Cree reports boosted profits
Durham-based lighting maker Cree Inc. reported Tuesday that its first-quarter profits were up 89 percent due to stronger lighting product sales and higher margins, but total revenues just missed analysts’ expectations.
The company reported $30.5 million in profits and total revenues of $391 million for the first quarter of its fiscal year. Its revenues were up 24 percent year-over-year, and fell within the company’s own targeted range. However, the company missed the average analyst estimate by about $1 million.
That’s according to an estimate published on Yahoo! Finance. Financial information for the site is provided by the Thomson Financial Network.
“Fiscal 2014 is off to a good start, as we delivered solid Q1 revenue and earnings growth in line with our targets,” Chuck Swoboda, Cree’s chairman and CEO, said in a prepared statement. “The strong performance was primarily due to increased sales of our lighting products, higher gross margins and improved operating leverage across the business.”
The company expects to see growth in all of its product segments in the second quarter, led by growth in sales of LED fixtures and Cree LED bulbs.
The company wants revenue between $400 and $420 million in the second quarter. It expects to see net income between $26 million and $32 million.
The company’s stock’s was down almost 15 percent in after-hours trading.