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Cree shares shed 11% after underwhelming quarterly report

An employee tests blue light-emitting diodes (LEDs) at a Cree Inc. facility in Research Triangle Park in Durham, North Carolina.
Jim R. Bounds | Bloomberg | Getty Images

Shares of Cree dropped as much as 14 percent Wednesday following the company's underwhelming quarterly fiscal report. The shares ended the day down 11 percent, at $22.41.

In the first quarter of fiscal 2017, Cree's revenue fell 13 percent to $371 million compared to a revenue of $425 million for the first quarter of fiscal 2016. Cree broke even in the first quarter on profits.

Despite the damp growth, Cree's leaders still took solace in the modest revenue generated. "We delivered solid results in fiscal Q1, as Lighting, LED Products and Wolfspeed all achieved revenue and gross margins that were in line with our targets," said Cree CEO Chuck Swoboda, in a statement.

Before the Tuesday earnings report, Cree's shares were up 40 cents and closed at $25.20.