|
Cree Announces $180 Million Agreement with Sumitomo for Fiscal 2007 |
|
DURHAM, NC, May 31, 2006 — Cree, Inc. (Nasdaq: CREE), a leader in LED solid-state lighting components, today announced that its Japanese distributor, Sumitomo Corporation, has agreed to purchase $180 million of Cree’s light-emitting diode (LED) and wafer products during Cree’s fiscal year ending June 2007, subject to end-customer demand and other terms and conditions. The $180 million represents approximately a 10-percent increase over Cree's current estimate for fiscal 2006 sales to Sumitomo. Both companies anticipate that purchases will be made across Cree’s full line of wafer and LED chip products, including MegaBright®, XBright®, XThin® and EZBright™ LEDs.
“We are excited about promoting Cree’s advanced LED products in the coming year. Breakthroughs in performance are opening doors to multiple new applications, especially in the consumer electronics and general lighting areas,” states Koichiro Kusano, assistant general manager of Sumitomo’s Electronics Division. “This new agreement helps ensure that Sumitomo can support customers with the best products and services to realize the many new opportunities being pursued.”
“I am pleased to announce this $180 million purchase commitment from Sumitomo for LED chips and wafers during fiscal 2007,” notes Chuck Swoboda, Cree’s chairman and chief executive officer. “We believe the agreement reflects the increasing optimism our sales team sees in Japan for increased market share in white mobile applications and new design wins in emerging markets for LED lighting.”
Sumitomo made the purchase commitment pursuant to its existing distributorship agreement with Cree. Cree previously announced that sales to Japan in fiscal 2006 were running below the original plan for the year.
About Sumitomo Corporation
Sumitomo Corporation conducts, among other things, commodity transactions in virtually all industries utilizing its comprehensive worldwide network. The company’s expertise in international finance, project management, new business development and investment is recognized throughout Japan and positions it as one of the premier trading organizations in the world.
About Cree, Inc.
Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree’s market advantage is its world-class materials expertise in silicon carbide (SiC) and gallium nitride (GaN) for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.
Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more tunable light for general illumination, backlighting for more vivid displays, optimized power management for high-current switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting-fixtures makers to defense-related federal agencies.
Cree’s product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio-frequency/wireless devices. For additional product specifications, please refer to www.cree.com .
|
