Cree a market leader in LED lighting, announced preliminary estimates of financial results for its first fiscal quarter ended September 28, 2014. Revenue for the quarter is expected to be approximately US $428 million, with earnings expected below the company’s previously announced target range of $0.25 to $0.30 per diluted share on a GAAP basis. These preliminary financial results are subject to completion of the company’s customary quarterly closing and review procedures.

• The expected revenue is below the company’s previously targeted range of $440 million to $465 million due to lower LED Products revenue.
• LED Products revenue is expected to decline 20 percent year over year and 13 percent sequentially to $174 million in the first quarter of fiscal 2015 due to weaker global demand than originally targeted. Revenue is expected to be lower sequentially for both direct and distribution customers.
• Lighting Products revenue is expected to grow 51 percent year over year and 7 percent sequentially to $223 million in the first quarter of fiscal 2015, which is at the higher end for this segment of the company’s previously announced targets due to growth in both LED fixtures and LED bulbs.
• Power and RF Products revenue is expected to grow 24 percent year over year and 8 percent sequentially to $31 million in the first quarter of fiscal 2015, which is also at the higher end for this segment of the company’s previously announced targets.
• Overall gross margin is expected to be below the company’s previously announced targets primarily due to the lower LED Products revenue and higher than targeted LED bulb revenue. LED Products and Lighting Products segment gross margins are expected to be lower sequentially primarily due to the product mix within each segment.
• Operating expenses are expected to be slightly lower than previously targeted.
• During its first fiscal quarter the Company repurchased 1.2 million shares of its common stock under the Company’s stock repurchase program at an average price of $45.22 per share with an aggregate value of $54.3 million. After this repurchase, there is $146.0 million in aggregate purchase price value remaining in the Company’s stock repurchase program through June 28, 2015.
• For the second quarter of fiscal 2015, order visibility remains limited and similar to this point in the first quarter.

Quarterly Conference Call:

The company plans to release final financial results for the first quarter of fiscal 2015 and provide a second quarter of fiscal 2015 outlook as previously scheduled on October 21, 2014, and plans to hold a conference call and web broadcast at 5:00 p.m. EST that day to discuss the results and outlook, including significant factors and assumptions underlying the targets discussed above.