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What: Cree (Nasdaq: CREE ) dropped 12% in intraday trading today after the company lowered revenue guidance for the current quarter.
So what: Management now expects revenue of $215 million to $220 million for the quarter, which ends on March 27. That is down from expectations of $245 million to $265 million in January.
Now what: Working through an inventory correction in Asia, which management was aware of in January, is taking longer than previously anticipated. The weak demand is pressuring pricing as well, so revenue will suffer from a double-whammy. EPS for the quarter will almost certainly come in well below prior expectations, and the outlook beyond the quarter is looking less certain.
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