Shares in Cree (Nasdaq: CREE) fell 5 percent in after-hours trading on Thursday after the semiconductor and light-emitting diode company’s quarterly sales projections failed to meet Wall Street expectations.

Cree shares lost $1.38, dropping to $25.96. They had been up 45 cents to close the regular trading dat at $27.34. Cree announced earnings after the markets closed.

In its report, Cree noted that sales for its fiscal 2005 were a record of $389 million. That was 27 percent higher than one year ago. Its net income hit $91.1 million, or $1.18 a share, compared to $57.9 million, or 77 cents, the previous year.

Fourth-quarter sales were also the highest in company history, rising 9 percent, but net income was flat at $21 million, or 27 cents. Income was reduced 2 cents a share by Cree’s shutdown of its microwave operation. The 27-cents met Wall Street expectations.

Cree projected revenue between $101-104 million and 22-24 cent earnings the next quarter. Analysts had expected $106.6 million and 28-cents per share earnings, according to media reports.

Cree also announced that its chief financial officer was resigning. See: