The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nick Cash - Goldman Sachs Group, Inc. - Analyst
: This is actually Nick Cash on the line for Brian. I just kind of wanted to dive in to Durham a little bit. I guess how much of your outlook
at Durham is still levered to I&E? And how much visibility do you have regarding the Durham Fab has finally troughed in terms of
demand and margin profile?
And I guess how quickly into what level can that recover to? And I guess one more touching on, I guess, the equipment incident at
the facility, you mentioned a possible $20 million impact to first quarter '25 revenue. Is that guide you guys gave inclusive of that
$20 million impact?
Question: Harsh Kumar - Piper Sandler & Co. - Analyst
: But Gregg, let me ask you the loaded question that's on every investor's mind here. I think the market has sort of liquidity concerns
about both Wolfspeed and it's kind of evident in the stock price decline here. So my question for you is, what is the bare minimum
that you have to spend on JP assuming the Mohawk Valley is not equipped. And so is there a way that you could materially cut down
the CapEx? And then I think you also mentioned that you're looking at positive free cash flow by early 2026. Could you maybe help
us bridge that between now and then?
Question: Joseph Cardoso - JPMorgan Chase & Co. - Analyst
: This is Joe Cardoso on for Samik Chatterjee. Just curious like the potential closure of the Durham Device Fab would be quite a shift
in strategy relative to prior closures. I think $400 million of revenue was coming from that footprint when it's fully loaded.
So just curious if you could just dive into that or flesh it out a bit more what the exact thought process here is to close -- around
closing that fab and take it out of the long-term model? And then maybe the second part of that question is, what does that imply
for the existing footprint there in Durham?
Question: Colin Rusch - Oppenheimer & Co., Inc - Analyst
: In terms of monetizing these tax credits that you've accrued. Are there operational metrics that you need to meet? Or are those
things that you can actually just cut and monetize in the market? And can you talk a little bit about potential transferability on those
grants?
Question: Jed Dorsheimer - William Blair & Co LLC - Analyst
: Just help me with a little back of the envelope math here. If I carry your margins in the Materials business, and then I back out
underutilization in the start-up, I get about $3 million spread between Mohawk Valley and Durham.And if I use the 500 basis points
it looks like a negative or gross profit dollar loss in derm of about $5 million. Is that correct? And that would imply about a 20%
margin for Mohawk Valley. I just want to make sure I'm looking at that correctly.
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
AUGUST 21, 2024 / 9:00PM, WOLF.N - Q4 2024 Wolfspeed Inc Earnings Call
Question: Joshua Buchalter - TD Cowen - Analyst
: I wanted to ask about the Mohawk Valley ramp and time lines of revenue. Is the right rule of thumb still when you reach those
utilization levels, you get revenue, I think it's roughly two to three quarters later, because that would imply that you're in the fiscal
third quarter of 2025, a number comfortably above $100 million out of Mohawk. And then maybe as a follow-on to that question,
what's the time line to get to the 30% beyond that? And how does that coincide with The JP layering in as well?
Question: Joe Moore - Morgan Stanley - Analyst
: I think you gave an EV number in terms of the percentage growth, but I didn't hear an absolute number. I wonder if you could help
us kind of size where you are now with EV and what you're classifying as EV?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
AUGUST 21, 2024 / 9:00PM, WOLF.N - Q4 2024 Wolfspeed Inc Earnings Call
Question: Christopher Rolland - Susquehanna Financial Group, LLLP - Analyst
: Are there any more details on the incident in Durham? What exactly happened there? You guys had mentioned when you were
initially ramping Mohawk that you didn't have redundant lines or backup equipment there. Has this changed like over time over the
past year? And do you feel comfortable that you guys would be able to absorb an equipment failure or a similar problem in Mohawk?
| 
