Cree Inc (CREE) has been on a bit of a roll lately after making some big announcements about new LED products, partnerships and a big order from the Pentagon. Let the good times roll after the bell today as the company reports very good earnings and is guiding higher.  I can’t imagine there will be many companies guiding higher next quarter in the current environment, so congrats to CREE on a  great quarter. 

The company reported a 24% increase in revenue over the year ago quarter posting 147.6 million which beat estimates by about 6 million.  Net income on a non GAAP basis increased 43% over the year ago quarter as the company posted profits (excluding one time charges) of .20/share.  In the 3rd quarter, the company expects some weakness due to current economic conditions that would be offset somewhat by growth in commercial LED.

“Cree delivered excellent financial results again despite challenging economic conditions, driven by strength in LED product sales for lighting applications,” stated Chuck Swoboda, Cree CEO. “In the third quarter of fiscal 2009, we expect that lower demand for our products in consumer, mobile and automotive applications will be partially offset by growth in LED sales for commercial lighting applications. As we look ahead to calendar 2009, we are targeting that LED lighting adoption will continue to gain momentum as product availability increases and recognition of the benefits grows from new installations like the Federal Reserve and the planned Pentagon renovation.”

CREE is trading up about 8% after hours as it attempts to carve out the right side of a new base.  There is strong support around the 15 level.

Update 1/21/09:

Piper Jaffray is assuming coverage on CREE with a BUY rating.  According to StreetInsider.com the Piper analyst commented

“CREE reported solid FQ209 results on strong LED sales for lighting applications as well as benefit from up-front licensing revenue. Despite lower revenue visibility due to macro economic weakness, we believe CREE will continue to benefit from increasing emphasis on energy efficient lighting solutions, stimulus from the new administration, and shortening LED investment payback periods. While we believe CREE will expedite the move of key production activities to China so it can continue improving its cost/margin structure, we believe lower factory utilization during 1H09 will temper margin improvement efforts.”