2009 - CREE 2010 earnings

Knowing that, fight. In line with this principle, the author of one of the world's five major LED manufacturers - Paper analyzed the CREE company, hope to have a little help to the industry practitioners.

CREE company is located in California, was founded in 1987, is listed on the Nasdaq. Company is mainly engaged in the development of SiC, GaN and Si substrate, is the world's production of GaN substrate material of one of the biggest company. Company profit mainly comes from the LED products and SiC, GaN substrate material production, the most prominent place is contribution to the blue leds. Company has grown in SiC substrate GaN epitaxial wafer production patent blue chips. Because blue is the basis of the generated white light, so, the company is currently in the LED industry upstream occupy the central position.

in the second half of 2010 CREE product sales revenue growth of 40% year-on-year, up to $474. 065 million, accounted for 90% of the company's revenue. LED products integrated average price ( LED components, LED lighting products, LED chip) Up 50% from a year earlier, the main reason is that LED components and LED lighting products price rise. RF products sales rose 68%, mainly lies in the SiC schottky diode and GaN sales growth of microwave integrated circuits.

table 1:09, 2010 in the second half of the CREE product income and its proportion

throughout history data, even during the financial crisis, CREE is still a strong growth momentum, the 2009 fiscal year also implements the 14. 99% increase ( Note: CREE 'year' with the Chinese concept of 'year', the 2010 fiscal year to June 2009 - In June 2010, and so on, the same below) 。

table '08 - In fiscal year 2010 CREE sales revenue and growth

from the table below shows, the financial crisis, gross margin, net interest rates fell sharply in 2008 and 2009. CREE integrated gross margin increased $83. 827 million in 2010, grew to $251. 675 million, the growth of the gross profit margin is mainly for the rise of price and economies of scale. Surely, 07 -

table 2010 CREE product gross margin and net interest rate at the same time, the CREE attaches great importance to the development of long-term effects for the development of the company. R&d growth lies mainly in 150 mm substrate investment increase and the LED chip, LED components, LED lighting products, high power continuous follow up.

due to the improvement of sales, the company's debt paying ability and operation ability are improved. By the following table shows, rate of assets and liabilities of the company dropped to 7. 78%, the total asset turnover is a slight drop in 2009 to 39. 44%.

table his 10 years in the second half of the CREE product interest table 4:20 MAO 10 years in the second half of the CREE r&d and accounted for

CREE sales and marketing center in North Carolina, and has set up branches in 12 regions: Australia, China, Germany, Britain, Hong Kong, China, Italy, Japan, Malaysia, Singapore, South Korea, Sweden, Taiwan. In fiscal 2010, CREE81 % revenue comes from the regional sales in the United States, with about 40% from Hong Kong and mainland China. By the following table shows, CREE all sales regions in China accounted for the largest and fastest growing, the 2010 fiscal year growth of 7% in fiscal 2008.

table '08 - In fiscal 2010 CREE product sales income distribution ( %)

in order to cooperate with the sales of China area, CREE has branches in China, in mid - 2010 in China, huizhou factory covers an area of 564900 square feet, 38 of its own facilities. 65%, huizhou in China, Hong Kong, Shanghai, 244800 - square - foot facilities of renting facilities in 75. 65%.

table but 10 years on June 27, has its own facilities and leased facilities distribution

in order to enhance the company's technology strength, won the overseas sales channels, CREE conducted a series of mergers and acquisitions, as bellow:

table 7: CREE

company risk mainly lies in the major m&a events ( Industry level, the risk of the author in this don't do this, only in this paper, the CREE unique risk) : 1, the customer is concentrated in fiscal year 2010 Arrow Electronics, Inc, the World Peace Industrial Co. Ltd respective sales revenue accounted for 11%, 19% of the company's net income, which together accounted for 30%, and the two and other large buyers adopt order pattern purchase, do not make long-term purchase commitments. If customers don't buy products, the company will face greater market to shrink. And major customer sales revenue accounted for more and more high, the 2008 fiscal year major customer sales accounted for 34%, 2009 39%, 2010 47%.

table 8: CREE company's main customer sales revenue accounted for the proportion of total revenue, %)

2, mainly for the LED blue chip company production, customers to buy its match with phosphors emit white light, if other technical route is breakthrough, the company sales will face a bigger challenge.

table 9:

3 white LED main technical route, the U. S. market since 2012, sales of incandescent lamp will have the limit parameters, if the parameter control is not strict, may the United States LED the market growth is not as expected. In 2011, CREE company in products, production, technology has the following plan: