LED lighting maker Cree, Inc. saw its second quarter 2014 revenue jump 20% in the quarter ending Dec. 29 to $415.1 million compared to year-ago quarterly revenue of $346.3 million, the Durham, N.C.-company reported today.

Net income for the company’s second quarter totaled $35.7 million, a 75% increase over year-ago quarterly net income of $20.4 million, and 6% higher than first quarter’s $20.4 million net income.

“Fiscal Q2 was another strong quarter as revenue increased to a record $415 million driven by strong growth in LED fixtures and LED bulbs. For the first half of fiscal 2014, revenue is up 22% from the first half of fiscal 2013 and Non-GAAP operating profit is up 38%,” said chairman and CEO Chuck Swoboda. “Our strategy is working, the business is growing and we've made great initial progress building the Cree brand.”

The company reported that its gross margin fell 110 basis points from the first quarter of 2014 to 37.5%. Cash and investments increased by $95.6 million in the first quarter of 2014 to $1.2 billion in the second.

Accounts receivable (net) increased by $4.3 million over the previous quarter to $213.5 million, with days sales outstanding of 46. Inventory increased $17.1 million over the previous quarter to $234.5 million in the second, with days of inventory of 81 days.

As for the next quarter, Swoboda estimates more good on the sales front as the company continues its partnership with The Home Depot. "We target higher store sales in Q3," he says.

Places for uncertainty: Swoboda predicts the LED component market will remain competitive through 2014, even amidst a congressional spending bill that defunds LED light bulb transition. Additionally, he says he can't quite predict how the overall year will go for the LED lighting industry. "We're in the really early stages of LED light adoption," he says. "I don't try to figure out exactly what the size of the business is next year. I try to work on the things that drive adoption."