|Cree Q4 July 2020|
Wolfspeed $108m revenue
RF “some improved performance”
Early signs of strengthening demand in RF and power
Materials declined as expected. Unable to ship to one customer (STM?)
GM of 35.3% driven by COVID costs
$400m of capex in 2021. Expect ‘21 to be peak.
Guidance of $107-$117m GM’s of 35.5 to 37.5%
150mm MOSFET yields still below expected levels
$600m in design awards
Opportunity pipeline is “well above” $10 billion
Delphi win expected to ramp between ‘22 and ‘23
Device side saw strong demand, particularly for power
Materials side slower demand. Expect “modest improvements” through end of ‘20. More substantial in ‘21
Outsourcing LED SiC operations and moving capacity to wolfspeed. Increased capacity “into FY ‘22”. Presumably devices.
Materials expansion linear growth.
Capex in ‘21 could be higher but then ‘22 would decline.
No shipments to Huawei and no revs in device guidance. Maybe small material revs could be impacted going forward.
Repurposing Huawei technology for other customers.
Snyder question. Management used to say ? GaN ? SiC ? materials.
Last several years materials growing faster than devices.
Right zip code with materials “roughly half” of Wolfspeed.
Power fastest growing through ‘24
Some RF design wins during quarter.
Normalized Wolfspeed margins ~40%, 50% once you get to MVF