Wolfspeed launched a new tab and forecast third-quarter revenue lower than expected as slower sales growth for electric vehicles affected demand for the chips.
Wolfspeed (WOLF.N) opened a new tab and estimated third-quarter revenue below expectations on Wednesday as slower sales growth for electric vehicles hampered demand for the semiconductors used in them, sending its shares down 2% in extended trade.
Wolfspeed is a major supplier of specialized semiconductors and power devices for electric vehicles, an industry that is experiencing demand issues.
Lower subsidies, higher financing costs, and consumer weakness have knocked on EV demand, with Canalys forecasting that global sales growth this year will decrease to 27.1% from 29% in 2023.
Wolfspeed estimated third-quarter sales from ongoing operations to be between $185 million and $215 million. Analysts expected an average of $224 million, according to LSEG data.
In the quarter ended December 31, the net loss from continuing operations increased to $126.2 million from $72.1 million the previous year, including a $35.6 million underutilization expense connected to the Mohawk Valley Fab in New York. The facility, which began revenue-generating operations at the end of the company’s fiscal year 2023, generated $12 million in revenue in the fourth quarter, tripling sequentially.
Excluding adjustments, Wolfspeed lost 55 cents per share in the second quarter, compared to expectations of 66 cents.
Durham, North Carolina-based Wolfspeed produces silicon carbide (SiC) chips and power solutions.
SiC semiconductors can function at significantly greater voltages, temperatures, and frequencies than typical silicon-based semiconductors, making them ideal for industries like EVs, telecom, and energy.
Net revenue increased over 20% in the reporting quarter to $208.4 million, exceeding expectations of $206.4 million.
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