Wolfspeed reports record design wins in Q2
$2.9 billion in design wins, with more than 75 percent related to automotive applications
Wolfspeed has announced its results for the second quarter of fiscal 2024, reporting record quarterly design-wins of $2.9 billion - over 75 percent related to automotive applications.
Q2 revenue in total was $208.4 million, compared to $173.8 million in the previous quarter. The Mohawk Valley Fab contributed $12 million in revenue, a three times increase from the prior quarter.
"We’re proud of our results this quarter, which reflect robust execution of our strategy and fortify our vision for the future of Wolfspeed and SiC," said Wolfspeed CEO, Gregg Lowe. "We have made considerable progress at our Mohawk Valley facility, tripling revenue sequentially. Our successful scale-up of 200mm wafer production and continued qualification of high-quality EV products on 200mm substrates are critical steps in meeting the continued customer demand. This is demonstrated by a record $2.9 billion of design-wins, predominantly in the EV sector across multiple OEMs."
Lowe continued, “Our steadfast commitment to our long-term goals is bolstered by the conversion of our design-ins into significant design-wins. This solidifies our confidence in the electrification trend, which increasingly depends on the widespread adoption of SiC technology. We are pioneers in this transformative era, steering towards a more electrified and efficient future."
For its third quarter of fiscal 2024, Wolfspeed targets revenue from continuing operations in a range of $185 million to $215 million. GAAP net loss from continuing operations is targeted at $134 million to $155 million, or $1.07 to $1.23 per diluted share.
Start-up and underutilisation costs
As part of expanding its production footprint to support expected growth, Wolfspeed says it is incurring significant factory start-up costs relating to facilities the company is constructing or expanding that have not yet started revenue generating production.
Wolfspeed incurred $10.5 million of factory start-up costs and $35.6 million of underutilisation costs in the second quarter of fiscal 2024. No underutilisation costs were incurred in the second quarter of fiscal 2023.
For the third quarter of fiscal 2024, operating expenses are expected to include approximately $13 million of factory start-up costs primarily in connection with materials expansion efforts.