Jerome Maurice
Shares of chipmaker Wolfspeed (NYSE:WOLF) on Wednesday fell more than 4% in extended trading, after the chipmaker provided current quarter revenue guidance that came in below estimates.
WOLF stock was last down 4.1% to $31.20 after hours.
Wolfspeed (WOLF) reported a loss per share for FQ2 2024 of $1 on revenue of $208.4M. Analysts had expected a loss per share of 63 cents on sales of $206.41M.
Durham, N.C.-based Wolfspeed (WOLF) makes silicon carbide (SiC) chips instead of the more traditional silicon-based ships. These SiC chips can operate at much higher voltages and temperatures, and are used in electric vehicles (EVs).
For FQ3, WOLF sees revenue from continuing operations of $185M to $215M. The consensus estimate is $223.84M. The guidance pointed to slower demand and sales growth for EVs.
Still, Wolfspeed's (WOLF) FQ2 saw the company snap up a record $2.9B in design-wins, predominantly in the EV sector across multiple OEMs.
Based on the record design-wins, WOLF top boss Gregg Lowe expressed belief in the EV sector. "This solidifies our confidence in the electrification trend, which increasingly depends on the widespread adoption of silicon carbide technology," the CEO said in a statement.
Additionally, Wolfspeed (WOLF) said its Mohawk Valley factory, which began generating production at the end of fiscal 2023, contributed $12M in revenue in the quarter, with the sales tripling sequentially.
The company noted that it would continue to incur significant factory start-up costs relating to facilities it is making or expanding.
"For the third quarter of fiscal 2024, operating expenses are expected to include approximately $13M of factory start-up costs primarily in connection with materials expansion efforts," Wolfspeed (WOLF) said.
"Cost of revenue, net, is expected to include approximately $36M of underutilization costs primarily in connection with the Mohawk Valley Fab," the firm added.