Wolfspeed(US:WOLF)2025-01-29 21:07Revenue Performance - Consolidated revenue for Q2 FY2025 was $181 million, down from $208 million in Q2 FY2024, with Mohawk Valley Fab contributing $52 million compared to $12 million[4]. - Revenue for the three months ended December 29, 2024, was $180.5 million, a decrease of 13.4% compared to $208.4 million for the same period in 2023[21]. - Power Products revenue for the three months ended December 29, 2024, was $90.8 million, down from $107.7 million for the same period in 2023[26]. - The company is targeting revenue from continuing operations in the range of $170 million to $200 million for Q3 FY2025[4]. Net Loss and Earnings Per Share - GAAP net loss is projected to be between $(295) million and $(270) million, translating to $(1.89) to $(1.73) per diluted share for Q3 FY2025[4]. - Non-GAAP net loss is expected to range from $(138) million to $(119) million, or $(0.88) to $(0.76) per diluted share for Q3 FY2025[4]. - The company reported a basic and diluted loss per share of ($2.88) for the three months ended December 29, 2024, compared to ($1.15) for the same period in 2023[21]. - GAAP net loss from continuing operations for the three months ended December 29, 2024, was ($372.2) million, compared to ($126.2) million for the same period in 2023[48]. - Non-GAAP diluted loss per share for the six months ended December 29, 2024, was ($1.86), compared to ($1.09) for the same period in 2023[48]. Gross Margin and Operating Loss - GAAP gross margin for Q2 FY2025 was (21)%, a decrease from 13% in Q2 FY2024, while non-GAAP gross margin was 2%, down from 16%[4]. - Non-GAAP gross profit for the three months ended December 29, 2024, was $3.2 million, with a non-GAAP gross margin percentage of 2%, compared to $34.2 million and 16% in the same period of 2023[44]. - The company incurred a GAAP operating loss of ($323.0) million for the three months ended December 29, 2024, compared to ($98.1) million for the same period in 2023[45]. - Non-GAAP operating loss for the three months ended December 29, 2024, was ($105.2) million, with a non-GAAP operating loss percentage of 58%, compared to ($70.8) million and 34% in the same period of 2023[45]. Operating Expenses and Restructuring Costs - Total operating expenses for the three months ended December 29, 2024, were $285.8 million, significantly higher than $125.9 million for the same period in 2023[21]. - Restructuring-related costs incurred in Q2 FY2025 amounted to $188.1 million, with $31.4 million recognized in cost of revenue and $156.7 million as operating expense[6]. - For Q3 FY2025, the company expects to incur $72 million in restructuring-related costs, with $35 million recognized in cost of revenue and $37 million as operating expense[7]. Cash Flow and Assets - Cash and cash equivalents decreased to $614.0 million as of December 29, 2024, from $904.4 million at the end of the previous period[25]. - Total current assets decreased to $2,227.1 million as of December 29, 2024, from $2,999.6 million as of June 30, 2024[23]. - Long-term debt increased to $3,384.2 million as of December 29, 2024, compared to $3,126.2 million as of June 30, 2024[23]. - Free cash flow for the six months ended December 29, 2024, was ($1,126.3) million, compared to ($1,271.6) million for the same period in 2023[51]. - Total free cash flow for the three months ended December 29, 2024, was ($598.1) million, compared to ($755.2) million for the same period in 2023[51]. Future Outlook - The company expects a GAAP net loss from continuing operations outlook range of ($295) to ($270) million for the three months ending March 30, 2025[54]. - Non-GAAP net loss from continuing operations outlook range for the same period is projected to be ($138) to ($119) million[54]. - Total adjustments to GAAP net loss before provision for income taxes for the three months ending March 30, 2025, are estimated at $119 million[54]. Strategic Initiatives - Wolfspeed aims to leverage its silicon carbide technologies to capitalize on long-term opportunities in high-voltage solutions[4]. - Wolfspeed has completed a $200 million at-the-market equity offering to strengthen its balance sheet and support growth plans[3]. - The company incurred $22.8 million in factory start-up costs and $28.9 million in underutilization costs in Q2 FY2025[11].