The shares of Cree closed on a loss of 3.4% today after the semiconductor materials maker reported a slump in fiscal first-quarter net income. Earnings for the quarter totaled $12.7 million, or 15 cents per share, compared to the firm's year-ago results of $13.3 million, or 17 cents per share.

Revenue for the period increased to $113.4 million from $103.9 million last year. Despite the year-over-year decline, Cree's results actually exceeded analysts' expectations, which called for a profit of 8 cents per share on $113 million in revenue.

Looking ahead to the second quarter, Cree expects per-share earnings of 3 to 5 cents per share, with revenue ranging between $155 million and $119 million.

Today's slump extended CREE's streak of losing sessions, as the equity continues to decline under pressure from its 10-day and 20-day moving averages. These short-term trendlines have provided resistance since early October. However, CREE is still gapped above support from its 10-month and 20-month moving averages, which are poised to form a bullish cross.

Option traders were pessimistic heading into today's report. The stock's Schaeffer's put/call open interest ratio weighs in at 0.93, higher than 92% of other such readings taken during the past year.