Wolfspeed, Inc. (WOLF) released its fourth-quarter financial results after the market closed on Wednesday, revealing a miss on both earnings and revenue projections. The company reported a quarterly loss of 89 cents per share, exceeding the anticipated loss of 84 cents. Revenue for the quarter reached $200.7 million, falling short of the expected $201.2 million.
Despite these shortfalls, Wolfspeed CEO Gregg Lowe highlighted positive developments in the company’s new 200-millimeter fabrication facility (fab) located in Mohawk Valley. He stated that the fab achieved 20% utilization in June and continues to experience strong revenue growth. The 200mm fab is producing results at significantly lower costs than the Durham 150mm facility, leading to improved profitability. This improvement has instilled confidence in Wolfspeed to accelerate the transfer of device fabrication to Mohawk Valley while evaluating the timing of the Durham 150mm fab’s closure.
Looking ahead, Wolfspeed expects first-quarter losses to range between $1.09 and 90 cents per share, in contrast to the estimated loss of 84 cents. Revenue is projected to fall between $185 million and $215 million, compared to the anticipated $201.2 million. Following the announcement, Wolfspeed shares experienced an after-hours surge of 6.22%, closing at $14.35.
Wolfspeed’s focus on its new fab and the associated cost savings signals a potential shift in the company’s strategy. While the fourth quarter results fell short of expectations, the progress at the Mohawk Valley facility provides a promising outlook for the future.
