As Cree continues to see its revenues increase, the company also expects to see its profit margins remain at 38% in 2013, according to Digitimes Research.
Digitimes Research attributes several factors to Cree's performance in 2013, such as the company's re-designed LED components, affordable LED bulbs, as well as an expanded lighting product line. Cree also has a more vertically integrated supply chain.
Additionally, Cree has seen better-than-expected results for its 40W and 60W LED bulbs, especially due to sales in US-based Home Depot hardware stores, with the 60W unit also ranking about 20% higher in terms of its lm/US$.
Cree expects a capex of US$120 million in 2014 largely for expanding its LED component and lighting production capacity, as well as improving its products' light efficiency, said Digitimes Research.
