The company reported second-quarter revenue of $168.5 million, down from $180.5 million in the prior-year period. While Wolfspeed narrowed its net loss to $150.6 million, or $5.78 per share, its adjusted results showed a loss of $6.11 per share. The quarterly figures were heavily influenced by the company's exit from Chapter 11 bankruptcy in late September, which triggered a $1.1 billion gain in reorganization items under fresh-start accounting rules.
In section Market Quotes
Wolfspeed Shares Plunge 20% on Revenue Miss and Weak Outlook
Wolfspeed shares tumbled 20% in pre-market trading Thursday after the silicon carbide manufacturer reported declining second-quarter revenue and warned of further weakness in the months ahead. The sell-off follows the company’s recent emergence from bankruptcy and reflects investor anxiety over a projected revenue dip tied to a major facility closure.
Looking ahead, management issued a cautious forecast for the third quarter, projecting revenue between $140 million and $160 million. According to the company, this anticipated decline stems from a shift in customer buying patterns. Clients reportedly accelerated their purchases during the first half of the year to build inventory ahead of the scheduled shutdown of the company’s manufacturing plant in Durham, North Carolina.
Restructuring and Market Performance
Despite the pre-market drop to $13.74, Wolfspeed had seen a significant rally leading up to the announcement. The stock closed Wednesday at $17.20, representing a nearly threefold increase over the past year. During its restructuring, the company stated it maintained business as usual and kept pace with vendor payments, though the current revenue volatility suggests a complex road to stabilization.Key financial metrics from the report include:
- A narrowed net loss of $150.6 million compared to $372.2 million a year ago.
- A projected third-quarter revenue ceiling of $160 million.
- A non-cash reorganization gain exceeding $1 billion.
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