Higher than expected decline in the average price of CREE LED Products Division

The light emitting diode (LED) upstream of grain manufacturing maker CREE (CREE, Inc.) on the 24 day after the U.S. stock market announced that the board has decided to restructure LED products division and authorized in the 2016 fiscal year (July 2015 to June 2016) spent $500 million to buy back its own shares.

CREE estimates for fiscal year 2016 revenue will rise to about $1 billion 800 million; this camp interest rate will rise to around 8%; the free cash flow of approximately $75 million.

CREE said that due to the decline in the average price of LED higher than originally expected, the factory capacity utilization continued to be low, so the company decided to cut excess capacity and recurrent expenditure in order to improve the cost structure. In addition, CREE decided to increase the loss of LED products to reflect the loss of a more intense pricing environment this quarter and the price outlook this year.

CREE estimates organization restructuring costs $85 million. Among them, the cost of production and recurrent costs accounted for 47 million U.S. dollars, the loss of access and inventory losses accounted for $27 million, $11 million.

CREE in the 2015 fiscal year to buy back its own shares of the company's 16 million shares, the average price of $34.33.

MarketWatch reported that CREE estimates this season (as of June 28, 2015) revenue will reach $375 million, lower than the $431 million average market value of the FactSet survey.

Philadelphia CREE Semiconductor Index (lextar (3698) shareholders) 24 in the normal disc fell 1.55% to close at $30.56; after continued to fall by 5.37% to $28.92.

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