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Sep 29, 2024
Wolfspeed Q1 2025 Earnings Report
Wolfspeed's Q1 2025 financial results were reported, highlighting actions to solidify the capital structure and simplify the business to enhance profitability.
Key Takeaways
Wolfspeed reported a slight decrease in revenue to $194.7 million compared to $197.4 million in the first quarter of fiscal 2024. The company is focusing on streamlining its business to a 200mm pure-play, which is expected to yield $200 million in cash savings. They have also secured access to an additional $2.5 billion in liquidity.
Consolidated revenue was approximately $195 million, with Mohawk Valley Fab contributing approximately $49 million.
Power device design-ins reached $1.5 billion.
GAAP gross margin was approximately (19)%, impacted by underutilization costs at the Mohawk Valley Fab.
Ended the quarter with approximately $1.7 billion in cash and investments.
Wolfspeed
Wolfspeed
Wolfspeed Revenue by Segment
Revenue by Segment
Power Products Revenue
CapyFin.comMaterials Products Revenue
CapyFin.com Forward Guidance
For the second quarter of fiscal 2025, Wolfspeed anticipates revenue to be in the range of $160 million to $200 million. GAAP net loss is projected to be between $401 million and $362 million, or $3.14 to $2.84 per diluted share. Non-GAAP net loss is expected to range from $145 million to $114 million, or $1.14 to $0.89 per diluted share.
Positive Outlook
- Revenue from continuing operations is targeted in a range of $160 million to $200 million.
- Factory start-up costs primarily in connection with materials expansion efforts of approximately $23 million.
- Cost of revenue, net, is expected to include approximately $35 million of underutilization costs in connection with the Mohawk Valley Fab.
- Non-GAAP net loss is targeted to be in a range of $145 million to $114 million, or $1.14 to $0.89 per diluted share.
- The GAAP and non-GAAP targets do not include any estimated change in the fair value of the shares of common stock of MACOM Technology Solutions Holdings, Inc.
Challenges Ahead
- GAAP net loss is targeted at $401 million to $362 million, or $3.14 to $2.84 per diluted share.
- The company expects to incur $174 million of restructuring-related costs, of which $34 million will be recognized in cost of revenue, net.
- The remaining $140 million will be recognized as operating expense.
- Operating expenses are expected to include approximately $23 million of factory start-up costs.
- Cost of revenue, net, is expected to include approximately $35 million of underutilization costs in connection with the Mohawk Valley Fab.
Revenue & Expenses
Visualization of income flow from segment revenue to net income