Cree issues soft FQ1 guidance, lighting margin slumps

CREE expects FQ1 revenue of $380M-$400M and EPS of $0.36-$0.41, mostly below a consensus of $398.4M and $0.43.

FQ4 gross margin was 38.2% (-60 bps Q/Q, +190 bps Y/Y), below guidance of 39.5%. An FQ1 gross margin of 39% is expected.

While LED products (components) had a 45.7% gross margin (+190 bps Q/Q), lighting products only had a 25.1% GM (-550 bps Q/Q). Cree recently introduced relatively cheap consumer LED bulbs.

LED products 58% of revenue vs. 56% in FQ4. Lighting products 36% vs. 37%, power/RF 6% (unchanged).

Opex +12% Y/Y, less than rev. growth of 22%. SG&A +18% to $61.7M as LED lighting sales/marketing efforts ramp.

CREE now -14.5% AH. CC at 5PM ET.

FQ4 results, PR

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Comments (3)
  • hfireball1
    , contributor
    Comments (43) | Send Message
    wow! $10 drop in price per share in after hrs trading (from 75+ to 65+). what the heck caused this??? makes you real confident to own shares in cree. like, how long will it take to recover from this??????????
    13 Aug 2013, 06:40 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1448) | Send Message
    another momo stock bites the dust. at least now I can put it back on my radar for a possible future entry point.
    14 Aug 2013, 07:35 AM Reply Like
  • Joshua Heller
    , contributor
    Comments (497) | Send Message
    CREE priced for perfection needed to beat and raise, let alone meet. Instead they missed even if ever so slightly...
    14 Aug 2013, 01:32 AM Reply Like
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