Durham, NC, April 16, 2004--Cree, Inc., which produces high-brightness blue and UV light-emitting diodes (LEDs)and semiconductor lasers, is benefiting from the steadily growing market for LED illumination and flat-panel displays. Yesterday, the company reported quarterly revenue for its fiscal year 2004 third quarter of $77,113,000, a 28 percent increase over the $60,223,000 reported in the comparable quarter in the year ago period. Net income for the third quarter increased 42 percent to $15,089,000, or $0.20 per diluted share, compared to $10,632,000, or $0.14 per diluted share, as reported for the third quarter of fiscal 2003. Overall gross margin for the third quarter increased to 50 percent of revenue compared to 47 percent of revenue reported in the second quarter of fiscal 2004, while net margin increased to 20 percent of revenue. Cash and investments increased to $241 million and cash flow from operations was $30.5 million during the third quarter of fiscal 2004.
For the nine-month period ended March 28, 2004, Cree reported revenue of $216,008,000, an increase of 30 percent over the $165,761,000 reported for the comparable period in fiscal year 2003. Net income for the nine-month period increased 57 percent to $36,975,000, or $0.49 per diluted share, compared to $23,511,000, or $0.31 per diluted share, in the year ago period.
Chuck Swoboda, President and CEO of Cree stated, "Cree delivered excellent revenue and earnings in the quarter led by continued strong demand for our LEDs. Our decision to invest aggressively in R&D is paying off as new high brightness products are driving the growth of our business. We have good visibility for Q4, which allows us to target a strong finish to the fiscal year and puts us in a good position to build on this momentum in 2005."
Cree provided guidance for its fourth quarter of fiscal 2004 indicating that it currently targets increased revenue in a range of $83 to $85 million with earnings of $0.20 to $0.22 per diluted share