SkyWater(US:SKYT) ZACKS·2025-06-16 17:40Core Insights - SkyWater Technology's Wafer Services revenues experienced a 25% year-over-year decline in Q1 FY25 due to decreased demand from automotive customers, but a strong sequential rebound of 70% to $7.5 million was driven by the launch of the ThermaView platform [2][9] - ThermaView, SkyWater's first internally developed product platform for thermal imaging, is already being deployed by two major U.S. defense contractors, indicating its significance in mission-critical applications [3][9] - The company anticipates that ThermaView will be a key growth driver for Wafer Services through FY25, addressing a projected $9 billion market opportunity by 2027 [4][5] Financial Performance - For Q2 FY25, SkyWater expects Wafer Services revenues to be between $5 million and $6 million, reflecting ongoing demand for ThermaView [4][9] - SkyWater's shares have declined by 40.6% year-to-date, contrasting with the Zacks Electronics – Semiconductors industry's return of 3.9% [8] - The current forward 12-month price-to-sales ratio for SkyWater is 1.17, significantly lower than the industry average of 8X, making it an attractive option for value investors [10] Earnings Estimates - The Zacks Consensus Estimate for SkyWater's 2025 loss is currently at 1 cent per share, which has narrowed by 85.7% over the past 60 days, indicating a year-over-year decline of 116.67% [11] - Earnings estimates for the upcoming quarters show a projected loss of $0.17 for the current quarter, a profit of $0.09 for the next quarter, and a loss of $0.01 for the current year [12] Competitive Landscape - SkyWater faces significant competition from GlobalFoundries, which offers a wide range of process technologies and serves diverse markets, holding advantages in scale and capacity [6] - Tower Semiconductor specializes in analog, RF, and MEMS technologies, targeting high-value niches and offering customizable solutions, which positions it as a strong competitor in complex analog projects [7]