Cree revenue waiting for resurgence

Cree shipped fewer LEDs in the last quarter but saw its revenue increase due to a higher proportion of high-brightness devices.

LED maker Cree has reported another disappointing quarter, with revenue of $90.3 million for the period ended March 25, 2007. This represents a 2% increase sequentially, and a 16% decrease compared to revenue of $107.7 million reported for the year-ago period.

The company's LED revenue was $67.2 million, up 3% sequentially but down 23% from $86.9 million in the same period last year.

Average selling prices (ASPs) actually increased by 7% in the March quarter, as a result of the increased sales of high-brightness devices. However, LED unit shipments fell by 5%, following a 15% drop in the previous quarter ended December 2006.

"Q3 was a solid quarter for Cree, as we delivered financial results that were in line with our previously announced targets, and we made a tremendous step forward on our strategy to expand our business with the acquisition of COTCO Luminant Device," stated Chuck Swoboda, Cree chairman and CEO.

Swoboda said that the acquisition of COTCO provides a strong position in the China market and contributes to each of Cree's strategic goals by expanding its platform for EZBright chips, increasing its component product offering, providing a low-cost manufacturing capability, and expanding sales channels.

For its current quarter of fiscal 2007, Cree currently targets revenue in a range of $110 million to $115 million with earnings of $0.05 to $0.07 per diluted share, excluding any in-process R&D or amortization of acquisition-related intangibles resulting from the acquisition of COTCO.

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