Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Q1 2025 Earnings Presentation
26 slides from Skywater Technology's earnings presentation, May 7, 2025
Slide 1: Q1 Earnings
Q1 Earnings MAY 7, 2025 ©2024 All Rights Reserved. Proprietary.
Slide 2: SkyWater Technology 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 SkyWater T
Slide 3: Revenue Trend
Revenue Trend Wafer Services Returned to Growth in Q1 Driven by New Products; ATS Growth to Resume in 2H 2025; Tools Revenue in 2025 Expected to be 2H-Weighted $342.3 in USD $ millions $93.3 $93.8 $286.7 $79.2 $79.6 $75.5 $69.8 $71.6 $66.1 $61.3 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 202
Slide 4: Recent Business Highlights
Recent Business Highlights • Strong sequential growth in Wafer Services revenue in Q1 was driven primarily by robust demand for our new ThermaView℠ platform from two leading defense prime customers, demonstrating significant traction achieved since the January launch of SkyWater’s first proprietary
Slide 5: Q1 Results Demonstrate Strong Demand for ThermaView Platform
Q1 Results Demonstrate Strong Demand for ThermaView Platform Capturing Growth in the $9B Thermal Imaging Market • Over half of Q1 Wafer Services revenue from new products, including ThermaView sales to two leading U.S. defense prime customers • First category-specific brand highlights SkyWater’s lea
Slide 6: Vision for U.S. Semiconductor Sovereignty
Vision for U.S. Semiconductor Sovereignty Increase capacity at Revive domestic Incorporate diverse Build resilient and both advanced and packaging and test manufacturing secure US-based foundational nodes capabilities for formats (200mm, semiconductor heterogeneous 300mm, panel-based) supply chains
Slide 7: Fab 25: Positioned to Address Critical Market Needs
Fab 25: Positioned to Address Critical Market Needs Technology Capabilities • This slide now needs to be swapped out with Ross' new version (Friday) Strategic Advantages Market Needs 7 ©2025 All Rights Reserved. Proprietary.
Slide 8: Enabling the Quantum Revolution
Enabling the Quantum Revolution SkyWater’s Advanced Manufacturing D-Wave, in partnership with SkyWater, has achieved a historic milestone by demonstrating quantum supremacy in simulation, validating the power of annealing quantum computing for real- world problems. What Sets SkyWater Apart? Custom N
Slide 9: Macro Trends Driving SkyWater's Business
Macro Trends Driving SkyWater’s Business AEROSPACE & DEFENSE MARKET COMMERCIAL MARKETS • Rising semiconductor content • More than Moore innovation • Onshore supply • Next-gen Biomed, Advanced 9 Compute, Industrial ©2024 All Rights Reserved. Proprietary.
Slide 10: A&D Growth Drivers
A&D Growth Drivers Thermal Imaging High Reliability CMOS Trusted/Secure Technology CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Expanded use cases for infrared • Nuclear refresh • Assured domestic supply cameras • Commercialization of space • Technology innovation • Transition to higher reso
Slide 11: Business Outlook
Business Outlook • Our ATS business continues to face challenges from prolonged U.S. federal budget negotiations, delaying the timing of key program funding for our A&D customers into the second half of the year. • Based on today’s visibility, we remain confident that increased program funding will
Slide 12: Financial Review
Q1 Earnings Financial Review Q1 2025 EARNINGS CALL ©2024 All Rights Reserved. Proprietary.
Slide 13: Revenue Summary
Revenue Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q* Q1 2024 Y/Y * ATS development revenue $52.5 $59.4 (12)% $61.2 (14)% Wafer Services revenue $7.5 $4.4 72% $10.0 (25)% Combined ATS development and Wafer Services revenue * $60.1 $63.8 (6)% $71.2 (16)% Tools revenue $1.2 $11.7 (89)% $8.5 (85)% T
Slide 14: Gross Margin Summary
Gross Margin Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q * Q1 2024 Y/Y * GAAP gross profit $14.3 $19.3 (26)% $13.0 10% GAAP gross margin * 23.3% 25.6% (226) bps 16.3% 700 bps Adjustments: Equity-based compensation $(0.6) $0.6 (196)% $0.5 (225)% Management transition expense $— $— —% $— —% Busine
Slide 15: Adjusted EBITDA Summary
Adjusted EBITDA Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q * Q1 2024 Y/Y * Net Income (Loss) $(7.3) $(0.7) (982)% $(5.7) (28)% Net income (loss) as a percentage of total revenue * (12.0)% (0.9)% (1,110) bps (7.2)% (480) bps Interest expense $1.8 $2.0 (8)% $2.4 (24)% Income tax (benefit) expense
Slide 16: Adjusted EBITDA and Non-GAAP Net Income (Loss)
Adjusted EBITDA and Non-GAAP Net Income (Loss) Continued Positive Adjusted EBITDA $37.2 $34.3 $10.3 $10.6 $11.0 $10.2 $8.1 $8.1 $4.8 $4.9 $4.0 $3.6 $2.7 $1.9 $0.8 $(2.0) $(1.1) $(2.4) $(2.2) $(3.7) $(3.7) $(7.7) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2023 2024 Non-GA
Slide 17: Financial Details of Current Business Outlook
Financial Details of Current Business Outlook We continue to expect modest year-over-year growth in both our ATS and Wafer Services businesses for fiscal 2025 • We expect combined ATS and Wafer Services revenue growth of approximately 5% ( ± 2% ) • We expect tools revenue of ~$30 million dollars, mo
Slide 18: Benefits of Customer-Funded CapEx Model
Benefits of Customer-Funded CapEx Model 18 ©2024 All Rights Reserved. Proprietary & Confidential
Slide 19: GAAP to Non-GAAP Reconciliation
Q1 Earnings GAAP to Non-GAAP Reconciliation Q1 2025 EARNINGS CALL ©2024 All Rights Reserved. Proprietary.
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental, non-GAAP financial information that our management regularly evaluates to provide additional insight to investors as supplemental information to our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GA
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP revenue $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 $ 93,329 $ 93,817 $ 75,487 $342,269 $ 61,296 GAAP cost of revenue $ 49,626 $ 53,144 $ 57,477 $ 67,143 $227,390 $ 66,656 $ 76,215 $ 73,582 $ 56,190 $272,643 $ 47,039
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP selling, general, and administrative $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 $ 12,332 $ 12,095 $ 12,430 $ 48,026 $ 15,030 expense Equity-based compensation expense (1,178) (1,459) (1,197) (1,008) (4,841) (1,510)
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Equity-based compensation expense allocation in the consolidated statements of operations: Cost of revenue $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 $ 504 $ 565 $ 589 $ 2,113 $ 567 Research and development expense 162 217 218 (134) 464
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Net income (loss) to shareholders $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) Interest expense 2,471 2,950 2,507 2,898 10,826 2,390 2,482 1,988 1,977 8,837 1,812 Incom
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP EPS Numerator: Net income (loss) attributable to SkyWater Technology, Inc. $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) Denominator: Weighted-average common shares
Slide 26: Q1 Earnings
Q1 Earnings ©2024 All Rights Reserved. Proprietary.