Wolfspeed Inc (WOLF) 2020 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Cree Fourth Quarter Fiscal 2020 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions)

女士們、先生們，美好的一天，歡迎參加 Cree 2020 年第四季財報電話會議。 （操作員指示）請注意，今天的會議可能會被錄音。 （操作員說明）

I'd now like to hand the conference over to your host today, Mr. Tyler Gronbach, Head of Investor Relations. Please go ahead, sir.

現在，我想將會議交給今天的東道主，投資者關係主管泰勒·格隆巴赫 (Tyler Gronbach) 先生。請繼續，先生。

Thank you and good afternoon, everyone. Welcome to Cree's Fourth Quarter Fiscal 2020 Conference Call. Today, Cree's CEO, Gregg Lowe; and Cree's CFO, Neill Reynolds, will report on the results for the fourth quarter of fiscal year 2020 as well as how the company is navigating the ongoing COVID-19 pandemic.

謝謝大家，大家下午好。歡迎參加 Cree 2020 財年第四季電話會議。今天，Cree 執行長 Gregg Lowe； Cree 財務長 Neill Reynolds 將報告 2020 財年第四季的業績，以及該公司如何應對持續的 COVID-19 大流行。

Please note that we will be presenting non-GAAP financial results during today's call, which is consistent with how management measures Cree'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.

請注意，我們將在今天的電話會議上公佈非 GAAP 財務業績，這與管理層內部衡量 Cree 業績的方式一致。非 GAAP 結果不符合 GAAP，且可能無法與其他公司提供的非 GAAP 資訊進行比較。非公認會計原則資訊應被視為根據公認會計原則編制的財務報表的補充，而不是替代。我們的新聞稿中提供了與最直接可比較的公認會計準則衡量標準的對賬，並發佈在我們網站的投資者關係部分，以及其他關鍵指標的歷史摘要。

Today's discussion includes forward-looking statements about our business outlook, and 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 spread and impact of the COVID-19 pandemic. (Operator Instructions) If you have any additional questions, please feel free to contact us after the call.

今天的討論包括有關我們業務前景的前瞻性陳述，我們可能會在電話會議期間做出其他前瞻性陳述。此類前瞻性陳述面臨眾多風險和不確定性。我們今天的新聞稿和新聞稿中提到的 SEC 文件提到了可能導致實際結果出現重大差異的重要因素，包括與 COVID-19 大流行的傳播和影響相關的風險。 （操作說明）如果您還有任何其他問題，請在通話後隨時與我們聯絡。

And now I'd like to turn the call over to Gregg.

現在我想把電話轉給格雷格。

Thank you, Tyler. Good afternoon, everyone, and thank you for joining us today. Before I begin, I'd like to take a moment to thank all of our employees around the world. I'm extremely proud of their efforts and solid execution during this unprecedented time.

謝謝你，泰勒。大家下午好，感謝您今天加入我們。在開始之前，我想花點時間感謝我們在世界各地的所有員工。我對他們在這個前所未有的時期所做的努力和紮實的執行力感到非常自豪。

As we continue to address the impact of the pandemic on our operations, the health and safety of our employees, customers and partners remains our top priority, and we are committed to operating safely. As a designated essential business, our facilities remained open throughout the quarter, and we are routinely executing stringent testing, cleaning and safety protocols at all of our locations.

當我們持續應對疫情對我們營運的影響時，員工、客戶和合作夥伴的健康和安全仍然是我們的首要任務，我們致力於安全營運。作為指定的重要業務，我們的設施在整個季度保持開放，並且我們在所有地點定期執行嚴格的測試、清潔和安全協議。

We continue to closely monitor federal, state and local guidelines and adjust our business continuity plans as appropriate. Attendance in our factories has improved since the start of the pandemic but is still below our normal operating level as we continue to operate with an abundance of caution, requiring employees that have been possibly exposed to the virus to observe a mandatory quarantine period. In addition, we are also offering employees the flexibility to support the needs of their families at this time, which can also impact attendance.

我們將繼續密切關注聯邦、州和地方準則，並視情況調整我們的業務連續性計劃。自疫情爆發以來，我們工廠的出勤率有所改善，但仍低於正常運作水平，因為我們繼續謹慎運營，要求可能接觸過病毒的員工遵守強制隔離期。此外，我們也為員工提供靈活性，以滿足他們此時家庭的需求，這也會影響出席率。

Turning to our performance. We delivered fourth quarter results in line with our targets on revenue, gross margin and EPS and are encouraged by the strengthening demand in the quarter to date, despite the continued headwinds presented by COVID-19. In addition, we are pleased to see silicon carbide gaining traction in the market as evidenced by the recent announcement of Delphi's win for a new battery electric vehicle and our partnership with StarPower and the Yutong Group for an electric bus that will use silicon carbide in the powertrain. Our opportunity pipeline is growing, driven by the outstanding work of our sales team, working seamlessly on our digital selling platforms to drive new business and remain in constant contact with our customers and distribution partners.

轉向我們的表現。儘管 COVID-19 帶來了持續的阻力，但我們第四季的業績符合我們的收入、毛利率和每股收益目標，並受到本季迄今需求增強的鼓舞。此外，我們很高興看到碳化矽在市場上獲得關注，德爾福最近宣布贏得了一款新型電池電動車，以及我們與StarPower 和宇通集團合作開發了一款電動公車，該公車將在電動公車車中使用碳化矽，證明了這一點。在我們銷售團隊出色工作的推動下，我們的機會管道正在不斷增長，他們在我們的數位銷售平台上無縫合作，以推動新業務，並與我們的客戶和分銷合作夥伴保持持續聯繫。

Fiscal 2020 was a transition year for us, and we made good progress on becoming a global semiconductor powerhouse while, at the same time, addressing the unexpected challenges associated with the pandemic and ongoing geopolitical concerns. While the operating environment remains fluid, we are confident in the long-term growth opportunity ahead of us and firmly believe that Cree is uniquely positioned to capitalize on the industry's transition from silicon to silicon carbide. Despite the market uncertainty, the excitement of our customers about the next generation of semiconductor technology remains high, and we are committed to our capacity expansion plans to meet this growing demand.

2020 財年對我們來說是過渡年，我們在成為全球半導體強國方面取得了良好進展，同時解決了與疫情和持續的地緣政治問題相關的意外挑戰。雖然經營環境仍然不穩定，但我們對眼前的長期成長機會充滿信心，並堅信 Cree 具有獨特的優勢，能夠利用產業從矽到碳化矽的轉型。儘管市場存在不確定性，但我們的客戶對下一代半導體技術的熱情仍然很高，我們致力於產能擴張計劃，以滿足這種不斷增長的需求。

I'll now turn it over to Neill, who will provide an overview of our financial results and an outlook for the first quarter of fiscal 2021. Neill?

我現在將其交給尼爾，他將概述我們的財務業績以及 2021 財年第一季的前景。

Thank you, Gregg, and good afternoon, everyone. Overall, as expected, our fourth quarter performance was impacted by softening global demand and some disruptions to our operations resulting from the pandemic.

謝謝你，格雷格，大家下午好。總體而言，正如預期的那樣，我們第四季度的業績受到全球需求疲軟以及疫情造成的營運中斷的影響。

Revenues for the fourth quarter of fiscal 2020 were $206 million, a decrease of 18% year-over-year. Our LED segment revenue decreased 17% year-over-year, largely driven by global trade events and events related to the pandemic. And Wolfspeed revenue declined 19% year-over-year due to continued softness for China EVs in EV sales and supply and demand challenges tied to the pandemic.

2020財年第四季營收為2.06億美元，年減18%。我們的 LED 部門營收年減 17%，主要受到全球貿易事件和與疫情相關的事件的推動。由於中國電動車銷量持續疲軟以及與疫情相關的供需挑戰，Wolfspeed 營收年減 19%。

Our non-GAAP net loss was $20 million or $0.18 per diluted share. Our fourth quarter non-GAAP earnings excludes $19.5 million of expense net of tax or $0.18 per diluted share for noncash stock-based compensation, acquired intangibles amortization, accretion on our convertible notes, project transformation and transaction-related costs, factory optimization restructuring costs, gain on partial debt extinguishment, changes in our Lextar investment and other items outlined in today's earnings release.

我們的非 GAAP 淨虧損為 2,000 萬美元，即稀釋後每股虧損 0.18 美元。我們第四季的非公認會計原則收益不包括1,950 萬美元的稅後費用或稀釋後每股0.18 美元的非現金股票補償、收購的無形資產攤銷、可轉換票據的增值、專案轉型和交易相關成本、工廠優化重組成本、部分債務清償帶來的收益、Lextar 投資的變化以及今天收益報告中概述的其他項目。

Moving on to our fourth quarter performance by segment. Wolfspeed quarterly revenue declined 5% sequentially to $108 million. This was primarily due to lower demand from a nonsemiconductor customer in our materials business as a result of the pandemic and some push out of product by several LTI customers, which more than offset improved performance in power and RF during the quarter.

接下來是我們第四季按細分市場的表現。 Wolfspeed 季度營收季減 5%，至 1.08 億美元。這主要是由於疫情導致我們材料業務的非半導體客戶需求下降，以及一些 LTI 客戶推出了一些產品，遠遠抵消了本季功率和射頻性能的改善。

In power, we continue to see strong demand for our products, but it has been tempered by factory output related to COVID-19 safety measures. While our performance was softened by some supply constraints, we expect this to improve as we execute our previously announced capacity expansion plan.

在電力方面，我們繼續看到對我們產品的強勁需求，但由於 COVID-19 安全措施相關的工廠產量，需求有所緩和。雖然我們的業績因一些供應限製而減弱，但我們預計，隨著我們執行先前宣布的產能擴張計劃，情況將會有所改善。

Positively, our automotive customers remain committed to their long-term plans and the need for our technology. And while the pandemic may impact the timing of some customer decisions, the industry shift from silicon to silicon carbide continues to build momentum. Further, in the industrial space, there has been broader awareness as a result of our partnership with Arrow Electronics as our sales team have done a great job of showcasing the benefits of silicon carbide in new applications to their customers.

積極的一面是，我們的汽車客戶仍然致力於他們的長期計劃和對我們技術的需求。儘管疫情可能會影響一些客戶決策的時機，但產業從矽到碳化矽的轉變仍持續形成勢頭。此外，在工業領域，由於我們與 Arrow Electronics 的合作，我們的銷售團隊在向客戶展示碳化矽在新應用中的優勢方面做得非常出色，因此獲得了更廣泛的認識。

In RF, we are seeing some improved performance, and we continue to grow our RF backlog. While this is encouraging, there are still certain markets that have delayed their 5G rollouts and the pandemic has also delayed auctions in key markets. Overall, we are encouraged by the early signs of strengthening demand in our power and RF device businesses, despite continued near-term headwinds and limited visibility we have into the full impact of the pandemic.

在 RF 方面，我們看到效能有所改善，並且我們的 RF 積壓訂單繼續增加。雖然這令人鼓舞，但仍有某些市場推遲了 5G 的推出，疫情也推遲了關鍵市場的拍賣。總體而言，儘管近期阻力持續存在，而且我們對疫情全面影響的了解有限，但電源和射頻器件業務需求增強的早期跡象令我們感到鼓舞。

Moving on to materials. In line with our expectations, revenue declined sequentially as we were not able to ship to one nonsemiconductor customer that was not designated as essential -- as an essential business during the quarter. We also had a few of our wafer supply customers defer shipment of some product during the quarter, which is permitted under their agreement with us.

繼續討論材料。與我們的預期一致，收入連續下降，因為我們無法向本季度未被指定為重要業務的非半導體客戶發貨。我們還有一些晶圓供應客戶在本季度推遲了某些產品的發貨，這是他們與我們達成的協議允許的。

Wolfspeed gross margin was 35.3%. The sequential decline was primarily driven by decreased factory efficiency due to the safety measures we put in place to protect our employees during the pandemic. In addition, lower yields and factory transitions also present some short-term challenges on gross margin performance and will continue to be a headwind until we shift production to our new Mohawk Valley Fab.

Wolfspeed毛利率為35.3%。環比下降的主要原因是我們在疫情期間為保護員工而採取的安全措施導致工廠效率下降。此外，較低的產量和工廠轉型也對毛利率表現提出了一些短期挑戰，並且在我們將生產轉移到新的莫霍克谷工廠之前將繼續成為阻力。

LED product revenue was $97 million and decreased approximately 4% sequentially, reflecting supply constraints. Nonetheless, our business executed well despite challenges related to increased volatility in our markets. LED gross margin was 22.8%, primarily due to favorable product and customer mix.

LED 產品營收為 9,700 萬美元，季減約 4%，反映出供應限制。儘管如此，儘管市場波動加劇帶來了挑戰，但我們的業務仍表現良好。 LED毛利率為22.8%，主要得益於有利的產品和顧客組合。

Unallocated non-GAAP costs totaled $6.1 million for the fourth quarter of fiscal 2020 and are included in our overall cost to reconcile the $54 million non-GAAP gross profit and 26.4% gross margin for the company. This includes some incremental costs that we incurred as a result of our COVID-19 response efforts.

2020 財年第四季未分配的非 GAAP 成本總計 610 萬美元，已包含在我們的總體成本中，以協調公司 5,400 萬美元的非 GAAP 毛利和 26.4% 的毛利率。這包括我們因應對新冠肺炎 (COVID-19) 疫情而產生的一些增加成本。

Non-GAAP operating expenses for Q4 were $83 million, and our non-GAAP tax rate was 30%. This reflects our efforts to continue to execute disciplined cost control by prudently balancing our operating expenses with the necessary investments for our long-term growth and the decision not to pay management bonuses and some other incentives for fiscal 2020.

第四季的非 GAAP 營運費用為 8,300 萬美元，我們的非 GAAP 稅率為 30%。這反映出我們努力繼續執行嚴格的成本控制，審慎地平衡我們的營運費用與長期成長所需的投資，並決定不支付 2020 財年的管理層獎金和其他一些激勵措施。

For fiscal 2020, revenue was $904 million, representing a 16% decline when compared to fiscal 2019. Non-GAAP net loss in fiscal 2020 was $49.1 million or $0.45 per diluted share. The non-GAAP loss excludes $142.6 million of adjustments net of tax or $1.32 per diluted share.

2020 財年的營收為 9.04 億美元，與 2019 財年相比下降 16%。非 GAAP 虧損不包括 1.426 億美元的稅後調整淨額，即稀釋後每股 1.32 美元。

Fiscal 2020 revenue and non-GAAP gross profit for our reportable segments were as follows: Wolfspeed revenue was $471 million and gross profit was $185 million for a 39% gross margin. Revenue declined 13% from fiscal 2019 as a result of softness in customer demand as well as the COVID-19 pandemic and associated disruptions, which significantly impacted results. LED revenue was $433 million and gross profit was $91 million for a 21% gross margin. Revenues declined 20% from fiscal 2019 with ongoing market softness, trade and tariff concerns with China and lower utilization, primarily due to COVID-19. Unallocated costs totaled $16 million for fiscal 2020 are -- and are included to reconcile to our $259 million non-GAAP gross profit for a company gross margin of 28.7%.

我們可報告部門的 2020 財年收入和非 GAAP 毛利如下：Wolfspeed 收入為 4.71 億美元，毛利為 1.85 億美元，毛利率為 39%。由於客戶需求疲軟以及 COVID-19 大流行和相關中斷，營收比 2019 財年下降了 13%，這對業績產生了重大影響。 LED 營收為 4.33 億美元，毛利為 9,100 萬美元，毛利率為 21%。由於市場持續疲軟、對中國的貿易和關稅擔憂以及利用率下降（主要是由於 COVID-19），收入較 2019 財年下降了 20%。 2020 財年未分配成本總計 1,600 萬美元，包括在內是為了與公司毛利率 28.7% 的 2.59 億美元非 GAAP 毛利保持一致。

Now in light of the ongoing uncertainty related to COVID-19, I'd like to provide an update on our strong balance sheet and healthy cash position, which gives us the financial flexibility to navigate the current environment, support our business operations and maintain our capital expenditure plans to support future growth. We ended the quarter with approximately $1.3 billion in cash and short-term investments, 0 balance on our line of credit and convertible debt with a total face value of $1 billion.

現在，鑑於與COVID-19 相關的持續不確定性，我想提供有關我們強勁的資產負債表和健康的現金狀況的最新信息，這使我們能夠具有財務靈活性來應對當前的環境、支持我們的業務運作並維持我們的業務。截至本季末，我們擁有約 13 億美元的現金和短期投資，信用額度餘額為零，可轉換債務面額總額為 10 億美元。

For the fourth quarter, days sales outstanding improved to 37 days and inventory days on hand was 104 days. Cash generated from operations was $10 million and capital expenditures were $70 million in the fourth quarter, resulting in negative free cash flow of $60 million. We reported total capital investments of $244 million in fiscal 2020 as our capital allocation priorities remained focused on expanding capacity in our Wolfspeed business.

第四季度，應收帳款天數改善至 37 天，庫存天數為 104 天。第四季營運產生的現金為 1,000 萬美元，資本支出為 7,000 萬美元，導致自由現金流為負 6,000 萬美元。我們報告 2020 財年的資本投資總額為 2.44 億美元，因為我們的資本分配優先事項仍集中在擴大 Wolfspeed 業務的產能。

Moving on to our CapEx outlook for fiscal 2021. As we discussed at our Investor Day last year, fiscal 2021 will be the peak investment year to fund our long-term growth ambitions. At this time, we anticipate CapEx of approximately $400 million to support our capacity investments, most notably the construction of our Mohawk Valley Fab and the expansion of our Durham fab and materials factory. This level of investment reflects the slightly steeper customer ramp that we have discussed previously and keeps us on track to begin ramping production in the new fab beginning in calendar year 2022.

接下來是我們對 2021 財年的資本支出展望。目前，我們預計資本支出約為 4 億美元，用於支持我們的產能投資，尤其是莫霍克谷工廠的建設以及達勒姆工廠和材料工廠的擴建。這一投資水準反映了我們之前討論過的稍微陡峭的客戶成長，並使我們能夠在 2022 日曆年開始在新工廠開始提高產量。

It's also important to remember that there will be some variability in our CapEx and cash flow during fiscal 2021 as it is tied to the percentage of completion of Mohawk Valley and the timing of reimbursements from the state of New York.

同樣重要的是要記住，2021 財年我們的資本支出和現金流量將會出現一些變化，因為它與莫霍克谷的完工百分比和紐約州的報銷時間有關。

Now turning to our outlook. The COVID-19 situation remains very fluid, making it difficult to assess its impact on our near-term operations and overall demand environment. To account for this, we are again providing a wider-than-usual guidance range for the first quarter of fiscal 2021, along with our underlying assumptions based on what we know today.

現在轉向我們的展望。 COVID-19 的情況仍然非常不穩定，因此很難評估其對我們近期營運和整體需求環境的影響。考慮到這一點，我們再次為 2021 財年第一季提供比平常更廣泛的指導範圍，以及基於我們目前所知的基本假設。

We're targeting revenue in a range of $203 million to $217 million based on the following segment trends: Wolfspeed revenue is expected to be between $107 million and $117 million. We are encouraged by the early signs of strengthening demand of the device business and our ability to improve fulfillment out of our factories while maintaining additional COVID-19 safety protocols we have in place. LED revenue is expected to be between $96 million to $100 million, mainly due to improving supply dynamics. Cree's Q1 non-GAAP gross margin is expected to be between 25% to 27%, which includes the impact of $4 million of unallocated costs relating to transitioning LED factory operations to Wolfspeed. We target Wolfspeed gross margin to be approximately 35.5% to 37.5% due to better factory efficiency, driven by higher attendance but still below normal expectations as we continue to maintain safety procedures related to COVID-19.

根據以下細分市場趨勢，我們的目標收入在 2.03 億美元至 2.17 億美元之間：Wolfspeed 收入預計在 1.07 億美元至 1.17 億美元之間。設備業務需求增強的早期跡像以及我們在維持現有額外的 COVID-19 安全協議的同時改善工廠履行情況的能力令我們感到鼓舞。 LED 收入預計在 9,600 萬美元至 1 億美元之間，主要得益於供應動態的改善。 Cree 第一季非 GAAP 毛利率預計在 25% 至 27% 之間，其中包括與將 LED 工廠營運轉移到 Wolfspeed 相關的 400 萬美元未分配成本的影響。我們的目標是 Wolfspeed 毛利率約為 35.5% 至 37.5%，這是由於出勤率提高推動工廠效率提高，但由於我們繼續維持與 COVID-19 相關的安全程序，因此仍低於正常預期。

In addition, while we continued to make progress on our 150-millimeter MOSFET yields, they are still below expected levels. We target LED gross margin to be approximately 19.5% to 21%.

此外，雖然我們在 150 毫米 MOSFET 良率方面繼續取得進展，但仍低於預期水準。我們的目標 LED 毛利率約為 19.5%至 21%。

We are targeting non-GAAP operating expenses between $88 million and $89 million for the first quarter. While we maintained tight cost controls during fiscal Q4 and did not pay management bonuses or institute merit increases, we will increase OpEx in fiscal Q1 2021. This reflects higher spending on R&D projects, including our Mohawk Valley Fab process developments and resumption of accruing for management incentives.

我們第一季的非 GAAP 營運支出目標為 8,800 萬美元至 8,900 萬美元。雖然我們在第四財季保持嚴格的成本控制，並且沒有支付管理層獎金或實施績效加薪，但我們將在2021 財年第一季增加營運支出。的莫霍克谷晶圓廠製程開發和恢復管理應計費用激勵措施。

We expect that our operating expenses will gradually increase throughout the year as our revenue normalizes. We target Q1 non-GAAP operating loss to be between $37 million to $29 million, and we target a nonoperating net loss to be approximately $1 million. We expect our non-GAAP effective tax rate to be approximately 30%. We are targeting Q1 non-GAAP net loss to be between $26 million to $22 million or a loss between $0.24 to $0.20 per diluted share. Our non-GAAP EPS target excludes acquired intangibles amortization, noncash stock-based compensation, accretion on our convertible notes, project transformation and transaction-related costs, factory optimization restructuring costs and other items. Our Q1 targets are based on several factors that could vary greatly, including the situation with COVID-19, overall demand, product mix, factory productivity and the competitive environment.

我們預計，隨著我們的收入正常化，我們的營運費用將在全年逐漸增加。我們的目標是第一季非 GAAP 營運虧損為 3,700 萬美元至 2,900 萬美元，非營運淨虧損目標約 100 萬美元。我們預計非 GAAP 有效稅率約為 30%。我們的目標是第一季非 GAAP 淨虧損為 2,600 萬美元至 2,200 萬美元，或稀釋後每股虧損 0.24 美元至 0.20 美元。我們的非公認會計原則每股收益目標不包括收購的無形資產攤銷、非現金股票補償、可轉換票據的增值、專案轉型和交易相關成本、工廠優化重組成本和其他專案。我們第一季的目標是基於多個可能存在很大差異的因素，包括 COVID-19 的情況、整體需求、產品組合、工廠生產力和競爭環境。

With that, I will now turn the discussion back to Gregg.

說到這裡，我現在將討論轉回格雷格身上。

Thanks, Neill. And building off of what Neill just shared, I'd like to discuss our recent performance in the current environment as well as provide an update on our strategic plans.

謝謝，尼爾。在尼爾剛剛分享的內容的基礎上，我想討論我們在當前環境下的近期表現，並提供我們戰略計劃的最新資訊。

The operating environment remains challenging as the pandemic is ongoing. While it remains difficult to predict the full impact it will have on our operations, we are focused on maintaining business continuity to continue to deliver for our customers while executing on our business plans.

隨著疫情的持續，經營環境仍充滿挑戰。雖然仍然很難預測它將對我們的營運產生的全面影響，但我們致力於保持業務連續性，以便在執行我們的業務計劃的同時繼續為我們的客戶提供服務。

I continue to be impressed with how our sales team has adapted to a virtual environment, successfully pursuing and winning new business. We continue to connect with customers with approximately 4,000 leads generated during the quarter. And I'm impressed with the team's results in terms of winning new business.

我們的銷售團隊如何適應虛擬環境，成功地尋求並贏得新業務，這讓我留下了深刻的印象。我們繼續與客戶保持聯繫，本季產生了約 4,000 個潛在客戶。我對團隊在贏得新業務方面的成果印象深刻。

In the fourth quarter, we secured approximately $600 million in design and awards, a nice improvement from the already excellent results the team delivered in Q3. Our partnership with Arrow Electronics continues to grow, and we have identified approximately $1.6 billion of silicon carbide opportunities for our Wolfspeed business with Arrow's large and extensive sales footprint.

在第四季度，我們獲得了約 6 億美元的設計和獎項，與團隊在第三季度交付的本已出色的成果相比，這是一個很大的進步。我們與 Arrow Electronics 的合作夥伴關係不斷發展，憑藉 Arrow 龐大而廣泛的銷售足跡，我們為 Wolfspeed 業務確定了約 16 億美元的碳化矽機會。

Our coordinated efforts to support the launch of our new 650-volt product has been very well received and the opportunity pipeline is building nicely. As our sales team continues to deliver, we are very encouraged by the growth we've seen in our pipeline over the past few months as new opportunities continue to light up across key end segments, including automotive, energy, communications, infrastructure, industrial, and aerospace and defense.

我們為支援新 650 伏特產品的推出而做出的協調努力受到了廣泛好評，並且機會管道正在順利建立。隨著我們的銷售團隊繼續交付，我們對過去幾個月我們的通路成長感到非常鼓舞，因為關鍵終端領域的新機會不斷湧現，包括汽車、能源、通訊、基礎設施、工業、以及航空航太和國防。

At the moment, the opportunity device pipeline is well above $10 billion. We are well positioned to win opportunities as our diversified and growing product portfolio remains a key competitive advantage in the marketplace. We released more than 60 new Wolfspeed products during fiscal 2020. And looking ahead to next year, we are rapidly expanding our product portfolio with an emphasis on critical automotive applications.

目前，機會設備管道遠超過 100 億美元。我們處於有利地位，能夠贏得機遇，因為我們多元化且不斷成長的產品組合仍然是市場上的關鍵競爭優勢。我們在 2020 財年發布了 60 多種新的 Wolfspeed 產品。

We look forward to building upon this momentum as many design awards are expected to be made in the coming months. Despite the COVID pandemic, many of our customers and prospects remain engaged and committed to their future plans, which includes silicon carbide as a critical component. The strength of our long-term plan has been underscored by recent developments, including Delphi's recent win for a new battery electric vehicle, which is expected to ramp sometime between 2022 and 2023.

我們期待在這股勢頭的基礎上再接再厲，因為預計未來幾個月將頒發許多設計獎。儘管發生了新冠病毒大流行，我們的許多客戶和潛在客戶仍然參與並致力於他們的未來計劃，其中碳化矽作為關鍵組成部分。最近的發展突顯了我們長期計劃的優勢，包括德爾福最近贏得了一款新型電池電動車，預計該車將在 2022 年至 2023 年之間的某個時間量產。

In addition, we're also pleased to be working with StarPower Semiconductor and the Yutong Group on an industry-leading high-efficiency powertrain system for electric buses using Wolfspeed 1,200-volt silicon carbide devices.

此外，我們也很高興與 StarPower Semiconductor 和宇通集團合作，使用 Wolfspeed 1,200 伏特碳化矽裝置，為電動公車開發業界領先的高效能動力系統。

These wins are tangible examples of the multiyear opportunity ahead of us in the automotive space. The benefits of silicon carbide are clear and recognized by OEMs and Tier 1s alike. And we continue to have many productive conversations with market leaders regarding how Cree can partner with them to bring forth next-generation technologies.

這些勝利是我們在汽車領域面臨的多年機會的具體例子。碳化矽的優勢顯而易見，並得到 OEM 和一級供應商的認可。我們繼續與市場領導者就 Cree 如何與他們合作推出下一代技術進行富有成效的對話。

In addition, we're following many new encouraging updates in the macro-environment. In late July, the European Commission reached an agreement regarding the EU's EUR 1.8 trillion COVID-19 recovery fund. The EU has committed 30% of their total expenditures from this fund to address climate concerns with the goal of being climate neutral by 2050. This includes EUR 20 billion designated to transport and EUR 5 billion dedicated to energy, which we expect will be a positive catalyst for clean transportation and electric vehicle demand in Europe.

此外，我們正在關注宏觀環境中許多令人鼓舞的新消息。 7 月下旬，歐盟委員會就歐盟 1.8 兆歐元的 COVID-19 復甦基金達成協議。歐盟已承諾從該基金中拿出總支出的30% 用於解決氣候問題，目標是到2050 年實現氣候中和。將是積極的歐洲清潔交通和電動車需求的催化劑。

In 5G, we continue to believe this is a multiyear expansion with major traction coming. There have been a number of recent announcements coming out of Asia pointing towards growing 5G momentum in that region. While the global pandemic has further delayed some rollouts in other regions, we continue to be well positioned to support this global expansion.

在 5G 領域，我們仍然相信這是一個多年的擴張，並將帶來重大牽引力。亞洲最近發布了許多公告，表明該地區的 5G 勢頭不斷增強。儘管全球大流行進一步推遲了其他地區的一些推出，但我們仍然有能力支持這一全球擴張。

As we begin fiscal 2021, we are firmly committed to our long-term strategy. While we expect to continue to work through COVID-19-related headwinds in the near term, we are encouraged by the growing demand we're seeing and expect more opportunities to materialize in our device business throughout fiscal 2021. To ensure we can capitalize on this opportunity, we are reiterating our capacity expansion plans, which are well supported by our strong balance sheet and ample liquidity.

在 2021 財年伊始，我們堅定地致力於我們的長期策略。雖然我們預計短期內將繼續克服與 COVID-19 相關的不利因素，但我們看到不斷增長的需求令我們感到鼓舞，並預計整個 2021 財年我們的設備業務將出現更多機會。我們重申我們的產能擴張計劃，該計劃得到了我們強勁的資產負債表和充足的流動性的有力支持。

Our capacity expansion plans are a key differentiator when we go into market, which, coupled with our superior technology and silicon carbide's demonstrated advantages, is encouraging our customers to accelerate their adoption of silicon carbide. The investments we are making today are absolutely critical to us achieving our long-term goals and maintaining our leadership position.

當我們進入市場時，我們的產能擴張計劃是一個關鍵的差異化因素，再加上我們卓越的技術和碳化矽的明顯優勢，正在鼓勵我們的客戶加速採用碳化矽。我們今天進行的投資對於我們實現長期目標和保持領先地位絕對至關重要。

In conclusion, while the pandemic continues to create uncertainty in the near term, our confidence in the long-term growth opportunity for silicon carbide remains strong. I'm proud of how everyone at Cree rose to the challenges presented in fiscal 2020. The tremendous effort across the company is helping us win new business and drive the industry transition towards silicon carbide.

總之，儘管疫情在短期內持續帶來不確定性，但我們對碳化矽的長期成長機會仍充滿信心。我為 Cree 的每個人應對 2020 財年面臨的挑戰而感到自豪。

Our strong balance sheet and financial position enables us to fund our operations and future growth. I'm very confident in our path forward and believe in the underlying trends we are seeing underscore the opportunity we have ahead of us.

我們強大的資產負債表和財務狀況使我們能夠為我們的營運和未來成長提供資金。我對我們的前進道路非常有信心，並相信我們所看到的潛在趨勢強調了我們面前的機會。

With that, I'll turn it back over to the operator, and we'll begin our Q&A session.

這樣，我會將其轉回給操作員，然後我們將開始問答環節。

(Operator Instructions) Our first question comes from Jed Dorsheimer with Canaccord Genuity.

（操作員說明）我們的第一個問題來自 Canaccord Genuity 的 Jed Dorsheimer。

I guess, Gregg or Neill, the first question is around one of your largest or if not the largest material customers saw a significant impact in their business due to COVID last quarter, particularly in the French facility. So I'm just wondering how that flows through the business and whether or not the vast majority of that hit occurred last quarter or is actually trickling into this quarter in terms of your business? And then I have a follow-up.

我想，格雷格或尼爾，第一個問題是關於你們最大的或最大的材料客戶之一，他們的業務由於上季度的新冠疫情而受到了重大影響，特別是在法國工廠。所以我只是想知道這在整個業務中是如何流動的，以及絕大多數的打擊是否發生在上個季度，或者實際上是在您的業務方面流入本季度？然後我有一個後續行動。

I guess I'll start, and maybe Neill can add a little bit of color to it. I don't want to get into specifics about any particular individual customer...

我想我會開始，也許尼爾可以為其添加一點色彩。我不想詳細介紹任何特定的個人客戶...

Understood.

明白了。

I would say that -- yes, the -- obviously, the dynamics of our -- and the contracts that we have in place are working kind of according to the plans that we had for them. So we feel pretty good about that.

我想說的是，是的，顯然，我們的動態以及我們現有的合約正在按照我們為他們制定的計劃發揮作用。所以我們對此感覺很好。

Maybe, Neill, if you want to give a little bit more color on that.

也許，尼爾，如果你想對此提供更多的色彩的話。

Yes, I think so. Jed, as you looked at the last quarter, I think things kind of played out as we expected. On the device side, we saw some strong demand, particularly for our power products. We were obviously impacted in the fab in terms of some of the safety procedures.

是的，我想是這樣。傑德，當你回顧上個季度時，我認為事情的發展正如我們預期的那樣。在設備方面，我們看到了一些強勁的需求，特別是對我們的電源產品。就某些安全程序而言，我們在工廠中顯然受到了影響。

And then on the materials side, we anticipated some slower ordering, both from, I would say, LTA customers and some of the non-LTA customers as people manage through the pandemic, manage inventory levels and those types of things. But I'd say that largely played out as expected. As you look into next quarter, I think it's -- from a device standpoint, what we're seeing is continued demand for the power products. I think we're seeing strong backlog there.

然後在材料方面，我們預計訂購速度會有所放緩，我想說的是，長期協議客戶和一些非長期協議客戶的訂購速度會有所放緩，因為人們要應對疫情、管理庫存水平等。但我想說，這基本上符合預期。當你展望下個季度時，我認為從設備的角度來看，我們看到的是電源產品的持續需求。我認為我們在那裡看到了大量的積壓。

On the materials side, I guess what I'd say is we're kind of holding ground. We're seeing some push and pull within the portfolio as you move into the next kind of period here. So I think -- and then as you think longer term, as these LTA contracts are structured, we maybe expect to see some pickup as you start to move into outside of December, maybe into the March or June quarter.

在材料方面，我想我想說的是我們正在堅守陣地。當您進入下一個時期時，我們看到投資組合中存在一些推拉。因此，我認為，從長遠來看，隨著這些長期協議合約的構建，當您開始進入 12 月之後，可能進入 3 月或 6 月季度時，我們可能會預計會出現一些回升。

So I think we've largely hit the bottom as it relates to materials, but I think we're just going to see modest improvement from here and probably some potential pickup, I think, in the next calendar year.

因此，我認為我們在材料方面已經基本觸底，但我認為我們只會看到這裡的適度改善，並且我認為在下一個日曆年可能會出現一些潛在的回升。

That's helpful. Just as it relates to the capacity expansion, I was wondering if you could give maybe some further color in terms of the timing as well as cost expectations. The move from 6-inch to 8-inch is a pretty significant cost down, not to mention the impact on the automation associated with that equipment. And I know you did a good job at the Analyst Day of kind of framing that opportunity. But as you're moving closer to the -- and '21 is kind of the year for that build-out, I was wondering if you could just give an update in terms of timing of both fab as well as Mohawk. And then what the expectations are? Should we think of that as just a linear cost down in terms of just doing the area? Or how should we be thinking about that? I would assume there's additional benefits, but I was wondering if you could frame that a bit more for me.

這很有幫助。正如它與產能擴張有關一樣，我想知道您是否可以在時間安排和成本預期方面提供一些進一步的資訊。從 6 英寸轉移到 8 英寸可以顯著降低成本，更不用說對與該設備相關的自動化的影響了。我知道你在分析師日上做得很好，在建立這個機會方面做得很好。但隨著你越來越接近 - 21 年是那種擴建的一年，我想知道你是否可以就晶圓廠和莫霍克的時間表提供最新資訊。那麼期望是什麼？我們是否應該將其視為僅就該區域而言的線性成本下降？或者說我們該如何思考這個問題？我認為還有額外的好處，但我想知道你是否可以為我多描述一下。

Yes. Maybe I'll kick it off, and then Neill can kind of unpack it a little bit more. A lot of great activity going on up in Mohawk Valley. The fab is now going "vertical." So there are steel girders that have been installed and walls are being installed and so forth. We're really excited about that. There's been excellent work at the prototype line in Albany with some really good progress on that. The materials expansion that is part of our overall capacity expansion is going well, yields and costs and so forth are improving as well.

是的。也許我會先把它開始，然後尼爾可以進一步解開它。莫霍克谷正在進行許多精彩的活動。晶圓廠現在正在走向「垂直」。所以有鋼樑已經安裝好了，牆體正在安裝等等。我們對此感到非常興奮。奧爾巴尼的原型生產線取得了出色的工作，並取得了一些非常好的進展。作為我們整體產能擴張一部分的材料擴張進展順利，良率和成本等也在改善。

In terms of the broader expansion, though, I'll turn it over to Neill to talk a little bit about the various different pieces that we have going on.

不過，就更廣泛的擴展而言，我將把它交給尼爾，讓他談談我們正在進行的各種不同的部分。

Yes. So it's, Jed, it's probably worthwhile kind of breaking this down a little bit. So as I mentioned in the prepared remarks, the CapEx is going to grow to roughly $400 million in fiscal 2021, and we expect that to be the peak year of spending during the long-term plan that we previously announced.

是的。所以，傑德，可能值得稍微分解一下。正如我在準備好的發言中提到的，2021 財年的資本支出將增長到大約 4 億美元，我們預計這將是我們之前宣布的長期計劃中支出的高峰年。

So let me just break that down into a couple of pieces. First, as Gregg said, the first and foremost, the biggest piece to that is the Mohawk Valley Fab. And again, I would reiterate that. I think to date, we've made excellent progress. We poured concrete. As Gregg mentioned, the vertical construction is underway. We expect that fab to begin ramping sometime in the 2022 calendar time frame. And I think what that does is it supports the Wolfspeed growth in '22 and beyond.

讓我把它分成幾個部分。首先，正如格雷格所說，首先也是最重要的，最大的部分是莫霍克谷工廠。我再次重申這一點。我認為迄今為止，我們已經取得了巨大進展。我們澆築了混凝土。正如格雷格所提到的，垂直建設正在進行中。我們預計該晶圓廠將在 2022 年的某個時間點開始產能提升。我認為它的作用是支持 Wolfspeed 在 22 年及以後的成長。

However, this is an area that could have some variability in it in terms of spend. It's going to be a function of the timing of the build schedule and the timing of roughly $500 million of reimbursements we expect to receive in conjunction with our partnership in the State of New York. So a big project is underway, and we're going to see some big moving pieces here over the next 4 to 6 quarters as we start to make what we think is going to be significant progress there.

然而，這個領域的支出可能會有一些變化。這將取決於建設時間表的時間以及我們預計與紐約州的合作夥伴關係獲得的約 5 億美元的補償時間。因此，一個大項目正在進行中，在接下來的 4 到 6 個季度中，我們將看到一些重大進展，因為我們開始取得我們認為將取得重大進展的東西。

The second piece is, I don't want you to overlook this is that we also have an expansion going on down in Durham right now, and that's a fab expansion. We're outsourcing the LED silicon carbide and fab operations and kind of upgrading that, replacing it with Wolfspeed capacity. This is going to support some of the capacity ramp at the end of this year and as we see some opportunity into fiscal year '22. So we expect that expansion to be complete towards the end of this fiscal year. So that's kind of the second piece.

第二件事是，我不想讓你忽視這一點，我們現在也在達勒姆進行擴建，這是一次很棒的擴建。我們正在外包 LED 碳化矽和晶圓廠運營，並對其進行某種程度的升級，用 Wolfspeed 產能取代它。這將支持今年年底的部分產能提升，因為我們看到了 22 財年的一些機會。因此，我們預計擴張將在本財政年度結束時完成。這就是第二部分。

And the last piece is the materials expansion, and you can kind of think of that more in terms of a linear basis in terms of growth. So those are kind of the -- that's kind of the plan we've got. There's a lot of moving pieces as you look here in fiscal 2021. But I really believe that, that's what gives us a great basis for our capacity and our cost and our margins as we move out into when the business actually hitting inflection point in '22 and get to '22 plus.

最後一部分是材料擴張，你可以從成長的線性基礎角度來思考這一點。這些就是我們的計劃。正如您在 2021 財年看到的那樣，有很多變化。 '22+。

As it relates to 150 and 200, look, I think we've talked about building a 200-millimeter fab for Mohawk Valley. We're still planning to do that. Obviously, it's easier to downgrade that down to 150, as we talked about previously, and we'll still manage through that. But again, overall, on track. We'll up the CapEx this year, and there could be some moving pieces as we look into the next following quarters.

因為它涉及 150 和 200，看，我想我們已經討論過為莫霍克谷建造一座 200 毫米晶圓廠。我們仍然計劃這樣做。顯然，正如我們之前討論的那樣，將其降級到 150 會更容易，而且我們仍然會設法解決這個問題。但總的來說，還是在正軌上。我們今年將提高資本支出，在我們展望接下來的幾個季度時，可能會出現一些變化。

Our next question comes from Brian Lee with Goldman Sachs.

我們的下一個問題來自高盛的布萊恩李。

Maybe just first off to follow up on Jed's question, I wanted to dig into the CapEx budget here a little bit more. Neill, at the 2019 Analyst Day, you guys had talked about $720 million of CapEx from 2020 to 2024. With the $400 million here targeted for '21 and what you've already spent to date, can you kind of update us on how much CapEx remains in the plan, I guess, for the 2022 to 2024 time frame?

也許首先要跟進傑德的問題，我想進一步深入了解這裡的資本支出預算。 Neill，在2019 年分析師日上，你們談到了從2020 年到2024 年的7.2 億美元資本支出。情況嗎？ 我想，2022 年至 2024 年的時間範圍內，資本支出仍在計畫中嗎？

And then does this $720 million CapEx budget, is this increasing based on the '21 outlook here? Are you -- or are you just simply pulling it all forward? And then kind of what are you seeing out there to drive that acceleration, if that's the case? And then I had a follow-up.

那麼這 7.2 億美元的資本支出預算是否會根據 21 世紀的展望而增加？你是——還是只是簡單地推動這一切？如果是這樣的話，您認為是什麼推動了這種加速？然後我進行了跟進。

Sure. And thanks, Brian. First of all, let me say that there's really no change to the expansion plan that we talked about, the $720 million. And as we've discussed before, there's also other CapEx in the company besides just the capacity expansion. So one of the things to recognize here is -- and I said there's a number of moving pieces. A lot of Mohawk Valley happens as you start to get into the end of fiscal '21, into '22, and that's us crossing fiscal years.

當然。謝謝，布萊恩。首先，我要說的是，我們談到的7.2億美元的擴張計畫確實沒有改變。正如我們之前討論的，除了產能擴張之外，公司還有其他資本支出。因此，這裡需要認識到的一件事是──我說過有很多變化。當你開始進入 21 財年末、22 財年時，莫霍克谷發生了很多事情，這就是我們跨越財年的時候。

So what you'll see here is just timing. It's more or less of a zero-sum game. If we spend more in '21, you spend less in '22. So if you think about that profile we've talked about before, peak year kind of here in 2021, and then we start seeing that CapEx starts to come down in '22 and beyond. As we talked about also before, we expect the free cash flow to be negative in those periods as we have those significant investments. And then in '22 plus, as the Wolfspeed business starts to ramp, we start to reap the benefits of that.

所以你在這裡看到的只是時間。這或多或少是一場零和遊戲。如果我們在 21 年花費更多，那麼您在 22 年花費就會更少。因此，如果您考慮我們之前討論過的情況，即 2021 年是高峰年，然後我們開始看到資本支出在 22 年及以後開始下降。正如我們之前談到的，我們預期這些時期的自由現金流將為負，因為我們擁有這些重大投資。然後在 22 年後，隨著 Wolfspeed 業務開始成長，我們開始收穫其中的好處。

So that's still kind of the same plan. I think you're just seeing the timing of the CapEx move around a little bit.

所以這仍然是相同的計劃。我認為您只是看到資本支出的時間發生了一些變化。

Okay. Fair enough. That's helpful. And then just a second question on the Power and RF side. Gregg, you made some positive comments around kind of what you're seeing in 5G. Could you also maybe provide us an update on your engagement with Huawei? There's obviously been some more restrictions put in place there. So wondering what, if any, exposure you have. And then what's embedded into both your near and long-term outlooks there with respect to that customer as well as, in general, around the China 5G base station opportunity, if you could?

好的。很公平。這很有幫助。然後是關於電源和射頻的第二個問題。 Gregg，您對您在 5G 中看到的情況發表了一些積極的評論。您能否向我們介紹一下您與華為合作的最新情況？顯然那裡還施加了更多限制。所以想知道你有什麼暴露（如果有的話）。那麼，您對該客戶的近期和長期展望以及中國 5G 基地台機會的整體展望中包含哪些內容（如果可以的話）？

Sure, Brian. So in terms of Huawei, we have not been shipping to Huawei for the better part of a year, and we have no Huawei revenue plans in any of our future projections or forecasts or what have you. So that's been out since the ban went in place. And then -- so they're not in.

當然，布萊恩。因此，就華為而言，我們已經有一年多的時間沒有向華為發貨，而且我們在未來的任何預測或預測中都沒有華為的收入計劃。自從禁令實施以來，這一點就被取消了。然後——所以他們就不在了。

And in terms of -- possibly, there might be some small impact to materials customers associated with Huawei. But we think the large -- any large impact is -- we've basically taken it out of the picture. So we have developed good relationships with other players around the world and are repurposing the technology that we had developed for Huawei for those customers.

就可能而言，與華為相關的材料客戶可能會受到一些小的影響。但我們認為，任何重大的影響都是大的，我們基本上已經把它排除在外了。因此，我們與世界各地的其他參與者建立了良好的關係，並正在為這些客戶重新利用我們為華為開發的技術。

Last quarter, we announced that we had some communications infrastructure design wins. This quarter, we've talked about our total design-ins at $600 million. We had a portion of that also with communications infrastructure customers.

上個季度，我們宣布我們贏得了一些通訊基礎設施設計。本季度，我們討論了 6 億美元的總設計投入。我們也有一部分與通訊基礎設施客戶合作。

I guess the last part that I would say is that when you think about that $600 million of design-in that we just got this quarter, that's on top of $400 million or roughly $400 million of design-in that we got in the quarter before that. So in the last 2 quarters, we've racked up $1 billion worth of design-in. And I would just remind everybody, that was all during COVID. So pretty phenomenal results from our team there.

我想我要說的最後一部分是，當你想到我們本季剛剛獲得的 6 億美元設計投入時，這是在我們之前一個季度獲得的 4 億美元或大約 ​​4 億美元設計投入之上的。 。因此，在過去 2 個季度中，我們的設計投入已達 10 億美元。我想提醒大家，這都是在新冠疫情期間發生的。我們團隊取得了非常驚人的成果。

Our next question comes from Craig Hettenbach with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

A question for Gregg, just on the Delphi partnership and design win in China. Can you maybe just give a sense of the breadth of activity you're seeing as a result of that partnership? And you mentioned timing 2022, 2023, but any other color as we think about that business ramping in the coming years?

問格雷格一個問題，關於德爾福在中國的合作夥伴關係和設計勝利。您能否簡單介紹一下您所看到的這種夥伴關係所帶來的活動的廣度？您提到了 2022 年、2023 年的時間安排，但當我們考慮未來幾年業務的成長時，還有其他顏色嗎？

Well, I want to be a little bit cautious about talking about specific customers. I will say that the Delphi announcement is incremental to the -- our original announcement that we had announced in September of last year. So this is an additional win, which is great to see the traction for silicon carbide.

嗯，我想在談論特定客戶時保持謹慎。我要說的是，德爾福的公告是我們去年 9 月宣布的最初公告的增量。所以這是一個額外的勝利，很高興看到碳化矽的吸引力。

And I think we're seeing that across many different spaces, too, where one customer wins with us in some particular area or some particular customer and that opens up a broader opportunity. I think that's why you saw our pipeline now over 9 -- over $10 billion.

我認為我們在許多不同的領域也看到了這一點，其中一個客戶在某個特定領域或某個特定客戶中與我們一起獲勝，這開闢了更廣泛的機會。我想這就是為什麼你現在看到我們的管道超過 9 條——超過 100 億美元。

Got it. And then on the Arrow distribution kind of product launch and just given your long background in this industry and working with distribution, anything you'd call out that's unique in terms of -- clearly, silicon carbide, there's a lot of interest in adoption. But it seems like that's gotten off to a very strong start. And just trying to kind of contextualize what's happening there versus what you typically see through distribution?

知道了。然後，在 Arrow 分銷類型的產品發布中，考慮到您在這個行業的長期背景以及與分銷的合作，任何您認為獨特的東西 - 顯然，碳化矽，都有很大的採用興趣。但這似乎已經有了一個非常強勁的開始。只是試圖將那裡發生的事情與您通常透過分佈看到的情況聯繫起來？

Well, we've got a very strong relationship with -- and partnership with Arrow, and they're doing a fantastic job of this -- promoting the 650-volt silicon carbide MOSFET. Its thousands of customers have expressed interest. We're seeing everything from air conditioning, motor drives, plasma generators, electrosurgical units, airplane galley power, even induction cooktops. And so we're just seeing lots of different opportunities.

嗯，我們與 Arrow 建立了非常牢固的關係和合作夥伴關係，他們在這方面做得非常出色 - 推廣 650 伏特碳化矽 MOSFET。其數千名客戶表示了興趣。我們看到了從空調、馬達驅動器、等離子發生器、電外科設備、飛機廚房電源，甚至電磁爐等各種產品。所以我們看到了很多不同的機會。

And I don't have the exact stat on me. But if you take a look at the number of countries where they've identified opportunity, it's something greater than half, I think, are generated in countries where we don't have any salespeople. So this is really the strength of Arrow's footprint and combines with the strength of our product portfolio is really a great win.

而且我沒有關於我的確切統計數據。但如果你看一下他們發現機會的國家數量，我認為超過一半的機會是在我們沒有銷售人員的國家/地區產生的。因此，這確實是 Arrow 足跡的優勢，與我們產品組合的優勢相結合，確實是一次巨大的勝利。

We're really excited about it. The fact that they've got $1.6 billion worth of pipeline for total Wolfspeed and are accelerating the 650 volt, we're super excited about that. And so I think it's really doing something that we couldn't do on our own, just simply because the scale we have from a sales perspective just isn't there and, quite frankly, never will be there. We couldn't do that internally, I don't think.

我們對此感到非常興奮。事實上，他們已經擁有價值 16 億美元的 Wolfspeed 管道，並且正在加速 650 伏特電壓，我們對此感到非常興奮。因此，我認為這確實是我們自己無法做到的事情，只是因為從銷售角度來看，我們的規模還不存在，而且坦白說，永遠不會存在。我不認為我們內部無法做到這一點。

So leveraging their vast sales footprint has been a great win-win for both of us. And I think I've had plenty of time to sit down with the management team at Arrow, too, and I think we both feel real good about where we're going, the results that we've gotten so far. And there is no letting up -- letting off the so-called gas pedal, if you will.

因此，利用他們龐大的銷售足跡對我們雙方來說都是一個巨大的雙贏。我想我也有足夠的時間與 Arrow 的管理團隊坐下來，我認為我們都對我們的目標以及迄今為止所取得的成果感到非常滿意。如果你願意的話，就不能鬆懈──鬆開所謂的油門踏板。

Our next question comes from Edward Snyder with Charter Equity Research.

我們的下一個問題來自特許股票研究公司的愛德華·斯奈德。

Gregg, a couple of questions. First off, you used to say that Wolfspeed was 1/3 GaN, 1/3 SiC, 1/3 materials. But given the events in the last year or so with Huawei, et cetera, just tailing off and then your pricing of epi to make it much more aggressive, I think it was capacity-constrained last quarter, it seems to be the case that -- or correct me if I'm wrong, the materials should be at least 50% of Wolfspeed at this point. And your RF business sounds like it's down hard. I mean most of Huawei goes to Sumitomo now, which is a 2 Six customer. And I think over half of Qorvo's wafers for RF goes to 2 Six.

格雷格，有幾個問題。首先，您曾經說過 Wolfspeed 是 1/3 GaN、1/3 SiC、1/3 素材。但考慮到去年左右與華為等發生的事件，只是逐漸減少，然後你的外延定價使其更加激進，我認為上個季度的產能受到限制，情況似乎是 - - 或者糾正我，如果我錯了，此時材料應該至少是Wolfspeed 的50%。您的射頻業務聽起來正在嚴重下滑。我的意思是，華為現在的大部分業務都流向了住友商事，後者是 2 Six 的客戶。我認為 Qorvo 一半以上的 RF 晶圓都採用了 2 Six。

So is it a case that you're kind of transitioning to more of a power customer, given you've got that market almost to yourself at this point, the only real wafer supplier out there? Or is it just an ebb in the RF -- GaN RF business, and you've got a plan to bring that back? And if so, maybe you could articulate that. And then I have a follow-up.

那麼，考慮到您目前幾乎已經擁有了這個市場，並且是唯一真正的晶圓供應商，那麼您是否正在轉變為更多的大客戶？或者這只是 RF - GaN RF 業務的衰退，而您有計劃將其恢復？如果是這樣，也許你可以闡明這一點。然後我有一個後續行動。

Yes. So first off, over the last several years, our materials business has grown faster than the device business. And you're in the right ZIP code in terms of the materials business roughly half of Wolfspeed. And that's primarily been growing fast because of the long-term agreements we have and the channel reach that those customers have. They've obviously done a good job of getting reach into their customer base.

是的。首先，在過去的幾年裡，我們的材料業務的成長速度快於設備業務。就材料業務而言，您的郵遞區號是正確的，大約是 Wolfspeed 的一半。這主要是由於我們擁有的長期協議以及這些客戶擁有的通路覆蓋範圍而快速成長。顯然，他們在接觸客戶群方面做得很好。

I think that as it relates to the longer-term outlook, we would anticipate that our power business would be our fastest-growing business through the 2024 long-range outlook that we shared at our Investor Day, and that's simply because of the adoption of electric vehicles and so the power device business. And so we would see that ramping up pretty strong through that period.

我認為，由於它與長期前景相關，我們預計我們的電力業務將成為我們在投資者日分享的 2024 年長期前景中增長最快的業務，而這僅僅是因為採用了電動汽車等功率器件業務。因此，我們會看到這段時期的成長相當強勁。

As it relates to the 5G and the communications infrastructure, obviously, the Huawei situation was a pretty significant setback for us. But we've adjusted our plans, we've adjusted our focus to go after non-Huawei customers. And as I mentioned, Ed, we secured some design wins last quarter. We -- previous quarter and then last quarter as well, and we remain in pretty close contact with that customer base.

由於涉及5G和通訊基礎設施，顯然華為的情況對我們來說是一個相當重大的挫折。但我們已經調整了我們的計劃，我們已經調整了我們的重點來追求非華為客戶。正如我所提到的，艾德，我們上季度贏得了一些設計勝利。我們－上個季度和上個季度，我們與該客戶群保持著非常密切的聯繫。

Okay. And then maybe we can talk a bit more on the materials business. I know that since you've taken over, the epi business has gotten particularly strong, and I think you were in the spike last quarter on that. If we take a bigger picture view of the whole competitive dynamic, you're really the only major supplier of epi in crystal wafers for SiC power. I know (inaudible) has talked about selling any of it. (inaudible) got one agreement with STMicro. Outside of that, we don't see anybody out there really offering on the scale of this.

好的。然後也許我們可以多談談材料業務。我知道自從你接手以來，外延業務變得特別強勁，我認為上個季度你在這方面處於高峰。如果我們從更大的角度看待整個競爭動態，您確實是 SiC 功率晶體晶圓外延的唯一主要供應商。我知道（聽不清楚）已經討論過出售其中任何一個。 （聽不清楚）與 STMicro 達成協議。除此之外，我們沒有看到任何人真正提供如此規模的產品。

Is it fair to assume that the margins -- why shouldn't we assume that the margins on the wafer business would be better from the device business because there's less competition and it's a much more difficult piece of the puzzle? And if that's the case, wouldn't Cree be better positioned as the de facto wafer supplier of the industry given the likelihood of new competition and SiC growth is pretty much nil?

假設利潤率是否公平——為什麼我們不應該假設晶圓業務的利潤率會比設備業務更好，因為競爭較少，而且這是一個更困難的部分？如果是這樣的話，鑑於新競爭的可能性和 SiC 成長幾乎為零，Cree 作為該行業事實上的晶圓供應商是否會處於更好的地位？

Well, I think we kind of are positioned that way in terms of a supplier of wafers to the industry. We've got a significant number of very large long-term agreements with people in -- the folks in the industry. We've announced most of those. And we're also expanding our capacity pretty substantially.

嗯，我認為我們作為產業晶圓供應商的定位是這樣的。我們與業內人士簽訂了大量非常大的長期協議。我們已經宣布了其中的大部分內容。我們也大幅擴大了我們的產能。

We, however, believe that having vertical integration is another key factor, and that's certainly helping us from a design-win perspective. The design-ins that we had talked about this past quarter or that we mentioned in our script this past quarter of $600 million and then the previous quarter of $400 million, just to remind everybody, those are all device design-ins. And so I think customers that look at things like continuity of supply and quality of product and so forth, they look to us as a very competent player in silicon carbide. And the fact that we have both device and materials capability play off on each other and I think give our customers a strong amount of confidence in that area.

然而，我們相信垂直整合是另一個關鍵因素，從設計雙贏的角度來看，這無疑對我們有幫助。我們在上個季度討論過的設計，或者我們在上個季度的腳本中提到的 6 億美元和上一季的 4 億美元的設計，只是為了提醒大家，這些都是設備設計。因此，我認為關注供應連續性和產品品質等問題的客戶將我們視為碳化矽領域非常有能力的參與者。事實上，我們擁有的設備和材料能力相互影響，我認為這給了我們的客戶在該領域的強大信心。

Our next question comes from Colin Rusch with Oppenheimer.

我們的下一個問題來自科林·魯什和奧本海默。

Could you guys speak a little bit -- in a little bit more detail about the supply chain issues that you were seeing and mentioning in the script? Would love to understand kind of how expensive those are and how much duration you're expecting them to -- or how long they're expected to last?

你們能更詳細地談談你們在劇本中看到和提到的供應鏈問題嗎？很想了解它們的價格以及您期望它們的持續時間 - 或者它們預計持續多長時間？

Yes. So I think when you think about the supply chain issues, what we've talked about before is we have these safety procedures we've put into the factories. And what that essentially means is as you bring people in and out of the factory, you need to take more time and space people out, take people's temperatures and do all those things in terms of ensuring employee safety.

是的。所以我認為，當你考慮到供應鏈問題時，我們之前討論的是我們在工廠中實施了這些安全程序。這本質上意味著，當你把人們帶進和帶出工廠時，你需要花更多的時間和空間讓人們離開，測量人們的體溫，並採取所有這些措施來確保員工的安全。

As we think about our kind of near-term challenges, then health and safety of the employees is certainly number one. So what that's doing is it's putting pressure on efficiency within the factories, and it's limiting some of the upside potential I think we have, particularly in Wolfspeed power business right now. But it's also pressure in gross margins because they're not getting the same efficiency we would get normally.

當我們考慮近期面臨的挑戰時，員工的健康和安全無疑是第一位的。因此，這給工廠內部的效率帶來了壓力，並且限制了我認為我們擁有的一些上行潛力，特別是目前在 Wolfspeed 電力業務方面。但這也是毛利率的壓力，因為他們沒有獲得我們通常獲得的相同效率。

So it is pressuring us. But maybe the best way to answer that is kind of give a little context as to kind of how we think about not just the implication on supply, but also on the margins. This quarter, we talked about margins being down under 40% at 35%. As you move to next quarter, we're talking about 36.5% at the midpoint. I would say normalized margin for Cree is just north of 40% or around 40% if you exclude COVID. And over the long term, we think about 50% once we get to the Mohawk Valley Fab. So there are several things that we need to do to get the margins back up, and these safety kind of procedures and questions, you're going to ask about one of them.

所以它帶給我們壓力。但也許回答這個問題的最好方法是提供一些背景信息，說明我們如何思考不僅對供應的影響，而且對利潤的影響。本季度，我們談到利潤率降至 35%，低於 40%。當你進入下個季度時，我們談論的是中點 36.5%。我想說 Cree 的標準化利潤率略高於 40%，如果排除新冠疫情，則約為 40%。從長遠來看，一旦我們到達莫霍克谷工廠，我們就會考慮 50%。因此，我們需要做幾件事來恢復利潤，以及這些安全類型的程序和問題，您將詢問其中之一。

So the first one is you need to get kind of back to that normal factory efficiency, and that's just going to be a function of how long these procedures are in place. Right now, I don't see that changing anytime soon, certainly for the end of the year, likely into next year.

因此，第一個是您需要恢復正常的工廠效率，而這將取決於這些程序的執行時間。目前，我認為這種情況不會很快發生變化，尤其是在今年年底，可能會持續到明年。

The second thing -- and let me just follow back up on that is on the 150-millimeter MOSFET yields. We talked about those before, and we'll need to get some improvement there. And then lastly, we'll have to get some visibility into volume. I think there was a question earlier on the materials business. While it was down in the last quarter, kind of holding ground as we move forward, we're making good improvement on the cost initiatives there, but we're going to have to take down utilization. So in that, we'll have to get good visibility to volume and take those up.

第二件事——讓我跟進一下 150 毫米 MOSFET 的產量。我們之前討論過這些，我們需要在那裡進行一些改進。最後，我們必須對交易量有一定的了解。我認為早些時候有一個關於材料業務的問題。雖然上個季度有所下降，但隨著我們的前進，我們在成本計劃方面取得了很大的進步，但我們將不得不降低利用率。因此，我們必須對交易量有良好的了解並採取行動。

So look, I think that will have an implication on margins, have an implication on capacity. But I think as we continue to work through this, we'll see where we end up. But I think over the long term, the 50% plan as we get out to Mohawk is kind of the main event here (inaudible) we can administer it.

因此，我認為這將對利潤率、產能產生影響。但我認為，隨著我們繼續努力解決這個問題，我們會看到最終的結果。但我認為從長遠來看，我們到達莫霍克的 50% 計劃是這裡的主要事件（聽不清楚），我們可以管理它。

Okay. Actually, the question was about the supply chain bottlenecks, but I'll take it offline with you guys. So the other thing we'd love an update on is with the manufacturing excursions that you guys had talked about a couple of quarters ago. You had talked about going through a number of cycles to get those things resolved. Can you talk a little bit about the cycles on those improvements and kind of where you're at in terms of resolving those issues?

好的。其實這個問題是關於供應鏈瓶頸的，但是我會和大家一起線下討論。因此，我們希望更新的另一件事是你們幾個季度前討論過的製造業偏移。您曾談到要經歷多個週期才能解決這些問題。您能否談談這些改進的周期以及您在解決這些問題方面的進展？

Well, clearly, we're making -- we're working extremely hard on these things, and we're not making the progress that we had anticipated. I think what you're talking about is the yield challenges, the 150-millimeter MOSFET yields. And I guess what I would say is we're kind of making 2 or 3 steps forward and then we've got a step back as we're working through these things. The pandemic certainly has not helped. Maybe think about access to labs, volumes in the factory, these types of things, these have been a challenge for us in terms of driving that improvement.

嗯，很明顯，我們正在——我們在這些事情上非常努力地工作，但我們沒有取得我們預期的進展。我認為您談論的是良率挑戰，即 150 毫米 MOSFET 良率。我想我想說的是，我們向前邁出了 2 到 3 步，然後在解決這些問題時我們又退了一步。大流行當然沒有幫助。也許想想進入實驗室、工廠的產量等，這些對我們來說是推動改善的挑戰。

So look, we're going to continue to work through this. We're going to continue to try and drive those yields. That will be a key function of getting our capacity and our delivery up as well as margins up. But as we continue to work through these auto customers on different capabilities that are required to ship these products, I see some progress as we move forward. But again, it's going to be one of these kind of 2 steps forward, 1 step back.

所以看，我們將繼續努力解決這個問題。我們將繼續努力提高這些產量。這將是提高我們的產能、交付量以及利潤率的關鍵功能。但隨著我們繼續與這些汽車客戶合作開發這些產品所需的不同功能，我看到了我們前進的一些進展。但同樣，這將是一種前進兩步、後退一步的情況之一。

So there's probably going to be modest improvement as we move out into the rest of this year, and we kind of just see that slow, modest improvement as time goes on here. Again, the big change for us will be when we get up to Mohawk Valley. I think we'll have a much different structure and capability set there as we transition up to the bigger factory.

因此，隨著我們進入今年剩餘時間，可能會出現適度的改善，而且隨著時間的推移，我們只會看到這種緩慢、適度的改善。同樣，對我們來說最大的變化將是當我們到達莫霍克谷時。我認為，當我們過渡到更大的工廠時，我們將擁有截然不同的結構和能力。

Our next question comes from Joseph Osha with JMP Securities.

我們的下一個問題來自 JMP 證券的 Joseph Osha。

I've got 2. First, if we go back and look at your Investor Day deck, you've got the business getting almost to free cash flow breakeven in FY '22. And obviously, things have changed a bit. But as you look at your pipeline and timing and so forth, does FY '22 still look like the year you kind of turn the corner from a free cash flow standpoint?

我有 2。顯然，情況發生了一些變化。但當你審視你的管道和時間安排等時，從自由現金流的角度來看，22 財年看起來仍然是你扭轉局面的一年嗎？

Well, I think, Joe, it's going to depend on the timing of when we see the ramps happen. What we've talked about before is seeing the inflection point in the business happening in 2022. The large CapEx bill really happens this year and depending on what we spend this year, that will come out of next year. So it's just going to be a timing function of those things. So it's a lot of moving pieces.

好吧，我認為，喬，這將取決於我們看到坡道發生的時間。我們之前討論過的是，業務拐點將在 2022 年發生。所以這只是這些事情的計時功能。所以有很多移動的部分。

Again, the Mohawk Valley Fab itself is roughly $1 billion project over 5-plus years. There's $500 million of reimbursements. Some of those should come back in '22 and help us on the free cash flow line. So I think it's just hard to say exactly what that would be. But I would expect that '22, at some point, we'd see that inflection point and then they start to turn in the corner.

同樣，莫霍克谷工廠本身就是一個耗資約 10 億美元、歷時 5 年多的計畫。有5億美元的補償。其中一些應該會在 22 年回歸並幫助我們改善自由現金流。所以我認為很難確切地說那是什麼。但我預計 22 世紀的某個時候，我們會看到拐點，然後他們開始轉彎。

Okay. And an unrelated question following on some of the earlier thoughts. You're doing so well in this epi business. I look at Mohawk Valley, and I ask myself, why go to 200 millimeter? Obviously, bigger wafers are better, but bigger wafers can be harder. Isn't there perhaps a business case here that just take that fab's operational attributes and just put 150 millimeter in there?

好的。以及一些早期想法之後的一個不相關的問題。你們在外延業務上做得很好。我看著莫霍克谷，我問自己，為什麼要達到 200 毫米？顯然，更大的晶圓更好，但更大的晶圓可能更硬。這裡沒有一個商業案例，只是採用該晶圓廠的營運屬性並在那裡放置 150 毫米嗎？

We obviously have the capability of doing that, and that will be a decision that we make later on. Building a 200-millimeter fab and downsizing the handling equipment to 150 is a way better idea than building 150-millimeter fab and trying to upsize it, if you will. So it's really -- just think about it that way, Joe, and then we obviously can make that decision as we move forward.

我們顯然有能力做到這一點，這將是我們稍後做出的決定。建造一座 200 毫米晶圓廠並將搬運設備規模縮小至 150 台，比建造一座 150 毫米晶圓廠並嘗試擴大規模（如果您願意的話）要好得多。所以，喬，只要這樣想，然後我們顯然可以在前進的過程中做出決定。

Our next question comes from Craig Irwin with ROTH Capital Partners.

我們的下一個問題來自羅斯資本合夥公司的克雷格歐文。

So Gregg, I wanted to ask for your general thoughts around the puts and takes moving to 8-inch wafers. Can you maybe update us on where you might be with seeds, if you have seeds for commercial production? Where are you on the updated wafering technology that needs to be used? And what are your general thoughts around the SiC wafers and the probable yield losses on 8-inch? I mean, how do these all factor into your longer-term time line? And can you maybe share with us anything about that time line that might be pertinent to the ramp over the next couple of years?

Gregg，我想詢問您對轉向 8 英寸晶圓的看漲期權和看跌期權的總體想法。如果您有用於商業生產的種子，您能否向我們介紹您可能在哪裡獲得種子？您對需要使用的更新晶圓技術的了解處於什麼位置？您對 SiC 晶圓以及 8 吋晶圓可能出現的良率損失有何整體看法？我的意思是，這些因素如何影響您的長期時間表？您能否與我們分享有關該時間表的任何信息，這些信息可能與未來幾年的坡道相關？

Thanks, Craig, for the question. I don't want to get into a lot of those kind of details. I will tell you that I have a monthly review on our 200-millimeter activity, and in fact, I had that review just yesterday.

謝謝克雷格的提問。我不想討論太多這類細節。我會告訴你，我每個月都會對我們的 200 毫米活動進行審查，事實上，我就在昨天才進行了審查。

So I feel real good about the progress the team is making. Some of the items that you had talked about we're tackling. We're in really good shape on some of the ones you specifically called out, and we obviously still have some work to do there, too.

因此，我對團隊所取得的進展感到非常滿意。您談到的一些問題我們正在解決。在您特別指出的一些問題上，我們的狀態非常好，而且我們顯然還有一些工作要做。

So I apologize, I don't want to get into a lot of detail on that, but I can tell you, those items are very well front and center in terms of our thinking, and I feel good about where we're at in terms of making progress on those.

所以我很抱歉，我不想詳細說明這一點，但我可以告訴你，這些項目在我們的想法中處於非常重要的位置，我對我們所處的位置感到滿意在這些方面取得進展。

Great. My follow-up question is the semiconductor customer that was not designated as essential. Can you clarify for us, was that impact mostly or entirely in the June quarter? Have they started up production again? Anything you can do to help us quantify the impact of them restarting?

偉大的。我的後續問題是未被指定為必需的半導體客戶。您能否為我們澄清一下，這種影響主要還是全部發生在六月季度？他們又開始生產了嗎？您可以做些什麼來幫助我們量化它們重新啟動的影響？

Craig, it's Neill. Yes, they're -- it actually was a nonsemiconductor customer, and we have not really disclosed in terms of what that customer means. But what I can tell you is how we're managing that is built into kind of the forecast and the guidance we've given. If you think about the materials business, like I said, maybe modest improvement holding ground as we kind of go into next quarter. And then as the LTAs are structured, we should see some benefit out beyond that time frame.

克雷格，我是尼爾。是的，他們實際上是一個非半導體客戶，我們還沒有真正披露該客戶的含義。但我可以告訴你的是，我們如何管理這一點，這是我們給出的預測和指導的一部分。如果你考慮材料業務，就像我說的那樣，當我們進入下個季度時，也許會有適度的改善。然後，隨著長期協議的構建，我們應該會看到超出該時間範圍的一些好處。

That concludes today's question-and-answer session. I'd like to turn the call back to Gregg Lowe for closing remarks.

今天的問答環節到此結束。我想將電話轉回格雷格·洛（Gregg Lowe），讓其致閉幕詞。

Well, thank you, everybody, for your interest in Cree. We look forward to talking to you next quarter. Thank you.

好的，謝謝大家對 Cree 的興趣。我們期待下個季度與您交談。謝謝。

Ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。