SkyWater Technology Reports First Quarter 2025 Results BLOOMINGTON, Minn., – May 7, 2025 – SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the first quarter 2025 ended March 30, 2025. "We're pleased to report that our financial results for the first quarter reflect modest upside to our expectations entering the year," commented Thomas Sonderman, CEO. "A significant rebound in sequential growth for our Wafer Services business reflect ...

SkyWater Technology, Inc. (SKYT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sy ...

SkyWater Technology (SKYT) is scheduled to report first-quarter 2025 results on May 7.SKYT expects total revenues between $59 million and $63 million for the first quarter, of which $1 million is expected to be tool revenues, and $6 million is likely to be Wafer Services revenues.The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $61.05 million, suggesting a 23.3% year-over-year decline.Non-GAAP earnings are expected to be 10-16 cents per share for the first quarter of 2025.The consen ...

Company Overview - Skywater Technology (NASDAQ: SKYT) is a US-based foundry specializing in mature-node chip manufacturing for aerospace, defense, and industrial applications [1] Market Position - The company operates in a strategically important sub-segment of the chip market, highlighting its relevance in critical industries [1] Strategic Focus - The new administration's policies may influence the company's operations and market dynamics, although specific details are not provided [1]

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $6.21, reflecting a +1.8% change from the previous day, outperforming the S&P 500's daily loss of 0.23% [1] - The stock has decreased by 25.97% over the past month, which is worse than the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13% [1] Earnings Projections - The upcoming earnings disclosure projects an earnings per share (EPS) of -$0.13, indicating a 62.5% decrease from the same quarter last year [2] - Revenue is estimated to be $61.05 million, reflecting a 23.34% decrease compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, the Zacks Consensus Estimates predict an EPS of -$0.07 and revenue of $309.2 million, showing changes of -216.67% and -9.66% from the previous year, respectively [3] - Recent changes to analyst estimates suggest a trend in business performance, with positive revisions indicating analyst optimism regarding the company's profitability [3] Zacks Rank and Industry Performance - SkyWater Technology, Inc. currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed with an average annual gain of +25% since 1988 [5] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [6]

Core Viewpoint - SkyWater Technology (SKYT) has experienced significant stock underperformance, losing 37.7% over the past 12 months, compared to the S&P 500's gain of 9.5% and the Zacks Electronics – Semiconductors industry's growth of 0.9% [1][2] Company Performance - The decline in SKYT's stock is linked to negative sentiment in the semiconductor sector, with concerns about the sustainability of the AI trend impacting investor confidence [2] - Wafer Services revenues fell by 56% to $26.9 million in 2024, primarily due to ongoing weakness in the automotive and industrial sectors [2] Strategic Initiatives - To improve its market position, the company is acquiring Infineon's Fab 25, a 200mm chip manufacturing facility in Austin, TX, which is expected to generate approximately $300 million in annual Wafer Services revenues [4] - SkyWater has launched ThermaView Solutions to penetrate the thermal imaging market, aiming for long-term revenue growth in its Wafer Services segment [5] - The product mix in Wafer Services is projected to shift from 90% legacy products and 10% new products in 2024 to 60% new products in 2025 [5] Competitive Landscape - SkyWater competes with major players like Tower Semiconductor, GlobalFoundries, and ON Semiconductor, which have seen stock declines of 3.2%, 32%, and 48.7% respectively over the past year [6] - The company differentiates itself by focusing on specialized, high-value chip production and benefits from being a Department of Defense-accredited foundry, allowing access to government contracts [7] Financial Guidance - For Q1 2025, SKYT anticipates a non-GAAP loss per share between 10-16 cents and revenues between $59-$63 million, reflecting a year-over-year revenue decline of 23.34% [8] Recent Performance - SKYT has outperformed Zacks Consensus Estimates for earnings in three of the last four quarters, with an average surprise of 179.29% [9] Long-term Outlook - Strategic moves like the acquisition of Fab 25 and the launch of ThermaView demonstrate the company's commitment to growth and innovation, positioning it favorably in the evolving semiconductor market [11] - Support from the CHIPS Act and partnerships with companies like Quantum-Si Incorporated and NanoDx further enhance its long-term potential [11] Investment Potential - SKYT holds a Zacks Rank 1 (Strong Buy) and a Growth Score of A, indicating a strong investment opportunity according to Zacks' methodology [12]

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $7.85, reflecting a -0.25% change from the previous day, underperforming the S&P 500 which gained 0.08% [1] - The stock has decreased by 24.25% over the past month, compared to a 12.04% loss in the Computer and Technology sector and a 7.33% loss in the S&P 500 [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of -$0.13, indicating a 62.5% decline from the same quarter last year [2] - Revenue is projected at $61.05 million, down 23.34% from the prior-year quarter [2] - For the entire fiscal year, earnings are estimated at -$0.07 per share and revenue at $309.2 million, representing declines of -216.67% and -9.66% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for SkyWater Technology indicate a shifting business landscape, with positive revisions suggesting increased confidence in the company's performance [4] - The Zacks Rank system, which reflects these estimate changes, currently rates SkyWater Technology as 1 (Strong Buy), indicating strong potential for stock performance [6] Industry Context - SkyWater Technology operates within the Electronics - Semiconductors industry, which is part of the Computer and Technology sector [7] - This industry holds a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries, suggesting a favorable position compared to lower-ranked industries [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-40345 SkyWater Technology, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 reached $75 million, exceeding guidance, with tools revenue of $12 million and combined ATS and Wafer Services revenue of $64 million [11][38] - Full year revenues totaled a record $342 million, up 19% from fiscal 2023 [12] - Reported gross margin for Q4 was nearly 27%, contributing to a positive EPS of $0.04 for the quarter and $0.06 for the full year [12][45] - Full year gross margin was 21%, down from 22% in 2023, primarily due to tools revenue impacting margins [42] Business Line Data and Key Metrics Changes - ATS business experienced a strong 13% revenue growth compared to 2023, while Wafer Services revenue declined significantly due to weakness in automotive and industrial segments [13] - Advanced compute was the second largest end market in 2024, with over 90% of revenues related to quantum computing technologies [14] - Tools revenue reached a record $77 million in 2024, reflecting unprecedented customer-funded CapEx investments [15] Market Data and Key Metrics Changes - The aerospace and defense sector showed significant strength in 2024, driving the majority of ATS revenue growth [13] - The automotive market saw a decline in revenue, while the BioHealth sector experienced growth [14] Company Strategy and Development Direction - The company announced the acquisition of Infineon's Fab 25 in Austin, aiming to expand domestic manufacturing capabilities and become a leading pure-play domestic foundry service provider by the end of the decade [8][9] - The acquisition is expected to contribute approximately $300 million in annual Wafer Services revenue and strengthen the company's financial foundation [29][32] - The transition of Fab 25 to a customer-driven foundry model is anticipated to enhance service offerings and align with long-term industry trends [34] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for 2025 due to ongoing budget negotiations and expected timing of program allocations, forecasting combined ATS and Wafer Services revenue growth of approximately 5% [25][101] - The company expects a significant rebound in ATS revenues in Q2 2025, with continued sequential growth anticipated in Q3 and Q4 [27][49] - Management highlighted the importance of the CHIPS Act funding as an accelerant for growth plans [16] Other Important Information - The company plans to hold a Capital Markets Day post-acquisition to provide more details on the financial benefits and long-term strategic vision for Fab 25 [37] - The acquisition is expected to double the workforce in the U.S. across three strategic manufacturing centers: Minnesota, Florida, and Texas [32] Q&A Session Summary Question: Clarification on Fab 25's gross profit contribution - Management confirmed that the initial supply agreement with Infineon will provide the output they currently receive, with plans to diversify over time [62][63] Question: Customer revenue profile post-acquisition - Infineon is expected to become the largest customer, with a secured supply agreement allowing for diversification and growth [64][65] Question: Back-end processing for Fab 25 - Currently, Infineon uses traditional OSATs for back-end assembly, but there are opportunities for the Florida fab to contribute in the future [66][68] Question: Quantum computing revenue percentage - Quantum computing accounted for about 10% of revenues in Q4 2024 [70] Question: Product applications for Fab 25 - The fab will support various applications, including ASICs, PMICs, and NOR flash, with a focus on 65-nanometer technology [75][76] Question: Wafer services revenue outlook - Management anticipates wafer services revenue will return to growth, with a mix shifting towards new products [20][80] Question: Supply agreement details - The supply agreement includes parameters like take-or-pay, with plans to run the fab at full utilization for Infineon [89][90] Question: Gross margin sustainability - The strong gross margin in Q4 was driven by a combination of ATS business mix and cost deferrals, but similar levels are not expected to repeat [92][93]

SkyWater Technology, Inc. (NASDAQ:SKYT) Q4 2024 Earnings Call February 26, 2025 8:30 AM ET Company Participants Claire McAdams - Investor Relations Thomas Sonderman - Chief Executive Officer Steve Manko - Chief Financial Officer Conference Call Participants Krish Sankar - TD Cowen Harsh Kumar - Piper Sandler Richard Shannon - Craig-Hallum Operator Good morning. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the SkyWater Technology Fourth ...