Investing.com - Wolfspeed Inc (NYSE:WOLF), a global pioneer in silicon carbide technology, experienced a drop in its share price on Monday following an operational update that led to a downward revision of its forecasts.
During an operational update, the company reported that its Mohawk Valley silicon carbide fab has reached 20% wafer start utilization, a key step towards meeting the surging demand for silicon carbide power devices.
The Mohawk Valley fab has also earned LEED Silver certification, underlining Wolfspeed's commitment to environmental health and industry-leading sustainability.
The facility is the world's first purpose-built, fully automated 200mm silicon carbide fab and, combined with Wolfspeed's market-leading 200mm materials production, cements the company's position as the only fully vertically integrated 200mm silicon carbide manufacturer at scale.
However, Wolfspeed also revealed an equipment incident at its Durham 150mm device fab that caused a temporary capacity reduction. Production has resumed, and the company expects the Durham 150mm device fab's capacity utilization can return to previously targeted levels by August.
Gregg Lowe, President and CEO of Wolfspeed addressed the equipment incident, stating, "We quickly identified and resolved an equipment incident at our Durham 150mm device fab, and we continue to focus on execution as we move with urgency to continue this first-of-its-kind ramp."
As a result of the production disruption, the company does not anticipate an impact on fourth quarter revenue, but does expect to incur an underutilization impact and other costs in the fourth quarter.
Given the incident at the Durham 150mm device fab, Wolfspeed has updated its fiscal fourth quarter 2024 guidance and provided a preliminary outlook on fiscal first quarter 2025 revenue and non-GAAP gross margin.
The company continues to target fiscal fourth quarter revenue from continuing operations at $185 million to $215 million, while anticipating a potential negative impact to fiscal first quarter 2025 revenue of approximately $20 million.