According to Reuters, on August 21, chip manufacturer Wolfspeed released its financial report for the second quarter of this year (April to June). The announcement revealed that Wolfspeed's revenue was $201 million, with $41 million coming from the Mohawk Valley chip manufacturing plant. The average revenue expectation was $201.2 million, while the revenue for the same period last year was $203 million. The gross margin was 1%, compared to 29% in the same period last year. The net loss per share was $1.39, compared to a net loss of $0.73 per share last year.
Based on its second-quarter performance, Wolfspeed anticipates that its revenue for the third quarter of this year (July to September) will also fall short of expectations, with manufacturing issues potentially impacting its capacity due to the slowdown in electric vehicle sales.
According to data from the London Stock Exchange Group (LSEG), Wolfspeed expects third-quarter revenue to be between $185 million and $215 million, with the midpoint lower than analysts' average expectation of $211.7 million. The adjusted net loss per share is expected to be between $0.90 and $1.09, compared to the previously expected loss of $0.84 per share.
Meanwhile, Wolfspeed's Mohawk Valley chip manufacturing plant is expected to reach 25% of its maximum capacity in the third quarter, ahead of schedule. In a statement, Wolfspeed CEO Gregg Lowe said, "Wolfspeed's 200mm wafer fab is currently delivering strong results. The improved profitability of this plant gives Wolfspeed confidence in accelerating its chip manufacturing shift to the Mohawk Valley facility."
Additionally, in June this year, Wolfspeed announced that there were equipment issues at its 150mm wafer manufacturing plant in Durham, which could reduce its third-quarter revenue by about $20 million.
Gregg Lowe stated that Wolfspeed will continue to see strong growth from its chip manufacturing plant in Mohawk Valley, New York. Michael Ashley Schulman, Chief Investment Officer at Running Point Capital, noted that the new 200mm wafer chips offer significant cost advantages compared to the older 150mm wafers and have gained broad market recognition. Consequently, Wolfspeed's stock price began to recover. After the earnings report was released, Wolfspeed's stock price rose by about 6% in after-hours trading.
Wolfspeed uses silicon carbide to manufacture chips, with customers including General Motors and Mercedes-Benz. Silicon carbide is a more energy-efficient material than standard silicon and is commonly used to transfer power from electric vehicle batteries to the electric motor.
