Wolfspeed, a leader in wide bandgap semiconductors, reported a year-over-year revenue increase of $50.7 million, reaching $606.5 million for the nine months ended March 31, 2024. However, gross margin declined to 12.4% from 33.1%, with gross profit decreasing to $75.0 million from $184.2 million, influenced by $100.4 million of underutilization costs associated with the start-up of the Mohawk Valley Fab. Operating loss widened to $299.4 million from $222.2 million, and diluted loss per share increased to $3.18 from $1.36. Cash and equivalents, along with short-term investments, totaled $2,550.9 million, a decrease from $2,954.9 million. Long-term debt rose to $5,664.3 million from $4,175.1 million. The company's business development saw the completion of the RF Business Divestiture, marking a strategic shift and classifying the RF product line as discontinued operations. Wolfspeed continues to...Show More

Wolfspeed, a leader in wide bandgap semiconductors, reported a year-over-year revenue increase of $50.7 million, reaching $606.5 million for the nine months ended March 31, 2024. However, gross margin declined to 12.4% from 33.1%, with gross profit decreasing to $75.0 million from $184.2 million, influenced by $100.4 million of underutilization costs associated with the start-up of the Mohawk Valley Fab. Operating loss widened to $299.4 million from $222.2 million, and diluted loss per share increased to $3.18 from $1.36. Cash and equivalents, along with short-term investments, totaled $2,550.9 million, a decrease from $2,954.9 million. Long-term debt rose to $5,664.3 million from $4,175.1 million. The company's business development saw the completion of the RF Business Divestiture, marking a strategic shift and classifying the RF product line as discontinued operations. Wolfspeed continues to focus on silicon carbide materials and devices for power applications, with products used in electric vehicles, renewable energy, and storage, among other sectors. Looking ahead, Wolfspeed plans to invest in expanding production capacity, including the new Mohawk Valley Fab and a materials factory in Durham, North Carolina. The company targets a net capital investment of approximately $2.0 billion for fiscal 2024, with a focus on supporting long-term growth and shareholder returns. Despite current production capacity constraints, Wolfspeed is optimistic about meeting increased demand for its power products, particularly for electric vehicle applications.