Cree breaks through the $100 million barrier
Cree posted $103.9 million in revenue for the quarter that ended on September 25. The figure represents a company record, and also marks the first time that the Durham, NC, company has broken the $100 million barrier.
The 8% increase over the equivalent period in 2004 translated to a $21.7 million profit for the supplier of LEDs, RF chips and compound semiconductor materials.
In particular, Cree believes that it has gained market share in the white LED sector for applications in cell phone display backlights, in what company CEO Chuck Swoboda described as an increasingly competitive environment. Over half of Cree's chips are now destined for use in cell phones.
The company agreed a white LED cross-licensing deal with Japanese rival Nichia earlier this year that allows Cree to clamp down on unauthorized use of its technology more effectively (see related story), while it has also signed a $200 million distribution deal with its key customer Sumitomo Corporation.
Overall, LED sales accounted for $84.6 million of the quarterly revenue, equivalent to a 7% increase on last year, although in terms of sequential growth this figure is up only very slightly.
But in terms of volumes the growth figure is much more impressive, with a year-on-year increase in LED shipments of 42%.
This is in part due to the use of larger wafers in manufacturing, with Cree CEO Chuck Swoboda estimating that over half of the company's chip production now takes place on 3-inch wafers. Meanwhile, Cree is already initiating plans to switch to 4-inch production for both microelectronic and optoelectronic devices.
With the traditionally-strong December quarter now in full swing, Cree estimated that revenue will increase again to between $106 million and $109 million.
• US Immigration and Customs Enforcement (ICE) agents arrested 36 foreign nationals said to be working in the US illegally during a shift change at Cree's premises on October 18.
According to an ICE statement, eight of those arrested were Cree employees, while the others were employees of two Cree subcontractors.
The workers, who now face deportation, are said to have used invalid, altered or falsified documents to get jobs at Cree or its subcontractors.
ICE added that Cree had cooperated fully in the arrests and that the company itself was not the subject of any investigation.
