On January 29, Chipmaker Wolfspeed exceeded Wall Street's second-quarter revenue expectations and reported a smaller-than-anticipated net loss on Wednesday. The company implemented operational changes, including the closure of certain facilities in the first quarter of 2025, and shifted its device business to a 200-millimeter silicon carbide fab for enhanced product efficiency and production capacity.
Wolfspeed aims to leverage the increasing demand for chips utilizing silicon carbide technology, particularly suitable for high-power applications like EV powertrains, e-mobility, renewable energy systems, battery energy storage systems, and AI data centers.
Shares of the Durham, North Carolina-based company increased by approximately 1.2% in after-hours trading. Second-quarter revenue totaled $180.5 million, surpassing the $179.9 million average estimate. The company reported a net loss per share of 95 cents, outperforming the projected loss of $1.02 per share. The Mohawk Valley Fab facility contributed around $52 million in revenue.
Following weak demand from automotive clients, the company's board replaced Gregg Lowe with Thomas Werner as executive chairman in November while actively seeking a permanent CEO.
Wolfspeed anticipates third-quarter revenue from ongoing operations to range between $170 million and $200 million, with the midpoint falling below analysts' average estimate of $193.6 million, according to LSEG data. The company projects a quarterly adjusted loss per share between 88 cents and 76 cents, compared to the estimated loss of 86 cents per share. For the third quarter of fiscal 2025, Wolfspeed expects restructuring-related costs of $72 million.