Wolfspeed, a silicon carbide (SiC) materials manufacturer that has just emerged from the haze of bankruptcy, recently announced that its net profit for the first quarter (July-September) turned weak, highlighting the dilemma of flat demand, and its stock price plunged after the market closed.
According to Reuters and Seeking Alpha, Wolfspeed's Q1 financial report released after the US stock market opened on the 29th showed that revenue increased by 1% year-on-year to US$196.8 million; adjusted non-GAAP diluted loss per share was US$0.55, which was better than the loss of US$0.91 in the same period last year; non-GAAP gross profit margin was -26%, far worse than 3% in the same period last year. Analysts originally forecast Q1 revenue and a loss per share of US$195 million or US$0.71.
(Source: Wolfspeed)
Looking ahead to this quarter (October-December), Wolfspeed expects revenue to be between US$150 million and US$190 million (the midpoint is US$170 million). Analysts had forecast revenue of $203.7 million this quarter.
Wolfspeed is an important silicon carbide supplier for electric vehicles and renewable energy equipment. It is currently facing a slowdown in automotive orders and intensifying competition from large rivals such as STMicroelectronics and Infineon.
Wolfspeed admitted in the financial report press release that just like other peers in the industry, the company is also facing the dilemma of continued weak market conditions and predicts that the weak situation will continue throughout the 2026 fiscal year.
Wolfspeed surged 4% in normal trading on the 29th, closing at US$31.99; it plunged after the market closed, and fell 17.19% to US$26.49 at the time of writing.