Cree shares were hit today as the LED maker revised downwards its revenue and earnings targets for its fiscal second quarter ending December 24, 2006.
Revenue targets have been reduced to a range of $90 million to $92 million due to lower sales of LED chip products. On October 19, Cree forecasted revenue of $105 million to $109 million. Earnings are targeted to be 12-14 cents per diluted share, down from 14-17 cents.
Cree said that the targeted revenue range is lower than previously anticipated due to lower orders for LED chip products used in mobile phones and other products. New component product lines, which include XLamp® products, are targeted to grow in line with prior expectations.
"The LED chip market remains challenging, particularly for our mid- brightness products in mobile applications," stated Chuck Swoboda, Cree's CEO and chairman. "Despite the slowdown in the LED chip business, we are pleased with the growth in new product sales from our recently introduced lighting class XLamp power LED's and our ability to attract a global distributor such as Arrow Electronics. These are important steps in our long-term strategy of growing the company through increased sales of higher-value components.
Neo-Neon plans IPO
Chinese lighting company Neo-Neon Holdings Ltd has raised the price range for its Hong Kong initial public offering (IPO) to the range of HK$5.5 to HK$6.90 a share (US$ 0.71-0.89), according to a Dow Jones report.
Neo-Neon aims to raise up to HK$1.38 billion by selling 200 million shares. The company, which is headquartered in Guangdong province and has around 15,000 employees, will list in Hong Kong in mid-December.
DOE Releases Solicitation for Solid-State Lighting Testing Services
The U.S. Department of Energy (DOE) has released a solicitation for solid-state lighting (SSL) testing services, and is requesting capability statements to pre-qualify laboratories for testing commercially-available SSL products.
The DOE intends to establish contracts with multiple laboratories for the testing of electrical, photometric, colorimetric, thermal characteristics, lumen maintenance, and life performance of commercially available SSL luminaires (e.g., task lights, recessed down lights, under cabinet lights) or replacement lamps. For more information, see the DOE SSL website.
TIR Systems awarded solid-state lighting patent
TIR Systems has been granted US patent number 7,140,752 as the company's 7th patent. This patent protects a neural network control system that enables TIR's unique feedback technology to maintain consistent white light and intensity during variations in operating conditions when applied to solid state light fixtures.
TIR's feedback technology is one of the key breakthroughs incorporated in its Lexel® light sources. "This is a major breakthrough in control systems for LED-based white lighting," states Brent York, Chief Technology Officer for TIR Systems. "With this innovative technology the Lexel will provide long term system stability, while delivering perfectly controllable white light. These unique qualities will allow TIR's lighting manufacturing partners to achieve greater flexibility when designing their Lexel-based lighting products. They will also provide them the opportunity to deliver quality, cost-competitive lighting products to their markets."