WOLF - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending the Wolfspeed Inc. Q4 Fiscal Year '24 Earnings Call. My name is Matt, and I'll be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Tyler Gronbach, VP External Affairs; Tyler, please go ahead.

Tyler Gronbach

good and operator, you, afternoon, everyone. Thank Wolfspeed's to Fourth Quarter Call. Conference XXXX Fiscal Welcome Gregg CFO, of and report Wolfspeed Lowe; Today, CEO, Wolfspeed results the XXXX. on for Neill fourth year quarter fiscal the will Reynolds,

a information and to a note other with call, in we Investor GAAP be our GAAP not the release today's to should investors. summary and we historical most results reconciliation information not supplement are press financial a companies. key in with comparable results comparable a statements accordance to which Relations be non-GAAP may of believe presenting Please financial other substitute section non-GAAP that prepared as measures directly not A our by posted during for is Non-GAAP useful Non-GAAP of in with provides metrics. our GAAP. information provided and to along will the considered website, in be accordance

we about subject Today's other to statements are discussion and during includes numerous statements forward-looking forward-looking outlook, risks our uncertainties. may call. forward-looking statements make the Such and business

the filings Our today and materially. to cause mention actual that SEC press results differ release noted in important release factors the could

today on will all continuing operation a basis. that note Last discussions be

session, would many Q&A we can call. that questions today's yourself you accommodate as limit one the During we as question ask to so that possible during

call to the free feel after If turn And to please I'd any to contact us you like questions, additional have the call. Gregg. now over

Gregg Lowe

Good today. afternoon, everyone. Thank for you us joining

to know top thoughts I did on are discuss I'd the a mind. we last few like As call, of that

and near begun CapEx sheet profitability business. our align across aspects capital on the optimize acting the pace term. cost areas We've balance all improve an already to are to our First, long structure current identify reduce the for both the plan of to and and of to we aggressive

of presenting to significant our shift device next the gives while confidence our fab. working previously, intend improved This XXX-millimeter our die actions discussed to also profitability update our XXX-millimeter accelerate device fabrication costs Mohawk than cost closure The producing on provide we on flexibility us of fab of Durham the at cash fab team device results call. currently greater currently Valley, an plans, can optimize lower advantages. these while we've XXX-millimeter We believe structure. assess is and the to savings, As solid we our timing us is meaningful earnings generate providing capital these with the our to

fiscal targeted in XXXX. already more this have shortly. We $XXX Neil of reductions in will CapEx detail discuss million

close CapEx XXXX said the fixed out is touch we on last or quarter, down. XXXX, As as we much spend XXXX our December fiscal for means and this what by of our Neil be can future fiscal modulated more up and our facility Later CapEx. on, variable of will end spend

We aggressively business, for CHIPS funding securing the continue to drive office. the additional particularly the of process with

While a limited we the or publicly, constructive in on with what of CHIPS office PMT our continue. terms can say preliminary we discussions memorandum are

agreement, we XXD for $XXX which an now of of Program, the more the can we from conditions terms assurance final we've are billion as CHIPS and of eligible approximately in Separately, reach than tax IRS, that already PMT. we to there no $X down While part will the million. Section refunds are be negotiating the cash accrued

ecosystem. the designated security, a carbide by electric essential and a we matter is the carbide we proposition material, is the of U.S. a silicon of have grant national compelling CHIPS is believe considered of silicon Department material critical producer As Energy largest world's a for to vehicle because

key sites also output. XXX-millimeter our performance our focus, improving at as ramp manufacturing operational remains Next, a we

key a footprint know, U.S. our for competitive materials and is you devices advantage. XXX-millimeter As

platform XXX-millimeter expect has support On processing plan. the our be to XX% to material and of quarter Crystal a continues XX able been progress growth quarter, September X in start Duram scale of and out ahead wafer we in substate substantial. at Valley side, Mohawk the to Building our on utilization

of the now measured and expecting improvements, also more productivity is from We ramp qualifying we Construction quarter progress Building start the powered XX% in March through are crystals we initial of for The in The of allow These Mohawk performance the JP quarter. are and schedule flow support As and on JP. our that and, Mohawk line XX. actively delivering of well, a Valley we're Valley to XX this the with have great JP, seeing furnaces summer processed pool out qualified the to up at to result improvements we line last quarter XXXX. are still productivity the continued by wafer to At measured wafers in quality utilization The first Building full therefore, a seeing the in confident spend Durham are XXXX. continues

to in it's Mohawk are of but and projections. recent see unit in most Fab below of to are plenty is our side, yields progress ahead Device Valley great of the On still come, costs There ahead those well plan, Durham. we're

move forward the manufacturing entire mentioned, are this device the business production our to to confidence Because gives the in XXX-millimeter nearly Valley. of to our fab the XXX-millimeter all Valley. we move from plans March we our Mohawk transition quarter, migrate previously fab XXX-millimeter. plan effort, XXX-millimeter accelerating with success us of to As Device the Mohawk EV to of By the to powertrain

of routinely quarter management of Lastly, market the the laid built strategic not Having clearly our as to In for this with team those let's alternatives points, I fourth Directors company move and potential business to the the shareholders. out light we've is the consider of quarter, Board of enhance specifics the business. consistent Wolfspeed's outlined the valuing disconnect, the value performance. last or technology,

of an Fab several worth lower EV result product. The the generated end customer for of revenue dollars the of of on deferring which Mohawk in range, delivery quarter, estimated million was Valley our $XX million the

in revenue push-out. all this have recognize powertrain we the would products and complete, We XXXX handful our fiscal above of can passed in believe only us and confidence internal revenue in excluding We expect Valley, out this for or to guidance, nearly than qualification giving line those we customer a landed Mohawk slightly midpoint of be to automotive the serviced sooner have July anticipated. products Mohawk now left qualifications that late originally of Valley

Automotive companies and the just beginning confronting EV While be previously is across several geographies. headwinds, market still the of many than are the ramp our to of ramp the industry the semiconductor slower revenue at we EVs automotive in our are continues projected, because strong in business of

the revenue approximately was to more quarter XXX% up XXX% than fiscal and is EV fourth in in expected Our year-on-year QX. year-over-year be up

most OEMs be to might the their We are early ramp very as will history product auto the adjust programs will create This environment portfolio. of significant of the in stages across continue dynamic transition their in the a industry. what the very

over semiconductor our Our in design, to are some we've $X fiscal to EV the billion grown $X for XXXX the as accumulated fiscal revenue X We of Design-Ins. billion EV declining X last to over has market. additional an consecutive QX, Design-Ins bringing beginning just in Because achieved a total years despite ramp. of auto quarters X

reflecting in Design-Ins fourth of approximately ramp million had the Design-WINs to programs. $XXX quarter, convert also initial for of the We those production

projected. the models currently models is these more across backlog the several XXX different remember, will previously, than ramp stated and industry, car over years. Design-WINs car more this the disruption not biggest as history our than supports next all OEMs in we of the XX As But transition auto of

Some very will be successful, less so. others

this As demand. flexible dynamic such, need with to be output we will our manufacturing to match

while been Additionally, some near-term in strong. there carbide rate EV silicon adoption reductions in adoption the the of remained estimates, has EVs has projected

testament this. requirements that to OEMs in that A higher recent of date transitioning is and therefore, EVs Our EV battery McKinsey purpose-built are highlighted to silicon XXX-volt have $XX next-generation power carbide a billion Design-Ins to systems. devices report

XXXX XXXX, systems. by new is over XXX-volt it compelling projected performance to that XX% EVs fact, advantages XXX-volt which traditional of more use than offer systems, will In

our were Wolfspeed given to for that of efficient and XXX-volt our billion serve from quality. device On belief that wafer XX% generally market-leading and shift quarter this silicon note, approximately architectures this and to tailwind higher-performing major a $X applications, carbide our related as specifically, underscoring both Design-Ins will more

the automotive E-mobility and and centers, led way system challenges in same silicon companies the coming adopting look as EVs. high-voltage thus that critical that system face are data as in such they inverters, industry cost energy there makers While far, to AI more ripe industries years the their automotive were next-generation the in solar for industrial carbide the size for solve and as designing efficiency, has are energy markets disruption

challenges. they As to earlier, carbide the those we remarked path chose silicon is overcome

to more the current more and to quarterly guidance. applications financials of a in And the I'd the scratched potential silicon and discuss foundational like use Silicon wide over Neil cases. carbide integral to plays merely efficient, array have and carbide reliable. surface We our pass is more our now making call a to of future energy systems and role powerful of electrification

Neill Reynolds

Gregg. Thanks,

our our on exclude a results. our basis As and reported be reminder, and divested discuss continuing before business we will a results all performance, operations RF the today of impact

quarter, continued by of growth quarter-over-quarter and million our million exponential and for XX% by Mohawk revenue but sequentially. an of of energy ago. $XX weakness industrial offset flat We contribution from Fab the markets. revenue and down represents million, from in revenue midpoint Valley's $XX from driven driven above approximately recognized the by markets. million $X contribution XX% year $XXX industrial million the Device our We Mohawk largely achieved slightly We guidance contribution and increase X of year-over-year $XXX the in power weakness energy generated Durham Valley of continued

strong recognized $XX driven the of also above our Materials by continued Materials team. expectations, million, operations revenue our We of execution

in see the the production, Power the accelerate our and future, where given costs cost. unit improved of our improvements well business unit device capacity of XXX-millimeter continued Mohawk Valley, we Device significantly to transition at XXX-millimeter our ahead efficiency XXX-millimeter we yield will Looking to

utilization underutilization in the I&E lower a Additionally, Fab been due weakness and unit of higher the significant of markets, driving running costs. Durham to at has levels level

are Gregg shift as Valley, device of device to planning timing assess of accelerate our XXX-millimeter Mohawk fab. our the we we of the the fabrication to while mentioned, Therefore, closure

to product with next plans, part substantial a production through note shift the I&E like production come our we important back these customers. products mix with will that future that I'd call in long device change view our our earnings does as this and over will and our of at We portfolio also plans internally our not be work term.

to our financials. back Moving

gross was midpoint Valley. above under X%, X,XXX or This of the our utilization of million margin to points in basis slightly June Mohawk $XX fourth expansion guidance. Non-GAAP includes related the quarter primarily

which Fab, fourth of June margin on impacted XXX margin based negative at resulted Durham in our points, incremental know, gross yields. in non-GAAP and negatively incident gross was you impacted and from update, an lower As an was EPS our costs $X.XX repair June adjusted of basis above underutilization guidance. the midpoint negatively by quarter, by resulting our the This our charges,

billion balance during the capital cash to hand with was on while quarter was liquidity sheet, our negative XXX $XXX million of fiscal support our days, million, negative plans. and Regarding ended year of hand million of comprised days. XX $XXX growth operating of approximately Free DSO expenditures. and cash was inventory ramps and we flow flow the on $XXX $X.X facility cash

that plans structure major very focus mentioned understand capital investors. are our earlier, we for clearly and Gregg future funding a As

levers various take the me time explain us. to let and some So available through to work

In to we billion, reduction in device down $X.X This fiscal from from and reflects $X.X net that XXXX, to range XXX-millimeter in our spent in previously yields CapEx. our $X.X billion CapEx with communicated in the facilities. million billion we Starting XXXX. fiscal down materials the approximately and $XXX improvement expenditures year capital efficiency significant be and expect

based the so to We Siler calendar The wafers Valley the revenue and materials ensures that on down take estimate JP flexibility mid-next and deliver on demand that to outlook of This year. this we factory budget, we complete City level year. throughout lower CapEx even have Mohawk time the on

Mohawk Building achieve a to XX% from a XX believe only Valley addition, in steady of have supply continues to wafers produce on our substrates. campus, we we utilization which will ability Fab In Durham high-quality with the XXX-millimeter

our CapEx to be tools of vast XXXX, sharply, off year production facility our the projects our increase the to fiscal fall will facilities and be capacity. those and at as will expansion complete will fill majority Looking related CapEx

tax sheet. in credits which approximately be balance that of million, We fiscal to $XXX XXD include the of CapEx expect not our of which gross CHIPS our year some million does to accrued on as have number the $XXX million XXXX include could for that significantly. Act offsets the federal already part range lower would This we $XXX incentives, of

As Gregg are over funding a potential $X CHIPS a to source time, represent associated we of grant. tax credits billion expect with mentioned, that future not these over

from EBITDA in of are we this that addition, our profitability In slow fiscal undertaking These an cash our operating XXX-millimeter we cash path our operating Achieve initiatives the positive to positive year, several and our early accelerate the perspective, burn. half of second footprint. operating wafer and fab overall cost drive closure timing by and of XXXX. flow Durham to assessing include lowering initiatives fiscal ensure a

on earlier, next we earnings these mentioned Gregg our update initiatives call. As on give will an

a how grant a Lastly, funding from we additional a perspective, milestone we capital potential CHIPS with proceed. continue raise to to as pursue being critical

to to raise that choose go capital addition CHIPS, In working the we we with closely down plans are on path. event additional in lenders to our

have we the time. billion business previously expect to than will tax of help As fund over XXD $X that more mentioned, credits

applying us we that We may would end XXXX to addition Therefore, additional lending our to tax access $X billion several us minimum have are to expect to driving government that and in cash access enable above and capital. also other programs year fiscal for credit towards to lowering profitability, target. options with CapEx provide

the $XXX million our to We XXXX. guidance $XX revenue to to range be of at this revenue of of quarter our Valley Mohawk year-over-year the from at versus quarter, $X prior first Moving We than from million $XX on greater time. up we XX% our up target for year to of come midpoint this the last million more quarter the $XX in range roughly million million. $XXX next million to fiscal than the achieved and target

Durham underutilization, of this inventory target X% in look impact markets, the of related X% minus of weaker approximately non-GAAP yield and midpoint levels. fab in repair basis to related also midpoint, margin June, points X,XXX includes lower will energy partially costs industrial and Next, facility but fab, with the X%. we to we gross disclosed to the to a incident where At

non-GAAP We JP. to costs of related operating million inclusive $XXX target expenses million, of The of $XX start-up approximately

utilization come underutilization will from as start Mohawk and [indiscernible] we starts The see a increases As reminder, incrementally Mohawk start-up And $XXX be roughly Net million million. first net which nonoperating expenses $XXX targeted of costs The are and JP online, to Valley, of lastly, non-GAAP hit between for lines out P&L. to different the more our loss Valley but $XX to incremental quarter. we target JP, million

to over for some it turn I'll Gregg Now closing remarks.

Gregg Lowe

Neil. Thanks,

business, positive from XXX-millimeter. our giving Building our to during our results to plans and detail platform We ability in earnings of for of improvements Valley Mohawk the the in the in the encouraged productivity to far identify balance XXX-millimeter. this CapEx progress aspects improve in accelerate we'll and begun further at We've in JP profitability the areas are across transition we thus pace of us are next sheet improvements and already greater align confidence opportunities device yield The call. the of are reduce The costs XXX-millimeter and our to transition the all current by outline to seeing XX,

Thanks new are driving areas and our aligning of for particularly CHIPS actions of office, We support, very time, company funding the we'll investments the to to profitability. at additional deliberate identifying process with for by Q&A. and reduce improve our continued same the securing the the pace business, to while move costs now taking the across your

Operator

Goldman first Lee The from with line the is question of Sachs. Instructions] [Operator Brian

Unknown Analyst

at you impact? little at I that first And Durham you level what Durham guess more to Cash Nick guess equipment on, recover wanted terms much still margin $XX how has $XX your on And is the in bit. And I kind -- line the just in profile? much I that quickly to? the Durham guess gave to of guys to This incident I inclusive quarter I can regarding Brian. you revenue. for is guess, facility, million outlook how visibility into possible I&E? guide million of have and troughed levered of a do the 'XX dive actually one impact how a to touching Is finally mentioned of Fab that demand

Gregg Lowe

start I&E with Neil over for Visibility it's a to then cloudy. I'll little detail. turn the Nick, Maybe it -- bit more Yes. answer, and I'll on

it's all jump back right going So for like or the it -- anything of now, down. We're it's being anticipating quickly down really rest there's calendar the part of sign of this better And that. no to year.

really Neill. So it's but maybe over when I'll down, turn And can't back then eventually and to it will up, we it predict.

Neill Reynolds

Yes.

the unpack revenue to margin little try the trajectory. a just and bit me Let gross

we So of flat the September quarter. just for guide

think, Valley I I&E in lower as are increases, being lower Mohawk in you our EV As revenue. mentioned, by, revenue Durham offset and

we revenue, you pickup likely December seeing Kind demand Durham in be quarter, -- other out look and but I&E, flattens So off some and the there. the will of EV as mentioned and inventory to in into I&E solid volume. the as of Valley anticipate some Mohawk start Gregg a we decline there burn

anticipation I&E of kind calendar in next a as kind half of recovery -- the you of get year. of first Just into

the how So think I of think that's about kind to revenue.

quarter, the from a down a that recovered, thinking say demand. bit would lower elected lower just I halfway to quarter because the keep of were we impact of event, down actually, September but From say, I'd be starts we fab through impact the the just we would I&E

there and bit. manage through burn to that continue let a we'll off So inventory

event impacted mix, lower repair also lower again, in these the fab us. we've in utilization June and costs the From been a margin gross the yields lower fab, perspective, the by but from impacted I&E the

that points the I was in XXX quarter. June prepared basis As remarks, said about the in

those to inventory. down, just returned fab of kind operations, manage wafer the normal Now we've starts to to has keep that elected

both say from and the in quarter. to incident the -- industrial related the levels demand of about the basis is X,XXX lower quarter, September in impact the the points both lower utilization So fab energy

you through a -- Mohawk Valley. So quarter-over-quarter, margin have to little just flow pickup looked underlying, volume see we start actually as at have we bit of that a more

Operator

question Next line of is Sandler. Kumar from Harsh the with Piper

Harsh Kumar

loaded mind me every that's let ask investor's you Gregg, on But here. the question

market I it's both liquidity kind price has stock sort decline here. the about of in of and concerns think evident the Wolfspeed

Valley my is, on bare the is Mohawk what spend have JP that So equipped. the you you for assuming question not minimum is to

way a the there is looking XXXX. so you that positive think by cut now And bridge you I early also cash Could mentioned you're you at And that down then and materially CapEx? that us could maybe free between then? help flow

Gregg Lowe

Okay. Thanks for it kick the Harsh, question, off. I'll and

of at First fact XX super puts now feed the know up JP and progress big start The Mohawk off, running utilization can the Building that XX% quite frankly, trying some is a up seeing we kind off exceptional. wafer get Valley pressure out we're And we that to fast speed. to of of

cost by this we're with to calendar end out helps So year. of the it obviously of build us with finished The going be that. basically JP the fixed

in fact support and other tools equipment is need the the And Valley, we Neil, to start the forth so and of you with build going higher to details. aligned that what wafer Building hit the of out said some with maybe, percentage significantly XX can pace as out able a we're can remarks, wise especially Neil his then Mohawk at that's a

Neill Reynolds

start we obviously we're driving as start market think operating as viewpoint. to perspective, is things about efficiency to One from look to forward with look manage a We're talked we're CapEx from you looking going think the going to Yes, prepared CapEx. what at here. in remarks, look that a perspective, from at lower I just several -- Harsh. I an

efficiencies well. we're going as business within the operating to Secondly, the

to prepared for. the are million that half these as remarks, a is business into and credits. from of towards about those amount EBITDA $XXX these it's will talked them, you back anticipate the significant get what into towards And already tax flow XXXX. And funding So by XXXX, we accrued a of drive positive the positive fund lot getting year cash perspective, as XXD year then then help fiscal things the We we we've well. drive do get a as that in operating

funding So build-out now continue we I that because the execute parameters a in at you think about. and remain right look about. perspective, capital we the of liquidity our But just continue that on talked XXX-millimeter path. it's through within optimistic the which that performance still we business, efficiency feel of our We're down really still and think, better to from funding now seeing important we'll the right finishing I with work we focused, focused CHIPS as process, working overall the

Operator

the from is Morgan. Samik with of question Next line JP Chatterjee

Joseph Cardoso

Chatterjee. This is Joe Cardoso on for Samik

shift Durham like closures. the relative the potential to quite a be Just closure Device Fab curious would of strategy in prior

from think I that revenue when fully $XXX footprint it's of loaded. million coming was

is you So is, the of just into and around second -- imply more maybe of just there the for long-term it footprint model? Durham? or thought And that in part take curious out that the close a question that flesh existing the exact if what bit what to out does could fab here dive it process that closing then

Gregg Lowe

question. for Thanks the

run. ramp Building able across XX% First, The to than XX, very we're plan more decision obviously of and Durham, Valley to of XXX-millimeter platform. and plan. straightforward finally, productivity XXX-millimeter now scheduled start utilization, -- results what's seeing the entire economics support from Valley the made wafer progress XXX-millimeter to Output yields Mohawk from initial substantially we're ahead weren't and the transition and crystal JP Mohawk ramp this the really great seeing to is compelling down to in

And that bit progress I&E from So us but gives gives The productivity We're was about It's the happen. quite and this this that down, the to the a absorb amazing swimming decision key that the current with make that we in and bunch breathing fab that. is certainly ability Neil, able the to into industrial productivity not you an whole can revenue though, against starting room transitioning of of this has team also about progress process fact to excited upstream combine get when do. we're us of accomplishment footprint. our little inter-business across that all XXX-millimeter. super see detail, actually the been demand

Neill Reynolds

me just let that down So capital the seeing. of a a we're bit bit little just break efficiency

billion and down is then CapEx year down it from So in One about the fiscal to taking billion thing dramatically dropping $X.X level I during 'XX. fiscal XXXX talked year $X.X

So I our costs think as complete, really facilities Gregg facility And be -- complete will manage spend of forward. for will the said, facility being we likely by tools December going CapEx can be the that this year.

So for we start exit great the of scale, see we're to of plan as economies factories starting benefits modularly, these that that and to spend. building up we facility

The second capital working thing our is expected. model is investment as

just efficiency of good across and revenue. yields supply amount CapEx for required resulting incremental in the So dollar is chain of the XXX-millimeter each lower a the

there. good some performance seeing we're So

$XXX for utilization think would as that So one when million could XX% to year of of start you day, think fiscal longer XXXX million the revenue, that to CapEx you to the what Durham term Valley. moving about mean out support Fab $XXX on Joe, about XX% beyond Mohawk

through from making it's Valley, you So to to absorb real think I Mohawk can the and testament revenue we of start amount XXX-millimeters. XXX-millimeter that a trade

shift trade-off of I think I perspective. Mohawk from if is down XXX energy go we have good in that significant that mix a industrial XXX to capability revenue. absorb here term, medium will And of and course, actually the to a very, lot So that path, the from very Valley think

incorporate that that Mohawk mentioned. able lot will believe really Valley just revenue be to of we Fab a the So

model, more as how Mohawk Valley of know of update, we'll -- tighten we bullish that. we're you on long-term to these we'll and And up plans but the give that ability absorb impacts the let an clearly

Operator

of from Rusch is with Colin question line Next Oppenheimer. the

Colin Rusch

tax these things and Are monetize terms a metrics you And operational the are in on accrued. meet? market? need monetizing actually there you those In Or about of can those little to cut just grants? transferability can bit talk that you potential that you've credits that

Neill Reynolds

thanks question. Yes, the for

much So those, CHIPS credits, don't through just really very but placed passed into can return and Those that much these operational than you tax the administered the Act, those. tax other are on to so the your have then have process were get to impact through IRS. credits through have administer aligned you the service tax assets

basically that's out today. it's how So get

Some but much time. is monetize of Tradability, terms of of but terminology confidence passed to et that cetera, from very perspective, in how law, it's high I terms going so in we pending, ability have to that's and final not if the come those about work, into you should down, what next start year. this coming spend and lot year year during think accrued we've fruition into done that facility think we'll largely our coming the and being what accrue to during during of to CapEx our A to in us

Operator

question Next with Dorsheimer of William Jed line the from is Blair.

Jonathan Dorsheimer

XXX start-up, then million the I if and Mohawk I I underutilization me $X with want to that profit Valley. at of just for looking negative here. -- derm points $X about business, I margin I'm million. the I spread a Is of make guess or math use gross imply the And that -- a correctly. Valley margins back out about back if Durham.And help a XX% it and little sure basis in envelope about I Mohawk loss dollar I in correct? get just If looks like carry your that would between in Materials the

Neill Reynolds

Jed, highly with Yes, times, significantly capability, that We've out many superior Valley coming and and the fab the just automated is what that perspective. think of talked significantly Valley I Mohawk state-of-the-art in about the XXX-millimeter seeing talk can But it profitability what I capability you factories. specifics than to Mohawk different better Durham. we're between at gather can't is better from

better, decision. that plays profitability role obviously which the can informing you significantly a is So that imagine in heavy

Operator

of line from Joshua is question Cowen. the with Next Buchalter TD

Joshua Buchalter

to I and revenue, to still reach lines fiscal the of question, imply quarters wanted about number right XX% rule how the it's that a ask layering the to get later, as those levels, to to JP then $XXX Valley with The X utilization of of And you're revenue. you maybe when time million a as of would get And think Is XXXX, Mohawk. the third what's time follow-on above that out X ramp because you in roughly that? I well? does that thumb Mohawk comfortably beyond coincide the quarter that line in

Neill Reynolds

Yes.

all, lag there to So think get a customers. to wafer start time a out out the of there's between thanks before, revenues laid first for utilization -- is of well And couple the the we of quarter question. and as through to then then back-end time and the I see the kind you operations fab through as perspective, from start process a we eventually

time frame correct. you that laid So is out

other energy impacts an is to and parts so generally than energy in utilization automotive much revenue higher part, mix parts. thing wafer, per that between industrial automotive just part. into is revenue The The translation and industrial speak, than and the

If EV. revenue look just XX% for the we Mohawk to quarter, for XX% June you were instance, the at Valley

we that plus XX% of If be we we'll expect that you EV transition and Valley. into September the it Mohawk quarter to more as push and to way here, remain qualified park more our

of consistently the EV see side, flip start percentage the Fab to come the down we'll revenue time. see On Durham just over

of to auto, revenue, into mix. to I XX we and translates translates million the close about is closer that talked think million -- as the $XXX kind So with $XX normal heavier

that's way think the forward. it think I moving about to So

to levels and will a of, fab Now Durham think, as which and transitioning I trade Mohawk a of of get us. I about as good normal capable put revenue economics maybe about that for we industrial Valley, the be a supply back of percentages utilization. more And we've said before, -- think the Fab, to into at various are billion thinking $X lot then kind we energy

Operator

is with Morgan The Stanley. Joe next question of the line from Moore

Joseph Moore

of number EV I help I an if as an I percentage you think are EV could us size and kind terms didn't you growth, wonder hear the gave in classifying absolute but number. now you what of with EV? you're where

Neill Reynolds

Yes.

quarter, you representing more by So gone, revenue of on than in a in revenue, here Xx to revenue Power XX% revenue mid-XX% the the was June. the XX%, for outlook XX% Device said, outlook. our ago September our here of Device the of year way, also Power year-over-year Power And the you up It's our if even in the the EV quarter. look and September over from quarter, Device about EV Xx as

further we even year that grow goes to on. So expect the as

seen and more and reported the half calendar do up. So December would been documented of demand while well some XXXX. first say, EV growth year to rates, are continue we've see some I the significant overall into the and has We moderation, supply quarter and into matched this growth

Operator

Rolland Next from question the Susquehanna. line Christopher of with is

Christopher Rolland

Mohawk failure What you Are over -- equipment there. equipment on a time didn't had this incident would changed an Has guys to able year? more similar you exactly backup there? be you the in then past like comfortable initially you or over ramping in guys have lines were And absorb details or redundant feel you the happened Durham? that when mentioned that Mohawk? And do there any problem

Gregg Lowe

Yes.

of So a couple things.

a From and First behind of -- tools it's Mohawk off, rectified quarter have issue Fab June majority second Durham amounts including in are the facilities percentage, issue, repaired -- redundancies, the was in, know there power fees a the the it's and we us. of but and vast tools. perspective, kind facilities the of don't I exact in with a the now issue, Valley been are water significant the

that going so have redundancy be that of down, And modern I up date. soon. there's exactly very don't amount we know Mohawk X a Valley tool for fab. out it. And goes can would pick another significant Fab. the you that actually if XXX% of to tool But a We're expect at

fab a automated few And years highly Valley. here modern Mohawk is got Our in fab old. decades a Durham in we've

very withstand different to its might that So happen. ability in incidents confident we're

Operator

waiting your questions you this no time. additional are Thank at for There question.

to the George back pass remarks. CEO, Lowe, closing I'll any for call So

Gregg Lowe

for to participation everybody, today. Thanks, forward We you call. next look you. updating your on our Thank

Operator

That concludes call. you the for conference your participation. Thank

lines. You may now disconnect your

Wolfspeed (WOLF) 21 Aug 242024 Q4 Earnings call transcript