Tech Stock Cree Tumbles on Lower Revenue Estimates

Cree Inc. (NASDAQ: CREE) sharply slashed its revenue forecast, sending shares plummeting 11.90%, managing slight gains in after-hours trading. The company provided new revenue target for its quarter ending March 27, in which it said it now expects its quarterly revenue to be in the range of $215 million and $220 million. The company’s earlier forecast was pegged in the range of $245 million and $265 million. Cree attributed the decline in estimates to the decrease in revenue on account of lower demand and lower prices. The company said that it expects the revenue to rebound in the fourth quarter.

Cree is involved in the business of developing and manufacturing various products such as silicon carbide, light emitting diode and gallium nitride products. The company also produces radio frequency and power products. These products are used in manufacturing microwave devices as well as power devices. Cree is mainly operational in the United States, China, Hong Kong and Japan. Apart from these countries, it also has presence in Malaysia, Taiwan and Europe.

The company stock’s 50-day moving average price is $52.66 whereas its long term moving average price is at $58.72. The stock is currently trading below both the averages. Cree stock opened at $45.79 and touched the high of $46.36. The stock’s lowest price in today’s session is $42.92, which is also its 52 weeks low. The company stock’s EPS is $1.88. The company stock has traded in the range of $42.92 and $83.38 during the past 52 weeks. The company’s market cap is $4.72 billion and its P/E ratio is 22.93.

Cree reported its total current assets at $1.35 billion for the year ending June 27, 2010. Its total assets were worth $2.199 billion for the same time period. Cree had valued its total liabilities at $171.128 million. The company had reported its revenue at $867.287 million and its gross profit for the year at $411.107 million. Cree’s net income for the year stood at $152.29 million.

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