Sales declined 11 percent in the first quarter of this year from the preceding quarter for light emitting diode and semiconductor manufacturer Cree (Nasdaq: Cree), the company Tuesday.

However, sales of $131.1 million were five percent higher than the same quarter in 2008.

Cree shares closed at $26.06, down 32 cents, Tuesday. Its 52-week high is $31.80; the yearly low is $12.57.

Shares immediately fell another 32 cents in after-hours trading.

Cree did generate a profit of $4 million, or 5 cents per share. Minus one-time exceptions and other charges, Cree’s profit hit $11.8 million, or 13 cents per share.

Analysts had projected an 11-cent per share profit.

Cree Chairman and Chief Executive Officer Chuck Swoboda described the quarter as “solid.”

“Q3 was a solid quarter for Cree, as we achieved revenue and profits within our previously announced targets,” he said in a statement.

“Growth in LED lighting partially offset lower demand for auto, mobile and consumer applications in Q3, and we target total LED revenue to rebound in Q4 driven by increased demand for commercial lighting and video screens,” he added.

“As we look ahead to Fiscal 2010, we are targeting our LED lighting and LED component product lines to continue to grow, and we are planning to continue to invest in R&D and capacity to enable this growth.”