mchen@heraldsun.com; 419-6636
DURHAM -- Cree Inc. has hit record revenues again for the third consecutive quarter, and the company will continue to focus on capacity expansion to suit its growth needs in the near future, Cree Chairman and CEO Chuck Swoboda told investors on Tuesday.
The LED maker based in Durham's Research Triangle Park announced on Tuesday that it earned $199.5 million in revenue for the second quarter of fiscal 2010 ending on Dec. 27, 2009. That's up by 35 percent from a year ago and 18 percent from the first quarter.
Net income was $33.8 million, more than triple the net income of $10.7 million from a year ago. Net income for the first quarter of 2010 was $21 million.
Cash and investments increased by $65.6 million over the quarter to $954.1 million. The company also was awarded $39 million in tax credits as part of the American Recovery and Reinvestment Act recently.
In the second quarter, the company also scored an agreement with Walmart to install its LED lights in 650 stores, and Swoboda said the company will continue to aggressively attack the traditional lighting market.
"We remain in a strong position and continue to invest in our business to strengthen our leadership position," he said.
LED stands for light-emitting diode, a semiconductor light source that uses less energy than incandescent and halogen lights.
Swoboda said the Walmart deal means that LED lighting is ready for mainstream commercial application, and added that the company will next seek to expand presence in the residential market.
Cree unveiled a lower cost version of a residential product on Tuesday at the International Builders Show in Las Vegas, which it plans to retail by the summer for less than $50 after rebates.
To keep pace with its growth, Cree recently acquired a facility in Huizhou, China, for additional LED chip production. In the fall, the company had also announced plans to hire 275 additional employees in Durham for the 2009 calendar year, and 300 more workers by 2012.
A company spokeswoman confirmed those hires on Tuesday, saying that for 2009, Cree added a total of 300 employees in Durham. The company is still hiring for engineers, researchers and an accounts payable supervisor in Durham, according to its jobs listings online.
Cree now has about 3,500 employees worldwide.
For the third quarter, the company is projecting revenue of about $215 million to $225 million and an increase in the net income by about $3 million.
Cree shares closed up 20 cents at $54.21 on Tuesday before the announcement of the second quarter earnings.
Shares rose to $59.82 per share in after-hours trading.
