Cree (Nasdaq: CREE) quarterly revenues up slightly but earnings fall sharply from a year ago

The light emitting and semiconductor technology firm reports revenues of $269 and earnings of 25 cents per share after one-time expenses and other items. Falling prices cut into Cree’s profit margin, which plunged to just over 37 percent from 49 percent a year ago, Forbes noted.

Analysts polled bt Thomson Reuters expected earnings of 26 cents. 

Revenues a year ago were $268.4 million. However, revenue did increase 11 percent from the previous quarter.

Shares traded down nearly 6 percent in after-hours trading before rallying.

The company forecast quarterly revenues of between $300-320 million and a profit of 25-28 cents per share, which was under Street expectations of 34 cents, according to Forbes.

Cree shares closed at $27.78 Tuesday, up $1.17 or 4.4 percent.

Shares fell 10 percent on Monday after Morgan Stanley forecast that Cree would report “disappointing guidance” for future revenue and that expectations for the stock were “too high,” according to Bloomberg.

After one-time expenses and other items, Cree earnings were $28.1 million or 25 cents a share, down from $66.3 million ot 60 cents a year for the same time frame in 2010.

Cree noted its financials did include results from its acquisition earlier this summer of Rudd Lighting.

“We got off to a good start in Q1 as results were in-line with our updated targets and our LED lighting and LED components product lines continued to grow,” said Chuck Swoboda, Cree chairman and chief executive officer, in a statement.

“We also took the next step in our strategy to lead the LED lighting revolution with the acquisition of Ruud Lighting,” he added. “Although we have seen tremendous growth in LED lighting sales over the last few years, it is clear that we have only scratched the surface of LED lighting adoption and there is growing demand for products that offer innovative solutions and good payback.”

Read here for the financial report details.

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