Cree LED and ADJ Products settle patent infringement dispute

DURHAM, N.C. - Cree LED, a Penguin Solutions brand (Nasdaq:PENG), and ADJ Products, LLC have reached a settlement resolving a patent infringement dispute related to LED components used in LED displays, according to a press release issued Wednesday. Penguin Solutions, with a market capitalization of $1.45 billion and annual revenue of $1.34 billion, has shown strong revenue growth of 14% in the last twelve months.

Under the terms of the settlement, Cree LED has granted ADJ a limited license to certain Cree LED patents covering LED components. Financial details of the settlement were not disclosed. The company’s stock has shown remarkable momentum, trading near its 52-week high of $28.20, reflecting investor confidence in its business strategy.

The dispute centered on Cree LED’s patents for LED components commonly incorporated into display technology. Cree LED, as part of its intellectual property protection strategy, monitors the global market for unauthorized use of its patented technologies throughout the value chain.

The company, which is U.S.-based, emphasized its commitment to safeguarding its intellectual property investments in research, development, and product quality.

Cree LED operates as a brand under Penguin Solutions and offers a portfolio of LED chips and components for applications including general lighting, horticulture, specialty lighting, and video screens. The company has been in the innovation space for more than 35 years.

The settlement announcement comes as part of Cree LED’s ongoing efforts to protect its technological innovations while ensuring supply chain continuity through its business model.

In other recent news, Penguin Solutions reported its fiscal third-quarter 2025 earnings, which exceeded analyst expectations with adjusted earnings per share of $0.47, surpassing the consensus estimate of $0.33. However, the company faced a revenue shortfall, reporting $324 million, which was below the expected $330.79 million, though it still marked a 7.9% year-over-year increase. The Integrated Memory segment performed notably well, generating $130.1 million in revenue, a 42% increase year-over-year, surpassing consensus expectations of $116.5 million. Loop Capital raised its price target for Penguin Solutions to $35, maintaining a Buy rating, citing early signs of commercial AI adoption and new customer acquisitions. Needham also increased its price target to $30, following discussions with the company’s CFO after the earnings report. Additionally, Citizens JMP reiterated a Market Outperform rating with a $26 price target, highlighting the company’s growth potential despite the revenue miss. As part of its organizational restructuring, Penguin Solutions appointed Tony Frey as Senior Vice President and Chief Revenue Officer to bolster its transformation into an AI infrastructure solutions provider.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.