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Wolfspeed Reports Financial Results for 2Q 2023

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

“We are pleased to report another quarter of more than $1 billion of design-ins, highlighting the continued demand for our Silicon Carbide technology,” said Wolfspeed Chief Executive Officer, Gregg Lowe. “Though there has been some demand pressure on 5G that has impacted our RF product line, our power devices continue to penetrate more of the market, with strong customer demand and new partnerships with large multinational auto manufacturers, such as Jaguar Land Rover and Mercedes, and automotive Tier-1s, such as BorgWarner and ZF.”

Lowe continued, “We are capitalizing on the immense opportunity in next-generation power devices by expanding our capacity footprint. During the quarter we made great strides in both financing and facility development. We closed on a convertible note offering of $1.75 billion, which will directly support our expansion efforts, while continuing to make progress on the construction of the new materials factory in Siler City, North Carolina and the ramp of our Mohawk Valley device fab. Related to Mohawk Valley, a first-of-its-kind fab, we anticipate recognizing revenue from the facility in the second half of fiscal 2023 and we are in the final stages of scaling production. We remain on a trajectory to meet this target, but that will largely depend on both our ability to complete qualifications and ramp up the supply of 200mm wafers, which we believe we will achieve. We are confident that the investments we are making today in Silicon Carbide capacity will generate solid returns for customers and investors over the long run.”

Business Outlook:

For its third quarter of fiscal 2023, Wolfspeed targets revenue in a range of $210 million to $230 million. GAAP net loss is targeted at $81 million to $88 million, or $0.65 to $0.71 per diluted share. Non-GAAP net loss is targeted to be in a range of $15 million to $20 million, or $0.12 to $0.16 per diluted share. Targeted non-GAAP net loss excludes $66 million to $68 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.

Quarterly Financial Highlights (all comparisons are to the second quarter of fiscal 2022, unless otherwise noted)

  • Revenue of $216.1 million, compared to $173.1 million
  • GAAP gross margin of 31.0%, compared to 32.9%
  • Non-GAAP gross margin of 33.6%, compared to 35.4%
  • GAAP net loss of $90.9 million, or $0.73 per diluted share, compared to $96.7 million, or $0.82 per diluted share
  • Non-GAAP net loss of $14.2 million, or $0.11 per diluted share, compared to $18.6 million, or $0.16 per diluted share
  • Quarterly design-ins of $1.5 billion

 

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