Quarterly Revenue increased 59% year-over-year to $268 Million
Quarterly Net Income increased 176% year-over-year to $58 Million

Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting, today announced record revenue of $268.4 million for its first quarter of fiscal 2011, ended September 26, 2010. This represents a 59% increase compared to revenue of $169.1 million reported for the first fiscal quarter last year and a 1.5% increase compared to the fourth quarter of fiscal 2010. GAAP net income for the first quarter increased 176% year-over-year to $58.0 million, or $0.53 per diluted share, compared to GAAP net income of $21.0 million, or $0.23 per diluted share, for the first quarter of fiscal 2010. On a non-GAAP basis, net income for the first quarter of fiscal 2011 increased 142% year-over-year to $66.3 million, or $0.60 per diluted share, compared to non-GAAP net income for the first quarter of fiscal 2010 of $27.4 million or $0.30 per diluted share.

"Q1 was another record quarter for Cree as revenue grew in lighting, LED components and power products," stated Chuck Swoboda, Cree chairman and CEO. "Although total revenue was on the low end of our target range of $270-280 million due to a decline in LED chips, LED lighting adoption continues to gain momentum and the growth drivers for the company remain on track."

Q1 2011 Financial Metrics:

* Cash and investments increased $32.4 million from Q4 of fiscal 2010 to $1,098.8 million.

* Cash flow from operations was $88.5 million. Free cash flow (cash flow from operations less capital expenditures) was $26.9 million as we spent $61.6 million on capital expenditures.

* Accounts receivable (net) increased $5.5 million from Q4 of fiscal 2010 to $123.0 million, resulting in days sales outstanding of 41, an increase of 1 day from Q4 of fiscal 2010.

* Inventory increased $13.7 million from Q4 of fiscal 2010 to $125.9 million and represents 82 days of inventory, an increase of 6 days from Q4 of fiscal 2010.