It needs to be made public that CREE's expectations for margins have not changed at all. They remain in low to mid 50's. Unlike what CNBC reported, there is no negative news on margins. Yes they will go down from the 58 level achieved this quarter, but that was a possitive upside surprise. All CREE said is that they won't necessarilly (but they may) reach that high level going forward. Instead they maintained their conservative guidence of low to mid 50's on margins. No warning or lowering of estimates. How you can turn a possitive upside surprise into a negative issue is beyond me. Yes, it will not neccessarily be maintained, but no one at all expected them to be at 58%, it was a surprise. Try emailing Fran and CREE and CNBC. The addresses are as email@example.com_barsky@cree.com
shawtof - I think you are confusing the gross margin guidance (low to mid 50% range, actual quarter performance 55%) with the average product margin (which does not include contract revenue that is essentially the gov't funded revenue) which was 58%.The gov't contract revenue had a margin of only 22%!Sometimes even the pundits get it right!Thanks for your diligence but I think that you and CNBC are simply focused on two different margins.ZaksDad
"Sometimes even the pundits get it right!"I think Shawtof was right and the pundits were wrong! Take a look at this link, I think CNBC has just screwed up.http://biz.yahoo.com/rf/001013/n13533851.html
You gotta love CNBC. what wonderful opportunities they provide for those who know what they're doing. I say we just let them keep doing what they've been doing (which can only be described as a half a--ed job). I just loved BofA comment about Nakamura "We anticipate Dr. Nakamur's contribution to CREE will be on a scale similar to the impact Michael Jordan had on the chicago Bulls, and Albert Einstein on the United States of America". WOW!!!Doubled up this PM at 82. wish I'd caught it earlier.
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