Wolfspeed, Inc.

Hello and welcome to the Wolf Speed Incorporated first quarter fiscal year 2023 earnings call. My name is Harry and I'll be your coordinator today. To ask a question during the Q&A, please press star 501 on your telephone keypad. It is now my pleasure to hand you over to Greg Lowe, CEO, to begin. Please go ahead.

Thank you, operator. Good afternoon, everyone. Welcome to Wolf Speed's first quarter fiscal 2023 conference call. Today, Wolfspeed CEO Greg Lowe and Wolfspeed CFO Neil Reynolds will report on the results for the first quarter of fiscal year 2023. Please note that we will be presenting non-GAAP financial results during today's call, which is consistent with how management measures Wolfspeed's results internally. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to and not a substitute for financial statements prepared in accordance with GAAP. A reconciliation to the most directly comparable GAAP measures is in our press release and posted in the investor relations section of our website, along with a historical summary of other key metrics. Today's discussion includes forward-looking statements about our business outlook. We may make other forward-looking statements during the call. Such forward-looking statements are subject to numerous risks and uncertainties. Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially, including risks related to the impact of the COVID-19 pandemic. During the Q&A session, we would ask that you limit yourself to one question and one follow-up so that we can accommodate as many questions as possible during today's call. If you have any additional questions, please feel free to contact us after the call. And now, I'd like to turn the call over to Greg.

Thanks, Tyler, and good afternoon, everyone. The growth and demand for our power device product line is greatly outpacing anything we would have anticipated only a year ago. At our last Investor Day, we said Wolfspeed was well-positioned to capitalize on the increasing demand for EVs, industrial, and 5G. We described 2022 and 2023 as an inflection point in the adoption of silicon carbide with accelerated growth beginning in 2024. Clearly, adoption is well ahead of schedule, creating an even greater demand supply mismatch than we had discussed previously. Fiscal Q1 revenue grew 54% year over year, our second straight quarter of greater than 50% top line growth when compared to the prior year period. Our device opportunity pipeline has increased to more than $40 billion, more than double the $18 billion that we talked about at our last investor day. And our sales team continues to convert this pipeline at an impressive clip and posted another record quarter in Q1 with $3.5 billion of design-ins. Our last four consecutive quarters of design-in, each of which was a record at the time, total approximately $9.3 billion, which is 3.5 times higher than the prior period. We continue to see strong demand for power devices, with Q1 revenue up more than 120% year on year. The team in Durham has done an absolute best to ramp production and expand capacity, but running a manual fab has its limitations, and we are seeing lead times extend for tools and replacement parts for fab equipment. which is impacting our ability to align with customer needs. And lastly, as part of an ongoing efforts to expand supply of silicon carbide, the team was successful in increasing the length of bulls through our continuous improvement efforts, which will help drive more wafers going forward to meet the immense demand for silicon carbide substrates. While this will help alleviate some supply constraints, we're still refining some of our backend processes for the longer bulls, And this will impact yield for the next couple of quarters. We're entering a period of significant expansion and are experiencing the associated growing pains. If you think about where we've come from in the last five years, from a $200 million semiconductor business back in 2017 to a global semiconductor powerhouse that is expected to generate over a billion dollars of revenue in fiscal 2023, on the way to approximately $2.8 billion in fiscal 2026. It speaks to the massive amount of change we are driving across the business in a relatively short period of time. Now I'd like to turn it over to Neil to go over the quarterly financials, the second quarter outlook, and provide more details about our updated expectations.