Wolfspeed, the semiconductor company, reported a loss of $113.3 million, or 91 cents a share, for the fourth quarter ended June 25. This was a significant drop from the net income of $32.4 million, or 26 cents a share, recorded in the same period last year. Analysts had predicted an adjusted loss of 20 cents a share, but the actual adjusted losses came in at 42 cents a share.
In the latest quarter, Wolfspeed faced challenges associated with its new facility, resulting in expenses of $39.5 million on factory start-up costs. These costs accounted for a major portion of the company’s operating expenses. Despite the losses, revenue saw a slight increase from $228.5 million to $235.8 million. Analysts had expected revenue to reach $224.5 million.
Despite the setback, Chief Executive Gregg Lowe remains optimistic about Wolfspeed’s future. “Customers are continuing to select Wolfspeed for their future silicon carbide device needs, so we must remain keenly focused on scaling our materials and device capacity in fiscal 2024,” stated Lowe.