Wolfspeed's 2024 Fiscal Year Report Revenue Down, Losses Expand, Stock Plummets
TapTechNews August 26th news, the US silicon carbide wafer giant Wolfspeed released its 2024 fiscal year (ending June 30, 2024) report last week:
Revenue was $807.2 million (TapTechNews note: currently about 5.752 billion yuan), a 12% decrease from the 2023 fiscal year.
Net loss was $573.6 million (currently about 4.087 billion yuan), the loss expanded by 74% from the 2023 fiscal year.
Earnings per share loss was $4.56 (currently about 32.5 yuan), further deteriorating from the $2.65 loss in the 2023 fiscal year.
Wolfspeed expects revenue in the first quarter of the 2025 fiscal year to be between $185 million and $215 million (currently about 1.318 billion to 1.532 billion yuan), and non-GAAP earnings per share loss is expected to be between 90 cents and $1.09.
Wolfspeed executives told investors that the company plans to close one of its silicon carbide wafer production facilities located in Durham, US to reduce costs. Wolfspeed told foreign media Axios that it still couldn't disclose how many employees would be affected by the closure and reaffirmed that it remains committed to opening a new factory that can provide 1,800 jobs.
Wolfspeed's stock price has suffered a heavy setback this year, falling by more than 70%, becoming the worst-performing stock in the Philadelphia Semiconductor Index, due to the company facing supply chain problems and weak demand in the electric vehicle industry, which is one of the largest industries using its semiconductors.
Analyst Lu Xingzhi said about Wolfspeed's financial situation: Looking at the financial report figures of Wolfspeed, one would feel that this company doesn't know when to announce bankruptcy protection or sell cheaply. Originally had a good hand, but now it has become a bad hand. He pointed out that for every $10,000 (currently about 71,257 yuan) wafer the company sells, it faces a full cost of up to $17,000 (currently about 121,000 yuan), resulting in huge losses. He also mentioned that the company currently has a cash reserve of $2.2 billion, but facing a quarterly capital consumption of at least $600 million, the financial situation is in jeopardy.