Revenues at Cree (Nasdaq: CREE) jumped 28 percent in the second quarter of fiscal 2004 compared to 2003, and net revenue skyrocketed 45 percent to more than $13 million, or 17 cents a share, the company announced Thursday.

Analysts had projected earnings of 15 cents.

Cree stock closed at $21.11 on Thursday, up 53 cents.

“Our record revenue and higher profitability were driven by strong LED (light-emitting diodes) sales as we benefited from increased demand for LEDs in mobile phone applications,” said Chuck Swoboda, chief executive officer and president of Cree, in a statement. “The combination of a favorable product mix, reduced pricing pressure and improved operational efficiencies resulted in a significant increase in product gross margin, which drove our net income for the quarter to the highest level in several years.”

Cree reported revenues of $72.7 million and a gross operating margin on 47 percent, a 4 percent increase from the previous quarter.
In the current quarter, Cree offered guidance of 17 cents to 19 cents a share in net revenue.