Its shares fell 14% in extended trading, after the company also forecast quarterly revenue below market estimates. — Reuters
New York: Wolfspeed predicts a larger-than-feared quarterly loss, in a sign that costs are rising at a faster pace than sales at the chip firm whose products are used in sectors ranging from electric vehicles to renewable energy.
Its shares fell 14% in extended trading on Wednesday, after the company also forecast quarterly revenue below market estimates.
“We are incurring significant factory startup costs relating to facilities that we are constructing or expanding that have not yet started revenue-generating production,” Wolfspeed said.
It expects adjusted loss per share to be between 60 US cents and 75 US cents in the first quarter, compared with analysts’ estimate of a 29-US cent loss, according to Refinitiv data.
The midpoint of its quarterly revenue forecast of US$220mil to US$240mil was also below expectations of US$233.2mil.
The company began shipping products from its Mohawk Valley fabrication plant in the fourth quarter. — Reuters
