Wolfspeed, Inc. announced its results for the first quarter of fiscal 2024.

Quarterly Financial Highlights (Continuing operations only. All comparisons are to the first quarter of fiscal 2023)

  • Consolidated revenue of $197.4 million, compared to $189.4 million
    ◦ Mohawk Valley Fab contributed $4.0 million in revenue
  • Device design-ins of $2.2 billion and quarterly record of over $1 billion in device design-wins
  • GAAP gross margin of 12.5%, compared to 35.7%
  • Non-GAAP gross margin of 15.6%, compared to 38.8%
    ◦ GAAP and non-GAAP gross margins for the first quarter of fiscal 2024 include the impact of $34.4 million of underutilization costs, representing approximately 1,740 basis points of gross margin.

“We kicked off our fiscal year with a strong quarter in both execution and market share. Not only have we continued to win in the marketplace, as evidenced by our third highest quarter of design-ins and a record quarter of design-wins, we have clear focus on the ramp of our Mohawk Valley Fab,” said Wolfspeed CEO, Gregg Lowe. “At Mohawk Valley, we have an outstanding operations team in place, Building 10 on our Durham campus is producing enough 200mm wafers ahead of the needs of Mohawk Valley, and we already have enough qualified product to satisfy our 20 percent utilization goals.”

Lowe continued, “We remain steadfast in our long-term vision for the future of this industry. The market opportunity for silicon carbide stands at $6 billion today, up from $400 million just five years ago. This further validates our strategy to invest now to capitalize on the immense opportunities at-hand, and the significant opportunity in the future.

We have amassed significant materials expertise over the decades, which combined with the capacity of our new materials factory in Siler City, will increase our wafer production by 10x when fully operational, and creates significant competitive advantages over our peers and new entrants. We will be better positioned to support our customers’ needs going forward and cater to a whole host of new applications for silicon carbide technology.

As the only pure-play silicon carbide company in the market today, we believe that we are best positioned to capitalize on a decades long tailwind that represents a $20 billion addressable market by 2030.”

As previously announced, on August 22, 2023, Wolfspeed entered into a definitive agreement to sell its RF product line to MACOM Technology Solutions Holdings, Inc. (MACOM) for approximately $75 million in cash, subject to a customary purchase price adjustment, and 711,528 shares of MACOM common stock, valued at $50 million based on the 30 trading day trailing average closing price for MACOM’s common stock through August 21, 2023. Wolfspeed expects to close the transaction by the end of calendar 2023.

Original – Wolfspeed