Wolfspeed, a leader in wide bandgap semiconductors, reported a significant year-over-year revenue increase of $42.6 million, reaching $405.8 million for the six months ended December 31, 2023. However, gross margin declined to 12.9% from 34.3%, with gross profit decreasing to $52.5 million from $124.4 million, primarily due to underutilization costs at the new Mohawk Valley Fab. Operating loss widened to $193.0 million from $136.5 million, and diluted loss per share increased to $1.99 from $0.69. Cash, cash equivalents, and short-term investments totaled $2,635.7 million, while long-term debt rose to $5,167.6 million. Cash used in operating activities was $295.6 million, and net purchases of property and equipment were $972.8 million. Design-wins reached $4.4 billion, a significant increase from $0.9 billion. Wolfspeed's business development has been marked by the completion of the RF Business...Show More

Wolfspeed, a leader in wide bandgap semiconductors, reported a significant year-over-year revenue increase of $42.6 million, reaching $405.8 million for the six months ended December 31, 2023. However, gross margin declined to 12.9% from 34.3%, with gross profit decreasing to $52.5 million from $124.4 million, primarily due to underutilization costs at the new Mohawk Valley Fab. Operating loss widened to $193.0 million from $136.5 million, and diluted loss per share increased to $1.99 from $0.69. Cash, cash equivalents, and short-term investments totaled $2,635.7 million, while long-term debt rose to $5,167.6 million. Cash used in operating activities was $295.6 million, and net purchases of property and equipment were $972.8 million. Design-wins reached $4.4 billion, a significant increase from $0.9 billion. Wolfspeed's business development has been marked by the completion of the RF Business Divestiture, which represents a strategic shift with a major effect on operations and financial results. The company's products, including power devices and materials, are used in electric vehicles, renewable energy, and various other applications. Manufacturing is conducted in North Carolina, New York, and Arkansas, with additional contract manufacturers. Looking to the future, Wolfspeed plans to invest in expanding production capacity, as evidenced by the Mohawk Valley Fab and other facilities in North Carolina and Germany. The company aims to accelerate the growth of silicon carbide materials and devices, expecting these efforts to drive higher revenue and shareholder returns over time. For fiscal 2024, Wolfspeed has targeted approximately $2.0 billion of net capital investment.