DURHAM, N.C. — Shares of light-emitting diode manufacturer Cree (Nasdaq: CREE) dropped nearly 9 percent before recovering in trading Thursday after an analyst said a product order from a major customer was less than in the last fiscal year.
Cree said after trading closed Wednesday that it had secured a $180 million commitment from Sumitomo Corporation for LEDs and wafer products. The company said the deal represented a 10 percent increase from the previous year.
However, The Associated Press reported that on Thursday an analyst at the firm Needham said the order was a 10 percent drop.
Analyst Pierre Maccagno “estimated sales to Sumitomo for the fiscal year totaled $160 million to $165 million because of lower demand from Japanese consumers,” The AP reported.
The news sent Cree stock down nearly 9 percent in early trading. Cree closed the day down $1.09, or 4.25 percent, at $24.56.