NEW YORK - Wolfspeed Inc. (NYSE:WOLF) shares gained 4.2% after the silicon carbide chipmaker reported second-quarter results and provided a better-than-feared outlook for the current quarter.
The Durham, North Carolina-based company posted adjusted earnings per share of -$0.95 for the second quarter, beating analyst estimates of -$1.02. Revenue came in at $181 million, slightly above the consensus of $179.96 million but down 13% YoY from $208 million.
Wolfspeed's Mohawk Valley Fab contributed $52 million in revenue, up significantly from $12 million in the same quarter last year. However, the company's non-GAAP gross margin declined to 2% from 16% YoY, impacted by $28.9 million in underutilization costs primarily related to the start of production at the Mohawk Valley Fab.
For the third quarter, Wolfspeed expects revenue between $170 million and $200 million, compared to analyst estimates of $193.6 million. The company forecasts an adjusted loss per share of -$0.88 to -$0.76, versus the -$0.84 consensus.
"Since stepping into the Executive Chairman role in November, I have been acutely focused on aggressively pursuing our plans to achieve our financial and operational targets," said Wolfspeed Executive Chair Thomas Werner. He highlighted three key priorities: improving financial performance, strengthening the balance sheet, and raising cost-effective capital.
The company recently completed a $200 million at-the-market equity offering, which Werner said puts Wolfspeed "one step closer to finalizing our CHIPS funding."
Wolfspeed also announced a facility closure and consolidation plan to optimize its cost structure and accelerate the transition from 150mm to 200mm silicon carbide devices. The company incurred $188.1 million in restructuring-related costs in the second quarter and expects an additional $72 million in the third quarter.
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