Wolfspeed, Inc. has recently released its 10-K report, providing an insight into its operations and financial performance. The company, formerly known as Cree, Inc., operates as a semiconductor powerhouse specializing in silicon carbide and gallium nitride (GaN) technologies. It offers a range of products including silicon carbide and GaN materials, power devices, and RF devices for various applications such as electric vehicles, server power supplies, solar inverters, and telecommunications infrastructure.
In the fiscal year ended June 30, 2024, Wolfspeed reported a year-over-year revenue increase of $48.7 million to $807.2 million. However, the gross margin decreased to 9.6% from 32.0% in fiscal 2023, with gross profit decreasing to $77.4 million from $242.9 million in fiscal 2023. The operating loss from continuing operations was $445.3 million in fiscal 2024 compared to $311.8 million in fiscal 2023, and diluted loss per share from continuing operations was $4.56 in fiscal 2024 compared to $2.09 in fiscal 2023.
The company's combined cash, cash equivalents, and short-term investments decreased to $2,174.6 million at June 30, 2024, from $2,954.9 million at June 25, 2023. Long-term debt, including convertible notes, increased to $6,161.1 million at June 30, 2024, from $4,175.1 million at June 25, 2023. Net cash used in operating activities of continuing operations was $671.3 million in fiscal 2024 compared to $102.2 million in fiscal 2023.
Wolfspeed's business outlook emphasizes its focus on investing in business expansion, technology development, and growth opportunities in silicon carbide materials and power devices. The company is also prioritizing efforts to reduce operating costs and optimize its capital structure to support these investments. In addition, Wolfspeed aims to improve yield levels and navigate the current environment while maintaining its capital expenditure plans to support future growth, targeting approximately $1.2 billion to $1.4 billion of net capital investment for fiscal 2025.
The company's revenue for fiscal 2024 was comprised of $415.6 million from Power Products and $391.6 million from Materials Products. The increase in revenue was primarily due to increased demand and production capacity in the materials product line, along with the addition of revenue from automotive applications produced in the Mohawk Valley Fab. However, the gross profit and gross margin were significantly impacted by underutilization costs in connection with the start of production at the Mohawk Valley Fab, leading to a decrease in gross profit and gross margin in fiscal 2024.
Wolfspeed's research and development expenses increased to $201.9 million in fiscal 2024 from $165.7 million in fiscal 2023, primarily due to continued investment in its silicon carbide technologies.
The 10-K report provides a detailed overview of Wolfspeed's financial performance and strategic priorities, shedding light on the company's operations and future outlook. Following these announcements, the company's shares moved -5.0%, and are now trading at a price of $12.83. For the full picture, make sure to review Wolfspeed's 10-K report.
