Cree Says Sales May Surge on Cell-Phone Demand
for Its Diodes
By Jonathan Berr
Cree Says Sales May Surge on Cell-Phone Demand for Its Diodes
Durham, North Carolina, March 29 (Bloomberg) -- Cree Inc.
Chief Financial Officer Cynthia Merrill said the company's sales
may increase more than 66 percent this year on rising demand for
its diodes used in cellular phones and car dashboard displays.
``We probably have sold much of our production capacity for
the rest of the year,' said Merrill.
Cree makes blue light-emitting diodes, or LEDs, which produce
the light background that lets viewers see images on small
screens. The company's sales may surge to $100 million this year
from $60 million in 1999 as companies sell more wireless phones
that provide Internet access, Merrill said. Cree's LEDs are less
expensive than competitors like Uniroyal Technology Corp. because
it uses man-made crystals rather than costly man-made sapphires.
``Their competitive position is absolutely incredible,' said
Hans Mosessman, an analyst with Prudential Securities Inc., who
rates Cree a ``strong buy.' ``Cree has been doubling and tripling
capacity every year.'
Shares of Durham, North Carolina-based Cree, which have risen
more than six-fold in the past year, fell 14 3/16, or 9.2 percent,
to 140 1/16.
Uniroyal Technology of Sarasota, Florida, may double its
production capacity even though the company won't begin shipping
its product until June, said George Zulanas, Uniroyal's chief
financial officer.
``This is lunacy when you think about it,' Zulanas said.
``But the market demands are there.' Shares of Uniroyal fell 7/64
to 53 9/64. |
