Aug 13 Cree Inc forecast
current-quarter profit below analysts' estimates, saying sales
of its high-margin light emitting diode (LED) products are
expected to remain at similar levels to those in the fourth
quarter, sending its shares down 16 percent.
The lighting manufacturer, which is chasing a long-term goal
of pushing all its customers to upgrade to LEDs, reported a
fourth-quarter profit in line with analysts' estimates.
For the current quarter, Cree expects adjusted earnings of
between 36 and 41 cents per share and revenue of $380 million to
Analysts on average were expecting earnings of 43 cents on
revenue of $398.4 million, according to Thomson Reuters I/B/E/S.
The gross margin in LED products division rose to 45.7
percent from 39.1 percent a year earlier. The division makes LED
components, LED chips and Silicon Carbide materials.
The share of LED products business in its revenue fell to 58
percent for the year ended June from 65 percent in the previous
Cree expects "solid growth" in lighting for the first
quarter, driven by LED fixtures and LED bulbs.