Wolfspeed, Inc. (WOLF) Bundle
A Brief History of Wolfspeed, Inc.
Company Overview
Wolfspeed, Inc. is a prominent player in the semiconductor industry, specializing in silicon carbide (SiC) and gallium nitride (GaN) materials. The company has a strategic focus on the power and RF (radio frequency) markets. As of 2024, Wolfspeed is positioned as a leader in the development of innovative technologies for electric vehicles, renewable energy, and advanced telecommunications.
Financial Performance
For the three months ended September 29, 2024, Wolfspeed reported a total revenue of $194.7 million, a slight decline from $197.4 million during the same period in 2023. This decrease was attributed to softening demand in industrial and energy applications, although there was growth in automotive applications.
| Financial Metrics | September 29, 2024 | September 24, 2023 |
|---|---|---|
| Total Revenue | $194.7 million | $197.4 million |
| Gross Profit | ($36.2 million) | $24.7 million |
| Operating Loss | ($230.1 million) | ($94.9 million) |
| Net Loss | ($282.2 million) | ($395.7 million) |
| Diluted Loss per Share | ($2.23) | ($0.99) |
Operating Expenses
Wolfspeed's operating expenses for the latest reporting period reflected significant investments in research and development as well as increased factory start-up costs. Research and development expenses rose to $50.9 million, representing 26% of revenue, compared to $44.1 million or 22% of revenue the previous year. Sales, general, and administrative expenses decreased slightly to $62.2 million from $64.1 million.
| Operating Expense Categories | September 29, 2024 | September 24, 2023 |
|---|---|---|
| Research and Development | $50.9 million | $44.1 million |
| Sales, General, and Administrative | $62.2 million | $64.1 million |
| Factory Start-up Costs | $19.7 million | $8.4 million |
Cash Flow and Liquidity
Wolfspeed's cash flow statements reveal net cash used in operating activities of $132.0 million for the three months ended September 29, 2024, compared to $112.7 million for the same period in 2023. The company reported total cash, cash equivalents, and short-term investments of $1,687.6 million as of September 29, 2024.
| Cash Flow Metrics | September 29, 2024 | September 24, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($132.0 million) | ($112.7 million) |
| Net Cash Used in Investing Activities | ($193.0 million) | ($784.2 million) |
| Net Cash Provided by Financing Activities | $4.8 million | $938.4 million |
Debt and Equity Position
As of September 29, 2024, Wolfspeed reported long-term debt of $6,169.9 million. The company has been active in the capital markets, issuing additional senior secured notes and expects to pursue further funding through various channels, including the CHIPS Act.
| Debt Metrics | As of September 29, 2024 |
|---|---|
| Long-term Debt | $6,169.9 million |
| Total Shareholders’ Equity | $628.9 million |
Market Position and Future Outlook
Wolfspeed is strategically positioned to leverage growth opportunities in the semiconductor sector driven by the increasing demand for electric vehicles and renewable energy solutions. The company initiated restructuring plans and capacity expansions, particularly in its Mohawk Valley Fab and a new facility in Siler City, North Carolina, with a combined investment expected to reach approximately $4.3 billion.
A Who Owns Wolfspeed, Inc. (WOLF)
Current Ownership Structure
As of 2024, Wolfspeed, Inc. (WOLF) has a diverse ownership structure, comprising institutional investors and individual shareholders. The following table outlines the major shareholders:
| Shareholder Type | Number of Shares (millions) | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | 100.0 | 78.7 |
| Individual Investors | 27.0 | 21.3 |
| Total Outstanding Shares | 127.0 | 100.0 |
Institutional Ownership
Institutional investors hold a significant portion of Wolfspeed's shares, reflecting confidence in the company's long-term growth potential. Key institutional investors include:
| Institution | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| Vanguard Group | 19.0 | 14.9 |
| BlackRock, Inc. | 18.5 | 14.5 |
| State Street Corporation | 14.0 | 11.0 |
| T. Rowe Price | 10.0 | 7.9 |
| Others | 38.5 | 30.4 |
| Total Institutional Ownership | 100.0 | 78.7 |
Recent Changes in Ownership
Recent changes in ownership reflect ongoing adjustments in institutional holdings, primarily influenced by market conditions and the company's financial performance:
| Quarter | Change in Institutional Shares (millions) | Change in Individual Shares (millions) |
|---|---|---|
| Q1 2024 | +5.0 | -1.0 |
| Q2 2024 | -2.0 | +0.5 |
| Q3 2024 | +3.0 | -0.5 |
Shareholder Equity
As of September 29, 2024, Wolfspeed's total shareholders' equity is reported as follows:
| Equity Component | Value (in millions) |
|---|---|
| Common Stock | 126.9 |
| Additional Paid-in Capital | 3,843.6 |
| Accumulated Deficit | (3,210.6) |
| Accumulated Other Comprehensive Loss | (4.3) |
| Total Shareholders' Equity | 628.9 |
Recent Share Price Performance
The stock performance of Wolfspeed, Inc. has shown volatility in recent months, reflecting broader market trends and company-specific developments:
| Date | Share Price ($) | Market Capitalization (in billions) |
|---|---|---|
| November 1, 2024 | 17.50 | 2.23 |
| October 1, 2024 | 15.00 | 1.90 |
| September 1, 2024 | 18.00 | 2.30 |
Conclusion on Ownership Dynamics
The ownership dynamics of Wolfspeed, Inc. illustrate a robust institutional backing alongside a smaller individual investor base. This structure is likely to influence the company's strategic decisions and market performance moving forward.
Wolfspeed, Inc. (WOLF) Mission Statement
Company Overview
Wolfspeed, Inc. (WOLF) focuses on advancing silicon carbide (SiC) technology and is committed to delivering innovative solutions in the semiconductor industry. The company aims to enable the transition to a more sustainable energy future through its products that enhance efficiency and performance in various applications.
Mission Statement
Wolfspeed's mission is to "be the world's leading provider of silicon carbide and gallium nitride technologies, driving innovation and sustainability in power and RF applications." This mission reflects the company's commitment to innovation, sustainability, and leadership in the semiconductor market.
Financial Performance
For the three months ended September 29, 2024, Wolfspeed reported the following financial highlights:
| Metric | Q1 2024 (in millions USD) | Q1 2023 (in millions USD) | Change |
|---|---|---|---|
| Revenue | $194.7 | $197.4 | ($2.7) (-1%) |
| Gross Profit | ($36.2) | $24.7 | ($60.9) (-247%) |
| Operating Loss | ($230.1) | ($94.9) | ($135.2) (142%) |
| Net Loss | ($282.2) | ($395.7) | ($113.5) (29%) |
| Diluted Loss per Share | ($2.23) | ($0.99) | ($1.24) (125%) |
Research and Development Investments
Wolfspeed places a strong emphasis on research and development (R&D) to maintain its competitive edge. In Q1 2024, R&D expenses were:
| Metric | Q1 2024 (in millions USD) | Q1 2023 (in millions USD) | Change |
|---|---|---|---|
| R&D Expenses | $50.9 | $44.1 | $6.8 (15%) |
| Percent of Revenue | 26% | 22% | 4% |
Market Positioning and Strategy
Wolfspeed's strategic initiatives include enhancing production capacity and expanding its product offerings in the silicon carbide market. The company has reported design-ins and design-wins as follows:
| Metric | Q1 2024 (in billions USD) | Q1 2023 (in billions USD) | Change |
|---|---|---|---|
| Design-Ins | $1.5 | $2.2 | ($0.7) (-32%) |
| Design-Wins | $1.3 | $1.5 | ($0.2) (-13%) |
Geographic Revenue Distribution
Wolfspeed's revenue is generated from various geographic regions. The distribution for Q1 2024 is as follows:
| Region | Revenue (in millions USD) | Percentage of Total Revenue |
|---|---|---|
| Asia Pacific | $94.9 | 48.7% |
| Europe | $38.8 | 19.9% |
| Hong Kong | $33.6 | 17.3% |
| United States | $16.9 | 8.7% |
| China | $10.4 | 5.3% |
| Other | $0.1 | 0.1% |
Financial Outlook and Investments
Wolfspeed has indicated a capital investment target for fiscal 2025 of approximately $1.1 billion to $1.3 billion. This investment will focus on expanding production capacity and advancing R&D initiatives.
Conclusion on Financial Condition
As of September 29, 2024, Wolfspeed's financial condition reflects challenges in demand but also a commitment to innovation and expansion in the semiconductor industry. The company's strong liquidity position, with combined cash, cash equivalents, and short-term investments totaling $1,687.6 million, supports its strategic initiatives moving forward.
How Wolfspeed, Inc. (WOLF) Works
Company Overview
Wolfspeed, Inc. is a leading innovator in the semiconductor industry, specializing in silicon carbide (SiC) and gallium nitride (GaN) technologies. The company primarily focuses on two product lines: Power Products and Materials Products, which include SiC and GaN materials.
Financial Performance
For the three months ended September 29, 2024, Wolfspeed reported the following financial results:
| Financial Metric | September 29, 2024 | September 24, 2023 | Change |
|---|---|---|---|
| Revenue | $194.7 million | $197.4 million | $(2.7) million (1%) |
| Gross Profit | $(36.2) million | $24.7 million | $(60.9) million (247%) |
| Gross Margin | (18.6)% | 12.5% | (31.1) percentage points |
| Operating Loss | $(230.1) million | $(94.9) million | $(135.2) million |
| Net Loss from Continuing Operations | $(282.2) million | $(123.6) million | $(158.6) million |
| Diluted Loss per Share | $(2.23) | $(0.99) | $(1.24) |
Operational Metrics
Wolfspeed's operational metrics for the same period include:
| Operational Metric | Value |
|---|---|
| Research and Development Expenses | $50.9 million |
| Sales, General and Administrative Expenses | $62.2 million |
| Factory Start-Up Costs | $19.7 million |
| Other Operating Expenses | $60.2 million |
| Cash Used in Operating Activities | $(132.0) million |
| Total Cash and Cash Equivalents | $726.1 million |
Balance Sheet Highlights
As of September 29, 2024, Wolfspeed's balance sheet reflects the following:
| Balance Sheet Metric | Value |
|---|---|
| Combined Cash, Cash Equivalents, and Short-term Investments | $1,687.6 million |
| Long-term Debt, Net | $6,169.9 million |
| Total Shareholders' Equity | $628.9 million |
Market Dynamics
Wolfspeed operates in a challenging market environment, characterized by:
- Design-Ins: $1.5 billion, down from $2.2 billion.
- Design-Wins: $1.3 billion, down from $1.5 billion.
- Geographic Revenue Distribution:
| Region | Revenue (September 29, 2024) | Percentage of Total Revenue |
|---|---|---|
| Asia Pacific | $94.9 million | 48.7% |
| Europe | $38.8 million | 19.9% |
| Hong Kong | $33.6 million | 17.3% |
| United States | $16.9 million | 8.7% |
| China | $10.4 million | 5.3% |
| Other | $0.1 million | 0.1% |
Future Outlook and Investments
Wolfspeed plans to invest approximately $1.1 billion to $1.3 billion in capital expenditures for fiscal 2025. The company is focused on:
- Expanding production capacity at the Mohawk Valley Fab.
- Increasing manufacturing capabilities in Siler City, North Carolina.
- Transitioning to larger silicon carbide devices.
The company aims to enhance its technology and reduce operating costs to improve profitability.
How Wolfspeed, Inc. (WOLF) Makes Money
Revenue Streams
Wolfspeed, Inc. generates revenue primarily through two product lines: Power Products and Materials Products.
| Product Line | Revenue (Q1 FY2025) | Revenue (Q1 FY2024) | Change |
|---|---|---|---|
| Power Products | $97.1 million | $101.2 million | (4)% |
| Materials Products | $97.6 million | $96.2 million | 1% |
| Total Revenue | $194.7 million | $197.4 million | (1)% |
Geographic Revenue Distribution
The company's revenue is distributed across various geographic regions as follows:
| Region | Revenue (Q1 FY2025) | % of Total Revenue | Revenue (Q1 FY2024) | % of Total Revenue |
|---|---|---|---|---|
| Asia Pacific | $94.9 million | 48.7% | $44.6 million | 22.6% |
| Europe | $38.8 million | 19.9% | $75.3 million | 38.1% |
| Hong Kong | $33.6 million | 17.3% | $34.1 million | 17.3% |
| United States | $16.9 million | 8.7% | $30.7 million | 15.6% |
| China | $10.4 million | 5.3% | $12.0 million | 6.1% |
| Other | $0.1 million | 0.1% | $0.7 million | 0.3% |
| Total Revenue | $194.7 million | 100% | $197.4 million | 100% |
Cost Structure
Wolfspeed's cost of revenue and gross profit for the recent quarter are detailed below:
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Cost of Revenue | $230.9 million | $172.7 million |
| Gross Profit | ($36.2 million) | $24.7 million |
| Gross Margin | (18.6)% | 12.5% |
Operating Expenses
Operating expenses for the latest quarter include significant costs in research and development as well as sales, general, and administrative expenses:
| Expense Type | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Research and Development | $50.9 million | $44.1 million |
| Sales, General and Administrative | $62.2 million | $64.1 million |
| Factory Start-up Costs | $19.7 million | $8.4 million |
Financial Performance
The financial performance metrics for the three months ended September 29, 2024, compared to the same period last year are as follows:
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Operating Loss | ($230.1 million) | ($94.9 million) |
| Net Loss from Continuing Operations | ($282.2 million) | ($123.6 million) |
| Loss Per Share (Diluted) | ($2.23) | ($0.99) |
| Cash Used in Operating Activities | ($132.0 million) | ($112.7 million) |
Capital Investments
Wolfspeed is focusing on expanding production capacity, with significant capital investments planned:
- Total expected investment for the Mohawk Valley Fab: approximately $2.0 billion.
- Total expected investment for the new materials manufacturing facility in Siler City, North Carolina: approximately $2.3 billion.
Market Position and Growth Potential
Wolfspeed is positioned to benefit from the growing demand for silicon carbide materials, particularly in sectors such as electric vehicles and renewable energy. The company reported design-ins of $1.5 billion and design-wins of $1.3 billion in the recent quarter, indicating strong future revenue potential.
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Design-ins | $1.5 billion | $2.2 billion |
| Design-wins | $1.3 billion | $1.5 billion |
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Resources:
- Wolfspeed, Inc. (WOLF) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Wolfspeed, Inc. (WOLF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wolfspeed, Inc. (WOLF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.