Crystal electricity price promotions Cree price will decline

The Associated Press reported that Lazard Capital Markets analysts in May 23rd issued a research report pointed out that the positive crystal electric price promotions, notebook computer (NB) LED backlight customers gradually erosion, the light emitting diode (LED) upstream chip maker CREE Inc. currently positive labor goods price fell, market oversupply situation.

Analysts pointed out that the Cree product price due to better quality and higher than the crystal power, but the company had to cut prices to attract buyers to cope with the market competition situation, this will be expected in the near future gross margin compression Cree. He also said that the survey found that apple (Apple Inc.), ASUS (2357) and Acer () and other NB backlight customers are gradually turning to cheaper products in Japan, Taiwan LED suppliers for procurement.

May 22nd Cree closing price of $23.26, a record low since the end of December 20, 2007, Cree shares fell 23.56% in the past 60 days.

Cree share price has previously been due to 1-3 monthly earnings and 4-6 monthly financial measurement is not expected to fall trend. According to the 2008 fiscal year third the company announced on April 22nd after the season (1-3 months) earnings per share: trade surplus of US $0.14, lower than the $0.15 Reuters survey; revenue increased 38.4% to $125 million. Prospects this season (4-6 months), Cree industry expected earnings per share would be between $0.12-0.14, revenue forecast will be between 1.29-1.33 billion dollars. According to the Reuters survey, analysts on average expected earnings per share for the quarter Cree industry $0.16.

Source: Lean news