LED leading CREE Q3 revenue is lower than expected, optimistic about Q4

Light emitting diode (LED) upstream of CREE Inc. large grain manufacturing giant, cut third quarter estimates, declaring that the product delay problems may make revenue than forecast, news shocks Cree shares tumbled by more than 18% hours!

Cree the 5 day after the earnings release press release shows that the third quarter (2016 1-3 months) $4.00-4.30 billion revenue forecast will reach $367 million, than the previous forecast, is mainly affected by the decline in revenue of lighting products. In addition, the industry is earnings per share will be between $0.13-0.15, as the previous forecast of $0.22-0.29.

According to the Capital IQ survey, analysts had forecast the company's Q3 industry revenue, earnings per share will reach $414 million 800 thousand, $0.24.

Cree pointed out that the new product was delayed, 1-3 months during the market than imagined difference, coupled with enterprise resource planning (ERP) system conversion interferes with the customer service, make lighting products Q3 revenue of only $187 million, less than the company had expected.

However, Cree chairman and CEO Chuck Swoboda stressed that the basic problem of drag operation should have been solved, although it's too early to suggest specific targets, but commercial lighting orders have been gradually improved in March, coupled with the demand for new products, should be for this season (Q4) provides a good growth momentum.

According to barron`s.com reported 5 announcement Cree (8-K filing) are major companies announced that lighting business director Norbert Hiller has officially resigned from David Elein, a post.

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