MW Wolfspeed posts revenue beat, cites 'significant progress' on new operating plan

By James Rogers

Executive Chair Thomas Werner said the semiconductor company has made 'significant progress' on its new operating plan

Wolfspeed Inc.'s stock initially soared in extended trading Wednesday before pulling back to a slight loss, after the semiconductor company beat Wall Street's revenue expectations in its fiscal second-quarter results.

Revenue was $180.5 million, down from $208.4 million in the prior year's quarter, but above the FactSet analyst consensus for $179.9 million. Wolfspeed (WOLF) reported a net loss of $372.2 million, or $2.88 a share, after a net loss of $144.7 million, or $1.15 a share, in the same period last year. On an adjusted basis, Wolfspeed lost 95 cents a share. Analysts surveyed by FactSet were looking for a loss of $1.02 a share.

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However, Wolfspeed said that its Mohawk Valley fabrication facility contributed $52 million in revenue, compared to only $12 million in the previous year's quarter.

In a statement, Wolfspeed Executive Chair Thomas Werner said that the company has made "significant progress" on an operating plan designed to put it on the path to long-term growth and profitability. This involves improving Wolfspeed's financial performance "to accelerate the path to operating free-cash-flow generation," taking aggressive steps to strengthen the balance sheet, and raising "cost-effective capital" to support the company's growth plan, Werner said.

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In particular, Werner pointed to the recent completion of Wolfspeed's $200 million at-the-market equity offering, which he said puts the company "one step closer" to finalizing its funding under the CHIPS Act. The CHIPS and Science Act was passed in 2022 to support the domestic production of semiconductors.

For the third quarter, Wolfspeed expects revenue between $170 million and $200 million; analysts surveyed by FactSet are looking for revenue of $193.6 million. On an adjusted basis, Wolfspeed expects a third-quarter loss between 88 cents a share and 76 cents a share; FactSet analysts are looking for a loss of 86 cents a share.

-James Rogers

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January 29, 2025 18:18 ET (23:18 GMT)

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