Wolfspeed Reports 3rd Quarter FY 2023 Results

DURHAM, N.C.  — Wolfspeed, Inc. today announced its results for the third quarter of fiscal 2023.

Quarterly Financial Highlights (all comparisons are to the third quarter of fiscal 2022, unless otherwise noted) • Revenue of $228.7 million, compared to $188.0 million • GAAP gross margin of 29.8%, compared to 34.0% • Non-GAAP gross margin of 32.3%, compared to 36.3% • GAAP net loss of $99.5 million, or $0.80 per diluted share, compared to $66.5 million, or $0.54 per diluted share • Non-GAAP net loss of $16.0 million, or $0.13 per diluted share, compared to $14.3 million, or $0.12 per diluted share • Quarterly and year-to-date design-ins of $1.7 billion and $6.7 billion, respectively

“We’re proud to have shipped our first product from our Mohawk Valley fab during this quarter, which is a significant development in our business and for the industry,” said Wolfspeed Chief Executive Officer, Gregg Lowe. “The learnings from this first shipment will inform our ramp in devices as we continue to expand our capacity to address increasing demand. As such, we are adjusting our fiscal 2024 revenue forecast to reflect the projected growth of our materials production as it relates to supplying Mohawk Valley. Wolfspeed is a testament to the power of long-range investment in complex technology, and we expect further progress in our pursuit of innovation and market leadership,” Lowe added.

Business Outlook:

For its fourth quarter of fiscal 2023, Wolfspeed targets revenue in a range of $212 million to $232 million. GAAP net loss is targeted at $98 million to $108 million, or $0.79 to $0.87 per diluted share. Non-GAAP net loss is targeted to be in a range of $21 million to $29 million, or $0.17 to $0.23 per diluted share. Targeted non-GAAP net loss excludes $77 million to $79 million of estimated expenses, net of tax, related to stock-based compensation expense, amortization or impairment of acquisition-related intangibles, factory start-up and underutilization costs, amortization of debt issuance costs, net of capitalized interest, project, transformation and transaction costs and loss on Wafer Supply Agreement.

For fiscal 2024, Wolfspeed now targets revenue in a range of $1 billion to $1.1 billion, based on the current ramp plan for 200mm silicon carbide substrate capacity.