19 October 2010


Cree’s quarterly revenue rises 1.5% to another record of $268m

For its fiscal first-quarter 2011 (ended 26 September 2010), Cree Inc of Durham, NC, USA (which makes LED chips, lamps and lighting fixtures as well as gallium nitride and silicon carbide power-switching and RF/wireless microelectronic devices and SiC substrates) has reported record revenue of $268.4m, up 1.5% on last quarter’s record of $264.6m and up 59% on $169.1m a year ago.











“Revenue grew in lighting, LED components and power products,” says chairman & CEO Chuck Swoboda, as Cree continues to invest in its factories to support the increased adoption of LED lighting, driven by the USA and Asia. “Although total revenue was on the low end of our target range of $270–280m due to a decline in LED chips [for consumer backlighting application, particularly due to a supply/demand correction in Europe], LED lighting adoption continues to gain momentum and the growth drivers for the company remain on track.”

On a non-GAAP basis, gross margin was 49%, up on 44.1% a year ago though down slightly on 49.9% last quarter. However, operating margin has continued to rise from 20.9% a year ago and 29.6% last quarter to 31.3%. Non-GAAP net income has risen from $27.4m a year ago and $60.1m last quarter to $66.3m.

Free cash flow (cash flow from operations of $88.5m minus capital expenditure of $61.6m) was $26.9m. This is down on last quarter’s $54.2m and $40.8m a year ago. However, this is due largely to CapEx tripling from just $20.4m a year ago and rising more than 50% from $40.8m last quarter. Cree’s authorized capital expenditure for fiscal 2011 is about $300m (up from $168m in fiscal 2010), as the firm aims to: support targeted growth in LED lighting applications (by more than doubling XLamp LED capacity by the end of fiscal 2011); support initial capacity to develop and qualify LED products based on 150mm (6-inch) substrates; and position the factory to support additional growth in fiscal 2012. During the quarter, Cree announced plans to build a new 150mm LED wafer fab at its facility in Research Triangle Park, NC.

The free cash flow of $26.9m, together with accounts receivable (net) rising $5.5m during the quarter (to $123m), meant that cash and investments grew $32.4m to $1,098.8m.

For its fiscal second-quarter 2011 (to 26 December 2010), Cree expects non-GAAP net income of $61–65m on revenue of $270–280m (up about 2.4%).

See related items:

Cree reports annual revenue up 53% as LED lighting sales double year-on-year

Record, above-target performance at Cree from buoyant lighting market

Cree reports record revenue up 18% sequentially to $199.5m

Cree’s revenue grows 14% to record $169m

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