Wolfspeed Inc ( WOLF ) shares are tumbling in Wednesday’s after-hours session in the wake of the company’s third-quarter financial results. Wolfspeed ( WOLF ) announced initiatives to streamline its cost structure. Here’s a rundown of the report.

Q1 Revenue: $194.7 million, versus estimates of $200.39 million

Q1 Adjusted EPS: Loss of 91 cents, versus estimates for a loss of $1.

“To drive operational improvements, we are taking action to enhance efficiency, align our business with current market conditions and become the first silicon carbide company to transition to pure-play 200-millimeter. The transition to a fully 200-millimeter platform allows us to take further initiatives to streamline our cost structure, including closing our manual Durham 150-millimeter Fab, other manufacturing footprint rationalization, and reducing our workforce,” said Gregg Lowe, CEO of Wolfspeed ( WOLF ).

Wolfspeed ( WOLF ) ended the quarter with approximately $1.7 billion in cash and investments. The company also noted it has access to up to $2.5 billion in incremental funding to support its U.S. capacity expansion plans.

The company said it expects its cost-cutting initiatives to result in approximately $200 million in annual cash savings.

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Q2 Guidance: Wolfspeed ( WOLF ) expects second-quarter revenue of $160 million to $200 million versus estimates of $214.58 million, according to Benzinga Pro. The company anticipates a second-quarter loss of 89 cents to $1.14 per share versus estimates for a loss of 90 cents per share.

“We delivered 2.5 times year-over-year growth in our automotive business in the first quarter, and we expect our EV revenue to continue to grow throughout calendar 2025, as the total number of car models using a Wolfspeed ( WOLF ) silicon carbide solution in the power train increased by 4x from 2023 to 2024 and is expected to grow by another approximately 75% year over year in 2025,” Lowe said.

“We also remain confident in the long-term fundamentals of our industrial and energy business. Importantly, we believe the secular trends and long-term growth drivers for our core end markets remain intact, and we expect the actions we are taking today will allow us to become a more efficient and agile organization positioned to capture the long-term growth opportunities ahead.”

WOLF Price Action: Wolfspeed ( WOLF ) shares were down 18.67% after hours at $11.15 at the time of publication Wednesday, per Benzinga Pro.