Wolfspeed (WOLF) 6 Nov 242025 Q1 Earnings call transcript

Good afternoon. Thank you for attending the Wolfspeed Inc. Q1 Fiscal Year '25 Earnings Call. My name is Matt, and I will be your moderator for today's call. [Operator Instructions] I'd now like to pass the conference over to our host, Tyler Gronbach, Vice President of External Affairs for Wolfspeed. ahead. go please Tyler,

the and XXXX everyone. CEO, Conference CFO, report and operator, of first First year fiscal Gregg to Quarter Wolfspeed XXXX. on will Reynolds, Fiscal Call. Neill of good you, the Welcome quarter afternoon, Wolfspeed's Lowe; results Thank Today, Wolfspeed's

comparable during a in may information that in investors. to we supplement results Non-GAAP reconciliation presenting metrics. non-GAAP accordance prepared to we a Investor and our which to of the press measures results non-GAAP with be for A in directly note most call, by be financial considered believe our comparable Non-GAAP GAAP Relations historical not with provided our not GAAP key should Please information section to statements other and financial as along summary are other not of the is will today's website, information provides useful companies. GAAP. posted accordance a and with in substitute release be

includes are Today's statements may during forward-looking Such forward-looking and risks uncertainties. the call. forward-looking we business make and other outlook, to statements discussion numerous subject about our statements

to factors the press release materially. important Our noted actual that differ results in could and filings mention cause the release SEC today

Lastly, be operations basis. presented please today that numbers on note all will a continuing

accommodate the session, many as as can question questions ask call. we that that would so you during During we Q&A X limit yourself to possible today's

call free to additional feel I'd the questions, to any to And have please Gregg. like over us you the contact now If call. turn after

device key and business, structure annual North include priorities an a critical and the focused strategic comments in our you Valley for Carolina an position will this simplify accelerate requirements and options; our profitability energy joining growth and be XXX-millimeter EVs be our Good today. the capitalize $X capital and direction long-term while and as organization. industrial afternoon, capital the those our by facilities approximately and materials generate global in immediately; silicon is the path as our Mohawk us structural point to billion, transition inflection of thank our to revenue to silicon point the on in to everyone, shift at business carbide the the My Wolfspeed complete optimizing strategic to solidifying inflection markets. and targeted as carbide lowering on the and well structure leader priorities and for to cost demand

strategy highest the the as to are position We quality extend and against landscape differentiate our XXX-millimeter in most competitive advanced the products focused with operator scaled our leadership marketplace. on and a

to continue and will with We improve and our and that $XX significantly our cash of wins billion savings cycles our flows positive generate from operations. to path grow revenue cash breakeven backlog of aligning targeted accelerate activities design performance lower our financial by point robust industry

size and While more to the use driver EVs for carbide more loss solve automakers. as system expensive, been only and cases grow the same they have of continue system potential our challenges power biggest the the silicon adoption and to will industries thus are believe we for as need cost far, technology

structure. in Act, proposed in & The applications direct CHIPS reason to semiconductor capital funding awarded the the importance of carbide why $XXX key we silicon a next-generation Science were million is our solidifying component under key power a

and the funding cash capacity the from in Section funding and Wolfspeed's to the growth the $X.X an refunds funding broader to our play Coupled our support secured $X with speaks XXD Fidelity role now have additional industry. This Capital included We group Group, to plan. we and the $XXX Management strategy, of and also long-term an it and in we an Baupost products billion we expect billion semiconductor Science milestone tax Act, Research up the is incremental Apollo, that U.S. investor million that access under Group. estimated in important Company to CHIPS committed quality of debt of

With and on allow and platform, cost the entire device superior significantly Wolfspeed us that in more versus simplifying our capital due XXX-millimeter business This is automated this Durham improving requirements improved will at us XXX-millimeter transition margins. we're gross to focusing manufacturing I'll our to address lowering our to XXX-millimeter. capacity is very first platform. This our yields, now economics and overall silicon our our seeing enhanced to efficiently how business to to funding move to industry we're strategic accelerate Valley the XXX-millimeter the IPOs manual device by carbide path more driven company profitability. in XXX-millimeter structure fab. secured, its enable fab utilize our redundancies, Mohawk will eliminate This

weakness a are in we steps to operating The our rightsize industrial the cash the Considering lower our XXX-millimeter energy, transition business device additional to fully continued expenses. the also and taking provides and and slower platform and opportunities organization growth of adoption streamline generate will EVs savings. the

to These transition a device our frame. customers to will begun close working currently to process over to phased steps the XX time plan first, fab This we on be finalize XXX-millimeter include: closure the months, are with our execute we next have and the X Durham campus.

indefinitely our Texas next the device are and for facility we suspending capacity construction Saarland, footprint in our plans closing by in epitaxy Farmers our fab optimizing Germany. Branch, Second,

end this to down in Branch year. the of final expect calendar ramp We production by Farmers

we capacity understand spoken officials see with construction government requirements reconsider customer we that our clear Saarland, a would Regarding they and we before the and acceleration of to need site. and would Zeta have at demand additional

we suspending to site indefinitely in preferred remains time, future, determine Saarland a at fab Europe. the our should in in-store the this site activities our build in are we While

of reduction, of conditions will to administrative demand. initiatives employee and other we with XX% will reduction our implemented approximately Third, generate the are These align factory business facility a company, agile cash with $XXX of significantly majority already market count targeted current complete This savings This ready over head actions reductions the reduction total end cash the of by expect workforce actions a closures, to along projected customer restructuring year. of the have the and in our business million, seize flow impact Many more our improving operations our from to stronger, functions. these base. approximately will opportunities the have occurred, ahead. time. and These better annual we and foster

a and in fiscal market I&E incentives. our billion the with pace are guidance CapEx currently lastly, we excluding are of reducing additional This of our by align range $X.X CapEx that And we to to range the million $X.X $XXX spend demand federal further billion, will an reduction new observing. EV broader shift XXXX

carbide, Now we'll is well growing begin on the EVs. to look structural with positioned how let's at long-term for the silicon and demand company and capitalize

we industry. in are we stated the very the in significant in early the disruptive transition As the auto stage past, of and most

and creates significant growth in term, will this for a long potential the While it near in environment result term. opportunity also the dynamic in a

not the the disruptive are lines the their adoption does confidence out customers of transition any launch demand market push long-term anticipated revise we with works EV as time seeing in demand EV diminished As technology, for this in reflect period. EVs. through This

aggressively automobile, effect stringent in emission world of be of moves market, and the the particularly that years. taking to follow with in the need the standards will of will the forward coming rest China, compete, world's As the largest electrification the context

year-over-year, X.Xx powertrain we of increased billion in we QX, revenue slowly and $X.X our grew to are XXXX share XX% on we using throughout expected to by Although and platforms. and EVs our in as our calendar fiscal revenue silicon highest models record of carbide marketplace. approximately of Wolfspeed grow ramp EV were demand to total more in Xx EV wins, number from is anticipated, the recorded $X.X XXXX approximately win expected XX% to than another third of which is billion originally continue to for EV by the continuing In grow we design to expect devices the XXXX car XXXX. design-ins,

we rising delayed and contributed broader the shorter limited interest including industrial which and sector. investment softness, to a macroeconomic continued supply times of and These visibility due capital, have resulted throughout are primarily energy for chain. sectors, the this to also broader recovery in For cycles cost the conditions pressures, seeing slower higher lead rates and

industrial with remaining orders weak, the are markets starting are market the decline. end an customer challenged and seeing end in have demand to energy levels in increase remained we While inventory as

a As XXXX, calendar recovery, such, to to expect to the we be and we'll as recover increased market conditions of begin broader demand. will first prepared market the and support in forward move half see further stabilize we the

the in we've a progress our let's out great to Now XXX-millimeter take building minute footprint. cover made

legacy QX. the Durham from our XXX-millimeter fab first Mohawk time, from revenue the revenue Valley in fab our For the exceeded at

with of anticipate improvements demand market to great this was we yield revenue times anticipated to out of pushouts, due future ahead we lower fab continue fab. and performance and plan, see originally than the cycle ramp customer While and as the

addition, we XXXX. first crystal in we our produced of certificate calendar being continues, expected and that the running Construction targets expect have In been at receive to and the quality at we're occupancy achieving growers seeing JP, the with site up at half of material of the the have a facility. and

spend a continues level allow and, Crystal measured growth JP. level XX and at and for of processing to more yields. out solid a generate therefore, in Durham will of substrate Building the measured productivity output This of ramp more

to Neill. over to summarize Now before quickly passing

solidifying materials. with the to capitalize optimizing structural growing $X are our to XXX-millimeter accelerate to to And and and our our to carbide lower and company we positioned to the devices footprint revenues structure XXX-millimeter generate and is requirements business billion well to a strategic power capital approximately guidance. our with it cost silicon for our over options. to complete same Neill our leader discuss And that, demand long-term time, capital profitability. structure financials our path targeted turn position We the and I'll simplifying on are and a of be annual At

and you, Gregg, Thank afternoon, everyone. good

Gregg's comments, on of today. I focus up important hit call the areas on Following will during X

on capital First, our structure. and liquidity I focus will

several the total our cash that we levels access than than announcement keeping billion upon next billion $X.X addition future cash capital will funding we the billion for of PMC with. quarter this in ended that the CHIPS target In of of of and an billion With incremental the agreement, of is completion to approximately $X we combination, $X the that have $X.X years. to greater greater

Secondly, actions will our resulting simplify non-GAAP our profitability. path transition model, I detail to $X device operating our a rate below to billion breakeven more revenue clearing lower power run to EBITDA our in XXX-millimeter, and will outline in that restructuring annual

simplification I Lastly, results of transition, incorporating on outlook, operational benefits and XXX-millimeter restructuring and our will quarterly the focus our actions.

of million funding funding. PMT $X direct $XXX of mentioned Starting $X.X XXD under from debt CHIPS tax X billion and package has credits The billion CHIPS financing; CHIPS with refundable liquidity of the Act. million $XXX previously components: and the funding Act;

Regarding Act, the $XXX this million over CHIPS to years, Valley. next to the in in tied Mohawk we direct expect at the JP several operational the milestones mainly multiple from and funding disbursements funding receive

milestones; with XXXX, convertible award XX% funding of first to to to office; in maturity following our The including related we to additional XXXX be refinancing the notes operational other outstanding and to require the and meeting total disbursement, financial receive raising dates. agreement XX% a CHIPS will liquidity, our meet capital; direct the and mid-calendar milestones prior will us hitting which definitive conditions: their certain expect size roughly Executing year brand

financing agreement for we and October. the $XXX financing, of already received X the debt tranches, $XXX in over in customer the million was financing the that million we Regarding debt first executed Apollo-led which have

disbursements We drawing will CHIPS with conjunction on grant. the each draw of million to the down debt tranches additional of related this agreement $XXX be X in required first to

agreements. finalized due an to have million refundable We interest of also customer prior an to XX, total cash unsecured XXXX, deposit a payments $XXX June defer agreement in from

amount award the disbursement in will from to it grant, milestones, in are first million to CHIPS As a of of nondebt we mentioned, portion capital of targeting $XXX sources, required to additional relates CHIPS future. equity. To equity previously achieve raise financial the as raise near this we to the the be capital meeting up including

notes, some provides how PMT maturities. our CHIPS address can the for convertible we the for As optionality

what our We in options long-term conditions monitor we will shareholder time to and notes, determine consider will taking value. best all assess convertible prior at of to and that closely interest market action to related us available is the to any

or order will Right restructuring in disbursement, first outstanding convertible our notes. CHIPS achieve focus XXXX on to refinancing now, the be the

we fully Regarding Section have program. tax U.S. now first quarter. refunds. billion eligible XXD capacity of tax released cash the XXD credits this Accordingly, end for the of ago, the investments $XXX accrual deregulations estimated as are few Treasury of to A $X expansion the in and increased Department approximately our final weeks XXD million our

additional expect accruals the JP added XXXX, accruals the to tool more complete spend, we of these sheet. see facility We and calendar in as balance be and to will

expect first the tax We refunds realize calendar cash beyond. in XXXX and tranche XXXX in subsequent refunds to of and

In our summary, however, path and the This this simply the U.S. with required journey $X.X plans. billion support conjunction in our capital funding is our will first debt significantly accelerate in balance improve our package, and refinancing, financial and expansion step, position enhance capacity our to profitability. sheet to raises

to to continue improvements. operational and driving will relentlessly we to expect access focused capital, While on new have we remain liquidity

XXXX lower will versus fast us JP year demand. capital being and in billion. to will Given XXX-millimeter complete $X.X conjunction efficiency facility guidance. stages, of weaker in $X.X to with the reduction and while expenditures in output $XXX a the our allow tool yields with higher million supply at Mohawk expenditures order This our is market more substrate This both Valley prudent fiscal our with to in we market to largely match and build-out a short-term billion prior of our outlook, production

complete, with demand capacity will poised when the facilities we be serve customers tool expand to our with respond to largely However, reaccelerates. installations and

business the production. company allow power have to fully require non-GAAP assets Now for no exit model, made device longer EBITDA restructure that lower operating and simplify XXX-millimeter, we our our decision will our this move point us will significantly to breakeven we to our to

cash a our we Gregg reduce operational upon have operations. variety streamline completion targeted As already and to These initiatives are underway overall that cost of headcount basis to and generate restructuring are annual $XXX discussed, actions portion restructuring fiscal a XXXX. approximately and cash annual the million. fiscal year neutral of savings million large be of $XXX of during in This XXXX start savings will cash year generating

including of expect charges we recognize QX. in several total program, the in recorded this to restructuring $XX of over $XXX next part to quarters, As million million charges approximately $XXX million

release provided have earnings a of We our a today. these adjustment non-GAAP description and charges in

These and $XXX million costs, which $XXX restructuring related cash million asset will be charges severance charges. asset include costs to expenses, in disposition of other impairments,

year targeted these I restructuring are fiscal mentioned. a cash before, As on to charges mentioned that restructuring be initiatives the neutral expand Gregg XXXX. To bit during

our complete better XXX-millimeter are underscores our die XXX-millimeter overall in closure, First, XXX-millimeter, the which device as a of yield, This result superior our the we process of to closing half second costs a fab. successful transition and decision It of improved we and calendar in expect will technology Durham by phased to confidence economics. be a XXXX.

We contribution Mohawk to X transfer the of the next for expectation phasing Valley and the revenue out Durham to gradual a with from continue fab over revenue expect of time. quarters

closing with continuing mid-calendar facility Second, end XXX-millimeter our Epitaxy are we're of calendar of into the we XXXX. in year, Farmers this process additional by closure Branch the some

of this We the end the expect will closure this year. with calendar reductions by most occur associated of facility workforce

realize cash XXXX being As in by second early XXXX. savings savings full the fiscal such, fiscal with cash we initial half expect year of achieved to

our are approximately base. And this, Finally, implementing year. to of The these reductions closures, calendar by end XX% overall along factory this will we a with of workforce our nonfactory employee reduction will total the the completed be impact of workforce. majority

the beyond. operating expenses We see lower and immediate quarter in and current expect savings to

our simplify administrative delivering to to on carbide allow leading would goals we This be we and footprint calendar and our savings of customers. technologies than target restructuring that of us will part be In million in as more noncore cash $XXX will and silicon assets our earlier. divesting manufacturing proceeds that our addition, simplification generate incremental XXXX plan, to to the mentioned focus

North facilities breakeven our our point at in in both well path actions consist annualized annualized Post fabrication $X will these of accelerating Durham these non-GAAP as revenue and to an total, In as than in materials cash savings on run EBITDA rate, and City primary complete, significant manufacturing lowering once capability generate profitability. will efforts, generation to JP billion our operations Siler Mohawk less cash Carolina the New York. Marcel, and Valley device power

billion a solidifies $X.X foundation. value shareholders our have costs stronger delivering on clarity trajectory commitment and This to funding The and puts CHIPS incremental our operating actions financial confidence to the financial our the PMT taken on underscores reduce our steps for of we taking. to the our are in us we

more at on sequentially. Valley and of and $XX revenue to midpoint moving the the revenue of largely down lower recognized generated quarter. down Now energy the $XX up range customer quarter-over-quarter, than quarterly of Revenue We our lower the Mohawk sectors. was guidance contribution lower of our but industrial XX% driven results. quarter, in by slightly power demand X% $XXX We below million, to end demand million due our quarter-over-quarter million, the within from for

that of We device power Durham execution revenue is future also that and with this revenue to in consistent levels higher operating note quarter poised remains more deliver yields Mohawk than the periods. and fab higher first the Valley contributed

were but revenue We X.X%, continued prior expectations, first quarter had driven performance strong operating million, for and was from our of quarter slightly the our $XX This gross operations guidance. Non-GAAP margin above the team. quarter-over-quarter, of August our Valley. above by midpoint down or related also by our materials up X,XXX materials underutilization by our points from fab, margins product million lower performance to Mohawk at improved Mohawk basis mix of costs, operating and by and energy approximately Durham by and impacted revenue yields driven offset $XX Valley. included primarily but lower Margins industrial

we our overall efforts. OpEx margin well were in and the our the offset mentioned and quarter-over-quarter the midpoint simplification manage lower continue million we of initiatives $XX of the quarter, with in million as saw $XXX revenue restructuring Adjusted guidance higher ahead Operating and down the percent benefits EPS expenses conjunction August below lower costs of impact of was guidance as the earlier. gross to

the negative a quarter loan of cash flow position $XXX to $X.X Free of in cash flow include billion. with $XXX and the financing total of $XXX quarter was $XXX Turning expenditures. the cash October. capital cash strong million negative ended This and received during sheet. million balance We operating term of of the comprised amount cash million million, does approximately additional with equivalents not

$X cash the a with package as well we as target Importantly, greater balance CHIPS than the and that minimum we're moving actions PMT taking, forward. funding restructuring maintaining billion

Finally, be to $XXX revenue We our target the turning and reflecting million million, XXXX macro related to between guidance. visibility to QX EVs. $XXX demand QX XXXX our current environment to

We customer continue as million ongoing to to that rights we is provide revenue QX. complete to demand discussions to expect clarity The be we million $XX the for calendar have $XX Valley quarter. at Mohawk more XXXX between for targeted

range. Given the our the the providing customers with are second variation outlook we continued and demand wider near-term fiscal and guidance of a discussions XXXX, for quarter

complete to in conduct planned campuses to shutdown Durham Valley at QX. expect both Mohawk a We maintenance and our

For we system the Valley to to enable us will capacity, Mohawk reach completing output. which increase full fab, our tie-ins will fab utility be

campus, on maintenance shutdowns been For preventative key infrastructure contemplated electrical guidance has portions our in increase standard our of impact the we The reliability. Durham range. these performing be will to of in order

I the range to approximately X%. X% scheduled basis Mohawk or maintenance non-GAAP shutdowns minus inventory quarter XXXX costs an as gross as utilization mentioned. includes to between this $X QX to target complete X,XXX At points as this the just We primarily negative million reduce be margin will Valley million target $XX burn related midpoint to quarter-over-quarter, underutilization we of of of well positive

million reflect approximately and to down expenses XXXX $XXX fiscal efforts. actions impact non-GAAP $XX or and 'XX restructuring QX from operating of $XX the million target million, We XX% cash quarter-over-quarter savings another down of XQ

the lower structurally our business, at We clear while same profitability. be time, in are invest continuing and the cost company to a path to creating to simplifying

during the We in second breakeven fiscal XXXX. now expect fiscal non-GAAP of and XXXX EBITDA profitability half cash operating year flow

improve, conditions be continue market will As to ready. Wolfspeed

agile respond and to be will needs. nimble to customer We more

turn comments. and now back for I'll Gregg it over you, Thank to closing

Neill. Thanks,

we for first out close the long-term achieve the quarter, want put the we've to I As targets progress Wolfspeed reiterate that success. on communicated path made and a significant to we

footprint of inflection direction capital while and targeted As Wolfspeed and solidifying to focused in start I billion, today's we position strategic said complete had critical are the $X options. a call, on And our organization. at optimizing our annual our strategic to generate an XXX-millimeter point priorities our has revenue an of as structure approximately

We to we're lower business path a XXX-millimeter requirements the the accelerate and are power long-term for silicon material. carbide to growing be on and capitalize simplifying company devices and with cost structural to our capital leader and our structure profitability, the demand to positioning

I'll forward in to look like progress to operator on providing And your thank additional over would to for the coming always, the We And support. now continued as our for updates months. it everyone we Q&A. turn

the is of question from Brian Sachs. first Goldman The Lee Instructions] [Operator line with

PMT? to what with you status through then dust I had know for broadly can this, here point and on implications the but settled potential some just night. last your blank. walked about as to sort of of I even ask the that chipset next hasn't wanted the and Red the sweep, through maybe then you the follow-up. you this I And maybe walk speak us a results steps just but of And kind think of know election the means

Thanks, Brian.

with the the pretty today. foreign U.S., economic basis, the and security is supply communication constant both The in a support. CHIPS bipartisan supply been of issue we've the repatriation obviously, it's Act strong semiconductor has for on localization and reliant becoming national CHIPS priority; less on office the again, and chain a So or the bipartisan election got toward a

industrial applications, really for that we've is that saying. power centers, vehicles a numerous electric of it's becoming carbide Silicon and course, high-power been predominant AI the technology includes especially applications as that data includes other grid, important

CHIPS thing in the U.S. engaged currently leadership U.S. is and the a silicon office and has very carbide that's been this, we've in different the with particular technology this point. Now homegrown much program on

the back very of There's I in strong change think any investment this bipartisan a leadership activity. or result an trying to repatriate. keeping is election support grants get that. CHIPS it for this the doesn't So And versus

then true? And your call, of on specific talking can know well And comments second thoughts. those with Appreciate maybe XXX-millimeter wafer you. I as details, that's pulling was XXX one Awesome. you just don't Renesas Renesas. any latest both? customer are if question that related back maybe to some commitments with whether And on think some speak maybe implications customer, your I Okay. of about a with recent then is there to you. to there Or or their provide the or for deposit status if

Yes. Thanks for that, Brian. partner. Renesas is a great

with We silicon levels. it have foothold business, CEO strong in very the flow and a the including They very, relationship multiple new would the that levels, are would normal they them as so very established to a business. carbide demand across ebb be

continue and with XXX work them them. both substrates supply that's with XXX-millimeter and to their on plans, We for

Next JPMorgan. line question with the Chatterjee from is Samik of

timing fab Joe transition capacity envisioning if is ramp revenue concerns capture Mohawk. on Durham Cardoso and capacity to you it this reluctant versus line if the of the to customers Mohawk, how appetite customers try so? from Durham was impact more being to you're wondering running as sense just any your the there's are potentially currently of bit to to to relative And top on all curious Samik. you as magnitude what's transition This device down for to to Basically, able around not the perhaps the I next being do through Durham that year. that you and a of out color talk could on guys your you transitioning the provide the more around to

thanks. Yes,

with little into one and So another, color. the off I'll bit anytime kick maybe engaged it Neill an fab that, to can customers more transition have give Obviously, then from input a we're them. you

well, different that's highly going North better out since particular, a Carolina less higher this to that manual is producing from and that also there be -- results very believe to fab. manual in in interventions that tab of and situation I as produce thing is think a moving quality the in automated we're fab we very fab is have optimized will a the new,

engaged with solid We've already got customers pretty We're a on that. plan.

Mohawk the to transitioning shipping revenue There Mohawk of shipping already I amount vast note Valley. that parts currently that transfer the the our to some already today think best we're don't that revenue all customers vast the that be qualified to to, out to of and of enough powertrain been factory. I will would but Valley. up planning we're the is of transfer, majority have is

transition underway. was well that So

Yes. And just a are out ramp to revenue coming automotive right now, underway. That's from our perspective Durham, Durham. down well starting at of products already we

an from significant a and auto mentioned, as both qualified think we Gregg in industrial already energy parts, I perspective, very nonauto Mohawk amount at Valley.

So we'll there. parts just transition up those

we We'll how off rebound some the driving year So market in as second Mohawk half the year, a the inventory. second year, half that this the just We'll lower we into towards see of about burn from think of move perspective, revenue, quarter. the more the we'll it fiscal really particularly in just Valley. in Durham fab

that's over following to Mohawk of today. for see come kind forecast the revenue least quarters. continue Durham Valley we'll increase So kind down and our of At

later in that purchases kind of the in baked have is can we'll or how end-of-life make but we yet, tell fab. don't We out. wait may What see some play customers those some to

Our a expectation to is next Durham we're down lot Valley months. come during as the XX to starts see going revenue X to coming more Mohawk forward at

Colin of Rusch line Oppenheimer. the from is with question Next

and how to your business the talk Can is wafer And wafers? on the months? going a of you XX XXX materials with customers to diameter moving little into side competitive environment material those here the next the bit larger around migrate millimeters much on about the over

Yes.

to as our customers obviously are materials we interested business own XXX-millimeter, to -- are So we and of moving over are in XXX-millimeter our time. many well moving

with in them engaged of XXX-millimeter. agreements on about have many discussions supply initial We

would out in the check we were I there. them with the think of we're impressed JP pretty say several I of they -- the scale the had what to kind fact, there. visiting of doing operation

demonstrating We're or we're of shutting device by is And our that solid. good capability that is the the confidence on early in XXX-millimeter pretty phases I material we're would this, say the demonstrating the the but gives in XXX-millimeter our operation fab that discussions down really them interest confidence shape.

So as those going those on we'll to now, and kick come fruition. out discussions are right today

from Jed of is Dorsheimer Blair. the question Next line with William

I questions. guess X

did So to of not in that first have question. -- sure mention or hear it. then [ you to XX, follow-up. previous I the a But if going back XX quarter ] if doing would to And for out didn't XXX just be what the [ one, maybe, I Mohawk Durham ] Valley Neill, devices the is guide? I'm you XXX

Yes.

for midpoint. to So so -- million. it's million $XX coming or down, roughly $XX $XX million at $XX obviously, the at million, We're

think you see power look quarter-over-quarter, we're inventory I terms in of going burn the burn to break at that channel. industrial primarily that to building off down off if energy in related devices,

We midpoint. will the the growth EV into significant here quarter continue see at

the now. right We discussions see customer some are We widening ranges we're because incremental having do EV some demand.

and the we're we'll probably see $XX see midpoint right at power come So what further, range that kind down is we'll in million Jed. of Durham million now, devices thinking $XX to kind of

strength. probably in Durham, of So EV ] burn lower coming some that down we can see off some but reduction more inventory, [

your and the converts? the just is of to $XXX restructure ] the restructure to is retire -- then million, that And follow-up, as it. 'XX to Or those just [ Got regarding those? converts raise a plan -- that

Yes.

allow on value executing we very it PMT. look the the those is clearly the best significant drive what long-term as We're into thinking us And to shareholder requirements business. to in interest the to as conditions. we're do that call, -- about that said think plans relates the the obviously, will at just liquidity we of the to to of related to market going going we're So PMT, to relates how

to requires requires As $XXX I said things. also, of $XXX It up to X raise -- us equity the to it receive million grant. million full

However, to it's only get a tranche. of portion to the that first

So one. that's number

have ask convertibles do refinance receive call. go to the converts about and tranche, that the the we on XXXX of first you a portion again, we If that, to need to said -- the and

and is -- do in on make So out at market time. depending obviously go a of how that, where to look share where the conditions, at a look we'll price decision at options here number look the that looks the

with Next from George line the Gianarikas question is Canaccord Genuity. of

order did occur? recent just milestones to mentioned Can for us of qualify given some those you color and your confidence bit subsequent fundamentals are that in your a the around give had little On the on them Act, milestones what that situation CHIPS you in you you had the call, meet to achieving tranches. operational

near going very The would good line got will of bit I of the little -- tranche that terms milestones term in first sight hitting -- We've to a that first through hit. and for detail need in we've milestone we the solid pretty got tranche, go of to Yes. first say means. are what Neill that the

Yes.

of another it good to addition the the we're perspective, I as next $XXX think I would to you're operational on that in first also tranche essentially, as debt that of that -- include coming an for the And from shape. mentioned is earlier in financing XX% tranche, in So million. convertibles, what first to relates XX% talking tranche equity about

between raise in [indiscernible]. of a So amount and the significant direct debt to drive disbursements the I financing capital related refinancing, the will the think capital

think on solid plan I a all got So I we've fronts, think very here.

question TD line Buchalter Next Cowen. Joshua of with the from is

seeing or the I are and have have down likely in on And XXs. like as industrial single there? guiding and who Lanny perhaps first issues revenue? questions low probably the Joshua. My about your for recognition similar quarter-over-quarter puts on materials Any is Can I based one, you. your timing of for customers sounds devices far from talk you demand follow-up. takes guidance as it weaknesses goes you're high X business This also digits a energy

Yes.

continuing coming industrial -- devices head are talked midpoint, quarter. we although in particularly related energy, see, the an from as a I So little the of down, about to I still bit we terms to perspective December strength EV think into at

similar to what As seeing. market it kind somewhat of -- think materials, I end relates weakness we're is it's

inventory we with managing got It's that end those We have. related to those continue to we're shipments very work good very and and with always of contracts relationships customers. the big markets. We've customers as timing

just front matter end demand through as really of of kind a working So well. market materials

that terms? of change of evolving you the [indiscernible], in expense makes the next so year then Neill done raises see just you question given with through housekeeping interest consortium. walk for over regarding recent that you've the kind And capital Yes, us Could sense. the how some or

Yes. Sure.

I I'll cash -- So so the on think interest. focus

if we'll of down So restructured some which interest cost some we as interest the come CRD year-over-year, versus that come fiscal will for push 'XX down cash XXXX, that, to of into prior, costs is interest the year the out on current you the at The look year-over-year. see actually help you look versus also XX. reason

of cash and operating -- in think you second help the it the about of our half terms some So also provide year. as burn improvement will

to will actions operating on lower we'll the we come but So come back cash interest. also burn get restructuring we based about down, the the And talked XXXX. on cash to up into related call, as start likely mostly

million those coming when the demand think the shape We to savings to XXXX. seeing, be structural coverage get of year good the we'll chunk is start restructuring to of you along you big see anticipation time of the should anticipate fiscal as that. with actions, that $XXX over on Our in a look we're into cash savings,

you no questions additional are your time. waiting question. for this There Thank at

remarks. the pass for any back CEO, I'll Gregg conference to Lowe, So closing

time with for next everyone, to taking be up we you, quarter. forward Thank catching today, you us the and look with to

concludes your you conference Thank That the for call. participation.

You may lines. now your disconnect