Cree's stock got hammered Thursday on Wall Street after the company announced revenue from its LED Products division is expected to decline 20% year-over-year and 13% sequentially to $174 million in the first quarter of fiscal 2015 due to "weaker global demand than originally targeted." In preliminary estimates of financial results for its first fiscal quarter ended Sept. 28, Cree said it expects revenue for the quarter to be approximately $428 million. The report said the expected revenue is below the company's previously targeted range of $440 million to $465 million due to lower LED Products revenue and that, "Overall gross margin is expected to be below the company's previously announced targets primarily due to the lower LED Products revenue and higher than targeted LED bulb revenue. LED Products and Lighting Products segment gross margins are expected to be lower sequentially primarily due to the product mix within each segment."
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