Wolfspeed reports Q2 EPS (11c), consensus (12c)

Reports Q2 revenue $216.1M, consensus $229.1M. "We are pleased to report another quarter of more than $1 billion of design-ins, highlighting the continued demand for our Silicon Carbide technology," said Wolfspeed CEO, Gregg Lowe. "Though there has been some demand pressure on 5G that has impacted our RF product line, our power devices continue to penetrate more of the market, with strong customer demand and new partnerships with large multinational auto manufacturers, such as Jaguar Land Rover and Mercedes, and automotive Tier-1s, such as BorgWarner and ZF. We are capitalizing on the immense opportunity in next-generation power devices by expanding our capacity footprint. During the quarter we made great strides in both financing and facility development. We closed on a convertible note offering of $1.75 billion, which will directly support our expansion efforts, while continuing to make progress on the construction of the new materials factory in Siler City, North Carolina and the ramp of our Mohawk Valley device fab. Related to Mohawk Valley, a first-of-its-kind fab, we anticipate recognizing revenue from the facility in the second half of fiscal 2023 and we are in the final stages of scaling production. We remain on a trajectory to meet this target, but that will largely depend on both our ability to complete qualifications and ramp up the supply of 200mm wafers, which we believe we will achieve. We are confident that the investments we are making today in Silicon Carbide capacity will generate solid returns for customers and investors over the long run."