In a research report published Wednesday, Oppenheimer analyst Andrew Uerkwitz reiterated a Perform rating on Cree Inc (NASDAQ:CREE), as the company reported fiscal second quarter results, posting revenue of $413.2 million. No price target was provided.

Uerkwitz noted, “Cree’s Lighting segment performance once again mitigated the stagnant LED segment with both revenue and margin growth, with a stable mix of consumer and commercial sales. We remain optimistic about growth opportunities in the segment: Cree’s recent Gen 3 bulbs resemble traditional incandescent bulbs even further, at a cheaper price without sacrificing margins; Cree’s new line of connected bulbs seek to capitalize on the IoT movement, providing consumers with smart lighting at just $15/ bulb, the lowest price point on the market.”

The analyst added, “We’ve been waiting for some visibility in LED; management remained cautious at best: utilization rate is low with no clear sign of recovery. We will stay sidelined until we have a better grasp on LED outlook.”