When it comes to the LED market, CREE is a brand that levels with more well-known brands like Philips and GE Lighting. Thanks to the growth of LEDs in the consumer market, CREE has grown to become a household name. 

The LED lighting market is anticipated to grow 45% per year through 2019. The LED lighting market at $4.8 billion in 2012 is anticipated to go to $42 billion by 2019. This anticipated market size has provided a driving force to companies like CREE. The Company remains focused on product innovation and to expand its product offering. CREE is continually engaged in development of low cost next generation LED bulb, with new price points leading to LED adoption.
The company adopts a reinvesting policy from its profits to fund additional marketing investments and generate even more awareness that the Cree LED bulb pays for itself. The company recently declared its third quarter results for fiscal 2014 and was impressive. Solid quarterly results with revenue of $405 million and non-GAAP net income of $47.7 million or $0.39 per diluted share.
Revenue and operating income were much in-line with the target range set by the Company. It further feels that the business is poised to grow in Q4 (current quarter). The sales trends in Q3 were up in all the segments. Lighting sales grew 35% year-over-year to $177 million, LED sales grew 3% year-over-year to $201 million and Power and RF sales increased 21% year-over-year to $27.4 million. 

More on the story at Guru Focus.


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