NEW YORK - Wolfspeed Inc. (NYSE:WOLF) shares plunged 15% in after-hours trading on Wednesday after the silicon carbide chipmaker reported lower-than-expected revenue for its fiscal first quarter and provided disappointing guidance.
The Durham, North Carolina-based company posted revenue of $194.7 million for the quarter ended September 29, missing analyst estimates of $200.36 million. Revenue was down slightly from $197.4 million in the same quarter last year.
Wolfspeed reported an adjusted loss of $0.91 per share, which was better than the $1.00 loss per share analysts had forecast. However, investors focused on the revenue miss and weak outlook.
For the current quarter, Wolfspeed expects revenue between $160 million and $200 million, well below Wall Street's consensus estimate of $214.6 million. The company projects an adjusted loss of $1.14 to $0.89 per share, compared to analysts' expectations for a $0.90 per share loss.
"We delivered 2.5 times YoY growth in our automotive business in the first quarter, and we expect our EV revenue to continue to grow throughout calendar 2025," said Wolfspeed CEO Gregg Lowe in a statement. However, he noted the company is taking actions to enhance efficiency and align with current market conditions.
Wolfspeed said it is transitioning to a fully 200-millimeter silicon carbide manufacturing platform, which will include closing its manual 150-millimeter fab in Durham and reducing its workforce. The company expects these moves to yield approximately $200 million in annual cash savings.
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