SkyWater(SKYT) - 2025 Q4 - Annual Results

Revenue Performance - Revenue for Q4 2024 was $75.5 million, a decrease of 5$342.3 million, an increase of 19% year-over-year[4][17]. - Total revenue for the fiscal year ended December 29, 2024, was $342.3 million, an increase from$286.7 million in 2023[30]. - Total revenue for Q4 2024 was $75,487,000, a decrease from$93,817,000 in Q3 2024, indicating a 19.5% decline quarter-over-quarter[34]. - For Q1 2025, SkyWater expects total revenue to be in the range of $59 million to$63 million, with GAAP diluted net loss per share projected between $(0.14) to$(0.20)[18]. Profitability and Margins - Gross margin for Q4 2024 improved to 25.6% on a GAAP basis and 26.6% on a non-GAAP basis, compared to 15.2% and 17.4% respectively in Q4 2023[4][11]. - Adjusted EBITDA for fiscal year 2024 was $34.3 million, representing 10.0$37.2 million or 13.0% of revenue in fiscal year 2023[13]. - Adjusted EBITDA for the fiscal year ended December 29, 2024, was $34,282,000, with an adjusted EBITDA margin of 10.0$20,065,000, with a non-GAAP gross margin of 26.6%[43]. Net Loss and Earnings Per Share - The net loss to shareholders for Q4 2024 was $0.7 million, or$(0.01) per diluted share on a GAAP basis, a significant improvement from a net loss of $10.3 million, or$(0.22) per diluted share in Q4 2023[4][16]. - GAAP net loss to shareholders was $6.8 million, or$(0.14) per diluted share, significantly improved from a net loss of $30.8 million, or$(0.68) per diluted share, in 2023; non-GAAP net income was $2.7 million, or$0.06 per diluted share, compared to a non-GAAP net loss of $7.7 million, or$(0.17) per diluted share, in 2023[20]. - The net loss for the fiscal year ended December 29, 2024, was $2,517,000, a significant improvement from a net loss of$25,093,000 for the previous year[33]. - For the three-month period ended December 29, 2024, SkyWater reported a net loss of $679,000, compared to a net income of$1,512,000 for the previous quarter, reflecting a significant decline in performance[46]. Operating Expenses - GAAP operating expenses were $63.1 million, a decrease from$74.1 million in 2023, while non-GAAP operating expenses increased slightly to $56.0 million from$54.7 million in 2023[20]. - GAAP research and development expense increased to $4,214,000 for the three-month period, up from$3,431,000 in the previous quarter[43]. - Non-GAAP research and development expense for the fiscal year was $14,698,000, significantly higher than$9,050,000 in the previous year[43]. Cash Flow and Assets - Net cash provided by operating activities increased to $15,244,000, compared to$10,081,000 in the prior year, reflecting a 51.5% year-over-year growth[33]. - Total current assets decreased to $132.1 million from$146.4 million as of December 31, 2023[28]. - Cash and cash equivalents at the end of the fiscal year were $18,844,000, slightly up from$18,382,000 at the beginning of the fiscal year[33]. - The company experienced a net cash used in investing activities of $18,479,000, compared to$10,489,000 in the previous year, indicating increased investment outflows[33]. Strategic Initiatives - SkyWater launched the ThermaView℠ platform, targeting a $9 billion market for thermal imaging applications, enhancing its position in the semiconductor ecosystem[6]. - The company announced a preliminary$16 million CHIPS funding award, expected to be combined with $19 million in state incentives to enhance production capabilities[6]. - The company plans to continue expanding its Technology as a Service model to enhance production capabilities and market reach[22]. - Significant progress was made in transitioning multiple ATS development programs into production, including partnerships with Lumotive and NanoDX[6].