Cree Inc. Q2 Profit Beats Estimates - Quick Facts

(RTTNews) - Cree Inc. (CREE), a market leader in LED lighting, reported second-quarter net income of $12.15 million or $0.10 per share, compared to $35.68 million or $0.29 per share, prior year. Adjusted earnings per share was $0.33, for the quarter. The company noted that, excluding the R&D tax credit benefit, GAAP and non-GAAP earnings per share for the second quarter of fiscal 2015 would have been $0.08 and $0.25, respectively.

On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.22 for the quarter. Analysts' estimates typically exclude special items.

Revenue decreased to $413.16 million from $415.09 million last year. Analysts expected revenue of $412.12 million for the quarter.

Chuck Swoboda, Cree Chairman and CEO, said: "We made solid progress in Q2 with operating margin higher than targeted due to an improvement in gross margins in our lighting business. The market for LED lighting is still in the early stages, our new product pipeline is strong, sales momentum is building and our brand is growing in the market. As evidenced by our significant share repurchases in Q2, we believe we are on the right track to continue to grow the company and increase profits over the next several years."

For its third quarter of fiscal 2015, Cree targets revenue in a range of $395 million to $415 million. GAAP net income is targeted at $3 million to $8 million, or $0.03 to $0.07 per share. Non-GAAP net income is targeted in a range of $23 million to $28 million, or $0.21 to $0.25 per share. Analysts expect the company to report third-quarter earnings per share of $0.21 on revenue of $404.42 million.