NEW YORK -(Dow Jones)- Cree Research Inc. shares rose 11% Monday as
the 1999 outlook for the maker of semiconductor materials strengthened
on expectation of new products and an expanded customer base in Asia.
"We are just getting to the point when the silicon carbide-based
products we are developing are coming to fruition," said Cynthia
Merrell, Cree's chief financial officer. "Those products may drastically
change the semiconductor market and I think our shareholders are getting
some wind of that."
Nasdaq-listed Cree shares closed up $2.625 at $27.25 on volume of 1.6
million, compared with an average daily volume of 157,200.
"The outlook for 1999 and beyond is outstanding," said Lorraine
Maxfield, chief equity analyst at Paulson Investment Co. who follows
Cree. "Among the most noteworthy things driving that is a lessening
reliance on Siemens AG for the bulk of the company's business."
Merrell said Cree executives are talking with Asian customers who
account for a large portion of the company's sales in 1999.
Merrell declined to name the prospective customers in Asia.
The company hopes to get its microwave-based wireless technology on
the market soon, Merrell said. "That is a pretty near-term product," she
said.
The rise in Cree's stock price Monday may also be driven by growing
institutional interest in the company as Cree continues to meet or
surpass analysts' expectations, said David Rogers, an analyst who
follows the company for Marion Bass Securities Co.
On Oct. 15 Cree reported first-quarter net income of 18 cents a
share, compared with a mean analyst estimate of 14 cents a share and
nine cents a share in the year-ago period.
- Amy Hughes; 201-938-5171 |
