You should listen to its conference call recording at Semileds web site. CEO says China LED streetlight market still improving and LED component price for Semileds would see a typical mid single digit percentage drop in current quarter ending Feb. Its gross margin while terrible but improving q over q, and will see improvement in its Feb quarter. CREE should have a much stronger pricing power than Semileds and therefore CREE's gross margin should hold and/or continue to improve IMO.
Semileds in the same LED component business as CREE is reporting one week before CREE about seeing stabilized LED price, improving Margins, and better China LED streetlight market. What does that tell you about CREE which is much stronger in every way?