Leading LED manufacturer, Cree ( CREE ) is set to report its Q1 2017 earnings on October 18th. (Fiscal years end with June.) Going by the company's guidance for the quarter, we can expect its revenues and margins to decline in Q1'17, both sequentially and on a year-over-year basis. The primary reason for the decline can be attributed to the customer service disruptions caused by an ERP system upgrade that was initiated by Cree in fiscal Q3'16. It is worth noting that the company's sales cycle lasts around two to three quarters, and for this reason we can expect the negative impact of service disruptions caused in Q3'16 to last into Q1'17 as well. Furthermore, Cree expects its operating revenues to remain flat in FY 2017, even though it forecasts the overall market size to expand during this period. Fierce competition in the LED industry, and its impact on pricing, are the reasons behind sluggish revenue growth for the company.
Read more: http://www.nasdaq.com/article/customer-service-disruptions-likely-to-drag-down-crees-top-line-in-q117-too-cm693628#ixzz4NO8yqK67
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