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DURHAM, N.C. - Wolfspeed, Inc. (NYSE: WOLF), a leader in silicon carbide technologies currently trading at $3.55 per share, announced Monday that Neill Reynolds, its Executive Vice President and Chief Financial Officer, will depart the company on May 30, 2025. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 17.65x, making this transition particularly crucial for its financial leadership. Reynolds is leaving to pursue another professional opportunity, but will stay on through the end of May to assist with the transition and to partake in ongoing discussions with lenders aimed at bolstering the company’s capital structure. This transition comes as the company faces challenges with its cash position, as InvestingPro analysis shows the company is quickly burning through cash, with negative free cash flow of $2.76 billion in the last twelve months.
The company is currently engaging with a top executive-search firm to find a suitable replacement for Reynolds, considering both internal and external candidates for the CFO role. In the interim, Reynolds will also contribute to Wolfspeed’s fiscal third-quarter earnings call on May 8. Despite recent challenges, the stock has shown resilience with a 35% return over the last week, though it remains down nearly 88% over the past year.
Thomas Werner, Wolfspeed’s Executive Chairman, expressed gratitude for Reynolds’ contributions, especially during the company’s liability-management initiatives. "Neill has been an important partner as we navigate our liability-management initiatives and position Wolfspeed for its next phase," Werner said. "We appreciate his commitment to staying on to support our efforts to strengthen the Company’s balance sheet."
In addition to the announcement of Reynolds’ departure, Wolfspeed reaffirmed its financial guidance for the third quarter of fiscal year 2025, indicating stability in its business projections.
Wolfspeed, known for its pioneering work in silicon carbide and advanced semiconductor technology, has positioned itself as an integral player in the adoption of these technologies across various industries, including electric vehicles and other innovative applications.
The information in this article is based on a press release statement from Wolfspeed, Inc. The company’s forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements are based on current expectations and speak only as of the date of the press release. Wolfspeed has no obligation to update such statements in light of new information or future events. For deeper insights into Wolfspeed’s financial health and 15+ additional ProTips, including detailed valuation analysis, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, Wolfspeed, Inc. announced that it received a substantial tax refund of $192 million from the IRS, which is part of an anticipated $1 billion in total refunds. The company projects its cash balance to be around $1.3 billion by the end of the third quarter of fiscal 2025. Wolfspeed reaffirmed its third-quarter fiscal 2025 guidance, with expected revenue between $170 million and $200 million, and a non-GAAP gross margin ranging from (3)% to 7%. The company is also navigating financial challenges, including ongoing discussions with lenders like Apollo and Renesas and potential federal funding under the CHIPS Act. Recently, Wolfspeed announced the resignation of two board members, Thomas J. Seifert and George H. "Woody" Young III, without providing specific reasons for their departure. Additionally, the company appointed Robert Feurle as the new CEO, following the removal of the former CEO, Gregg Lowe. Analysts from CFRA Research have highlighted the potential impact of not receiving the anticipated CHIPS Act funding, which could necessitate significant restructuring for Wolfspeed. These developments are part of the company’s broader efforts to stabilize its financial position and strategic direction.
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