Cree will see approximately $100 million of its light emitting diodes (LEDs) to Sumitomo Corporation this year, the largest sales commitment in the company’s history.
Cree (Nasdaq: CREE) stock shot up 15 percent, to $21.31, in midday trading.
Cree said Sumitomo is expected to purchase products across its entire line of LED offerings. The deal is four times the size of Sumitomo’s commitment under the first of a three-year contract signed with Sumitomo a year ago, Cree added.
Chuck Swoboda, Cree’s president and chief executive officer, attributed the sale to Cree’s sales and engineering team that operates under the Cree Japan, Inc. group. The Japan group has worked closely with Sumitomo, Swoboda said.