19 Oct 2011

Cree sees profit fall following Ruud deal

Cree, Inc. (Nasdaq:CREE) achieved $269.0 million in revenue for its first quarter of fiscal 2012, ended September 25, 2011. This represents a 0.2% increase compared to the same period last year, and an 11% increase sequentially.

GAAP net income was $12.8 million, or $0.11 per diluted share, a drop of 78% compared to the same period last year. The drop in profit reflects the acquisition of Ruud Lighting on August 17, 2011, approximately one month before the end of the quarter.

The revenue growth in Q1 was driven by approximately $20 million in net sales from Ruud Lighting in the second half of the fiscal quarter, “strong growth” in sales of Cree's indoor LED lighting products to commercial and retail customers, and “solid growth” in XLamp LED component sales across a range of lighting applications, which offset lower LED chip and Power sales, said Cree.

Beginning this quarter, Cree is presenting its revenue in 3 categories:

LED products revenue was $196.8 million, which includes LED components, LED chips and materials;

Lighting products revenue was $51.7 million, which includes revenue for indoor lighting products and Ruud Lighting;

Power and RF products revenue (not LED-related) was $20.5 million.

“We got off to a good start in Q1 as results were in-line with our updated targets and our LED lighting and LED components product lines continued to grow,” stated Chuck Swoboda, Cree chairman and CEO. “Although we have seen tremendous growth in LED lighting sales over the last few years, it is clear that we have only scratched the surface of LED lighting adoption and there is growing demand for products that offer innovative solutions and good payback.”

Need return to News category? Please click here LED News or http://www.eosled.com/news/