Last week Cree (CREE: chart, web, Y!) reported their fiscal Q1 earnings that were well beyond Wall Street expectations.

Revenue came in at $169.1 million for the quarter which translates into 30 cents per share in earnings, beating The Street’s expectations of 22 cents per share.

For Q2, the company is expecting 28 to 30 cents per share (excluding special items) on revenue of $180 to $190 million.

Aside for being a short term boon on my Cree shares, I think this quarterly report reaffirms my position that Cree’s LED products will continue to do well in the market and have yet to see widespread uptake, but the market is starting to evolve and companies, including major cities are starting to see the cost-benefit of LED technology.

I’m continuing to buy Cree shares on pull backs and my average cost is starting to creep up to around $29 per share.

Investing CREE