LED lighting maker Cree Inc. closed its 2013 fiscal year June 30 and reported results this week, including a 19% increase in revenues and a 95% increase in net income over 2012 results. Revenues totalled just under $1.4 billion in 2013 and net income was just under $87 million.
Notable insights: Cree spent 11%-12% of revenues on research and development in each of the past three years. Lighting products account for 36% of the company's revenues at $495 million for the year, up from 29% in 2012 and 8% in 2011.
Management's discussion of the results points to the growing role of lighting in Cree's portfolio, especially following its 2011 acquisition of Ruud Lighting. "This the year-over-year increase [in revenues] was due to higher sales across all three of our reportable segments, but driven primarily by the Lighting Products segment," the company said. "Lighting Products segment revenue increased primarily due to an increase in sales of existing products, the sales of new and re-designed products introduced during the fiscal year, and the recognition of revenues from the Ruud Lighting acquisition for a full fiscal year. Our consolidated revenue increased 18% to $1.2 billion in fiscal 2012 from $987.6 million in fiscal 2011. This year-over-year increase was due to the 309% increase in Lighting Products revenue from sales of products acquired from Ruud Lighting and an increase in the sales of our existing products. The increase in Lighting Products revenue offset the 6% decrease in LED Products revenues year-over-year and the 25% decrease in Power and RF Products revenue over the same period."