Investing.com -- Shares in Cree Inc (O:CREE) surged more than 4% in after-hours trading after the multinational manufacturer of LED lighting devices reported stronger than expected earnings and revenues during its second quarter of fiscal year 2016.
During the company's second quarter of Fiscal Year 2016, which ended in late-December, Cree reported adjusted earnings of 0.30 per share on revenue of $435.8 million. The strong sales period, represents a 5% increase from Cree's revenues during the same period last year and a 2% gain on a quarterly basis. With the productive quarter, Cree topped analysts' forecasts of per share earnings of 0.24 on revenue of $434.8 million.
In addition, Cree's gross margin remained relatively consistent in comparison with the first quarter at 31.0% on a GAAP basis and 31.7% under non-GAAP principles. On a quarterly basis, Cree's cash and investments fell $15 million to $617 million while its accounts receivable declined by $11 million to $183 million. The company's inventory also declined by $8 million to $281 million, representing 84 days of inventory.
"We delivered on our goal of building financial momentum in Q2, with earnings that exceeded our targets driven by solid revenue growth, good margins and operating expense leverage," Cree Chairman and CEO Chuck Swoboda said in a statement. "Our lighting business continues to grow, the LED business has stabilized, and our Wolfspeed Power & RF division continues to make progress. Overall, we had a good first half of fiscal 2016 and are well positioned for a strong second half."
In a productive second quarter, Cree launched its IG series parking light structure – its first product that utilized the company's new WaveMax technology. Cree also notched a deal with Thermo Fisher Scientific (N:TMO) to provide LED lighting for its Asheville, N.C. campus.
For the remainder of fiscal year 2016, Cree expects revenues of $400 to $431.8 million on earnings per share of 0.22 to 0.29.
Shares in Cree gained 1.12 or 4.61% to 24.29 in after-hours.