Wolfspeed beats Q2 revenue as business transition takes hold

CHIPMAKER Wolfspeed topped Wall Street estimates for second-quarter revenue and reported a smaller-than-expected net loss on Wednesday (Jan 29), as the company made operational changes to accelerate its profitability.

The company closed down some of its facilities in the first quarter of 2025 and transitioned its device business to a 200-millimetre silicon carbide fab, which helps in product efficiency and production capacity.

The company looks to capitalise on the growing demand for chips that are manufactured using silicon carbide technology – which is ideal for high-power applications such as electric vehicle powertrains, e-mobility, renewable energy systems, battery energy storage systems and artificial intelligence data centres.

Shares of the Durham, North Carolina-based company rose about 1.2 per cent in extended trading.

The company’s revenue for the second quarter came in at US$180.5 million, compared with an average estimate of US$179.9 million.

Wolfspeed’s net loss per share was 95 US cents, compared with estimates of a loss of US$1.02 per share.

The company’s Mohawk Valley Fab facility accounted for about US$52 million in revenue.

Amid weak demand from automotive customers, the company’s board ousted its CEO Gregg Lowe in November and appointed Thomas Werner as executive chairman while it finds a permanent CEO.

Wolfspeed expects third-quarter revenue from continuing operations to be between US$170 million and US$200 million, the midpoint of which is below the analysts’ average estimate of US$193.6 million, according to data compiled by LSEG.

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It expects quarterly adjusted loss per share between 88 US cents and 76 US cents, compared with estimates of a loss of 86 US cents per share.

For the third quarter of fiscal 2025, the company expects to incur US$72 million of restructuring-related costs. REUTERS