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Wolfspeed, Inc. (NYSE:WOLF), a semiconductor company, announced the resignation of two of its board members, Thomas J. Seifert and George H. "Woody" Young III. The departures were effective on Wednesday. The company, currently valued at approximately $401 million, has seen its stock decline nearly 90% over the past year according to InvestingPro data.
The company, formerly known as Cree, Inc., did not provide a reason for the resignations of Seifert and Young, both of whom stepped down simultaneously on April 3, 2025, according to a filing with the Securities and Exchange Commission.
The North Carolina-based company, with a focus on semiconductors and related devices, confirmed the changes in its leadership through the regulatory document filed on Friday. The announcement comes amid a period of significant change for Wolfspeed, which has been navigating the competitive semiconductor industry.
The resignations leave a gap in the company’s governance structure, which will require the appointment of new directors to fill the vacancies. The process and criteria for selecting new board members have not been disclosed by Wolfspeed.
The company’s stock, which is listed on the New York Stock Exchange under the symbol WOLF, may see investor reaction to the news of the board members’ departure. The stock, which InvestingPro analysis indicates is trading in oversold territory, has already fallen more than 71% in the past six months. The long-term impact of these resignations on the company’s strategy and performance remains to be seen, particularly given the company’s significant debt burden and rapid cash burn rate.
The news of the resignations was made public through a formal 8-K filing, which is a requirement for publicly traded companies to announce significant changes to their investors. The document serves as the primary source of information regarding the recent changes in Wolfspeed’s board of directors.
Wolfspeed has a history that dates back to its earlier incarnations as Cree Research Inc. and Cree Inc. , with the most recent name change occurring in 2019. The company’s fiscal year ends on June 29, and it operates out of its headquarters located at 4600 Silicon Drive, Durham, North Carolina.
Investors and market watchers will be looking to Wolfspeed for any further announcements regarding the transition and the strategic direction following the departure of the two board members. With a current ratio of 3.15 indicating strong short-term liquidity, but facing profitability challenges, the company’s next earnings report is scheduled for April 30, 2025. For deeper insights into Wolfspeed’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Wolfspeed, Inc. announced it received a $192 million cash tax refund from the IRS under Section 48D, contributing to a projected cash balance of $1.3 billion by the end of the third quarter of fiscal 2025. The company reaffirmed its third-quarter fiscal 2025 revenue guidance, projecting revenue between $170 million and $200 million, with a non-GAAP net loss anticipated between $119 million and $138 million. Wolfspeed is also in discussions with lenders, including Apollo and Renesas, regarding financial alternatives and is seeking federal funding under the CHIPS Act, despite potential changes in U.S. policy that could affect this support.
Additionally, Wolfspeed appointed Robert Feurle as the new CEO, effective May 1, following the removal of former CEO Gregg Lowe. The company has been facing challenges, including decreased demand from automotive clients and a planned workforce reduction of about 20%. As part of its restructuring efforts, Wolfspeed announced a reduction of approximately 180 jobs in its material operations, aiming to streamline operations and reduce costs. Citi analysts recently lowered Wolfspeed’s stock price target from $13 to $7, maintaining a Neutral rating, citing weaker automotive demand and increased factory costs as factors impacting gross margins. These developments come as Wolfspeed navigates a complex financial landscape and seeks to improve its operational efficiency.
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