(Reuters) - Chipmaker Wolfspeed topped Wall Street estimates for second-quarter revenue and reported a smaller-than-expected net loss on Wednesday, as the company made operational changes to accelerate its profitability.

The company closed down some of its facilities in the first quarter of 2025 and transitioned its device business to a 200-millimeter silicon carbide fab, which helps in product efficiency and production capacity.

The company looks to capitalize on the growing demand for chips that are manufactured using silicon carbide technology - which is ideal for high-power applications such as EV powertrains, e-mobility, renewable energy systems, battery energy storage systems and AI data centers.

Shares of the Durham, North Carolina-based company rose about 1.2% in extended trading.  

The company's revenue for the second quarter came in at $180.5 million, compared with an average estimate of $179.9 million.

Wolfspeed's ( WOLF ) net loss per share was 95 cents, compared with estimates of a loss of $1.02 per share.

The company's Mohawk Valley Fab facility accounted for about $52 million in revenue.

Amid weak demand from automotive customers, the company's board ousted its CEO Gregg Lowe in November and appointed Thomas Werner as executive chairman while it finds a permanent CEO.

Wolfspeed ( WOLF ) expects third-quarter revenue from continuing operations to be between $170 million and $200 million, the midpoint of which is below the analysts' average estimate of $193.6 million, according to data compiled by LSEG.

It expects quarterly adjusted loss per share between 88 cents and 76 cents, compared with estimates of a loss of 86 cents per share.

For the third quarter of fiscal 2025, the company expects to incur $72 million of restructuring-related costs.