Short answer
Wolfspeed Inc (WOLF) filed its fiscal 2019 10-K annual report with the SEC on Aug 21, 2019. It reported revenue of $538M (−41.8% year over year) and net income of −$375M.
- Top risk flagged: Huawei Entity List restrictions: BIS shipment suspension reduced near-term revenue and profit while increasing Huawei-specific inventory
FY2019 key financial metrics · XBRL
- Revenue
- $538M
- −41.8% YoY
- Net income
- −$375M
- −34.0% YoY
- Operating margin
- -3.0%
- +32.6 pp YoY
- Gross margin
- 72.6%
- +28.6 pp YoY
- EPS (diluted)
- −$3.62
- −28.8% YoY
- ROE
- -18.4%
- −4.9 pp YoY
- Operating cash flow
- $202M
- +20.9% YoY
Source: XBRL data from the Wolfspeed Inc (WOLF) FY2019 10-K on SEC EDGAR. USD.
Wolfspeed Inc FY2019 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: Wide-bandgap SiC/GaN semiconductor materials, power and RF devices, plus LED chips and components
- Lighting Products business sold to IDEAL on May 13, 2019, leaving Wolfspeed and LED Products as reportable segments
- Strategic emphasis: Wolfspeed leadership in SiC materials and expanding electric-vehicle, solar, power-supply and telecommunications applications
- Backlog reached $644.6 million, up from $519.7 million, while Arrow represented 19% of fiscal 2019 revenue
- Intellectual-property scale: 1,379 issued U.S. patents and approximately 2,394 foreign patents, expiring through 2039
Management Discussion & Analysis
- Revenue $1,080.0M, up $155.1M YoY, driven by Wolfspeed $538.2M, up 64%
- Gross margin 36.2% vs 32.7%, operating loss $15.9M vs $28.0M
- Best segment Wolfspeed: gross profit $258.7M, 48% margin; worst LED Products: revenue $541.8M, down 9%
- Operating cash flow $202.3M; capex $142.4M; financing included $575.0M notes issuance and $292.0M credit-line repayment
- FY2020 capex target $198.0M; risks include tariffs, demand uncertainty, competition and Lextar investment losses
Risk Factors
- Huawei Entity List restrictions: BIS shipment suspension reduced near-term revenue and profit while increasing Huawei-specific inventory
- U.S.-China tariffs: Chinese goods exposure threatens product demand and raises costs for international purchases
- Sole-source suppliers: Alternative qualification may take six months or longer, risking production interruptions and yield declines
- LED competition: Industry overcapacity is driving pricing pressure and accelerating sales-price declines
- Debt burden: $575.0 million of 0.875% convertible notes due September 1, 2023 constrain cash-flow flexibility
Generated from the filing text; verify against the original. How to read a 10-K
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