Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Q4 2022 Earnings Presentation
17 slides from Skywater Technology's earnings presentation, Feb 13, 2023
Slide 1: SkyWater Technology Q4 2022 Financial Results
SkyWater Technology (Nasdaq: SKYT) Q4 2022 Financial Results February 13, 2023
Slide 2: Forward-Looking Statements
SkyWater Technology Forward-Looking Statements 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 the Compan
Slide 3: SkyWater's Unique Model Accelerates Disruption
SkyWater’s Unique Model Accelerates Disruption WHO WE ARE Technology as a Service (TaaS) SM SM Innovation as a Service Manufacturing as a Service Advanced Technology Services (ATS) Wafer Services enable co-creation of differentiated solutions supply customers with ICs and which are the unique expres
Slide 4: 2022 Business Highlights
2022 Business Highlights • Record results for both ATS and Wafer Services, driving revenues to $213 million for the year, with a significantly expanded gross margin profile, and positive adjusted EBITDA generation • Expansion of our access to capital through $250 million shelf registration (with $19
Slide 5: Q4 2022 Financial Progress
Q4 2022 Financial Progress ◦ Total Revenues of $65.1M ◦ ATS Revenue of $47.9M, compared to $24.4M in Q4’21 ▪ Tool sales were $0.03M, compared to $1.1M in Q4’21 • Excluding tool sales, ATS revenue of $47.8M increased 106% YoY ▪ ATS Revenue included $4.7M non-recurring, non-cash revenue recognition fo
Slide 6: Q4 2022 Financial Summary
Q4 2022 Financial Summary Revenue • Total revenue +69% YoY In USD millions Q4 22 Q4 21 Y/Y ◦ ATS growth of 97% reflects momentum in multiple programs (in addition to $4.7M non-recurring upside in Q4, ATS Revenue $47.9 $24.4 97% which drove 19% of the ATS growth YoY) ◦ Wafer Services growth of 21% re
Slide 7: 2022 Financial Summary
2022 Financial Summary Revenue • 25% ATS growth through existing program expansion and new In USD millions 2022 2021 Y/Y customer wins ◦ ATS growth net of tool sales was 49% YoY ATS Revenue $139.4 $111.7 25% • Wafer Services growth of 44% reflects more favorable pricing terms & higher fab efficiency
Slide 8: Strong Revenue Momentum in Both ATS and WS
Strong Revenue Momentum in Both ATS and WS in USD $ millions +6% (3)% * Q1 2022 wafer services amount excludes impact of new contract with significant customer Proprietary 8
Slide 9: ATS Revenue by Customer
ATS Revenue by Customer (each color band is a distinct customer) • ATS revenues totaled $139M in 2022 ◦ 25% growth over 2021 ◦ Excluding tool sales, which were $19.2 million in 2021 and $1.5M in 2022, ATS increased 49% YoY • 10 largest ATS customers = ~80% of total ATS revenues in 2022 • Approximate
Slide 10: Net Income / Adjusted EBITDA
Net Income / Adjusted EBITDA in USD $ millions Proprietary 10
Slide 11: 2023 Business Outlook
2023 Business Outlook • We believe our ATS growth this year will be relatively decoupled from macro weakness in the semiconductor industry ◦ In our DoD and U.S. Government programs such as RadHard and other strategic areas of investment, those programs are established, and funding is secured – provi
Slide 12: Se SKyWwater
Se SKyWwater
Slide 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental non-GAAP financial information that our management utilizes to evaluate our ongoing financial performance and provide additional insight to investors as supplemental information to our U.S. GAAP results. We provide non-GAAP gross profit, non-GA
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 (In thousands) Total revenue $ 36,904 $ 30,759 $ 33,003 $ 39,772 $140,438 $ 48,101 $ 41,189 $ 35,025 $ 38,533 $162,848 $ 48,121 $ 47,407 $52,326 $65,087 $212,941 Estimated impact of additional operating week — — — (2,
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 (In thousands) GAAP net loss to shareholders $ (1,372) $ (5,293) $ (1,654) $ (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) Inventory writ
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 (In thousands) Net loss to shareholders $ (1,372) $ (5,293) $ (1,654) (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) Interest expense 1,46
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 (In thousands) GAAP EPS Net loss attributable to SkyWater Technology, Inc. $ (1,372) $ (5,293) $ (1,654) $ (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,