SkyWater(US:SKYT)2021-11-08 22:27Financial Performance - For the three months ended October 3, 2021, revenue was $35,025,000, an increase of 6.1% compared to $33,003,000 for the same period in 2020[20] - Gross profit for the three months ended October 3, 2021, was a loss of $1,827,000, compared to a gross profit of $7,278,000 for the same period in 2020[20] - The net loss attributable to SkyWater Technology, Inc. for the three months ended October 3, 2021, was $13,870,000, compared to a net loss of $1,654,000 for the same period in 2020[20] - For the nine months ended October 3, 2021, the net loss was $21,238 thousand, compared to a net loss of $8,319 thousand for the same period in 2020, representing an increase in loss of 155%[30] - Revenue for the first nine months of 2021 rose by $23.6 million, or 23%, to $124.3 million from $100.7 million in the same period of 2020, primarily due to growth in Advanced Technology Services[165] - Net loss attributable to SkyWater Technology, Inc. for Q3 2021 was $(13.9) million, a decrease of $12.2 million, or 739%, from $(1.7) million in Q3 2020[165] Expenses and Losses - Research and development expenses increased to $2,253,000 for the three months ended October 3, 2021, from $1,088,000 in the same period in 2020, representing a 107.5% increase[20] - Selling, general and administrative expenses for Q3 2021 rose by $3.9 million, or 67%, to $9.6 million, driven by increased equity-based compensation and personnel expenses[171] - Operating loss for Q3 2021 was $(12.0) million, compared to an operating income of $0.6 million in Q3 2020, marking a decline of $12.7 million[169] - Adjusted EBITDA for Q3 2021 was $(2.7) million, a decline of $8.0 million, or 151%, from $5.3 million in Q3 2020[165] Assets and Liabilities - Total current assets as of October 3, 2021, were $78,325,000, compared to $76,572,000 as of January 3, 2021, reflecting a 2.3% increase[18] - Total assets increased to $271,685,000 as of October 3, 2021, from $263,209,000 as of January 3, 2021, marking a 3.3% increase[18] - Total liabilities decreased to $186,628,000 as of October 3, 2021, from $264,793,000 as of January 3, 2021, indicating a reduction of 29.6%[18] - Total long-term debt, including current maturities, was $35,601,000, down from $72,600,000 as of January 3, 2021[6] Cash Flow - Cash flows from operating activities resulted in a net cash used of $37,241 thousand for the nine months ended October 3, 2021, compared to net cash provided of $91,669 thousand in the same period of 2020[30] - Cash and cash equivalents increased to $8,458,000 as of October 3, 2021, from $7,436,000 as of January 3, 2021, representing a 13.8% increase[18] - Net cash used in operating activities was $37.2 million for the first nine months of 2021, a decrease of $128.9 million from $91.7 million provided in the same period of 2020[194] Capital Investments - Strategic capital investments of $56 million were approved by the Board of Directors for expanding manufacturing capacity and technology capabilities at the Minnesota facility[40] - The company invested approximately $10,700 thousand during the three months ended October 3, 2021, as part of its multi-year strategic capital investment plan[40] IPO and Financing - The company completed its initial public offering (IPO) on April 23, 2021, issuing 8,004,000 shares at an initial offering price of $14.00 per share, resulting in net proceeds of approximately $100,162 thousand[38] - The company received net proceeds of approximately $100.2 million from its IPO, enhancing its financial position[146] Accounting and Compliance - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and reflect all necessary adjustments for a fair statement of financial position[45] - The company plans to adopt new accounting standards related to leases and credit losses in 2022 and 2023, respectively, without expecting a material impact on financial statements[62][63] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain exemptions from reporting requirements applicable to other public companies[210] Market and Operational Challenges - The company has experienced supply chain disruptions impacting revenue, particularly for substrates and chemicals[156] - The company has not experienced a shutdown of manufacturing facilities due to COVID-19, but acknowledges potential vulnerabilities to future outbreaks[47]