Cree Earnings Brighten On Better Margins
managed to start its fiscal 2013 on a positive note. A leading LED manufacturer, Cree posted its Q1 2013 earnings on October 16 with $316 million in revenue and a net income of $16 million. Though revenue marked a mere 3% sequential increase, the net income was up by close to 60% compared to Q4 2012. While a demand-supply mismatch put pressure on Cree’s topline, high R&D cost and operating expenses threaten its bottom line. However, the company closed its Q1 2013 with a lower than targeted operating expense and a much needed improvement in gross margins.