Cree 2Q profit up almost 70%
Durham-based Cree, a company that makes LED lights, components and other products, saw its net income rise 69 percent in the second quarter.
Cree’s net income was $20.4 million, or 18 cents per diluted share, in the second quarter of the company’s fiscal year. Its revenues were up 14 percent to about $346.3 million compared to the same quarter last year.
The revenue and earnings-per-share results were higher than the company’s targeted range, said Chuck Swoboda, Cree’s chairman and CEO, in a prepared statement in a news release. Swoboda said that was due to stronger sales of LEDs and lights, as well as due to higher gross margins.
Swoboda said in a conference call with analysts on Tuesday that the company’s revenue growth was spurred in the quarter by the release of new products as well as because of product adoption.
The company said in a news release that more than 130 locations of the Sheetz Inc. convenience stores now feature LED lighting from Cree.
Swoboda said in the conference call that LED lighting sales in the quarter saw better-than-targeted growth, and LED sales were on the high side of the company’s target for the quarter.
“It’s just finally gaining some momentum through new product activity that we’ve been working through over the past year,” he said.
For the third quarter, Cree is targeting revenues in the range of $325 million to $345 million. Its net income is targeted at $17 million to $23 million, or 15 to 20 cents per diluted share.
Cree’s stock price was up about 14 percent in after-hours trading to $38.21.