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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (10304)	1/28/2021 9:15:21 AM
From: Lou Weed	Respond to of 10713

Their GM reductions are most likely due to the yield issues they were having on the MOSFETs and pricing pressure for participation in bigger designs at the larger customers. The GMs were very healthy when Cree and Infineon were really the only legit players (not so long ago). Now with the hockey stick ramp up in the technology you're starting to see that pricing pressure. I'm sure on some of the big design wins they might actually be near break even or slightly better right now and are looking on 200mm introduction for better costs on future pricing. Note the sudden acceleration to open the new plant with 200mm wafer......

To: slacker711 who wrote (10304)	1/28/2021 9:17:35 AM
From: slacker711	Respond to of 10713

The unallocated costs on the GM line are utter BS. 401k matching and incentive plans for manufacturing employees are part of the cost of manufacturing. investor.cree.com Unallocated costs in the table below consisted primarily of manufacturing employees’ stock-based compensation, expenses for quarterly or annual incentive plans, and matching contributions under the Company’s 401(k) plan. These costs were not allocated to the reportable segments' gross profit because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources. For the first quarter of fiscal 2021, unallocated costs include incremental costs relating to operating manufacturing operations during the COVID-19 pandemic. These incremental costs are primarily comprised of increased cleaning costs, cleaning supplies and protective equipment, as well as the costs from implementing preventative safety measures, including increased wellness checks and time off policies. Additionally, unallocated costs for the first quarter of fiscal 2021 included underutilization charges related to transitioning certain LED Products operations to Wolfspeed operations.