Wolfspeed Inc Stock Price, News & Analysis

Wolfspeed (NYSE: WOLF) announced a leadership transition as President and CEO Gregg Lowe will depart this month. Board Chairman Thomas Werner has been appointed as Executive Chairman while the company conducts a search for a permanent CEO. Under Lowe's leadership since 2017, Wolfspeed transformed into a pure-play silicon carbide company. Werner will oversee day-to-day operations, focusing on executing CHIPS PMT agreement milestones, completing restructuring initiatives to lower break-even point, accelerating profitability path, and delivering consistent sales growth. Board member Stacy Smith was appointed as Lead Independent Director.

Wolfspeed (NYSE: WOLF) reported Q1 FY2025 results with consolidated revenue of $195M, slightly down from $197M YoY.

The Mohawk Valley Fab contributed $49M in revenue. GAAP gross margin was -19% impacted by $26.4M in underutilization costs, while non-GAAP gross margin was 3%. The company ended Q1 with $1.7B in cash and investments.

Wolfspeed secured $2.5B in liquidity through CHIPS, lenders, and tax credits, and is streamlining operations to save $200M annually. The company targets $3B annual revenue from its silicon carbide facilities.

For Q2 FY2025, Wolfspeed projects revenue between $160M-$200M, with a GAAP net loss of $401M-$362M and non-GAAP net loss of $145M-$114M. Restructuring and start-up costs continue to impact financials. The company expects $174M in restructuring costs for Q2 FY2025.

Wolfspeed (NYSE: WOLF), a global leader in silicon carbide technology, has scheduled its fiscal first quarter earnings conference call and audio webcast for November 6, 2024, at 5:00 pm Eastern Daylight Time. CEO Gregg Lowe and CFO Neill Reynolds will host the call. The live webcast and earnings release will be accessible through the company's Investor Relations website.

Wolfspeed, Inc. (NYSE: WOLF), a leader in silicon carbide technology, has nominated Thomas Seifert and Woody Young to its Board of Directors. Shareholders will consider their nominations at the 2024 Annual Meeting on December 5, 2024. Seifert, currently CFO of Cloudflare, has extensive experience in technology and semiconductor companies. Young, former President of Solidigm, brings over 30 years of investment banking expertise.

The nominations come as Wolfspeed focuses on executing its business plan, improving operational execution, and exploring ways to enhance shareholder value. Current board members Clyde R. Hosein and John B. Replogle will retire following the 2024 Annual Meeting. Wolfspeed plans to file a proxy statement with the SEC for the 2024 Annual Meeting, and shareholders are encouraged to read it when available.

Wolfspeed has announced a proposed $750 million funding from the U.S. CHIPS Act and an additional $750 million from an investment group led by Apollo. The company also expects to receive approximately $1 billion in Section 48D cash tax refunds from the IRS over the next several years. This total of $2.5 billion in expected capital will support Wolfspeed's expansion of silicon carbide manufacturing in the United States.

The funding will enable Wolfspeed to complete its multi-billion-dollar greenfield U.S. capacity expansion plan, which includes the largest and most advanced 200mm silicon carbide footprint in the world. The investment will bolster Wolfspeed's balance sheet, fuel significant growth through cash generation, and accelerate its long-term profitability goals.

Wolfspeed is the world's largest producer of silicon carbide technology, which is important for high power applications such as EV powertrains, renewable energy systems, and AI data centers. The importance of bolstering domestic production of silicon carbide has been recognized by multiple federal agencies as critical to clean energy technologies and national security.

Wolfspeed (NYSE: WOLF) has unveiled a groundbreaking 2300V silicon carbide module for renewable energy, energy storage, and fast-charging infrastructure. Developed using 200mm silicon carbide wafers, these modules offer improved efficiency, durability, and scalability for 1500V DC Bus applications. Wolfspeed has partnered with EPC Power, a leading utility-scale inverter manufacturer, to integrate these modules into high-performance solar and energy storage systems.

The new modules provide 15% greater voltage headroom, enhanced dynamic performance, and reduced EMI filter size. They achieve a 77% reduction in switching losses over IGBTs and enable simplified system design. With the solar energy market projected to reach $300 billion by 2032, Wolfspeed's innovation aims to meet the growing demand for efficient and reliable clean power solutions.

Wolfspeed, the global leader in silicon carbide technology, has announced its participation in an upcoming investor conference. CEO Gregg Lowe and CFO Neill Reynolds will engage in a fireside chat at Citi's 2024 Global TMT Conference on September 4, 2024, at 3:50pm ET.

Investors and interested parties can access a live webcast of the presentation through the Investor Relations section of Wolfspeed's website. The webcast link will be available at https://investor.wolfspeed.com/events-and-presentations/. This event provides an opportunity for stakeholders to gain insights into Wolfspeed's strategies and performance directly from its top executives.

Wolfspeed (NYSE: WOLF) reported financial results for Q4 and full fiscal year 2024. Key highlights include:

- Q4 revenue of $201 million, down slightly from $203 million in Q4 FY2023
- Full-year revenue of $807 million, up from $759 million in FY2023
- Mohawk Valley Fab contributed $41 million in Q4 revenue
- Q4 GAAP gross margin fell to 1% from 29% year-over-year
- Full-year GAAP gross margin decreased to 10% from 32% in FY2023
- Company plans to accelerate shift to 200mm Mohawk Valley Fab
- FY2025 net CapEx spend to be reduced by $200 million
- Q1 FY2025 revenue guidance: $185-$215 million

Wolfspeed is focusing on optimizing capital structure and driving performance in its 200mm fab, while assessing closure timing of its 150mm Durham device fab.

The Schall Law Firm, a national shareholder rights litigation firm, has announced an investigation into Wolfspeed, Inc. (NYSE:WOLF) for potential securities law violations. The investigation focuses on whether Wolfspeed issued false or misleading statements or failed to disclose important information to investors.

The investigation was prompted by a Reuters report published on June 20, 2024, which revealed that Wolfspeed had delayed plans to build a $3 billion plant in Germany. According to the report, construction won't start until mid-2025 at the earliest, two years later than originally planned. This news caused Wolfspeed's shares to fall by 8.62% on the same day.

Shareholders who suffered losses are encouraged to participate in the investigation and contact The Schall Law Firm for more information.