Thu, Aug 22, 8:07 PM (145 days ago)
Wolfspeed, Inc. reported significant financial challenges for the fiscal year ending June 30, 2024. Revenue increased by $48.7 million to $807.2 million, primarily driven by growth in materials products and automotive applications. However, gross margin plummeted to 9.6% from 32.0% the previous year, resulting in a gross profit of $77.4 million. Operating losses deepened to $445.3 million, with a diluted loss per share from continuing operations of $4.56, up from $2.09 in 2023. The company faced substantial underutilization costs of $124.4 million related to its new Mohawk Valley Fab facility, contributing to a net loss of $864.2 million. Strategically, Wolfspeed divested its RF product line, classifying it as discontinued operations, which resulted in a $204 million loss on sale. Despite these challenges, the company is focused on expanding production capacity, with projected capital investments of $1.2 to $1.4 billion for fiscal 2025. Risks include reliance on a limited customer base and ongoing supply chain pressures. The company maintains a solid liquidity position, although it anticipates needing additional funding to support future growth initiatives.