Wolfspeed Q1 revenue falls 21%, net loss widens
Overview
US silicon carbide chipmaker's fiscal Q1 revenue fell yr/yr but was above guidance midpoint
Company posted net loss of $144 mln and adjusted gross margin of -13% for fiscal Q1
Company announced conditional $1.5 bln loan commitment from US Department of War
Outlook
Wolfspeed targets Q2 revenue between $155 mln and $175 mln
Company expects sequential non-GAAP gross margin improvement approaching breakeven in Q2
Wolfspeed forecasts Q2 non-GAAP operating expenses of $65 mln to $69 mln
Result Drivers
SUPPLY AGREEMENTS - Co cited expanded and new long-term supply agreements, including with Infineon and BorgWarner, as supporting its growth strategy
MARGIN IMPROVEMENT - Co said adjusted non-GAAP gross margin improved 710 basis points sequentially on slightly higher revenue
TECHNOLOGY INTRODUCTION - Co commercially introduced proprietary silicon carbide (TSiC) technology targeting next-generation AR, quantum computing and optical applications
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $155 mln | $150.20 mln (2 Analysts) |
Q1 Adjusted Loss Per Share | Miss | $2.03 | $1.99 (2 Analysts) |
Q1 Net Loss | $143.80 mln | ||
Q1 Adjusted Gross Margin | -13.00% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy."
Wall Street's median 12-month price target for Wolfspeed Inc is $25.00, about 11.5% above its November 3 closing price of $22.42
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)