Cree Profits Beat Street Estimates, But Margin Is Sharply Lower Than '05
Posted October 20, 2006 9:07 a.m. EDT
DURHAM, N.C. — Semiconductor and light-emitting diode manufacturer
beat Wall Street profit estimates by a penny for its fiscal first quarter.
The news late Thursday afternoon ignited a near-7 percent jump in Cree shares in after-hours trading to $23.60.
Cree (Nasdaq: CREE) reported a profit of 17 cents, 1 cent higher than projected by analysts polled by Thomson First Call, on revenues of $103.9 million. Analysts had predicted $104 million in revenue.
Still, profits declined sharply from 28 cents per share, or $21.7 million, for the same quarter in 2005. Overall revenues were up 1 percent over last year.
"Q1 was a solid quarter for Cree, as we delivered earnings at the high end of our previously announced target range," said Chuck Swoboda, Crees chairman and chief executive officer.
He described short-term market conditions as challenging, however.
Cree forecast second quarter revenues to be between $105 million and $109 million with profits of between 14 cents and 17 cents per share.
Cree shares had closed down 41 cents at $22.09 on Thursday.