Profits zoom at LED manufacturer Cree, Inc. (NASDAQ:CREE)


Dallas, Texas 08/15/2013 (Financialstrend) – LED chip, component and lighting firm Cree, Inc. (NASDAQ:CREE) has made declaration about another sturdy augmentation in twelve-monthly sale facts, with grosses surging 19 per cent y-o-y to around $1.39 billion during the 12 month period ended June 30.

Encouraged by demand for its LED bulbs sold via the Home Depot retail chain in the most recent quarterly period, the Durham, North Carolina, firm also registered a net profit of around $86.9 million for the period under review – nearly double the $44.4 million figure reported for fiscal 2012.

Company’s chief executive officer Chuck Swoboda delineated the recent period as “a sturdy finish to a positive year”, and added, “After a period of 5 years, we produced one of the biggest lighting biz groups in the United States. We are in a positive position to make the most of the worldwide shift to LED lighting via both our lighting and LED items.”

In spite of the record facts and Swoboda’s remarks, Cree’s scrip declined sharply in after-hours trading after the firm predicte that income during the current quarterly period would be only slightly up in a consecutive manner.

New Lamps For Old

The long-time chief executive officer highlighted several recent product launchings as the company carries on its bid to alter all lighting to LEDs. They consist of the innovative “XSPR” street lamp, which at a price of just $99 is made to contend head-to-head with the familiar forceful sodium lamps in residential apps.

“Our affiliation with the Home Depot has showcased that great products at great rates, together with a top-notch retailer and a serious investment in marketing, can alter both consumer activities and the product group faster than a lot of of the skeptics anticipated,” Swoboda added.

Capacity flourishing

With those bulbs in demand, Cree’s chip manufacturing facility is now functioning at close to maximum capacitance, and so the firm is working to swell its production potential.

One part of the growth approach is to transfer additional production onto 150 mm diameter wafers that can host more than twice as many LED chips as the firm’s subsisting 100 mm assembly line.