Cree 4Q Profit Falls 63% On Weak Sales, Margins
4:19 PM ET 8/9/11
DOW JONES NEWSWIRES
Cree Inc.'s (CREE) fiscal fourth-quarter profit slumped 63% as the electronic-components maker continued to struggle with weaker sales.
Shares were off 2.5% at $28.75 after hours Tuesday as the company gave a downbeat forecast for first-quarter profit of 25 cents to 28 cents a share, excluding certain expenses, with revenue between $245 million and $255 million. Analysts polled by Thomson Reuters project income of 31 cents a share and revenue of $253.6 million.
Cree, which makes chips used in light-emitting diodes and other products, has posted lower revenue this year as demand for LEDs hit a rough patch.
Chairman and Chief Executive Chuck Swoboda said the company went "through a challenging business cycle for our LED component and LED chip product lines," during the fiscal year.
For the quarter ended June 26, Cree reported a profit of $19.8 million, or 18 cents a share, down from $52.8 million, or 48 cents a share, a year earlier. Excluding stock-based compensation, acquisition-related costs and other items, per-share earnings were 28 cents, down from 55 cents, as revenue fell 8.2% to $243 million.
In August, Cree's projected income of 25 cents to 31 cents a share with revenue of $225 million to $245 million.
Gross margin narrowed to 38.1% from 48.6% as revenue costs climbed 13%. |
