SAN JOSE, Calif. Semiconductor vendor Cree Inc. barely missed Wall Street revenue estimates reporting Thursday (Jan. 13) revenue of $97.4 million for the second quarter of fiscal 2005, a 34 percent increase over Cree's revenue during the same period last year.
Analysts had been expecting Cree to post revenue of $100.2 million and an earnings-per- share of $0.32. Cree did hit the earnings number, as net income for the second quarter increased 92 percent to $25,022,000, or $0.32 per share, compared to $13,007,000, or $0.17 per share, in the second quarter of fiscal 2004.
Gross margin for the second quarter of fiscal 2005 was 50.4 percent of revenue. Gross margin for prior year period was 46.6 percent, while in the first quarter of fiscal 2005, it was 56 percent.
The company said gross margin decreased sequentially due to increased LED costs associated with the three-inch wafer conversion and X class product ramp up, lower than expected December LED shipments and lower LED average sales prices due to changes in product and customer mix.
It also said that during the second quarter of fiscal 2005, its net income benefited from $3.9 million, or $0.05 per share, of net non-operating and other tax adjustments. These adjustments included a tax benefit associated with the Cree's investment in a public company offset by other tax adjustments and a charge recorded for the decline in the value of a private equity investment, the company said.
The company also said its earnings per share was negatively impacted by approximately $0.01 per share due to an increase in the number of fully diluted shares outstanding resulting from the increase in the company's stock price and employee stock option exercises during the second quarter. But, as previously, mention the company still managed to meet Wall Street earnings expectations.
For its third quarter of fiscal 2005, Cree currently targets revenue in a range of $94 to $98 million with earnings of $0.24 to $0.27 per diluted share. Wall Street had been expecting Cree to target revenue of $103.5 million and earnings per share of $0.32 for the quarter.