On the 22nd, Cree announced its earnings for the first quarter of 2014 (January-March): revenue increased by 16% year-on-year to $405.3 million; the gross profit margin of the industry fell to 37.8% from 38.8% in the same period a year ago; the operating profit margin of the industry increased from 12.9% to 13.2%; and the diluted earnings per share of the industry increased by 15% to $0.39 year-on-year.
For the current quarter (April-June), Cree expects revenue to reach $430-460 million (the median is $445 million, equivalent to a 9.8% quarterly increase), the gross profit margin of the industry is about 37.5%, and the earnings per share of the industry is expected to reach $0.38-0.44 (the median is $0.41).
Cree released “SmartCast Technology” last month, which saves more than 70% energy compared to traditional fluorescent lamps. newsoberver.com reported on the 22nd that LED lighting products could have reduced power consumption by 50% compared to traditional lamps, and SmartCast can enable enterprise users to save another 40% of energy consumption. For example, when outdoor sunlight enters the room through a window, SmartCast immediately reduces the brightness of the light.
CREE CEO Chuck Swoboda revealed in an earnings conference call on the 22nd that as the industry enters a consolidation period, potential merger and acquisition targets may emerge in the next 24 months. CREE's last acquisition was in August 2011, when it acquired Ruud Lighting for US$525 million. As of March 30, 2014, CREE had cash, cash equivalents and short-term investments totaling US$1.22 billion.
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