Unlike many stocks, shares in Cree (Nasdq: CREE) has shown an improvement so far in 2016.
Cree shares are up nearly 4 percent, a better-than-expected earnings report earlier this week contributing to the surge. In talking about the earnings and Cree’s commitment to new lighting technology, Cree Chair and CEO Chuck Swoboda gave what has proved to be a successful pep talk to investors.
Over and over, Swoboda stressed the company’s commitment to new technology. Although the spin-off of its Wolfspeed radio frequency and chip group was pushed back to later this year. Swoboda noted cost savings and revenue growth as well as products that investors must have found encouraging.
And on Wednesday, Cree also announced new additions to its LED product line known as XQ.
Here are excerpts from Swoboda’s remarks to Wall Street analysts as provided by a transcript published at financial news website SeekingAlpha:
We’re focused on several key priorities in fiscal 2016 to take advantage of the growing market opportunities while responding to the competitive environment. Our first priority is to build financial momentum, which we’re demonstrating through better-than-expected operating margin improvement, even though revenue is tracking slightly below our original targets. …
Our second priority is to continue to innovate in each of our business segments. Cree is a lighting technology company, and we believe that the world deserves better light. Our development and new product pipeline is focused on making this possible. In Q2, we released our breakthrough IG Series parking structure lights to volume production. This is the first product family to utilize our new cutting-edge WaveMax technology, which features a revolutionary combination of control, uniformity and efficiency to deliver a superior visual experience and new form factors that are intelligent in both design and function.
[W]e continue to build momentum for our SmartCast product line. Our development efforts remain focused on going beyond connected to deliver truly smart lighting where the intelligence and key functionality is built into the light. This is where we believe we can deliver innovation and real value to the end-users.
As our lighting business approaches a billion in revenue, we are working on a series of complementary lighting products to help fill some gaps in our existing product line. …
Our third priority is to promote future growth in our Wolfspeed Power and RF business and allow Cree shareholders to better realize the full value of this business. …
The LED and lighting markets continue to evolve. Our LED business has benefited from our factory consolidations and narrowing our focus on the high-power segment. … Our commercial lighting business is building critical mass and has improved execution. The traditional lighting companies continue to shift their business to LED technology with the big players as well as a number of the midsize lighting companies all now more than 50% LED. However, most of these lighting companies are focused on simply delivering an LED version of traditional fixtures. The more knowledgeable specifiers and end-customers are starting to recognize that LED technologies can do much more. They want more than just lower costs and energy savings from the LED lights. They want better light.
Our mission is clear. The world deserves better light and we have the game-changing LED technology to deliver it.
Read the full transcript at: