Key TakeawaysShares of Wolfspeed plunged Thursday after the chipmaker posted weaker-than-expected sales and guidance, and announced major job cuts as it moves to simplify its business.The company said it will lay off about 20% of its workforce and shutter two factories.The company took $87.1 million in restructuring charges in its fiscal first quarter of 2025, and expects more than double that amount in the current quarter. Shares of Wolfspeed (WOLF) plunged Thursday after the chipmaker posted weaker-than-e ...

Financial Data and Key Metrics Changes - The company generated $195 million in revenue for the quarter, slightly below the midpoint of guidance and down 3% sequentially [46] - Non-GAAP gross margin for the first quarter was 3.4%, down quarter over quarter but above the midpoint of previous guidance [48] - Free cash flow during the quarter was negative $528 million, comprised of negative $132 million of operating cash flow and $396 million of capital expenditures [50] Business Line Data and Key Metrics Changes - Power revenue was $97 million, down quarter over quarter, driven largely by lower demand in the industrial and energy sectors [47] - Revenue contribution from the Mohawk Valley was $49 million, up more than 20% quarter over quarter, marking the first quarter where Mohawk Valley contributed more power device revenue than the Durham Fab [47] - Materials revenue was $98 million, up slightly from the prior quarter, driven by strong operating performance [48] Market Data and Key Metrics Changes - EV revenue grew 2.5x year-over-year, with expectations for continued growth throughout calendar 2025 [21] - The industrial and energy sectors are experiencing continued softness due to macroeconomic pressures, with orders remaining weak [22] - The company expects the market to begin recovering in the first half of calendar 2025 as inventory levels decline [23] Company Strategy and Development Direction - The company is focused on solidifying its capital structure to support a targeted annual revenue of approximately $3 billion from its 200mm footprint [8] - A strategic transition to a fully 200mm device platform is underway, aimed at lowering costs and improving profitability [12] - The company plans to close its 150mm device fab in Durham and optimize its capacity footprint by closing the epitaxy facility in Texas [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that while EV adoption is growing, the transition period is dynamic, with customers revising launch timelines [20] - The company remains confident in long-term EV demand despite short-term challenges [20] - Management expects non-GAAP EBITDA profitability in the second half of fiscal 2025 and operating cash flow break-even during fiscal year 2026 [55] Other Important Information - The company secured $750 million in direct funding under the CHIPS and Science Act, along with $750 million in additional debt funding [11] - A workforce reduction impacting approximately 20% of the total employee base is being implemented to align with market conditions [16][43] - The company is targeting annual cash savings of approximately $200 million from restructuring initiatives [17] Q&A Session Summary Question: Implications of election results on the CHIPS Act - Management expressed confidence that bipartisan support for the CHIPS Act remains strong, emphasizing the importance of silicon carbide technology for U.S. economic security [60] Question: Status with Renesas regarding wafer commitments - Management confirmed a strong relationship with Renesas and noted that demand may ebb and flow as they establish their foothold in the silicon carbide business [62] Question: Revenue ramp down of the Durham device fab - Management indicated that the transition from Durham to Mohawk Valley is well underway, with expectations for the majority of revenue to transfer successfully [65] Question: Competitive environment for materials business - Management noted strong interest from materials customers in moving to 200mm, with ongoing discussions about supply agreements [68] Question: Operational milestones for CHIPS Act funding - Management expressed confidence in meeting the operational milestones required for the first tranche of funding [74]

Wolfspeed (WOLF) came out with a quarterly loss of $0.91 per share versus the Zacks Consensus Estimate of a loss of $1.01. This compares to loss of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.90%. A quarter ago, it was expected that this maker of energy-efficient lighting would post a loss of $0.84 per share when it actually produced a loss of $0.89, delivering a surprise of -5.95%.Over the last four quarters, the ...

Exhibit 99.1 Wolfspeed Reports Financial Results for the First Quarter of Fiscal Year 2025 Solidifying Capital Structure, Simplifying Business to Accelerate Profitability and Continuing to Build Core Sales Demand Executed Access to Incremental $2.5 Billion in Liquidity via CHIPS, Lenders, Tax Credits Streamlining Business to 200mm Pure Play Yielding $200 Million in Cash Savings DURHAM, N.C. November 6, 2024 -- Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the first quarter of fiscal 2025. Qua ...

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Wolfspeed's beaten-down shares saw a short-covering rally, thanks in part to the U.S. government. Shares of chipmaker Wolfspeed (WOLF 1.95%) rocketed 41.2% this week through Thursday trading, according to data from S&P Global Market Intelligence. Shares were down more than 80% on the year as of last week, and had garnered a very high short interest. Therefore, any good news had the potential to spark a vicious short-covering rally. Wolfspeed then got not one but several pieces of good news on Tuesday and We ...

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The silicon carbide semiconductor specialist's relentless rebound continues. Shares of Wolfspeed (WOLF 19.86%) continued their remarkable recovery on Wednesday, soaring by as much as 19.5%. As of 12:35 p.m. ET, the stock was still up 17.8%. The catalyst that sent the semiconductor specialist higher was a vote of confidence from a Wall Street analyst. A rapid ascent Morgan Stanley's Joseph Moore raised his price target on Wolfspeed to $15 from $10, though he maintained an equal weight (hold) rating on the sh ...

Key Takeaways Wolfspeed said it could get up to $2.5 billion from government and investor money infusion. The semiconductor maker received a proposed $750 million from the CHIPS Act, and could also realize $1.0 billion in tax breaks. An investor group led by Apollo is also injecting $750 million in Wolfspeed. Shares of Wolfspeed (WOLF) soared nearly 25% Tuesday when the maker of high-speed semiconductors reported it could receive as much as $2.5 billion in funding under the CHIPS and Science Act of 2022, an ...

The beaten-down silicon carbide stock rallied as a sell-side analyst became upbeat on customer wins. Shares of beleaguered chipmaker Wolfspeed (WOLF 20.84%) rocketed 20% higher on Friday as of 3:54 p.m. EDT. Wolfspeed, which had seen its stock crash 93% off its 2021 highs, was perhaps due for a bounce on any good news. And some good news came today on the back of positive sell-side analyst commentary and hopes for new customer wins. Roth/MKM thinks Wolfspeed is landing new customers In a note today, sell-si ...