Wolfspeed, Inc. Q3 FY2025 earnings call

Robert Feurle emphasized Wolfspeed's potential, with immediate focus on stability, re-accelerating revenue growth, and enhancing profitability. Organizational changes include reorganizing the company, searching for new EVP and COO, Cengiz Balkas leading materials and power business operations as Chief Business Officer, and Angelo Cancian as new Global SVP of Sales and Marketing. Tom Werner reported fiscal third quarter financial performance met or exceeded guidance midpoint, Mohawk Valley had $78 million revenue with sequential growth of 50%, progress at JP with conditional certificate of occupancy granted, and steps to improve balance sheet like receiving $192 million cash tax refunds, engaging with lenders, and working with Trump administration on federal funding. Restructuring efforts include reducing senior leadership team by 30%, closing Farmer's Branch 150-millimeter epitaxy facility, and Durham 150-millimeter device facility on track for closure, targeting $200 million annual cash savings and $150 million liquidity from non-core asset divestitures.

In the third quarter, Wolfspeed generated revenue of $185 million. Power revenue was $107 million. Materials revenue was $78 million. Mohawk Valley contributed $78 million, which was up 50% sequentially and over 175% year-over-year. Power revenue was driven primarily by significant growth in automotive revenue, offset slightly by a decrease in industrial and energy revenues. Materials revenue was affected by slowing demand in the device market.

The Board has taken steps to improve financial foundation, right-size operations, and accelerate path to cash flow breakeven. Target to reduce non-GAAP EBITDA break-even point to approximately $800 million annually. Aim for approximately $200 million of positive unlevered operating cash flow in fiscal 2026 based on targeted revenue growth. Expect to receive approximately $600 million of 48D cash tax refunds during fiscal year 2026, and non-core asset divestitures expected to generate approximately $150 million of cash proceeds in calendar 2025.

Forward-looking statements are subject to numerous risks and uncertainties. Press release and SEC filings note important factors that could cause actual results to differ materially. Due to contemplation of an in-court option for debt negotiations, expected to include going concern language in financial statements' footnotes.

Q: Will there be questions during the call?

A: No, we will not be taking questions during today's conference call.