Wolfspeed Reports Q4 and Full Fiscal Year 2024 Financial Results
Intellectia.AI Updated: 2024-08-21
Wolfspeed Reports Q4 and Full Fiscal Year 2024 Financial Results
Quarterly Financial Highlights
Wolfspeed, Inc. (NYSE: WOLF) announced its financial results for the fourth quarter of fiscal 2024 and the full fiscal year 2024.
1. Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | YoY Change | Consensus Estimate | Performance vs. Estimate |
|---|---|---|---|---|---|
| Revenue | $201M | $203M | -1% | $201.19M | In line |
| GAAP Gross Margin | 1% | 29% | -28% | N/A | N/A |
| Non-GAAP Gross Margin | 5% | 31% | -26% | N/A | N/A |
| EPS | N/A | N/A | N/A | $-0.85 | N/A |
Interpretation: Wolfspeed experienced a slight decline in revenue, with a significant drop in both GAAP and non-GAAP gross margins due to underutilization costs. Revenue performance met expectations, while profitability metrics indicated challenges in cost management.
2. Segment Revenue Performance
| Segment | Q4 FY2024 | Previous Guidance | Performance vs. Guidance |
|---|---|---|---|
| Mohawk Valley Fab Revenue | $41M | N/A | N/A |
Interpretation: The Mohawk Valley Fab significantly contributed to revenue, showcasing solid growth and an accelerated shift to 200mm fabrication.
3. Operational Metrics
| Metric | Value |
|---|---|
| Power Device Design-Ins | $2.0B |
| Quarterly Design-Wins | $0.5B |
Interpretation: The company secured strong design-ins and design-wins, highlighting robust demand and customer engagement for its power devices.
4. Comments from Company Officers
Gregg Lowe, CEO of Wolfspeed, emphasized the company's focus on optimizing capital structure and improving performance at the 200mm Mohawk Valley Fab. The company plans to shift fabrication from the Durham 150mm fab to the Mohawk Valley fab due to better profitability at lower costs. The company also aims to reduce FY25 net CapEx spend by $200 million and is in discussions for capital grants under the CHIPS Act.
5. Forward Guidance
For Q1 FY2025, Wolfspeed targets revenue between $185 million and $215 million, and GAAP net loss ranging from $1.79 to $1.54 per diluted share.
6. Stock Price Movement
The company’s stock price fell by 4.14% following the earnings release.
Wolfspeed's report indicates strategic shifts aimed at long-term growth despite current operational challenges. Their forward guidance remains cautiously optimistic amid uncertain economic conditions.
