expense Net income $ 2,685 33,546 5,304 28,242 Diluted earnings per share $ 0.23 Shares used in diluted per share calculation 121,081 5 8,672 2.8% $ 1,574 10,246 220 10,026 $ 0.09 116,243 96,494 7.0% 39,258 3.4% $ 11,063 107,557 20,632 86,925 $ 8,389 47,647 3,235 44,412 $ 0.74 $ 0.39 117,979 115,225