It’s been nearly three years since Cree acquired Ruud Lighting, which is based in Wisconsin. The total cost of that deal was around $660 million. Is another big deal possible?

Don’t be surprised.

As the global LED lighting business continues to grow, Durham-based Cree (Nasdaq: CREE) is looking for possible ways of growing even faster.

So says the top guy.

Cree Chairman and CEO Chuck Swoboda dropped hints in a conference call with Wall Street analysts on Tuesday evening that the global LED manufacturer and developer is looking for deals. And Cree has some $1.2 billion in cash/equivalents, the company reported after a $39 million increase over the past quarter.

Nothing is imminent, he says, but “we’re starting to look” at possible deals “more seriously.”

Swoboda’s comments came as he discussed Cree’s most recent quarterly earnings and projections for the months ahead. Cree revenues jumped 16 percent from a year ago to $405 million; adjusted earnings climbed 17 percent to $48 million, or 39 cents per share. However, inventory increased and its margins decreased.Guidance for future earnings of between 38-44 cents was below 44-cent Street expectations. Revenue missed by around $2 million. That mixture of news helped drive down Cree shares some 7 percent in after-hours trading. 

Still, Swoboda was very optimistic in his remarks – and analysts seized on those.

“Our strategy is working but we’re still just getting started. Our balance sheet gives us the flexibility to continue to invest for the future. We currently target investments in capacity which Mike [CFO Mike McDevitt] described earlier and strategic opportunities to enhance the Cree portfolio,” Swoboda said, according to a transcript of the call provided by financial news site Seeking Alpha.

“We have begun to look as strategic opportunities across all our product lines.

“We’re very comfortable with our current product portfolio we believe some opportunities may emerge over the next 24 months to leverage the Cree brand as the shift to new technology accelerates and industry begins to go through a consolidation phase.

“The strength of our operating model gives us the flexibility to make these investments and continue to maintain a strong balance sheet to support the future growth as we could remain focused on our long term customer goal of a 100% upgrade to LED lighting.”

The remarks sparked the first question from JPMorgan analyst Paul Coster. 

“The comments are already around strategic opportunity, why now,” Coster asked. “What kind of consolidation do you’ve in mind? And why over the next 24 months is it suddenly in your wheelhouse?”

Swoboda replied that Cree didn’t want the Street to be surprised if the company did make a move.

“Yes, Paul, I think it’s more of an indication that as we see LED adoption picking up pretty much across the industry, I think there is a perspective that as that accelerates the landscape is going to change and I think the opportunities will start to become obvious that those that can access the customers and build brand and have channel that there are opportunities to combine maybe product portfolios or use some deals to access new markets,” Swoboda explained.

“Well that being said, this is not an imminent  thing. It’s something that I thought that was important that we let people know we’re starting to look at more seriously than we have for the last couple of years.”

Cree’s full earnings report is available online.

[CREE ARCHIVE: Check out more than a decade of Cree stories as reported in WRALTechWire.]