Record Revenues with Increased Gross Margin
and Earnings
SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology
realization partner, today announced financial results for the
third quarter 2024 ended September 29, 2024.
Financial Highlights for Q3 2024:
- Revenue increased 31% year-over-year to a record $93.8
million.
- Gross margin increased to 21.6% on a GAAP basis, compared to
19.8% in Q3 2023, and increased to 22.3% on a non-GAAP basis,
compared to 20.4% in Q3 2023.
- Net income to shareholders of $1.5 million, or $0.03 per
diluted share on a GAAP basis, and net income to shareholders of
$3.6 million, or $0.08 per diluted share on a non-GAAP basis,
compared to net loss to shareholders of $7.6 million, or $(0.16)
per diluted share on a GAAP basis, and net loss to shareholders of
$2.2 million, or $(0.05) per diluted share on a non-GAAP basis in
Q3 2023.
- Adjusted EBITDA of $11.0 million, or 11.7% of revenue, compared
to $8.3 million, or 11.6% of revenue in Q3 2023.
“I’m pleased to announce a strong third quarter for SkyWater,
with new records achieved in both revenues and earnings,” commented
Thomas Sonderman, CEO. “With further improvements in operational
efficiencies and strong execution on a significant A&D program,
we achieved upside in gross margins and adjusted EBITDA during the
quarter. Looking ahead, we expect a return to sequential growth in
Q4 in our Advanced Technology Services (ATS) business, which we
expect will result in an overall robust revenue growth year for
SkyWater in 2024. We are encouraged by a strong pipeline of A&D
customer demand, increasing momentum in multiple emerging
commercial programs, and a continued cadence of customer-funded
CapEx investments. As we look ahead to 2025, with our current
visibility we are forecasting year-over-year growth for our ATS
business, an improving quarterly run rate for Wafer Services, and
continued positive momentum in margins and operational
leverage.”
Recent Business Highlights:
- Achieved 9th straight record revenue quarter driven by over $30
million in customer-funded CapEx investments. This unprecedented
level of investment by our customers is expected to significantly
bolster our capabilities and capacity in both Minnesota and
Florida, enabling strong future revenue growth potential in the
years to come.
- Strong gross margin and earnings performance for Q3 exceeded
expectations, driven by our continued focus on operational
efficiencies and improved execution on a significant A&D
program, which enabled us to deliver key milestones with
lower-than-expected costs and recover the majority of the $8
million cost accrual recorded in Q1.
- Continuing our leadership in critical semiconductor
technologies, SkyWater has been selected as a key performer on
multiple Microelectronics (ME) Commons projects. These projects are
focused on scalable low-power microtechnology technologies for AI
hardware and other applications. The ME Commons is an important
element of the CHIPS Act, supporting emerging technologies for
national security.
- Continued momentum in our commercial ATS business culminated in
a new multi-year supply agreement with NanoDx, Inc., a pioneer of
in vitro diagnostic and biosensing applications.
- Exciting progress in Florida included the appointment of Bassel
Haddad, SVP and GM of our advanced packaging business, where he is
charged with building and scaling this important new growth vector
for SkyWater. During the quarter, we continued to place orders for
new tooling, funded by the $120 million award announced earlier in
the year.
Q3 2024 Summary:
GAAP
In millions, except per share data
Q3 2024
Q3 2023
Y/Y *
Q2 2024
Q/Q *
ATS development revenue (1)
$56.4
$53.9
5%
$61.7
(9)%
Wafer Services revenue
$6.7
$14.5
(54)%
$5.8
16%
Combined ATS development and Wafer
Services revenue
$63.1
$68.4
(8)%
$67.4
(6)%
Tools revenue (2)
$30.7
$3.2
847%
$25.9
19%
Total revenue *
$93.8
$71.6
31%
$93.3
1%
Gross profit *
$20.2
$14.1
43%
$17.1
18%
Gross margin *
21.6%
19.8%
180 bps
18.3%
330 bps
Net income (loss) to shareholders
$1.5
$(7.6)
NM
$(1.9)
NM
Basic income (loss) per share
$0.03
$(0.16)
NM
$(0.04)
NM
Diluted income (loss) per share
$0.03
$(0.16)
NM
$(0.04)
NM
Net income (loss) margin to
shareholders
1.6%
(10.6)%
1,220 bps
(2.0)%
360 bps
__________________
NM - Not meaningful
* Amounts calculated based on figures
reported in thousands.
(1)
ATS development revenue represents GAAP
revenue primarily derived from process development services, tool
installation and qualification services, facility and tool access,
and security services.
(2)
Tools revenue represents GAAP revenue
primarily derived from the procurement and subsequent sale of
equipment to our customers. While this equipment is owned by our
customers, the equipment is retained in one of our fabs and is used
to complete ATS customer programs.
Non-GAAP
In millions, except per share data
Q3 2024
Q3 2023
Y/Y *
Q2 2024
Q/Q *
Non-GAAP gross profit
$20.9
$14.6
43%
$17.6
19%
Non-GAAP gross margin *
22.3%
20.4%
190 bps
18.9%
340 bps
Non-GAAP net income (loss) to
shareholders
$3.6
$(2.2)
NM
$0.8
(363)%
Non-GAAP basic income (loss) per share
$0.08
$(0.05)
NM
$0.02
300%
Non-GAAP diluted income (loss) per
share
$0.08
$(0.05)
NM
$0.02
300%
Adjusted EBITDA
$11.0
$8.3
33%
$8.1
35%
Adjusted EBITDA margin
11.7%
11.6%
10 bps
8.7%
300 bps
__________________
NM - Not meaningful
* Amounts calculated based on figures
reported in thousands.
Q3 2024 Results:
- Revenue: Revenue of $93.8 million increased 31%
year-over-year. ATS development revenue of $56.4 million increased
5% year-over-year. Wafer Services revenue of $6.7 million decreased
54% compared to the third quarter of 2023. Tools revenue was $30.7
million in the third quarter of 2024 compared to $3.2 million in
the third quarter of 2023.
- Gross Profit: GAAP gross profit was $20.2 million, or
21.6% of total revenue, compared to gross profit of $14.1 million,
or 19.8% of total revenue, in the third quarter of 2023. Non-GAAP
gross profit was $20.9 million, or 22.3% of total revenue, compared
to non-GAAP gross profit of $14.6 million, or 20.4% of total
revenue, in the third quarter of 2023. In the third quarter of 2024
we successfully modified a significant customer contract that
resulted in a decrease in our estimate of future costs to complete
their program. Gross margin for the third quarter of 2024 benefited
from the $5.6 million reversal of the remaining loss accrual, which
was initially established at $8.0 million in the first quarter of
2024 for this program.
- Operating Expenses: GAAP operating expenses were $15.5
million, compared to $18.3 million in the third quarter of 2023.
Non-GAAP operating expenses were $14.1 million, compared to $13.4
million in the third quarter of 2023.
- Net Income (Loss): GAAP net income to shareholders was
$1.5 million, or $0.03 per diluted share, compared to a net loss to
shareholders of $7.6 million, or $(0.16) per diluted share, in the
third quarter of 2023. Non-GAAP net income to shareholders was $3.6
million, or $0.08 per diluted share, compared to a non-GAAP net
loss to shareholders of $2.2 million, or $(0.05) diluted per share,
in the third quarter of 2023.
- Adjusted EBITDA: Adjusted EBITDA was $11.0 million, or
11.7% of total revenue, compared to $8.3 million, or 11.6% of total
revenue, in the third quarter of 2023.
A reconciliation between GAAP and non-GAAP financial measures is
contained in the tables included in the section titled “Non-GAAP
Financial Measures.”
Q4 2024 Financial Outlook
For the fourth quarter of 2024, we expect total revenue to be in
the range of $72 million to $76 million, of which approximately $11
million is expected to be tools revenue. We expect GAAP diluted EPS
to be in the range of $(0.12) to $(0.06) and non-GAAP diluted EPS
to be in the range of $(0.10) to $(0.04).
This outlook for non-GAAP diluted EPS excludes anticipated
equity-based compensation expense of approximately $2.0 million.
Non-GAAP diluted EPS should be considered in addition to, but not
as a substitute for, our financial information presented in
accordance with GAAP.
Investor Webcast
SkyWater will host a conference call on Thursday, November 7,
2024, at 3:30 p.m. CT to discuss its third quarter 2024 financial
results. A live webcast of the call will be available online at
IR.SkyWaterTechnology.com.
About SkyWater Technology
SkyWater (NASDAQ: SKYT) is a U.S.-based semiconductor
manufacturer and a DMEA-accredited Category 1A Trusted Supplier.
SkyWater’s Technology as a Service model streamlines the path to
production for customers with development services, volume
production and heterogeneous integration solutions in its U.S.
facilities. This pioneering model enables innovators to co-create
the next wave of technology within diverse categories including
mixed-signal CMOS, read-out ICs, rad-hard ICs, MEMS,
superconducting ICs, photonics and advanced packaging. SkyWater
serves the growing markets of aerospace & defense, automotive,
biomedical, industrial and quantum computing. For more information,
visit: www.skywatertechnology.com.
Cautionary Statement Regarding Preliminary Results
The Company’s results for the third quarter ended September 29,
2024 are preliminary, unaudited and subject to the finalization of
the Company’s third quarter review and full-year audit and should
not be viewed as a substitute for full financial statements
prepared in accordance with GAAP. The Company cautions that actual
results may differ materially from those described in this press
release.
SkyWater Technology Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements that are based on the Company’s current
expectations or forecasts of future events, rather than past events
and outcomes, and such statements are not guarantees of future
performance. Forward-looking statements include all statements
other than statements of historical fact contained in this
presentation, including information or predictions concerning the
Company’s future business, results of operations, financial
performance, plans and objectives, competitive position, market
trends, and potential growth and market opportunities. In some
cases, you can identify forward-looking statements by words such as
“intends,” “estimates,” “predicts,” “potential,” “continues,”
“anticipates,” “plans,” “expects,” “believes,” “should,” “could,”
“may,” “will,” “targets,” “projects,” “seeks” or the negative of
these terms or other comparable terminology.
Forward-looking statements are subject to risks, uncertainties
and assumptions, which may cause the Company’s actual results,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. Key
factors that could cause the Company’s actual results to be
different than expected or anticipated include, but are not limited
to: our goals and strategies; our future business development,
financial condition and results of operations; our ability to
continue operating our fabrication facilities at full capacity; our
ability to appropriately respond to changing technologies on a
timely and cost-effective basis; our customer relationships and our
ability to retain and expand our customer relationships; our
ability to accurately predict our future revenues for the purpose
of appropriately budgeting and adjusting our expenses; our
expectations regarding dependence on our largest customers; our
ability to diversify our customer base and develop relationships in
new markets; the performance and reliability of our third-party
suppliers and manufacturers; our ability to procure tools,
materials, and chemicals; our ability to control costs, including
our operating and capital expenses; the size and growth potential
of the markets for our solutions, and our ability to serve and
expand our presence in those markets; the level of demand in our
customers’ end markets; our ability to attract, train and retain
key qualified personnel in a competitive labor market; adverse
litigation judgments, settlements or other litigation-related
costs; changes in trade policies, including the imposition of
tariffs; our ability to raise additional capital or financing; our
ability to accurately forecast demand; the level and timing of U.S.
government program funding; our ability to maintain compliance with
certain U.S. government contracting requirements; regulatory
developments in the United States and foreign countries; our
ability to protect our intellectual property rights; our ability to
meet our long-term growth targets; and other factors discussed in
the “Risk Factors” section of the annual report on Form 10-K the
Company filed with the SEC on March 15, 2024 and in other documents
that the Company files with the SEC, which are available at
http://www.sec.gov. The Company assumes no obligation to update any
forward-looking statements, which speak only as of the date of this
press release.
SKYWATER TECHNOLOGY,
INC.
Condensed Consolidated Balance
Sheets
(Unaudited)
September 29,
2024
December 31,
2023
(in thousands, except per
share data)
Assets
Current assets
Cash and cash equivalents
$
20,684
$
18,382
Accounts receivable (net of allowance for
credit losses of $378 and $180, respectively)
60,562
65,961
Contract assets (net of allowance for
credit losses of $42 and $99, respectively)
29,179
29,666
Inventory
14,429
15,341
Prepaid expenses and other current
assets
15,127
16,853
Income tax receivable
—
172
Total current assets
139,981
146,375
Property and equipment, net
162,972
159,367
Intangible assets, net
7,220
5,672
Other assets
4,906
5,342
Total assets
$
315,079
$
316,756
Liabilities and
shareholders’ equity
Current liabilities
Current portion of long-term debt
$
5,099
$
3,976
Accounts payable
30,217
19,614
Accrued expenses
31,430
48,291
Income taxes payable
392
—
Short-term financing, net of unamortized
debt issuance costs
19,552
22,765
Contract liabilities
73,353
49,551
Total current liabilities
160,043
144,197
Long-term liabilities
Long-term debt, less current portion and
net of unamortized debt issuance costs
36,179
36,098
Long-term contract liabilities
41,145
65,754
Deferred income tax liability, net
378
679
Other long-term liabilities
8,780
9,327
Total long-term liabilities
86,482
111,858
Total liabilities
246,525
256,055
Shareholders’ equity
Preferred stock, $0.01 par value per share
(80,000 shares authorized, zero shares issued and outstanding as of
September 29, 2024 and December 31, 2023)
—
—
Common stock, $0.01 par value per share
(200,000 shares authorized; 47,643 and 47,028 shares issued and
outstanding as of September 29, 2024 and December 31, 2023,
respectively)
477
470
Additional paid-in capital
187,004
178,473
Accumulated deficit
(131,317
)
(125,203
)
Total shareholders’ equity, SkyWater
Technology, Inc.
56,164
53,740
Noncontrolling interests
12,390
6,961
Total shareholders’ equity
68,554
60,701
Total liabilities and shareholders’
equity
$
315,079
$
316,756
SKYWATER TECHNOLOGY,
INC.
Condensed Consolidated
Statements of Operations
(Unaudited)
Three-Month Period
Ended
Nine-Month Period
Ended
September 29,
2024
June 30, 2024
October 1, 2023
September 29,
2024
October 1, 2023
(in thousands, except per
share data)
Revenue
$
93,817
$
93,329
$
71,624
$
266,782
$
207,529
Cost of revenue
73,582
76,215
57,477
216,453
160,247
Gross profit
20,235
17,114
14,147
50,329
47,282
Research and development expense
3,431
3,382
2,233
10,825
7,296
Selling, general, and administrative
expense
12,095
12,332
16,105
35,598
48,821
Operating income (loss)
4,709
1,400
(4,191
)
3,906
(8,835
)
Interest expense
1,988
2,482
2,507
6,859
7,928
Income (loss) before income taxes
2,721
(1,082
)
(6,698
)
(2,953
)
(16,763
)
Income tax expense (benefit)
93
(127
)
(96
)
7
(71
)
Net income (loss)
2,628
(955
)
(6,602
)
(2,960
)
(16,692
)
Less: net income attributable to
noncontrolling interests
1,116
942
966
3,154
3,739
Net income (loss) attributable to SkyWater
Technology, Inc.
$
1,512
$
(1,897
)
$
(7,568
)
$
(6,114
)
$
(20,431
)
Net income (loss) per share attributable
to common shareholders, basic
$
0.03
$
(0.04
)
$
(0.16
)
$
(0.13
)
$
(0.45
)
Weighted average shares outstanding,
basic
47,523
47,395
46,445
47,339
45,002
Net income (loss) per share attributable
to common shareholders, diluted
$
0.03
$
(0.04
)
$
(0.16
)
$
(0.13
)
$
(0.45
)
Weighted average shares outstanding,
diluted
47,640
47,395
46,445
47,339
45,002
SKYWATER TECHNOLOGY,
INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine-Month Period
Ended
September 29,
2024
October 1, 2023
(in thousands)
Cash flows from operating activities
Net loss
$
(2,960
)
$
(16,692
)
Adjustments to reconcile net loss to net
cash flows provided by (used in) operating activities
Depreciation and amortization
13,295
21,651
Gain on sale of property and equipment
(55
)
—
Amortization of debt issuance costs
included in interest expense
1,322
1,349
Equity-based compensation expense
6,105
5,673
Deferred income taxes
(301
)
(118
)
Provision for credit losses
262
4,133
Changes in operating assets and
liabilities
Accounts receivable and contract assets,
net
5,624
(23,063
)
Inventories
911
(3,251
)
Prepaid expenses and other assets
2,164
270
Accounts payable and accrued expenses
(6,386
)
4,182
Contract liabilities, current and
long-term
(806
)
(15,843
)
Income tax receivable and payable
564
47
Net cash provided by (used in) operating
activities
19,739
(21,662
)
Cash flows from investing activities
Purchase of software and technology
licenses
(1,953
)
(612
)
Proceeds from sale of property and
equipment
55
—
Purchases of property and equipment
(13,894
)
(3,864
)
Net cash used in investing activities
(15,792
)
(4,476
)
Cash flows from financing activities
Proceeds from draws on the revolving line
of credit
251,000
182,763
Repayment of draws on the revolving line
of credit
(251,463
)
(194,396
)
Proceeds from tool financings
1,298
6,492
Repayment of tool financing advanced
payments
(920
)
—
Principal payments on long-term debt
(3,248
)
(1,839
)
Cash paid for principal on finance
leases
(520
)
(818
)
Proceeds from the issuance of common stock
pursuant to equity compensation plans
2,433
2,305
Proceeds from the issuance of common stock
under the ATM
—
20,397
Cash paid on licensed technology
obligations
(2,500
)
(2,350
)
Contributions from noncontrolling
interest
6,957
—
Distributions to noncontrolling
interest
(4,682
)
905
Net cash provided by (used in) financing
activities
(1,645
)
13,459
Net increase (decrease) in cash and cash
equivalents
2,302
(12,679
)
Cash and cash equivalents, beginning of
period
18,382
30,025
Cash and cash equivalents, end of
period
$
20,684
$
17,346
Supplemental Financial Information by
Quarter
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
(in thousands)
ATS development revenue (1)
$
56,390
$
61,669
$
61,185
$
57,170
$
53,891
$
52,073
$
47,770
Wafer Services revenue
6,718
5,780
9,992
12,048
14,490
16,802
17,788
Combined ATS development and Wafer
Services revenue
63,108
67,449
71,177
69,218
68,381
68,875
65,558
Tools revenue (2)
30,709
25,880
8,459
9,936
3,243
936
536
Total revenue
$
93,817
$
93,329
$
79,636
$
79,154
$
71,624
$
69,811
$
66,094
Tools revenue (2)
$
30,709
$
25,880
$
8,459
$
9,936
$
3,243
$
936
$
536
Cost of tools revenue (2)
30,477
24,869
8,260
9,125
2,861
290
484
Tools gross profit
$
232
$
1,011
$
199
$
811
$
382
$
646
$
52
Revenue impact of modified customer
contracts
$
—
$
—
$
—
$
—
$
—
$
3,601
$
—
Cost of revenue impact of modified
customer contracts (3)
(5,616
)
—
—
—
—
—
—
Favorable gross profit impact of modified
customer contracts
$
5,616
$
—
$
—
$
—
$
—
$
3,601
$
—
__________________
(1)
ATS development revenue represents GAAP
revenue primarily derived from process development services, tool
installation and qualification services, facility and tool access,
and security services.
(2)
Tools revenue and cost of tools revenue
represents GAAP revenue and cost primarily derived from the
procurement and subsequent sale of equipment to our customers.
While this equipment is owned by our customers, the equipment is
retained in one of our fabs and is used to complete ATS customer
programs.
(3)
In the first quarter of 2024, we recorded
a $8,004 charge to recognize future estimated losses for one
significant customer program based on anticipated cost increases to
complete the customer’s program. In the third quarter of 2024 we
successfully modified the customer contract, which resulted in a
decrease in our estimate of future costs to complete their program.
The remaining $5,616 loss accrual recorded at the time the contract
was modified was released, which reduced cost of revenue for the
three- and nine-months ended September 29, 2024.
Non-GAAP Financial Measures
We provide supplemental, non-GAAP financial information that our
management regularly evaluates to provide additional insight to
investors as supplemental information to our results reported using
U.S. generally accepted accounting principles (GAAP). We provide
non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross
margin, non-GAAP research and development expense, non-GAAP
selling, general and administrative expense, non-GAAP net income
(loss) to shareholders, non-GAAP net income (loss) to shareholders
per basic share and non-GAAP net income (loss) per diluted share.
Our management uses these non-GAAP financial measures to make
informed operating decisions, complete strategic planning, prepare
annual budgets, and evaluate Company and management performance. We
believe these non-GAAP financial measures are useful performance
measures to our investors because they provide a baseline for
analyzing trends in our business and exclude certain items that may
not be indicative of our core operating results. The non-GAAP
financial measures disclosed in this earnings release should not be
viewed as an alternative to, or more meaningful than, the reported
results prepared in accordance with GAAP. In addition, because
these non-GAAP financial measures are not determined in accordance
with GAAP, other companies, including our peers, may calculate
their non-GAAP financial measures differently than we do. As a
result, the non-GAAP financial measures presented in this earnings
release may not be directly comparable to similarly titled measures
presented by other companies.
We also provide earnings before interest, income taxes,
depreciation and amortization (EBITDA), adjusted EBITDA and
adjusted EBITDA margin as supplemental non-GAAP measures. We define
adjusted EBITDA as net income (loss) before interest expense,
income tax (benefit) expense, depreciation and amortization,
equity-based compensation and certain other items that we do not
view as indicative of our ongoing performance, including net income
attributable to noncontrolling interests; business transformation
costs; management transition expense; the cost of severance,
separation and other termination benefits; and the cost of CHIPS
Act specialist fees. Our management uses EBITDA, adjusted EBITDA
and adjusted EBITDA margin to make informed operating decisions,
complete strategic planning, prepare annual budgets, and evaluate
Company and management performance. We believe these non-GAAP
financial measures are useful performance measures to our investors
because they allow for an effective evaluation of our operating
performance when compared to other companies, including our peers,
without regard to financing methods or capital structures. We
exclude the items listed above from net income (loss) in arriving
at adjusted EBITDA and adjusted EBITDA margin because the amounts
of these items can vary substantially within our industry depending
on the accounting methods and policies used, book values of assets,
capital structures, and the methods by which assets were acquired.
These non-GAAP financial measures should not be considered as an
alternative to, or more meaningful than, the reported results
prepared in accordance with GAAP. Certain items excluded from these
non-GAAP financial measures are significant components in
understanding and assessing a company’s financial performance, such
as a company’s cost of capital and tax structure, as well as the
historic cost bases of depreciable assets, none of which are
reflected in these non-GAAP financial measures. Our presentation of
these non-GAAP financial measures should not be construed as an
indication that our results will be unaffected by the items
excluded from adjusted EBITDA and adjusted EBITDA margin. In future
fiscal periods, we may exclude such items and may incur income and
expenses similar to these excluded items. Accordingly, the
exclusion of these items and other similar items in these non-GAAP
financial measures should not be interpreted as implying that these
items are non-recurring, infrequent or unusual, unless otherwise
expressly indicated.
The following tables present a reconciliation of the most
directly comparable financial measures, calculated and presented in
accordance with GAAP, to our non-GAAP financial measures.
SKYWATER TECHNOLOGY,
INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three-Month Period
Ended
Nine-Month Period
Ended
September 29,
2024
June 30, 2024
October 1, 2023
September 29,
2024
October 1, 2023
(in thousands)
GAAP revenue
$
93,817
$
93,329
$
71,624
$
266,782
$
207,529
GAAP cost of revenue
$
73,582
$
76,215
$
57,477
$
216,453
$
160,247
Equity-based compensation expense (1)
(565
)
(504
)
(438
)
(1,524
)
(1,242
)
Management transition expense (2)
(97
)
—
—
(97
)
(705
)
Non-GAAP cost of revenue
$
72,920
$
75,711
$
57,039
$
214,832
$
158,300
GAAP gross profit
$
20,235
$
17,114
$
14,147
$
50,329
$
47,282
GAAP gross margin
21.6
%
18.3
%
19.8
%
18.9
%
22.8
%
Equity-based compensation expense (1)
$
565
$
504
$
438
$
1,524
$
1,242
Management transition expense (2)
97
—
—
97
705
Non-GAAP gross profit
$
20,897
$
17,618
$
14,585
$
51,950
$
49,229
Non-GAAP gross margin
22.3
%
18.9
%
20.4
%
19.5
%
23.7
%
GAAP research and development expense
$
3,431
$
3,382
$
2,233
$
10,825
$
7,296
Equity-based compensation expense (1)
(69
)
(90
)
(218
)
(266
)
(597
)
Non-GAAP research and development
expense
$
3,362
$
3,292
$
2,015
$
10,559
$
6,699
GAAP selling, general, and administrative
expense
$
12,095
$
12,332
$
16,105
$
35,598
$
48,821
Equity-based compensation expense (1)
(1,384
)
(1,422
)
(1,197
)
(4,315
)
(3,834
)
Management transition expense (2)
—
(664
)
—
(664
)
(130
)
Business transformation costs (3)
—
—
(3,522
)
—
(6,022
)
CHIPS Act specialist fees (4)
—
—
—
—
(1,320
)
Non-GAAP selling, general, and
administrative expense
$
10,711
$
10,246
$
11,386
$
30,619
$
37,515
GAAP net income (loss) to shareholders
$
1,512
$
(1,897
)
$
(7,568
)
$
(6,114
)
$
(20,431
)
Equity-based compensation expense (1)
2,018
2,016
1,853
6,105
5,673
Management transition expense (2)
97
664
—
761
835
Business transformation costs (3)
—
—
3,522
—
6,022
CHIPS Act specialist fees (4)
—
—
—
—
1,320
Non-GAAP net income (loss) to
shareholders
$
3,627
$
783
$
(2,193
)
$
752
$
(6,581
)
Three-Month Period
Ended
Nine-Month Period
Ended
September 29,
2024
June 30, 2024
October 1, 2023
September 29,
2024
October 1, 2023
(in thousands)
Equity-based compensation expense
allocation in the consolidated statements of operations (1):
Cost of revenue
$
565
$
504
$
438
$
1,524
$
1,242
Research and development expense
69
90
218
266
597
Selling, general, and administrative
expense
1,384
1,422
1,197
4,315
3,834
$
2,018
$
2,016
$
1,853
$
6,105
$
5,673
Management transition expense allocation
in the consolidated statements of operations (2):
Cost of revenue
$
97
$
—
$
—
$
97
$
705
Selling, general, and administrative
expense
—
664
—
664
130
$
97
$
664
$
—
$
761
$
835
Three-Month Period
Ended
September 29, 2024
Nine-Month Period
Ended
September 29, 2024
GAAP
Non-GAAP
GAAP
Non-GAAP
Computation of net income (loss) per
common share, basic and diluted:
(in thousands, except per
share data)
Numerator:
Net income (loss) attributable to SkyWater
Technology, Inc.
$
1,512
$
3,627
$
(6,114
)
$
752
Denominator:
Weighted-average common shares
outstanding, basic
47,523
47,523
47,339
47,339
Net income (loss) per common share,
basic
$
0.03
$
0.08
$
(0.13
)
$
0.02
Weighted-average common shares
outstanding, diluted
47,640
47,640
47,339
47,481
Net income (loss) per common share,
diluted
$
0.03
$
0.08
$
(0.13
)
$
0.02
Three-Month Period
Ended
June 30, 2024
GAAP
Non-GAAP
Computation of net income (loss) per
common share, basic and diluted:
(in thousands,
except per share data)
Numerator:
Net income (loss) attributable to SkyWater
Technology, Inc.
$
(1,897
)
$
783
Denominator:
Weighted-average common shares
outstanding, basic
47,395
47,395
Net income (loss) per common share,
basic
$
(0.04
)
$
0.02
Weighted-average common shares
outstanding, diluted
47,395
47,521
Net income (loss) per common share,
diluted
$
(0.04
)
$
0.02
Three-Month Period
Ended
October 1, 2023
Nine-Month Period
Ended
October 1, 2023
GAAP
Non-GAAP
GAAP
Non-GAAP
Computation of net loss per common share,
basic and diluted:
(in thousands, except per
share data)
Numerator:
Net loss attributable to SkyWater
Technology, Inc.
$
(7,568
)
$
(2,193
)
$
(20,431
)
$
(6,581
)
Denominator:
Weighted-average common shares
outstanding, basic and diluted
46,445
46,445
45,002
45,002
Net loss per common share, basic and
diluted
$
(0.16
)
$
(0.05
)
$
(0.45
)
$
(0.15
)
Three-Month Period
Ended
Nine-Month Period
Ended
September 29,
2024
June 30, 2024
October 1, 2023
September 29,
2024
October 1, 2023
(in thousands)
Net income (loss) to shareholders
(GAAP)
$
1,512
$
(1,897
)
$
(7,568
)
$
(6,114
)
$
(20,431
)
Net income (loss) as a percentage of total
revenue
1.6
%
(2.0
)%
(10.6
)%
(2.3
)%
(9.8
)%
Interest expense
$
1,988
$
2,482
$
2,507
$
6,859
$
7,928
Income tax (benefit) expense
93
(127
)
(96
)
7
(71
)
Depreciation and amortization expense
4,166
4,064
7,092
13,295
21,651
EBITDA
7,759
4,522
1,935
14,047
9,077
Equity-based compensation expense (1)
2,018
2,016
1,853
6,105
5,673
Management transition expense (2)
97
664
—
761
835
Business transformation costs (3)
—
—
3,522
—
6,022
CHIPS Act specialist fees (4)
—
—
—
—
1,320
Net income attributable to noncontrolling
interests (5)
1,116
942
966
3,154
3,739
Adjusted EBITDA
$
10,990
$
8,144
$
8,276
$
24,067
$
26,666
Adjusted EBITDA as a percentage of total
revenue
11.7
%
8.7
%
11.6
%
9.0
%
12.8
%
__________________
(1)
Represents non-cash equity-based
compensation expense.
(2)
Represents the cost of severance,
separation, and other termination benefits related to the
reorganization of the manufacturing, sales, marketing, and
operations leadership team.
(3)
Represents expenses related to long-term
transformation activities focused on improvement in automation and
operational efficiency and includes project-based management
consulting fees.
(4)
Represents the costs of project-based
specialist fees related to our CHIPS Act application process.
(5)
Represents net income attributable to
noncontrolling interests arising from our variable interest entity
(VIE), which was formed for the purpose of purchasing the land and
building of our primary operating facility in Bloomington,
Minnesota. Since interest expense is added back to net income
(loss) to shareholders in our adjusted EBITDA financial measure, we
also add back the net income attributable to noncontrolling
interests as its net income is derived from interest the VIE
charges SkyWater.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107883156/en/
SkyWater Investor Contact: Claire McAdams |
claire@headgatepartners.com SkyWater Media Contact: Lauri Julian |
Media@SkyWaterTechnology.com
SkyWater Technology (NASDAQ:SKYT)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
SkyWater Technology (NASDAQ:SKYT)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
