Wolfspeed, a leader in wide bandgap semiconductors, reported a decrease in year-over-year revenue for the quarter ending September 29, 2024, with figures falling from $197.4 million to $194.7 million. The company's gross margin also saw a decline, dropping to (18.6)% from the previous year's 12.5%, with gross profit decreasing to a loss of ($36.2) million from a profit of $24.7 million. Operating loss widened significantly to $230.1 million compared to $94.9 million in the same quarter of the previous year, and diluted loss per share increased to $2.23 from $0.99. Despite these challenges, Wolfspeed maintains a strong liquidity position with $1,687.6 million in combined cash, cash equivalents, and short-term investments. The company's long-term debt, net, stood at $6,169.9 million. In terms of business development, Wolfspeed continues to...Show More

Wolfspeed, a leader in wide bandgap semiconductors, reported a decrease in year-over-year revenue for the quarter ending September 29, 2024, with figures falling from $197.4 million to $194.7 million. The company's gross margin also saw a decline, dropping to (18.6)% from the previous year's 12.5%, with gross profit decreasing to a loss of ($36.2) million from a profit of $24.7 million. Operating loss widened significantly to $230.1 million compared to $94.9 million in the same quarter of the previous year, and diluted loss per share increased to $2.23 from $0.99. Despite these challenges, Wolfspeed maintains a strong liquidity position with $1,687.6 million in combined cash, cash equivalents, and short-term investments. The company's long-term debt, net, stood at $6,169.9 million. In terms of business development, Wolfspeed continues to focus on silicon carbide materials and devices for power applications, with products aimed at electric vehicles, fast charging, renewable energy, and storage. The company has completed the sale of assets from its former RF product line, marking a strategic shift in operations. Looking ahead, Wolfspeed is investing in expanding production capacity, as evidenced by the start of revenue production at the Mohawk Valley Fab and plans for further expansion in Durham, North Carolina, and a new facility in Siler City, North Carolina. The company is also working on optimizing its cost structure and improving manufacturing yields, particularly as it transitions more device production to the Mohawk Valley Fab. For fiscal 2025, Wolfspeed targets $1.1 billion to $1.3 billion in net capital investment to support long-term demand and growth opportunities in silicon carbide technologies.