Cree, Inc. (Cree or ‘the company’) is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and wide bandgap semiconductor products for power and radio-frequency (RF) applications. The company’s product families include power switching devices and radio-frequency/wireless devices, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, and LED fixtures and bulbs. The company’s solutions drive improvements in applications such as variable-speed motors, wireless communications, general illumination, backlighting and electronic signs and signals.
The company operates through three segments namely: Lighting Products, LED products, and Power and RF products.
The Lighting Products consists of both LED lighting systems and bulbs. The company designs, manufactures and sells lighting systems for indoor and outdoor applications. Lighting products are sold to distributors, retailers and direct to customers. Its products are used in offices and retail space, restaurants and hospitality, schools and universities, manufacturing, healthcare, airports, municipal, residential, street lighting and parking structures, among other applications. In FY2016, the Lighting Products segment reported revenue of $889.1 million, which accounted for 55% of the company’s total revenue.
The LED Products segment offers LED chips, LED components, and SiC materials. Its LED chips include blue and green LED chips based on GaN and related materials, which are used in a variety of applications such as video screens, gaming displays such as pachinko, automotive backlighting and function indicator lights. Cree’s LED components include a range of packaged LED products from its XLamp LED components and LED modules for lighting applications and other high-brightness LED components. The XLamp LED components and LED modules are designed to meet market needs for lighting applications including general illumination, portable, architectural, signal and transportation lighting. Cree sells XLamp LED components to customers and distributors for use in a variety of products, primarily for lighting applications. The company also manufactures SiC materials products for microwave, optoelectronic, power switching and other applications. The company sells its materials as a with epitaxial or bare wafer films of SiC or GaN materials. In FY2016, LED product segment reported revenue of $610.8 million, which accounted for 37.8% of the company’s total revenue.
The Power and RF products offered by the company include SiC power devices and RF devices. Cree’s SiC-based power product portfolio includes Schottky diodes, SiC metal semiconductor field-effect transistors (MOSFETs), and SiC power modules. Its products find applications in power factor correction circuits for power supplies in computer servers and other applications such as solar inverters. The company’s RF product portfolio includes GaN high electron mobility transistors (HEMTs) and monolithic microwave integrated circuits (MMICs), which are optimized for military, telecom and other commercial applications. In FY2016, the Power and RF products segment reported revenue of $116.7 million, which accounted for 7.2% of the company’s total revenue.
The research and development (R&D) activities of the company focus on enhancing its semiconductor materials and production technology. The R&D activity includes efforts to develop brighter, more efficient and lower cost LED chip and component products; create new, and improve existing, LED components; improve existing LED lighting products and develop new LED lighting systems and related controls; develop higher power diodes/switches and higher power/linearity RF devices and increase the quality; and performance and diameter of the substrate and epitaxial materials. It operates research and development facilities in North Carolina, California, Wisconsin, India, Italy and China (including Hong Kong). In FY2016, the company spent $168.8 million on research and development activities, which as a percentage of its total revenue stood at 10.4%. Cree protects its inventions by applying for patents in the US and in other countries. As of June 26, 2016, the company owned or held exclusive rights to 1,821 issued US patents and approximately 2,978 foreign patents with various expiration dates extending up to 2040.
The company markets its products through distributors, third-party sales representatives and retailers. In FY2016, the company generated 10% of its revenue from sales to Arrow Electronics, Inc. (Arrow). The company manufactures majority of its products at production facilities located in North Carolina, Wisconsin and China. The company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging.
Geographically, the company’s operations are classified into eight segments, namely, the US, China, Europe, South Korea, Japan, Malaysia, Taiwan, and Others. In FY2016, the company generated 59% of its revenue from the US, followed by China (20%), Europe (8%), Japan (4%), South Korea (1%), Malaysia (1%), Taiwan (1%) and Other (6%).
Scope of the Report
-- About the Company - Historical Details, Current Ownership Structure and basic overview of Cree, Inc. in terms of revenue, net income, and operating income.
-- Financials - Details about Cree, Inc. listing status, annual financial reports (for the past 5 years), key financial highlights and region wise and category wise breakdown of their net revenue.
-- Products / Services - Listing of the company’s entire portfolio along with description of individual products / services providing a clear picture of their target audience.
-- Company SWOT Analysis - Outlines Cree, Inc.’s strengths, weaknesses, and opportunities and threats facing the company.
-- Recent Developments - Showcases Cree, Inc.’s recent developments including mergers, acquisitions, partnerships, collaborations, new product launches, investment and divestment plans.
-- Strategic Evaluation - Provides an overview of Cree, Inc.’s corporate goals and strategic initiatives and evaluates their outcomes along with outlining any persisting legal issues and outlook of our in-house analyst panel on the particular company.
-- Technology Landscape - Details how the company allocates its IT budget across the core areas of its business, CIO/CTO Profile, Key IT Initiatives and Deals undertaken buy the company at present along with outlook.
Key Questions Answered
-- What domain does Cree, Inc. operate and what are key points about it?
-- What is the product / service portfolio of Cree, Inc.?
-- How has Cree, Inc. performed financially from the 2013?
-- How does Cree, Inc. rank among its peers in terms of revenue and market share?
-- What are Cree, Inc. strengths and weaknesses and what opportunities and threats does it face?
-- What are Cree, Inc.’s main growth strategies and how successful has the company been at implementing them?
-- What is the in-house technical capability of Cree, Inc.? Where does it procure / outsource it?
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1. About the Company
1.1 History and Basic Facts
1.2 Ownership Structure and Key Executives
1.3 Head Office
1.4 Other Locations & Subsidiaries
1.5 List of Competitors
1.6 Employee Count & Distribution
2.1 Company Type (Listed / Unlisted)
2.2 Annual Statements
2.3 Key Financial Highlights
2.4 Region-wise Breakdown
3. Product / Services
4. SWOT Analysis
4.1 SWOT Overview
5. Recent Developments
5.1 Mergers & Acquisitions
5.2 Partnerships, Collaborations & Joint Ventures
5.3 New Product Launches
5.4 Business Expansion / Divestment
6. Strategic Evaluation
6.1 Corporate Strategy
6.2 Legal Issues
6.3 Analyst Outlook
7. Technology Landscape
-- 7.1.1 Industry Snapshot
-- 7.1.2 IT Spend
-- 7.1.3 Key Information Technology Trends
-- 7.2.1 IT Overview
-- 7.2.2 Key IT Technologies
-- 7.2.3 Recent IT Initiatives
-- 7.2.4 IT Outsourcing Engagements
-- 7.2.5 Key IT Management
-- 7.2.6 CIO/CTO Profile
-- About Us
-- Contact Us