Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Q1 2023 Earnings Presentation
16 slides from Skywater Technology's earnings presentation, May 8, 2023
Slide 1: SkyWater Technology Q1 2023 Financial Results
SkyWater Technology (Nasdaq: SKYT) Q1 2023 Financial Results May 8, 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: Q1 2023 Business Highlights
Q1 2023 Business Highlights • Record revenues exceeded expectations due to accelerated demand and expanded scope of multiple U.S. government contract awards year to date. • Gross margin expansion ahead of schedule as a result of flow-through performance ahead of expectations, with strong adjusted EB
Slide 5: Q1 2023 Financial Progress
Q1 2023 Financial Progress ◦ Record Revenues of $66.1M ◦ ATS Revenue of $48.3M, compared to $26.6M in Q1’22 ▪ Tool sales were $0.5M, compared to $1.1M in Q1’22 • Excluding tool sales, ATS revenue of $47.8M increased 86.7% YoY ◦ Wafer Services Revenue of $17.8M, compared to $21.5M in Q1’22 ▪ Total WS
Slide 6: Q1 2023 Financial Summary
Q1 2023 Financial Summary Revenue • Total revenue +37% YoY In USD millions Q1 23 Q1 22 Y/Y ◦ ATS growth of 82% reflects increased momentum and expanded scope of multiple strategic programs ATS Revenue $48.3 $26.6 82% ◦ Wafer Services revenue (17)% decline YoY reflects the $8M pull-in of WS revenue i
Slide 7: 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 7
Slide 8: ATS Revenue by Customer
ATS Revenue by Customer (each color band is a distinct customer) • ATS revenues totaled a record $48.3M in Q1 2023 ◦ 82% growth from Q1 2022 ◦ Excluding tool sales, which were $1.0 million in Q1 22 and $0.5 million in Q1 23, ATS increased 87% YoY • 10 largest ATS customers = ~80% of total ATS revenu
Slide 9: Net Income / Adjusted EBITDA
Net Income / Adjusted EBITDA in USD $ millions * Q4 2022 Net Income and Adjusted EBITDA included $4.7M revenue event with no associated costs. Proprietary 9
Slide 10: 2023 Business Outlook
2023 Business Outlook • We believe our ATS growth this year will be relatively decoupled from macro weakness in the semiconductor industry. ◦ Our DoD and U.S. Government programs are established, funding is secured, and the scope and scale of these programs has only increased year to date. ◦ On RadH
Slide 11: Se SKyWwater
Se SKyWwater
Slide 12: 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 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Total revenue $ 48,101 $ 41,189 $ 35,025 $ 38,533 $162,848 $ 48,121 $ 47,407 $52,326 $65,087 $212,941 $66,094 Estimated impact of additional operating week — — — — — — — — — — — Tool revenue (15,405) (2,346) (281) (1,128) (19,
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 GAAP net loss to shareholders $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) Tool revenue (15,405) (2,346) (281) (1,127) (19,159) (984) (313) (219) (30) (1,5
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Net loss to shareholders $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) Interest expense 1,058 912 733 839 3,542 1,029 1,040 1,331 2,895 6,295 2,471 Income t
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 GAAP EPS Net loss attributable to SkyWater Technology, Inc. $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) Undistributed preferred return to Class B preferre