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Ideal Power Inc. reported results for its third quarter ended September 30, 2024.
“Our Q3 accomplishments underscore the continued execution of our B-TRAN™ commercial roadmap with several significant developments. We are collaborating with a third global automaker and recently secured initial orders from a global Tier 1 automotive supplier. We added our second and third distributors with expertise in demand-creation and they are already placing customer orders and providing quotes of our products to large global companies,” said Dan Brdar, President and Chief Executive Officer of Ideal Power. “Overall, the momentum we are building is working to advance companies to orders followed by potential custom development agreements and/or design wins to drive long-term value creation for our shareholders.”
Key Third Quarter and Recent Business Highlights
Execution to our B-TRAN™ commercial roadmap continues, including:
- Secured orders from a Global Tier 1 automotive supplier for numerous discrete B-TRAN™ devices, a SymCool® power module, a solid-state circuit breaker (SSCB) evaluation board and a driver. This customer is interested in using B-TRAN™ for solid-state electric vehicle (EV) contactor applications.
- Meeting regularly with Stellantis’ technical and production teams with Phase III expected to begin shortly after Stellantis selects a Tier 1 supplier to design and build the drivetrain inverter for its new EV platform. In a parallel initiative, Stellantis continues working with the Company and a large semiconductor company with expertise in driver control circuity for the B-TRAN™ inverter drivers.
- Collaborating with a third global automaker. This auto OEM is evaluating B-TRAN™-enabled contactors as a potential replacement for electromechanical contactors in its EVs. The Company recently delivered a SSCB evaluation board to this automaker.
- Added our second distributor, RYOSHO. RYOSHO already placed orders with Ideal Power from a large global customer interested in the Company’s products for solid-state circuit protection applications and introduced B-TRAN™ to global automakers based in Japan.
- Added our third distributor, Sekorm Advanced Technology (Shenzhen) Co., Ltd. In response to customer requests, Sekorm began quoting our products to large companies for SSCB applications.
- Initiated third-party automotive qualification and reliability testing of B-TRAN™ devices. This testing requires over a thousand packaged B-TRAN™ devices from multiple wafer runs. Initial test results are positive with no failures to date.
- Increased the current rating of our SymCool® power module from 160A to 200A, a 25% increase, based on the results of testing. In conjunction with a power module size reduction of approximately 50%, this significantly increases the power density of the SymCool® power module.
- B-TRAN™ Patent Estate: Currently at 90 issued B-TRAN™ patents with 42 of those issued outside of the United States and 50 pending B-TRAN™ patents. Current geographic coverage includes North America, China, Japan, South Korea, India, Europe, and Taiwan.
Third Quarter 2024 Financial Results
- Cash used in operating and investing activities in the third quarter of 2024 was $2.4 million compared to $1.9 million in the third quarter of 2023.
- Warrant proceeds in the third quarter of 2024 were $1.0 million.
- Cash used in operating and investing activities in the first nine months of 2024 was $6.6 million compared to $5.6 million in the first nine months of 2023.
- Cash and cash equivalents totaled $18.7 million at September 30, 2024.
- No long-term debt was outstanding at September 30, 2024.
- Operating expenses in the third quarter of 2024 were $2.9 million compared to $2.8 million in the third quarter of 2023.
- Net loss was $2.7 million in both the third quarter of 2024 and the third quarter of 2023.
2024 Milestones
For 2024, the Company has set or achieved the following milestones:
√ Successfully completed Phase II of development program with Stellantis
• Secure Phase III of development program with Stellantis
√ Completed qualification of second high-volume production fab
• Convert large OEMs in our test and evaluation program to design wins/custom development agreements
√ Added distributors for SymCool® products
• Initial sales of SymCool® IQ intelligent power module
√ Began third-party automotive qualification testingOriginal – Ideal Power
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CVD Equipment Corporation announced its financial results for the third quarter ended September 30, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “We are pleased that CVD’s third quarter 2024 revenue was $8.2 million, representing a 31.4% increase from the prior year period, which supported an improvement in operating performance and system gross margins. It is also encouraging that our September 30th backlog was $19.8 million, meaningfully higher than our 2023 year-end backlog. We are staying the course on our strategic efforts to build critical customer relationships, while carefully managing our costs to achieve our goal of long-term profitability and positive cash flow, while simultaneously focusing on growth and return on investment.”
“We continue to see an ongoing recovery of our Aerospace and Defense market segment. In early November, we received a $3.5 million follow on order for our CVI/CVD3500 system from an existing aerospace customer.”
“The silicon carbide market has remained quite dynamic, with ongoing overcapacity and declining wafer pricing,” continued Mr. Lakios. “That said, SiC wafer producers are quickly transitioning to 200 mm production to stay competitive, and CVD is making progress with the shipment of our first PVT200™ system during the third quarter. As we stated previously, this was a strategic order for SiC 200 mm crystal boule growth that we received in the first quarter of 2024. The performance of the system is currently being evaluated for production by our now second PVT account. In addition, we are continuing to support both our PVT150™ and PVT200™ products in the field.”
Mr. Lakios added, “Our order and revenue levels continue to fluctuate given the nature of the emerging growth end markets we serve.”
Third Quarter 2024 Financial Performance
- Revenue of $8.2 million, an increase of 31.4% year over year primarily due to higher CVD Equipment system revenues and an increase in gas delivery system revenues by our SDC segment.
- In the third quarter of 2023, we recognized an increase in revenue of $0.8 million that was the result of a modification of a customer contract.
- Backlog as of September 30, 2024 of $19.8 million, a decrease from $24.0 million at June 30, 2024 and increase from $18.4 million at December 31, 2023.
- During the quarter, we recognized a $1.0 million non-cash charge to reduce our PVT150™ inventory to net realizable value. This charge was recognized as a result of changes in the overall market for equipment for 150 mm SiC wafers.
- Our gross profit margin percentage improved due to improvements in contract mix but was offset by the inventory charge.
- The Company recognized a $0.6 million gain on the sale of equipment by its MesoScribe subsidiary.
- MesoScribe fulfilled its final orders of $0.7 million during the quarter and ceased operations as of September 30, 2024.
- Operating income of $77,000 as compared to an operating loss of $1.0 million in the prior year third quarter.
- Net income of $0.2 million or $0.03 per basic and diluted share, compared to a net loss of $0.8 million or $0.30 per basic and diluted share during the prior year third quarter.
- Cash and cash equivalents as of September 30, 2024 of $10.0 million as compared to $14.0 million as of December 31, 2024.
Third Quarter 2024 Operational Performance
- Orders for the third quarter were $4.1 million principally from our CVD Equipment segment as compared to $4.1 million in the prior year third quarter. Orders for the first nine months of 2024 were $21.0 million as compared to $19.9 million for the first nine months of 2023.
- We continue to make investments in both research and development and sales and marketing, focused on our three key strategic markets – aerospace & defense, high power electronics and EV battery materials / energy storage.
Original – CVD Equipment
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Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on 30 September 2024.
“Infineon has managed the 2024 fiscal year well and concluded it in line with expectations,” says Jochen Hanebeck, CEO of Infineon. “Currently, there is hardly any growth momentum in our end markets except from AI, the cyclical recovery is being delayed. The inventory correction is continuing. Short-term ordering patterns and inventory digestion are clouding visibility on demand trends beyond the next couple of quarters. We are therefore preparing for a muted business trajectory in 2025. At the same time, we are relying on the consistent implementation of the structural measures in our “Step Up” program to strengthen our competitiveness. In combination with our innovative power, we are addressing our structural growth drivers and putting ourselves in the best position for a coming upturn.”
- Q4 FY 2024: Revenue €3.919 billion, Segment Result €832 million, Segment Result Margin 21.2 percent
- FY 2024: Revenue €14.955 billion, down 8 percent on the prior year; Segment Result €3.105 billion; Segment Result Margin 20.8 percent; adjusted earnings per share €1.87; Free Cash Flow €23 million, adjusted Free Cash Flow €1.690 billion
- Dividend proposal for FY 2024: Dividend unchanged at €0.35 per share
- Outlook for Q1 FY 2025: Based on an assumed exchange rate of US$1.10 to the euro, revenue of around €3.2 billion expected. On this basis, Segment Result Margin forecast to be in the mid-teens percentage range
- Outlook for FY 2025: Based on an assumed exchange rate of US$1.10 to the euro, revenue is expected to slightly decline compared with previous year. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range. Investments of approximately €2.5 billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around €1.7 billion and reported Free Cash Flow around €900 million
For the full version of this news release (incl. financial data), please download the PDF version.
Original – Infineon Technologies
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Wolfspeed, Inc. announced its results for the first quarter of fiscal 2025.
Quarterly Financial Highlights (Continuing operations only. All comparisons are to the first quarter of fiscal 2024.)
- Consolidated revenue of approximately $195 million, as compared to approximately $197 million
- Mohawk Valley Fab contributed approximately $49 million in revenue
- Power device design-ins of $1.5 billion
- Power device design-wins of $1.3 billion
- GAAP gross margin of approximately (19)%, compared to approximately 13%
- GAAP gross margin includes the impacts of underutilization costs primarily in connection with the start of production at the Mohawk Valley Fab. Underutilization was $26.4 million as compared to $34.4 million.
- Non-GAAP gross margin of 3%, compared to 16%
- Ended Q1 with ~$1.7 billion in cash and investments; does not include initial draw down of $250 million from lender group
“This quarter we took action to solidify the capital structure, simplifying our business to accelerate structural profitability and support the build out of our state-of-the-art silicon carbide facilities. We will have a 200mm silicon carbide footprint at Mohawk Valley and North Carolina materials factories that we target to generate approximately $3 billion in revenue annually,” said Wolfspeed CEO, Gregg Lowe. “Last month, we reached a significant milestone by signing a non-binding preliminary memorandum of terms (PMT) for up to $750 million in proposed direct funding under the CHIPS and Science Act and an additional $750 million from our lending group, demonstrating substantial progress towards our funding goals. With this announcement, we now have access to up to $2.5 billion of incremental funding to support our U.S. capacity expansion plans.”
Lowe continued, “To drive operational improvements, we are taking action to enhance efficiency, align our business with current market conditions and become the first silicon carbide company to transition to pure-play 200-millimeter. The transition to a fully 200-millimeter platform allows us to take further initiatives to streamline our cost structure, including closing our manual Durham 150-millimeter Fab, other manufacturing footprint rationalization, and reducing our workforce. Combined, we expect these initiatives will yield approximately $200 million in annual cash savings. In parallel, we remain focused on optimizing our capital structure, further reducing our fiscal 2025 CapEx guidance by $100 million to align the pace of our spend with the broader shift in EV market demand.”
“We delivered 2.5 times year-over-year growth in our automotive business in the first quarter, and we expect our EV revenue to continue to grow throughout calendar 2025, as the total number of car models using a Wolfspeed silicon carbide solution in the power train increased by 4x from 2023 to 2024 and is expected to grow by another approximately 75% year over year in 2025. We also remain confident in the long-term fundamentals of our industrial and energy business. Importantly, we believe the secular trends and long-term growth drivers for our core end markets remain intact, and we expect the actions we are taking today will allow us to become a more efficient and agile organization positioned to capture the long-term growth opportunities ahead,” concluded Lowe.
For its second quarter of fiscal 2025, Wolfspeed targets revenue from continuing operations in a range of $160 million to $200 million. GAAP net loss is targeted at $401 million to $362 million, or $3.14 to $2.84 per diluted share. Non-GAAP net loss is targeted to be in a range of $145 million to $114 million, or $1.14 to $0.89 per diluted share.
Targeted non-GAAP net loss excludes $256 million to $248 million of estimated expenses, net of tax, primarily related to stock-based compensation expense, amortization of discount and debt issuance costs, net of capitalized interest, project, transformation and transaction costs and restructuring and other facility closure costs. The GAAP and non-GAAP targets do not include any estimated change in the fair value of the shares of common stock of MACOM Technology Solutions Holdings, Inc. (MACOM) that we acquired in connection with the sale to MACOM of our RF product line (RF Business Divestiture).
During the first quarter of fiscal 2025, Wolfspeed initiated a facility closure and consolidation plan to optimize its cost structure and accelerate its transition from 150mm to 200mm silicon carbide devices. The costs incurred as a result of this restructuring plan include severance and employee benefit costs, voluntary termination benefits and other facility closure-related costs.
Wolfspeed incurred $87.1 million of restructuring-related costs in the first quarter of fiscal 2025, of which $34.3 million were recognized in cost of revenue, net and $52.8 million were expensed as operating expense in the statement of operations. For the second quarter of fiscal 2025, the Company expects to incur $174 million of restructuring-related costs, of which $34 million will be recognized in cost of revenue, net and the remaining $140 million will be recognized as operating expense.
Original – Wolfspeed
- Consolidated revenue of approximately $195 million, as compared to approximately $197 million
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ROHM Co., Ltd.’s financial report for the six months ending September 30, 2024, reveals a challenging period characterized by a decline in net sales and profitability. The company’s net sales dropped by 3.0% year-over-year to ¥232,022 million. This decline reflects a mix of robust demand in certain markets, such as automotive electronics, which increased sales in SiC power devices, and growth in the computer and storage sectors. However, these gains were offset by significant sales declines in the industrial equipment market.
Key financial metrics deteriorated, with ROHM reporting an operating loss of ¥974 million, a reversal from a profit of ¥29,833 million in the prior year. Factors influencing this loss include lower sales volumes, reduced production due to inventory adjustments, and higher costs associated with expanding SiC device production and adopting eight-inch wafers. The ordinary profit also declined to a loss of ¥129 million, impacted by foreign exchange losses. Profit attributable to shareholders dropped by 94.5% to ¥2,068 million, primarily due to reduced gains on securities sales.
ROHM’s EBITDA also saw a decrease, down 35.8% to ¥39,344 million. Segment-wise, integrated circuits and discrete semiconductor devices faced declines, with IC sales down 2.9% and segment profit down 54.8%. Power devices in the automotive sector performed well, but broader semiconductor device sales suffered from subdued demand in the industrial equipment sector. In contrast, modules and resistors segments showed marginal growth, supported by increased demand for smartphone sensor modules and high-power resistors for automotive applications.
Looking forward, ROHM expects continuing economic and industry challenges, such as slowing EV market growth, prolonged inventory adjustments in industrial equipment, and fluctuating consumer demand. As a result, ROHM has revised its forecast, projecting full-year sales to decrease by 3.8% to ¥450,000 million, alongside anticipated losses in operating profit and ordinary profit. The company plans to proceed with production adjustments, aiming for future alignment with customer demand, particularly in energy-efficient solutions and advanced power devices.
Original – ROHM
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Axcelis Technologies, Inc. announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, compared to $52.8 million for the second quarter. Net income for the quarter was $48.6 million, or $1.49 per diluted share, compared to $50.9 million, or $1.55 per diluted share in the second quarter.
President and CEO Russell Low commented, “Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders.”
For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million, and earnings per diluted share of approximately $1.25.
Original – Axcelis Technologies
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Veeco Instruments Inc. announced financial results for its third quarter ended September 30, 2024. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.
Third Quarter 2024 Highlights:
- Revenue of $184.8 million, compared with $177.4 million in the same period last year
- GAAP net income of $22.0 million, or $0.36 per diluted share, compared with $24.6 million, or $0.42 per diluted share in the same period last year
- Non-GAAP net income of $28.3 million, or $0.46 per diluted share, compared with $31.0 million, or $0.53 per diluted share in the same period last year
“Veeco reported solid third quarter results above the mid-point of our guidance, led by record Semiconductor revenue,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “Our Semiconductor business grew 26% year-over-year and 13% sequentially, highlighted by an increase in shipments to leading-edge customers across several product lines. Our portfolio of enabling technologies is gaining traction for several industry inflections, contributing to our expectations for our Semiconductor business to outperform WFE growth for the 4th consecutive year.”
Original – Veeco Instruments
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Vishay Intertechnology, Inc. announced results for the fiscal third quarter ended September 28, 2024.
Highlights
- 3Q 2024 revenues of $735.4 million
- Gross margin was 20.5% and included the negative impact of approximately 150 basis points related to the addition of Newport
- GAAP loss per share of ($0.14); adjusted EPS of $0.08 per share
- 3Q 2024 book-to-bill of 0.88 with book-to-bill of 0.79 for semiconductors and 0.97 for passive components
- Backlog at quarter end was 4.4 months
“For the third consecutive quarter this year, revenue has held fairly constant, reflecting a prolonged period of inventory de-stocking as the pace of consumption by industrial customers remains slow, backlogs are pushed out and macroeconomic conditions in Europe worsen,” said Joel Smejkal, President and CEO. “While the industry remains in a downcycle, we are making the necessary adjustments to manage costs while continuing to execute our five-year strategic plan. We are preparing to participate fully in the next industry up-cycle and we are putting the foundation in place to capitalize on the longer term demand catalysts of e-mobility and sustainability to drive faster revenue growth, and improve profitability and returns on invested capital.”
For the fourth quarter of 2024, management expects revenues in the range of $720 million +/- $20 million, with gross profit margin in the range of 20.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.
Original – Vishay Intertechnology
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GlobalFoundries Inc. (GF) announced preliminary financial results for the third quarter ended September 30, 2024.
Key Third Quarter Financial Highlights
- Revenue of $1.739 billion
- Gross margin of 23.8% and Non-IFRS gross margin of 24.7%
- Operating margin of 10.6% and Non-IFRS operating margin of 13.6%
- Net income of $178 million and Non-IFRS net income of $229 million
- Non-IFRS adjusted EBITDA of $627 million
- Cash, cash equivalents and marketable securities of $4.3 billion
- Year to date net cash provided by operating activities of $1,265 million and Non-IFRS adjusted free cash flow of $779 million
“In the third quarter, the GF team continued to execute next generation opportunities with our customers, by securing key design wins across our growing portfolio of essential chip technologies,” said Dr. Thomas Caulfield, President and CEO of GF. “We delivered consistent financial results at the upper end of the guidance ranges we provided in our August earnings release, and as we continue to navigate the ongoing uncertainties facing our industry, we remain on-track to deliver approximately a threefold increase in our year-over-year Non-IFRS adjusted free cash flow generation by the end of 2024.”
Recent Business Highlights
- Building on the longtime relationship between GF and NXP Semiconductors (NXP), the companies announced a new collaboration leveraging GF’s 22FDX® process technology platform and global manufacturing footprint to optimize the power, performance and time-to-market of NXP’s solutions across a range of automotive, IoT and smart mobile devices. GF’s 22FDX chips will be manufactured in Dresden, Germany and Malta, New York, providing NXP geographically diverse supply for their customers.
- Over one thousand customers and partners attended GF’s annual Technology Summit held around the world in Santa Clara, California, Munich, Germany and Shanghai, China, to build deeper relationships and learn how GF’s essential chips play a critical role in realizing “AI Everywhere.”
- GF entered into a strategic technology development and licensing agreement with Finwave Semiconductor, Inc (Finwave), a leading innovator in GaN technology. The collaboration will optimize and scale Finwave’s cutting-edge GaN-on-Si technology to volume production at GF’s 200mm fab in Burlington, Vermont.
Original – GlobalFoundries
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Navitas Semiconductor announced unaudited financial results for the third quarter ended September 30, 2024.
“I’m pleased to announce record sales in the mobile fast-charger market plus a completely new GaN platform for 48V AI data centers, EV and AI robotics applications in conjunction with a new, strategic, dual-sourcing partnership with Infineon,” said Gene Sheridan, CEO and co-founder.
`“Despite macro-economic challenges, we continue to grow faster than the market, and the new, low-voltage GaN platform not only opens up new strategic markets, but also brings customers dual-sourcing options from Navitas and Infineon for added confidence to accelerate adoption of GaN into new mainstream, high-volume applications.”
The company also announced a cost-reduction plan that is expected to save $2 million per quarter and streamline the organization with increased focus on AI data center, EV and mobile applications, accelerating the company’s path to profitability. The plan includes a 14% reduction in headcount (approximately 45 employees).
3Q24 Financial Highlights
- Revenue: Total revenue was $21.7 million in the third quarter of 2024, compared to $22.0 million in the third quarter of 2023, and $20.5 million in the second quarter of 2024.
- Loss from Operations: GAAP loss from operations for the quarter was $29.0 million, compared to a loss of $28.6 million for the third quarter of 2023 and a loss of $31.1 million for the second quarter of 2024. On a non-GAAP basis, loss from operations for the quarter was $12.7 million compared to a loss of $8.7 million for the third quarter of 2023, and a loss of $13.3 million in the second quarter of 2024.
- Cash: Cash and cash equivalents were $98.6 million as of September 30, 2024.
Market, Customer and Technology Highlights
- New, Low-voltage (LV) GaN Platform (80-200V): Optimized for 48V systems in AI data center, EV, and motor drive, sampling in Q4 2024, with strategic dual-sourcing partnership with Infineon Technologies. Common specifications (packaging, pin-out, footprint and IP) to accelerate customer adoption of GaN into high-volume, mainstream applications.
- AI Data Center: New 98%-efficient, 8.5 kW AI power supply reference design with high-voltage (HV) GaN+SiC architecture launched as well as proprietary IntelliWeave™ PFC control technique to deliver extreme power density demanded by NVIDIA’s Hopper-Blackwell-Rubin AI GPU roadmap. High-voltage GaNSafe power ICs and Gen-3 ‘Fast’ SiC devices are featured in over 60 active customer projects with direct customers such as Delta, GreatWall, Compuware and LiteON, supplying end-users like AWS, Azure and Google. Our data center production revenues started in Q3 as expected and will continue ramping throughout 2025.
- EV: Leading-edge, trench-assisted, planar-gate Gen-3 ‘Fast’ SiC devices now fully AEC Q101 (automotive) qualified and pushing beyond. Six new on-board and road-side charger design wins in Q3, expected to ramp in 2025 and 2026. Largest pipeline segment, with 200+ projects. New, LV GaN platform optimized for 48V battery EV applications.
- Mobile & Consumer: GaNSlim ICs achieved another 26 design wins in Q3. Three new tier-1 OEM wins expected to deliver revenue ramping Q2’25, adding to the Samsung wins announced in August.
- Appliance & Industrial: Thirty new design wins in Q3, ranging from vacuum cleaners and LED lighting, to solid-state, grid-connected circuit-breakers, multi-kW power supplies and heat pumps. New, LV GaN platform addresses 48V industrial motor drives including AI robotics.
- Solar & Energy Storage: Ten design wins, including at Generac, expected to ramp mid-2025. Next-gen GaN ICs – including Navitas-proprietary, industry-leading bi-directional GaN ICs – continue on track for significant mid-2025 ramp in solar micro-inverters. New, LV GaN doubles TAM in inverters, as complement to HV GaN and SiC.
Fourth quarter 2024 net revenues are expected to be between $18.0 and $20.0 million. Non-GAAP gross margin for the fourth quarter is expected to be 40% plus or minus 50 basis points and non-GAAP operating expenses are expected to be approximately $20.5 million in the fourth quarter of 2024.
Original – Navitas Semiconductor
