I have recently been to Lowes and found very inexpensive LED household light bulbs made by Utilitech. The new bulbs are about $3.98 for two 60 W equivalents. Just under $2.98 for 2 40 W equivalents. They are "warm white". (Prices have come down since then).
The only disadvantage is that they are rated 4.6 year bulbs versus other LED's rated about 22 years. Big deal. They are cheap. In 4.6 years they will be replaced by cheaper and better lamps. By then I will live in a different house.
I have installed 6 of the 60 W version and I am very pleased.
This is a game changer in the consumer area. It will hurt Cree.
Sidenote: None of the 6 bulbs I replaced were burned out. I just got tired of having the CFL's turn on dark and taking 2 minutes to get to full brightness. NO MORE CFL'S. The LED's now have the quality and low price to replace the CFL's today.
Lowe's was recently selling those bulbs as low as One Dollar... I tried one, and it works fine. Definitely some competitive price pressure coming to the consumer LED market. Not so sure about industrial and larger applications.
Cree’s ($CREE) second quarter revenues and non-GAAP earnings per share were ahead of estimates. The company’s third quarter non-GAAP earnings are positive, although its revenue guidance for the quarter is light.
Cree to delay Wolfspeed IPO Jan 19, 2016, 5:59pm EST Updated Jan 20, 2016, 8:47am EST Lab Support, a division of On Assignment
The business segment made up 6 percent of the overall revenue in the quarter, making up $27.5 million.
Perhaps more critical to Cree's core business, the company has, at long last, completed its LED business restructuring, a move that meant factory consolidation in Durham and “overhead costs reductions,” says Swoboda. The company has not been specific about how the move impacted the Durham headcount.
And the company is in a flexible enough cash position that acquisitions are a possibility in 2016, Swoboda says.
It's been a rocky year for Cree on the Nasdaq.
A year ago, shares were selling for $32.34. But in June, following the announcement that it would be restructuring its LED business, stock dropped to a three-year low. And it has yet to recover.
In Wednesday morning Wall Street action, the company's shares are expected to trade higher following the earnings report on Tuesday. Cree reported $435.8 million revenue for the December-ending quarter, slightly higher than what analysts had expected. The company also reported 30 cents in earnings-per-share, substantially higher than the analyst expectations of 24 cents EPS.
Cree Inc. (CREE) shares fell in the extended session Tuesday after the LED light maker forecast lower-than-expected results for the fiscal third quarter. Cree (CREE) shares fell 15% to $24.78, following a brief trading halt after hours. The company said it expects adjusted third-quarter earnings of 13 cents to 15 cents a share on revenue of about $367 million because of weakness in its lighting products business. Cree had previously targeted revenue of $400 million to $430 million. Analysts surveyed by FactSet had forecast earnings of 24 cents a share on revenue of $414.4 million.
In addition to beating FQ3 EPS estimates (while posting in-line revenue), Cree (NASDAQ: CREE) is guiding for FQ4 EPS of $0.16-$0.22, favorable at the midpoint to a $0.18 consensus. Revenue guidance is more cautious - $370M-$395M vs. a $391.4M consensus - but near-term sales expectations have been low, especially after Cree's April 5 warning.
FQ3 non-GAAP gross margin was 30.6%, -70 bps Y/Y. FQ4 GM guidance is at ~31.5%. A $9.3M Y/Y drop in GAAP operating expenses (to $113.6M) boosted EPS. $18M was spent on buybacks.