Wolfspeed(WOLF)2024-08-22 20:05Financial Performance - Total net revenue for the year ended June 30, 2024, was $807.2 million, with distributor sales approximating a quarter of this total[244]. - Revenue for the quarter ended June 30, 2024, was $807.2 million, an increase of 6.5% compared to $758.5 million for the same period in 2023[251]. - For the fiscal year ended June 30, 2024, the Company reported total revenue of $807.2 million, a 6.4% increase from $758.5 million in the previous fiscal year[346]. - Revenue from Power Products reached $415.6 million in fiscal 2024, up from $409.2 million in fiscal 2023, while Materials Products revenue increased to $391.6 million from $349.3 million[345]. - Gross profit decreased to $77.4 million from $242.9 million year-over-year, reflecting a significant decline in profitability[251]. - Operating loss widened to $445.3 million, compared to a loss of $311.8 million in the previous year[251]. - Net loss from continuing operations was $573.6 million, up from a loss of $260.5 million in the prior year[256]. - The company reported a net loss of $864.2 million for the quarter, compared to a loss of $329.9 million in the same quarter last year[253]. - The company reported a net loss of $864.2 million for the fiscal year ending June 30, 2024, compared to a net loss of $329.9 million in the previous fiscal year[258]. Assets and Liabilities - Total assets increased from $6,586.7 million as of June 25, 2023, to $7,984.6 million as of June 30, 2024, reflecting a growth of approximately 21.2%[249]. - Long-term debt rose significantly from $1,149.5 million in the previous year to $3,126.2 million, marking an increase of approximately 172.5%[249]. - Shareholders' equity decreased from $1,621.9 million to $882.1 million, a decline of approximately 45.5%[249]. - The company reported accumulated deficit of $2,928.4 million as of June 30, 2024, compared to $2,064.2 million the previous year[249]. - Contract liabilities and distributor-related reserves increased from $39.0 million to $62.3 million, an increase of approximately 59.0%[249]. - The company’s accounts receivable, net, decreased to $147.4 million as of June 30, 2024, from $154.8 million as of June 25, 2023[356]. - Inventories increased to $440.7 million as of June 30, 2024, compared to $284.9 million on June 25, 2023, representing a 54.7% increase[358]. - Other current assets rose to $179.8 million from $131.5 million, marking a 36.6% increase year-over-year[360]. Cash Flow and Investments - Cash and cash equivalents decreased from $1,757.0 million as of June 25, 2023, to $1,045.9 million as of June 30, 2024, representing a decline of approximately 40.4%[249]. - Cash used in operating activities of continuing operations was $671.3 million, significantly higher than $102.2 million in the previous year[256]. - Net cash used in investing activities of continuing operations was $1,940.2 million, compared to $1,139.2 million in the prior year, reflecting increased capital expenditures[256]. - The company raised $2,000.0 million from long-term debt borrowings, compared to $1,200.0 million in the previous year, indicating a strategy to strengthen liquidity[256]. - The company reported a total of $1,137.8 million in short-term investments as of June 30, 2024, with gross unrealized losses of $9.3 million[373]. - The company held $162.0 million of property and equipment, net outside the United States as of June 30, 2024, compared to $55.8 million the previous year, a 189.6% increase[363]. Research and Development - Research and development expenses increased to $201.9 million, up from $165.7 million year-over-year, indicating a focus on innovation[251]. - Research and development expenses consist primarily of employee salaries, occupancy costs, consulting costs, and development equipment and supplies, and are expensed when incurred[309]. Operational Challenges and Strategies - The company has continued to experience higher prices on raw materials due to inflation pressures, which have been mitigated through negotiated efficiencies and productivity-based cost reductions[23]. - The company continues to navigate supply challenges effectively, ensuring operations are not materially impacted by sourcing raw materials and components[23]. - The company is focused on expanding its sales, marketing, and technical applications support to enhance market awareness of its Wolfspeed brand[13]. Discontinued Operations - The company completed the sale of its RF product line on December 2, 2023, classifying it as discontinued operations[263]. - The Company recognized a net loss of $290.6 million from discontinued operations for the fiscal year ended June 30, 2024[329]. - The Company has classified the results of the RF Business as discontinued operations due to a strategic shift impacting its operations and financial results[328]. Compliance and Certifications - Manufacturing facilities are certified to ISO 9001, IATF 16949, and ISO 14001, ensuring quality management and environmental standards are met[21]. - The company maintained effective internal control over financial reporting as of June 30, 2024, according to the independent auditor's opinion[237]. Employee and Culture - The company employs 5,013 regular full and part-time employees as of June 30, 2024, focusing on attracting and retaining qualified personnel[33]. - The company is committed to a high-performance culture based on safety, integrity, respect, ownership, accountability, ingenuity, and passion[33]. Intellectual Property - The company has a robust intellectual property portfolio with 552 issued United States patents and approximately 1,048 foreign patents as of June 30, 2024[26].