Shares in Cree (Nasdaq: CREE) fell 7 percent in after-hours trading on Thursday after the company reported a nine-cent drop in net income for the second quarter.

Cree had record revenues of $105.6 million, a 10 percent increase over a year ago. However, increased expenses, new accounting requirements for stock option compensation, and write-downs related to the closure of a silicon microwave business in California helped push down net revenues to 26 cents a share from 35 cents a share a year previously.

Cree closed at $28.63 on Thursday. After-hours trading dropped the price to $26.50, according to Reuters and The Associated Press.