(Reuters) -Wolfspeed on Wednesday reported a lower first-quarter profit, highlighting the challenges facing the U.S. chipmaker as it recovers from bankruptcy and confronts subdued demand.
Shares of company plunged more than 18% in extended trading.
The company, a key supplier of silicon carbide semiconductors used in electric vehicles and renewable energy equipment, has faced slow orders from automakers and mounting competition from larger rivals such as STMicroelectronics and Infineon.
“In line with others in the industry, Wolfspeed has experienced ongoing softness in the market that it expects will continue through fiscal 2026,” the company said.
Wolfspeed, which filed for Chapter 11 protection in June and emerged last month after slashing its debt by about 70%, is still contending with the aftereffects of overcapacity and uncertain automotive demand.
The Durham, North Carolina-based firm had bet heavily on silicon carbide materials to drive long-term growth, but those gains have been slower to materialize as automakers temper production and push out chip orders.
For the first quarter, the company posted revenue of $197 million, compared with $195 million, a year earlier.
The company said it sees near term headwinds while advancing into new, high-growth applications like AI data centers, aerospace and energy storage.
The company posted a loss of 55 cents per share on an adjusted basis, compared with a loss of 91 cents per share a year earlier.
Wolfspeed expects second-quarter revenue of between $150 million and $190 million, a cautious outlook as recovery remains uneven across key end markets.
(Reporting by Kritika Lamba in Bengaluru; Editing by Anil D’Silva)
