Wolfspeed (WOLF -10.77%) stock is crashing in Thursday's trading following the company's recent quarterly report. The chip specialist's share price was down 33.2% as of 1 p.m. ET.

After the market closed yesterday, Wolfspeed published results for the first quarter of its current fiscal year, which ended Sept. 29. While the company posted a smaller-than-expected loss in the quarter, sales and forward guidance fell short of Wall Street's targets.

Wolfspeed's sales fall short in the midst of a major restructuring

Wolfspeed posted a non-GAAP (generally accepted accounting principles) adjusted loss of $0.91 per share on revenue of $194.7 million. For comparison, the average Wall Street estimate had called for a loss of $1 per share on revenue of roughly $200.4 million. Revenue for the period was down roughly 1.4% year over year.

Meanwhile, the business posted a net loss of $282.2 million in the period, with $87.1 million coming from restructuring charges related to the closing of a factory. Management anticipates an addition $174 million in restructuring charges in the current quarter, and also announced that the company expects to lay off roughly 20% of its workforce.

What's next for Wolfspeed?

For the second quarter of its current fiscal year, Wolfspeed is guiding for sales to come in between $160 million and $200 million. This guidance came in far below the average Wall Street target, which had called for sales of $214.6 million.

The company is also guiding for an adjusted loss between $0.89 per share and $1.14 per share. Again, this guidance came in much worse than anticipated -- with the average Wall Street target having called for an adjusted loss of $0.91 per share.

Wolfspeed stock is now down roughly 79% across this year's trading, and the company is now valued at just 1.3 times this year's expected sales. While it's on track to receive new funding through the CHIPS Act and looks cheaply valued by some metrics, the company's competitive positioning and longer-term sales and earnings outlooks are being called into question following the recent quarterly report.