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Cree Inc. (CREE) filed Quarterly Report for the period ended 2011-12-25.
Cree Inc. has a market cap of $2.83 billion; its shares were traded at around $24.45 with a P/E ratio of 23.7 and P/S ratio of 2.8. Cree Inc. had an annual average earning growth of 13.8% over the past 10 years. GuruFocus rated Cree Inc. the business predictability rank of 2.5-star.
This is the annual revenues and earnings per share of CREE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CREE.
Highlight of Business Operations:
Revenue from LED products decreased approximately 8% to $194.2 million in the second quarter of fiscal 2012 from $210.0 million in the second quarter of fiscal 2011. For the six months ended December 25, 2011, revenue from our LED products decreased approximately 11% to $390.9 million from $438.7 million for the six months ended December 26, 2010. These decreases were primarily due to generally weaker demand and downward pricing pressure. Although the blended average selling price (ASP) for our LED chips decreased, the ASP for our LED products overall increased by 22.4% in the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011. This increase was primarily due to a higher product mix of LED components, which have a higher ASP.Revenue from lighting products increased approximately 386% to $95.7 million in the second quarter of fiscal 2012 from $19.7 million in the second quarter of fiscal 2011. For the six months ended December 25, 2011, revenue from our lighting products increased approximately 317% to $147.4 million from $35.3 million for the six months ended December 26, 2010. These increases were due to an increase in the sales of our existing products and sales of product offerings acquired from Ruud Lighting. The ASP for our lighting products increased by 24.9% in the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011.
Revenue from power and RF decreased approximately 48% to $14.2 million in the second quarter of fiscal 2012 from $27.3 million in the second quarter of fiscal 2011. For the six months ended December 25, 2011, revenue from our power and RF products decreased approximately 32% to $34.7 million from $51.4 million for the six months ended December 26, 2010. The decreases in our power and RF products revenue were primarily due to a lower demand in the solar inverter markets and the delay of RF orders related to military programs. The ASP for our power and RF products decreased by 7.6% in the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011.
2012 our gross margin decreased to 35% from 47% in the second quarter of fiscal 2011. For the six months ended December 25, 2011, our gross margin decreased to 35% from 48% for the six months ended December 26, 2010. Factors contributing to the decrease in gross profit and gross margin were an aggressive pricing environment for LED chips and components and overall lower factory utilization.
Sales, general and administrative expenses in the second quarter of fiscal 2012 increased 47% to $49.2 million from $33.4 million in the second quarter of fiscal 2011. For the six months ended December 25, 2011, sales, general and administrative expenses increased 51% to $94.7 million from $62.6 million for the six months ended December 26, 2010. The increase in the second quarter of fiscal 2012 from fiscal 2011 is primarily due to an increase in spending on sales and marketing for lighting products as we continue to expand our direct sales resources and channels and invest in building and promoting the Cree brand, as well as the incremental sales, general and administrative expenses associated with Ruud Lighting. Additionally, we incurred increased legal costs associated with patent litigation and transaction costs associated with the acquisition of Ruud Lighting.
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