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To: pompsander who wrote (3408)	8/2/2000 10:44:43 PM
From: Don Edgerton	Respond to of 10713

Checked the earnings news release. Had 13% sequential growth. Looking to 15% sequential growth which is an increase. YOY sales up 85%. I believe the 65% increase relates to revenue growth, not EPS growth. YOY EPS was plus 150%. EPS growth usually exceeds revenue growth in young companies due to operating leverage. (i.e. more revenue to cover fixed costs which tend to decline as a portion of revenue. RE: The example of prices falling 25% and costs 50%, then you need sequential YOY unit growth of 120% to achieve revenue growht of plus 65%. With the declining costs, gross margins should stay the same. On the other hand, for many hip shooter investors, the above is irrelevant.

To: pompsander who wrote (3408)	8/3/2000 1:53:01 PM
From: ratan lal	Read Replies (1) \| Respond to of 10713

First of all, 15% sequential growth is EXTRAORDINARY Agreed. But it would be helpful to find out how much would you pay for this growth in terms of P/E, P/S or any other ratio.

To: pompsander who wrote (3408)	8/4/2000 12:06:25 PM
From: Robert Jacobs	Read Replies (3) \| Respond to of 10713

Spoke to Cindy Merrill (CFO Cree) yesterday who confirmed that the 70m of new orders in press release yesterday is in addition to 76m backlog mentioned in conference call. Regarding 3" wafers, they can produce all they need for current orders with 2" now that they are almost defect free (and high yielding with 30k chips per wafer for the smaller leds). They plan to phase in 3" next spring once they are sure they can have the same quality and consistency in mass production. 2" also is OK for first generation microwave devices. How many companies have 140% of previous year's sales booked in first month of fiscal year? None except cree to my knowledge.