DURHAM, N.C. — Shares in light-emitting diode and semiconductor manufacturer Cree (Nasdaq: CREE) fell sharply in after-hours trading Tuesday after its fourth -quarter revenue forecast disappointed investors.

In fact, one blogger described the sell-off this way – “shellacked.”

As in pummeled. Hammered. Dumped. Abandoned.

Even as Cree reported $700,000 in revenues from its acquisition of Morrisville-based LED Lighting Fixtures and growing demand for its energy-saving LED lighting products, investors apparently expected a lot more.

For the third quarter, Cree posted revenues of $125 million and earnings of 14 cents per share. Analysts had expected earnings of 15 cents per share.

Cree said it expected to make a profit of 4 to 6 cents a share in the next fiscal quarter, and that announcement after its third-quarter earnings news sent shares down nearly 11 percent. The price dipped to $27.66.

The company did say it expected revenues to increase to between $129 million and $133 million, which exceeded forecasts of $128.3 million in a Thomson financial poll.

In a conference call to discuss earnings, Cree Chairman and Chief Executive Officer Chuck Swoboda was upbeat.

"Cree’s strategy to drive revenue growth by focusing on LED lighting continued to pay dividends in Q3, as we delivered financial performance that was in line with our previously announced guidance,” he said.

"Revenue growth was led by higher sales of LED components, which exceeded sales of LED chips for the first time. In addition, we took another bold step in leading the LED lighting revolution with our acquisition of LED Lighting Fixtures, which positions us even better to drive the adoption of LED lighting going forward,” Swoboda explained.

“For Q4, we target growth from XLamp LEDs, high-brightness LED components and our new LED lighting solutions, all of which are benefiting from the rising demand for energy-efficient LED lighting.”

However, for the moment, investors have a different view.