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20 April 2007


Cree’s revenues and profits rebound

For its fiscal third-quarter 2007 (to 25 March), Cree Inc of Durham, NC, USA, which manufactures LEDs as well as SiC substrates and SiC- and GaN-based RF components, has reported revenue of $90.3m. This is up 2% on last quarter (reversing the sequential decline of 15% in that quarter) but still down 16% on $107.7m a year ago. Net income was $21.1m, down from $24m a year ago but up from $16.5m last quarter . The results are in line with previously announced targets.

“We made a tremendous step forward on our strategy to expand our business with the acquisition of COTCO Luminant Device [a supplier of high-brightness packaged LEDs in China],” says chairman and CEO Chuck Swoboda. “The acquisition of COTCO [for about $196m] gives us a strong position in the China market and contributes to each of our strategic goals by expanding our platform for EZBright chips, increasing our component product offering, providing a low-cost manufacturing capability, and expanding our sales channels,” he adds. The COTCO acquisition is targeted to increase fiscal 2008 annual revenues by $60-80m on a consolidated basis.

During the quarter Cree began volume shipments of warm white XLamp LEDs, which are the first in the industry to deliver lighting-class brightness and efficiency for general illumination applications, Cree claims.

Cree also signed a distribution agreement with World Peace Industrial Co Ltd (WPI, part of Asian electronics distributor WPG Holdings) to sell and support Cree XLamp products in China, Asia Pacific and Japan.

“The combination of increasing XLamp LED sales, the addition of the COTCO LED product line, and a more stable LED chip business should put us in a strong position to grow next quarter and into fiscal 2008.” For fiscal fourth-quarter 2007, Cree is targeting revenue of $110-115m.

See related items:

Cree completes COTCO acquisition

Cree's revenues fall more than expected due to lower LED chip sales

Despite record annual sales, Cree's profits down after LED production problems