Shares of Cree, Inc. CREE were hammered by 17 percent in the after-hours trading session. The company reported its preliminary third quarter results, which investors sought to be discouraging.
The company expects adjusted EPS of $0.13-$0.15 on revenue of $367 million. Revenue was well below the company's expected targeted range ($414 million), primarily due to lowered revenue in its Lighting Products sector.
Chuck Swoboda, Cree Chairman and CEO commented, "I believe we've addressed the root causes that led to our recent business challenges. While it's premature to provide specific targets at this time, the order rate in commercial lighting improved in March, and we’re optimistic that this, combined with demand for new products, will begin to drive growth in fiscal Q4."
The company’s GAAP and non-GAAP gross margins are expected to be $5 million lower than what was anticipated, primarily due to the amortization of acquired intangibles and income from equipment sales.
During the third quarter, the company repurchased 0.6 million shares at an average cost of $28.15 per share.
Shares traded recently at $24, down 17.3 percent.
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