Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.