Technical Research on Cree and United Microelectronics: Improving Global Economy a Good Sign

LONDON, January 28, 2013 /PRNewswire/ --

Last year was a tough one for the global semiconductor equipment industry due to weak economic environment. However, things are expected to improve in 2013 as the global economy shows signs of recovery. This augurs well for companies such as Cree Inc. (NASDAQ: CREE) and Taiwan-based United Microelectronics Corp. (NYSE: UMC). StockCall analysts have reviewed these companies and the technical analysis is currently available for free upon sign up at http://www.stockcall.com/registration

Semiconductor Equipment Sales Expected to Moderate

SEMI®, a global industry association serving the manufacturing supply chain for the micro-and nano-electronics industries, last month forecast that sales of new semiconductor manufacturing equipment will reach $38.2 billion in 2012. The industry association noted that after a multi-year expansion period, semiconductor equipment sales are forecast to moderate before seeing low double-digit growth in 2014.

SEMI expects the equipment market to contract 12.2% in 2012, with growth expected in only Taiwan and South Korea. China, Taiwan and Japan are expected to have a slight to moderate growth in 2013, according to the industry association. However, overall sales are expected to fall 2.1%. Sales are expected to rebound in 2014.

One of the reasons for the reduction in sales of semiconductor equipment last year was the weakness in the global economy. However, the global economic outlook is improving and this should benefit the semiconductor industry.

Cree Reports Strong Q2 Results

Earlier last week, Cree Inc., which is a market-leading innovator of lighting class LEDs, LED lighting, and semiconductor products for power and radio frequency (RF) applications, reported strong results for its second quarter of fiscal 2013. Download the free technical analysis on Cree at http://www.StockCall.com/CREE012813.pdf

The Durham, North Carolina-based company reported a 14% increase in its second quarter revenue to $346.3 million. Chuck Swoboda, the company's Chairman and CEO said that fiscal second quarter was another strong quarter with record revenue and earnings per share that were higher than the company's target range due to stronger sales in both LEDs and Lighting combined with improved gross margins.

Cree reported second quarter net income of $20.4 million, or $0.18 per share, up 69% over the same period in the previous year. On a non-GAAP basis, the company reported net income of $36.9 million, or $0.32 per share, compared to $28.7 million, or $0.25 per share.

Mr. Swoboda noted that overall company backlog is in-line with seasonal trends for the fiscal third quarter and longer-term, the company remains focused on driving adoption through innovation, and with its broad understanding of the technology levers from materials through systems, it sees opportunities to move the market even faster than what has been experienced to date.

Looking ahead to the fiscal third quarter, Cree expects revenue to be between $325 million and $345 million. The company forecasts non-GAAP net income for the quarter to be between $35 million and $41 million.

United Microelectronics Reports Drop in December Sales

Earlier this month, United Microelectronics, which operates as a semiconductor wafer foundry, reported its sales results for the month of December. The Taiwan-based company reported a 3.8% drop in its December sales. The company's sales stood at T$7.8 billion ($269 million) in December. In November, the company had reported sales of T$9 billion. Sign up today and download the full report on United Microelectronics at http://www.StockCall.com/UMC012813.pdf

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