Their sales must be down for them to say that,but is the competition nailing them , or is there a slowdown in sales for LEDs.
http://www.marketwatch.com/story/cree-profit-up-89-but-outlook-disappoints-2013-10-22
By Michael Calia
Cree Inc.'s CREE +1.25% fiscal first-quarter profit grew 89% as the maker of LED lighting products and semiconductor components posted higher revenue and margins.
But shares dropped 14% after hours, to $64.04, after the company predicted weaker-than-expected earnings for its second quarter. As of Tuesday's close, shares have more than doubled so far this year.
For the second quarter, the company expects an adjusted per-share profit of 36 cents to 41 cents, with $400 million to $420 million in revenue. Analysts polled by Thomson Reuters were projecting earnings of 44 cents on revenue of $414 million.
For the quarter ended Sept. 29, the company reported a profit of $30.5 million, or 25 cents a share, up from $16.1 million, or 14 cents a share, a year earlier. Excluding items, earnings rose to 39 cents from 27 cents.
Revenue was up 24%, to $391 million.
The company in August said it expected an adjusted per-share profit of 36 cents to 41 cents, with $380 million to $400 million in revenue.
Gross margin widened to 38.6% from 36.8%.
Operating expenses rose 12%.
Revenue from LED products grew 16% in the latest quarter, while lighting-products revenue was up 37%. Power and RF products revenue was up 24%.
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