* Q2 non-GAAP EPS 38 cents vs analyst view 30 cents
* Q2 revenue at $199.5 mln vs estimate $187.5 mln
* Shares up 10 pct in after-hours trading
By Laura Isensee and Poornima Gupta
(Recasts, adds CEO comments, forecast, updates share price,
background and byline)
LOS ANGELES/SAN FRANCISCO, Jan 19 Cree Inc
(CREE.O), which makes light emitting diode (LED) fixtures, said
on Tuesday that second-quarter profit more than tripled and
topped Wall Street estimates, sending the company's shares up
10 percent in extended trade.
Cree said it expected revenue to continue to increase in
the fiscal third quarter and was seeing a strong backlog of
orders as LED lighting adoption continues to gain momentum.
The company is already beginning to build a backlog for the
fourth quarter, Chief Executive Chuck Swoboda said on a
LEDs, which consume less energy and last longer than
incandescent and fluorescent lights, are seeing more demand in
products like televisions as well as lighting fixtures as costs
for power generation and concerns about greenhouse gas
"Our backlog for Q3 is higher than at this point last
quarter, due to increased demand for our LED components,
lighting products," he said.
In the near-term, Swoboda said Cree will focus on
increasing its manufacturing capacity.
As part of that expansion, Cree has bought a facility in
Huizhou, China, that it expects to be operational in first half
of fiscal 2011.
Cree's shares were up 10 percent at $59.66 each in after
hours trading after closing at $54.21 in regular trading on
Tuesday on the Nasdaq. That's only a few cents shy of the
stock's 12-month high of $60 that it hit on Jan. 11.
In 2009, Cree saw its shares rise by more than 250 percent
compared with a 34 percent rise in the Standard & Poor's MidCap
400 Index .MID of which it is a component.
Cree reported its quarterly net income was $33.8 million,
or 32 cents earning per share, compared with $10.7 million, or
12 cents a share, a year ago.
Excluding one-time items, the company earned 38 cents a
share, beating the 30 cents a share that analysts were
expecting, according to Thomson Reuters I/B/E/S.
The company said a faster-than-expected ramp up at its
factory improved production volumes and aided profit margins.
During the quarter, Wal-Mart (WMT.N) chose Cree for an
initial deployment of its LED light bulbs in about 650 of the
giant retailer's stores.
Durham, North Carolina-based Cree said it expects revenue
to continue to grow during its fiscal third quarter to between
$215 million and $225 million, and forecast a net income in
range of $37 million to $40 million, or 35 cents to 37 cents
per diluted share.
Excluding one-time expenses, it expects earnings per share
during the third quarter in the range of 41 cents to 44 cents.
Cree's competitors include Japan's Toyoda Gosei Co Ltd
(7282.T) and privately held Nichia Corp, as well as Siemens AG
(SIEGn.DE) unit Osram.
(Reporting by Laura Isensee and Poornima Gupta. Editing by