Cree Restructures LED Business, Cuts Forecast

Cree has announced a restructuring of its LED business in order to cut excess capacity and overhead costs. The company also reduced its fiscal fourth quarter revenue forecast to $375 million, from its earlier projection of $420 million to $440 million.

The company said that recent LED market trends resulted in higher LED average selling price erosion than previously forecast, as well as a continued under-utilisation of its LED factory. Cree is now increasing LED reserves to reflect the more aggressive pricing in the current quarter and to factor in a more conservative pricing outlook for fiscal year 2016.