Shares of Cree Inc. (NASDAQ: CREE), a developer and manufacturer of semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN) and related compounds, are seeing a huge rally in trading today after the company reported its first-quarter financial results.
For the first quarter ended September 23, 2012, CREE reported revenue of $315.8 million, representing an increase of 17% over the same period in the previous year. The company‚Äôs GAAP net income for the first quarter rose 26% to $16.1 million, or $0.14 per share. On a non-GAAP basis, the company reported net income of $31.8 million, or $0.27 per share, representing an increase of 13% over the same period in the previous year.
Chuck Swoboda, Chairman and CEO of Cree, said that the company started the year strong in its fiscal first quarter with record revenue and non-GAAP earnings per share at high end of its target range. Swoboda further said that overall company backlog is stronger than it was at this point last quarter, although visibility is still limited and the macroeconomic environment remains a headwind. Swoboda added that the company‚Äôs results are beginning to demonstrate the enormous leverage it has in its fully integrated vertical lighting model.
Looking ahead to the second quarter, CREE expects revenue to be between $320 million and $340 million. GAAP net income for the second quarter is expected to be between $13 million and $19 million, or $0.12 per share and $0.16 per share. Non-GAAP net income for the second quarter is expected to be between $31 million and $36 million, or $0.27 per share and $0.31 per share.
CREE shares are soaring following the release of the company‚Äôs quarterly results. At last check, the stock was trading 12% higher at $29.33 on above average volume of 2.83 million. The stock hit an intra-day high of $29.24 in trading today.
CREE shares have gained nearly 32% so far this year, outperforming the S&P 500.