Public Offering, Record Quarter for Cree

Semiconductor and optoelectronic device manufacturer Cree Research Inc. has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 1.3 million shares of common stock. The managing underwriters for the offering are CIBC Oppenheimer Corp., Prudential Securities, Incorporated, and Morgan Keegan & Company, Inc. The company plans to use the proceeds from the offering for expansion of facilities, debt repayment, research and development and other general corporate purposes.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Copies of the prospectus, when available, may be obtained from CIBC Oppenheimer Corp., CIBC Oppenheimer Tower, One World Financial Center, 200 Liberty Street, 39th Floor, New York, NY 10281.

In a related story, Cree reported record revenues of $14 million for the second quarter of fiscal year 1999 (ended Dec. 27), up 39% from the $10.1 million reported for the year ago period. Product revenue grew 57% to reach $12.8 million, compared to the second quarter 1998 figure of $8.2 million.

Net income for the period, also a record, grew 94% to $2.9 million ($0.21 per share), up from the $1.5 million ($0.11 per share) reported in the year earlier quarter