The YES RapidCure tool, based on an exclusive license to the process created by Deca Technologies, is a combination of UV and direct thermal exposure that significantly reduces process cycle time. FREMONT, Calif., Dec. 16, 2024 /PRNewswire/ -- YES (Yield Engineering Systems, Inc.), a leading manufacturer of process equipment for semiconductor advanced packaging today announced that SkyWater Technology (NASDAQ: SKYT), has chosen the YES RapidCure polymer dielectric curing systems for their implementation of ...

SkyWater Technology, Inc. (SKYT) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this company have returned -24.7% over the past month versus the Zacks S&P 500 composite's +3.8% change. The Zacks Electronics - Semiconductors industry, to which SkyWater Technology belongs, has lost 5.6% over this period. Now the key question is: Where could the stock be headed in the near term ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!In August, I wrote that SkyWater Technology, Inc. ( NASDAQ: SKYT ) was delivering on impressive topline results, with the focus being on the topline element of that sentence.As the leader of the i ...

SkyWater Technology, Inc. (SKYT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this company have returned -15.8%, compared to the Zacks S&P 500 composite's +3.1% change. During this period, the Zacks Electronics - Semiconductors industry, which SkyWater Technology falls in, has lost 4.1%. The key question now is: What could be the stock's future ...

Financial Data and Key Metrics Changes - SkyWater reported a record revenue of $94 million for Q3 2024, with a positive non-GAAP EPS of $0.08 [5][16] - Combined ATS and Wafer Services revenue totaled $63 million, while tools revenue reached an all-time record of $31 million [5][16] - Gross margin for the quarter was 22%, driven by operational efficiencies and recovery of $5.6 million from a prior cost accrual [6][18] Business Line Data and Key Metrics Changes - ATS development revenue was $56 million, showing a year-over-year growth of 5% but a decline of 9% from Q2 [6][16] - Wafer Services revenue exceeded expectations at nearly $7 million, benefiting from the ability to balance production wafers through the fab [6][16] - Tools revenue, which represents customer-funded capex investments, increased to a record $30.7 million [16] Market Data and Key Metrics Changes - The company anticipates double-digit revenue growth in the ATS business for 2024, with a three-year CAGR for ATS revenue exceeding 35% [8] - The company is experiencing strong demand in the aerospace and defense sectors, with expectations for continued growth in 2025 [12][13] Company Strategy and Development Direction - SkyWater is focusing on expanding its leadership in critical semiconductor technologies and has been selected for multiple projects under the Microelectronics Commons Initiative [10] - The company announced a multiyear supply agreement with NanoDx, indicating a strategic move towards supporting emerging growth technologies [9] - The appointment of Bassel Haddad as senior vice president for advanced packaging aims to build a scalable manufacturing presence in the U.S. [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on key programs and maintain strong customer relationships despite temporary funding constraints [41] - The outlook for Q4 includes expected total revenue of $72 million to $76 million, with a focus on sequential growth in ATS revenue [12][22] - For 2025, the company expects continued growth driven by strong demand in A&D programs and new commercial initiatives [13][14] Other Important Information - The company reported free cash flow positive of $14.3 million in Q3, with total cash at quarter-end remaining consistent at $20.7 million [20][21] - Operating expenses were aligned with expectations at $14.1 million, and the company reduced overall indebtedness by approximately $6 million [20][22] Q&A Session Summary Question: Guidance on gross margin for Q4 - Management confirmed that gross margin is expected to be in the range of 19% to 23%, indicating a flat quarter-to-quarter performance for ATS and Wafer Services revenue [29] Question: Expectations for 2025 and seasonality - Management anticipates overall growth in Wafer Services and ATS for 2025, with seasonality typically seen in Q3 due to A&D concentration [30] Question: Tool revenue guidance for Q4 and 2025 - Management noted that tool revenue guidance for Q4 is slightly softer due to supplier timing, with a significant portion of tool revenue expected to be recognized in the second half of 2025 [34] Question: Accrual reversal implications - The reversal of an $8 million accrual indicates strong progress in a technology development program, with expectations for continued advancement [38] Question: Impact of government budgets on A&D programs - Management expressed confidence in the funding and commitment to A&D programs as the new fiscal year begins, despite previous budget constraints [41] Question: Gross margin trajectory for 2025 - Management expects gross margins to increase in 2025 due to lower tool revenue, with continued growth in ATS and Wafer Services expected to drive overall profitability [44]

Q3 Earnings NOVEMBER 7, 2024 ©2024 All Rights Reserved. Proprietary. SkyWater Technology Forward-Looking Statements 2 This presentation and the accompanying oral presentation, including answers to questions, contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on SkyWater Technology, Inc.'s ("SkyWater", the "Company", "we", "us", or "our") current expectations or forecasts of future events, rather than past, eve ...

SkyWater Technology, Inc. (SKYT) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 500%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced earnings of $0.02, delivering a surprise of 120%.Over the last four quarters, th ...

Revenue Performance - Revenue for Q3 2024 was $93.8 million, a 31% increase from $71.6 million in Q3 2023[98] - Revenue for the first nine months of 2024 reached $266.8 million, up 29% from $207.5 million in the same period of 2023[102] - ATS development revenue increased by $2.5 million, or 5%, from Q3 2023 to Q3 2024, driven by U.S. government programs[102] - Tools revenue surged by $27.5 million from Q3 2023 to Q3 2024, reflecting increased customer investment[102] - Wafer Services revenue decreased by $7.8 million, or 54%, from Q3 2023 to Q3 2024, primarily due to reduced automotive market activity[102] Income and Expenses - Operating income for Q3 2024 was $4.7 million, compared to a loss of $4.2 million in Q3 2023[98] - Net income attributable to SkyWater Technology, Inc. for Q3 2024 was $1.5 million, a significant recovery from a loss of $7.6 million in Q3 2023[98] - Research and development expenses decreased by 54% in Q3 2024 compared to Q3 2023, amounting to $3.4 million[98] - Cost of revenue increased by $16.1 million to $73.6 million for Q3 2024, driven by a $27.6 million rise in tools revenue and a $3.7 million increase in facility expansion costs[104] - For the first nine months of 2024, cost of revenue rose by $56.2 million to $216.5 million, primarily due to a $60.0 million increase in tools revenue[105] - Selling, general and administrative expense decreased by $4.0 million to $12.1 million for Q3 2024, and by $13.2 million to $35.6 million for the first nine months of 2024, primarily due to reduced consulting services[108] - Interest expense decreased by $0.5 million to $2.0 million for Q3 2024, and by $1 million to $6.9 million for the first nine months of 2024, due to lower outstanding amounts under the Revolver[109] Cash Flow and Liquidity - Net cash provided by operating activities was $19.7 million for the first nine months of 2024, an increase of $41.4 million from the cash used in the same period of 2023[120] - Net cash used in investing activities was $15.8 million for the first nine months of 2024, compared to $4.5 million in the same period of 2023, driven by increased capital expenditures[121] - Cash flows from financing activities decreased by $15.1 million to $1.6 million of net cash used in financing activities for the first nine months of 2024, primarily due to a $20.4 million decrease in proceeds from the ATM program[122] - As of September 29, 2024, the company had $20.1 million in cash and cash equivalents and $75.6 million available under the Revolver[113] - The company anticipates sufficient liquidity to fund operations for the next twelve months based on current cash, available borrowings, and potential cost reduction measures[113] Debt and Financing - The company has a revolving line of credit of up to $100 million, with $21.3 million currently borrowed and $75.6 million remaining available as of September 29, 2024[125] - The borrowing base was $96.9 million, which is below the $100 million borrowing limit, indicating potential liquidity constraints[125] - The Loan Agreement requires a minimum EBITDA of $10 million and prohibits unfunded capital expenditures exceeding $15 million[126] - The company incurred $4.3 million in debt issuance costs related to the Loan Agreement, which will be amortized over the term of the facility[125] - The company is accounting for certain financing arrangements as failed sale and leasebacks, impacting the classification of assets and liabilities on the balance sheet[129] - As of September 29, 2024, the outstanding balance of the Revolver was $21.3 million, with an interest rate of 10.6%[144] - A 100 basis point increase in the interest rate would result in an additional annual interest expense of $0.2 million[144] Internal Controls and Compliance - The company identified material weaknesses in internal control over financial reporting related to the Controls Activity component of the COSO Framework and revenue accounting process, which were not remediated as of September 29, 2024[148] - Management plans to sustain the execution of process-level and information technology controls throughout fiscal year 2024 to address the identified material weaknesses[149] - There were no changes in internal control over financial reporting that materially affected the company during the three- and nine-month periods ended September 29, 2024[151] - The effectiveness of disclosure controls and procedures was deemed not effective as of September 29, 2024, due to material weaknesses in internal control over financial reporting[147] - The company remains in compliance with all applicable covenants of the Loan Agreement and expects to maintain compliance over the next twelve months[126] Other Financial Information - The company has not experienced any losses in cash accounts maintained at financial institutions, which sometimes exceed federally insured limits[143] - The company does not engage in speculative, non-operating transactions, limiting its market risk exposure to normal business operations[142] - Management concluded that the interim condensed consolidated financial statements present fairly the financial position and results of operations, despite the identified material weaknesses[147] - The company is not currently involved in any litigation that could materially affect its business or financial condition[152]

Exhibit 99.1 SkyWater Technology Reports Third Quarter 2024 Results Record Revenues with Increased Gross Margin and Earnings BLOOMINGTON, Minn., – November 7, 2024 – 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 Q ...

SkyWater Technology (SKYT) is set to report its third-quarter 2024 results on Nov. 7.SKYT expects third-quarter 2024 revenues to be slightly higher on a sequential basis. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $94.65 million, indicating growth of 32.16% year over year. The consensus mark for loss is currently pegged at 2 cents per share, down from earnings of 1 cent over the past 30 days. SkyWater reported loss of 5 cents per share in the year-ago quarter.SKYT’s earni ...