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CREE RESEARCH, INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS

 DURHAM, N.C., Oct. 28 /PRNewswire/ -- Cree Research, Inc. (NASDAQ: CREE) today reported a net loss of $(220,872), or $(.04) per share, on revenues of $1,635,075 for the quarter ended Sept. 30, 1993. This compared with net earnings of $11,068 on revenues of $1,195,724 for the quarter ended Sept. 30, 1992.
 Earnings were impacted by continued weakness in the market for blue LEDs, particularly in Japan, coupled with expenses incurred in the redesign of the blue light emitting diode (LED) into a smaller geometry chip. Cree also posted a net inventory writedown of approximately $60,000 as a result of the development of the newly designed LED.
 The new smaller LED (the D8 chip) and existing larger LED (the D10 chip) are now being offered at significantly lower prices. In large quantities, the LEDs are priced at $0.18 and $0.29 for the D8 and D10 chips, respectively. "In decreasing prices, Cree is addressing one of the major factors that will influence market growth of blue LEDs," remarked C. Eric Hunter, chief executive officer.
 Sales of the company's silicon carbide (SiC) wafer products and revenues from contract-funded research both showed significant growth in the quarter ended Sept. 30, 1993, as compared to the comparable quarter of the preceding year.
 The company is encouraged by increased interest in its SiC wafer products and looks forward to market response for its lower-priced blue LEDs over the next couple of quarters. If increased LED sales take longer to develop, it is possible that the company could post negative operating results for the quarter ending Dec. 31.
 Cree Research, which completed an initial public offering of common stock in February, is the world leader in developing and manufacturing electronic devices made from silicon carbide, a semiconductor material that is superior to other semiconductor materials for certain applications.
 CREE RESEARCH, INC.
 CONDENSED STATEMENT OF OPERATIONS
 Three Months Ended
 Sept. 30,
 1993 1992
 Total revenues $1,635,075 $1,195,724
 Cost of revenues $1,396,962 $ 851,895
 Total operating expenses $ 610,131 $ 318,485
 Net income (loss) $ (220,872) $ 11,068
 Net income (loss) per share of common stock $ (.04) $ 0.00
 Weighted average shares of common
 stock outstanding 5,161,871 3,297,211
 -0- 10/28/93
 /CONTACT: Alan Robertson, chief financial officer, of Cree Research, 919-361-5709, or FAX 919-361-4630/
 (CREE)


CO: Cree Research, Inc. ST: North Carolina IN: CPR SU: ERN

SB-CM -- CH007 -- 7782 10/28/93 10:12 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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