Cree Inc Falls 8% On Earnings Miss

Cree, Inc. CREE reported Q1 FY 2015 earnings on Tuesday and missed expectations.

The company reported revenue of $427.7 million for its first quarter of fiscal 2015, ended September 28, 2014, below the average estimate of $432.63 million. This represents a 9 percent increase compared to revenue of $391.0 million reported for the first quarter of fiscal 2014. 

On a non-GAAP basis, net income for the first quarter of fiscal 2015 was $29.6 million, or $0.24 per diluted share, below the average estimate of $0.36, a decrease of 38 percent year-over-year compared to non-GAAP net income for the first quarter of fiscal 2014 of $47.3 million, or $0.39 per diluted share.

GAAP net income for the first quarter was $11.1 million, or $0.09 per diluted share, a decrease of 64 percent year-over-year compared to GAAP net income of $30.5 million, or $0.25 per diluted share, for the first quarter of fiscal 2014. 

“We have good momentum in our Lighting and Power & RF segments, although fiscal Q1 results were below our targeted levels due primarily to lower than expected LED demand,” stated Chuck Swoboda, Cree Chairman and CEO. “While the LED industry conditions are challenging, we’re confident that innovation is still the key to leading the market and driving growth in all of our businesses. Given our technology leadership, new product pipeline and strong balance sheet, we remain uniquely positioned to capitalize as the industry transitions to LED lighting.”

The outlook for 2Q FY 2015 included Non-GAAP net income targeted in a range of $24 million to $29 million, or $0.20 to $0.24 per diluted share, below the average estimate of $0.39 per diluted share.

Cree, Inc. traded at $30.40 in the after market, down 8.30 percent.