Cree reports strong second quarter sales
Published: Tue, Jan. 22, 2008 05:29PM
Modified Tue, Jan. 22, 2008 05:33PM
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closeCree, which makes semiconductors for LED lights, reported a surge in second-quarter revenue on higher production capacity that boosted sales of LED chips.
Revenue rose 34 percent to $119 million for the period ended Dec. 30 from $89 million in the same period last year, the company reported after the market closed today.
Due to one-time expenses, profit fell to $6.6 million from from $16.5 million last year, still at the high end of the company’s forecast. Backing out one-time costs, profit was $12.2 million, or 14 cents per share. That beat Wall Street estimates of 6 cents per share.
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Cree has struggled to maintain consistent profit growth in recent quarters as it shifted from making mostly low-end LED chips to high-brightness ones used for outdoor and general purpose lighting.
Analysts say recent outlays for research and development, and production capacity in Asia are just starting to pay off. Cree last spring paid $200 million for Cotco Luminant Device, which makes components for lighting fixtures that complement its LED chips. At the time, Cree projected the deal would boost 2008 revenue by 20 percent and increase profit by 5 percent to 10 percent.
Cree shares closed down 7 cents to $25.65.
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