Cree, Inc. (Nasdaq: CREE) introduces a game-changing series of LED bulbs at a retail price point that gives consumers a reason to switch to LED lighting.
The long-lasting Cree LED bulbs showcase Cree's commitment to LED lighting innovation. The new bulbs shine as brightly as comparable incandescents while saving 84 percent of the energy compared to traditional bulbs. The Cree LED bulbs are backed by a 10-year limited warranty and available exclusively at The Home Depot®.
"The Cree LED light bulb was designed to offer consumers a no-compromise lighting experience at a compelling price," said Chuck Swoboda, Cree chairman and CEO. "Over the last couple of years we recognized that the consumer is instrumental in the adoption of LED lighting, but we needed to give them a reason to switch. We believe this breakthrough LED bulb will, for the first time, give consumers a reason to upgrade the billions of energy-wasting light bulbs. We could not think of a better way to get this bulb into consumers’ hands than through The Home Depot, a visionary partner who embraces innovation."
"As the leading retailer of energy-efficient LED lighting products, our customers look to us to provide them with the most advanced and most cost-effective lighting technologies available," said Jeff Epstein, merchandising vice president, The Home Depot. "We diligently work with our manufacturing partners to offer consumers the most innovative alternatives that also help save money and energy. We are pleased to expand our relationship with Cree. It has enabled us to be the first in the market to offer a technologically advanced and affordable LED light bulb in the market today."
The innovative bulb is illuminated by Cree LED Filament Tower™ Technology and provides a compact optically balanced light source within a real glass bulb to deliver consumers the warm light they love and want. Boasting a shape that looks like a traditional light bulb, Cree LED bulbs can be placed in most lighting fixtures in the home. The new Cree LED bulb is designed to last 25,000 hours or 25 times longer than typical incandescent light bulbs – reducing the need to replace bulbs for years to come.
With a retail price of $9.97 for the warm white 40-watt replacement, $12.97 for the 60-watt warm white replacement and $13.97 for the 60-watt day light, the Cree LED bulbs save 84 percent of the energy compared to traditional incandescents. Cree LED bulbs can pay for themselves quickly and then pay consumers year after year. By replacing the incandescent bulbs with Cree LED bulbs in a home's five most frequently used light fixtures, consumers can save $61 per year on electric bills.*
Cree LED bulbs are the ideal replacement for energy-wasting 60-watt and 40-watt incandescents and compromise-laden CFL lighting. The new LED bulbs turn on instantly and are free of the mercury that is found in CFL bulbs. Unlike many low-priced LED bulbs, Cree LED bulbs are easily dimmable with most standard incandescent dimmers.
The Cree LED light bulb (60-watt incandescent replacement) delivers 800 lumens and consumes only 9.5 watts and is available in warm white (2700K) and day light (5000K) color temperatures. The Cree LED light bulb (40-watt incandescent replacement) delivers 450 lumens and consumes only 6 watts and is available in 2700K color temperature.
Based on Cree LED bulb 60W replacements at 9.5 watt, $0.11 per kilowatt-hour, 25,000 hour lifetime and average usage of 6 hours per day.
Business Outlook Update:
For its third quarter of fiscal 2013 ending March 31, 2013, Cree now targets incrementally higher revenue and net income. The revenue target has been increased to a range of $335 million to $350 million. The GAAP and non-GAAP gross margin targets remain the same as previously announced with GAAP gross margin targeted to be similar to Q2 and non-GAAP gross margin targeted to be 39.5% +/-. GAAP gross margin targets include stock-based compensation expense of approximately $2.4 million, while our non-GAAP targets do not. Operating expenses are targeted to be approximately $2 million higher than previously announced, due to higher R&D and marketing costs to support the new product launch. The tax rate target is unchanged at 17% for fiscal Q3. The GAAP net income target has been increased to a range of $18 million to $24 million, or $0.16 to $0.21 per diluted share. The Non-GAAP net income target has been increased to a range of $36 million to $42 million, or $0.31 to $0.36 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 116.7 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles and stock-based compensation expense of $0.15 per diluted share.
