Cree released Q1 financial results for fiscal 2017, including its Wolfspeed subsidiary. Wolfspeed is now reported as a discontinued operation because of the pending acquisition by Infineon.

Beginning with the Q1 release, Wolfspeed’s revenue combines the Power and RF segment, which had been reported as a separate Cree business segment, with the non-LED materials product line, which sells SiC and GaN wafers and was reported in the LED Products segment.

Wolfspeed revenue in Q1 was $50 million, a 14 percent increase compared with $44 million in Q1 of fiscal 2016. GAAP earnings per share (EPS) were $0.03, compared with $0.01 in Q1 of fiscal 2016. Non-GAAP earnings were $0.06 per share compared to $0.07 in Q1 of fiscal 2016.

In fiscal Q2, revenue is projected to remain flat at $50 million, with GAAP EPS of $0.07 and non-GAAP EPS of $0.09.

In the release announcing Q1 results, Cree stated the company expects the Wolfspeed sale to Infineon to close by the end of 2016. Near the end of September, the companies received a “second request” from the U.S. Federal Trade Commission, signifying that the government requires additional time and data to assess the anti-trust implications of the deal.

During the Cree earnings call, John Quealy, an analyst with Canaccord Genuity, asked whether the second request could delay the closing. Cree’s CEO, Chuck Swoboda, stated “it’s generally in line,” implying he does not anticipate a delay.

In addition to the antitrust review, Cree and Infineon also need approval from the Committee on Foreign Investment in the United States (CFIUS), since Infineon is a non-U.S. company, GaN is viewed as a strategic technology important to U.S. national defense and a significant portion of Wolfspeed’s business is from U.S. military programs. Asif Anwar, of Strategy Analytics, was briefed by Infineon on the company’s plans to structure a Special Security Agreement (SSA) to maintain support for the U.S. defense programs and compartmentalize sensitive technology and operations. Read his report.