Slide 1: SkyWater Technology Q2 2023 Financial Results
SkyWater Technology (Nasdaq: SKYT) Q2 2023 Financial Results August 7, 2023
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 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: Q2 2023 Business Highlights
Q2 2023 Business Highlights • Record revenues exceeded expectations due to continued strong customer demand, the expansion of multiple key ATS programs year to date, and a $3.6 million pull-in of revenues that resulted from the restructuring of one ATS contract. • Gross margin expansion continues to
Slide 5: Q2 2023 Financial Progress
Q2 2023 Financial Progress • Fourth Straight Quarter of Strong Execution ◦ Four quarters of sequential Revenue growth ▪ Trailing-12-month Revenues of $253M grew 50% over prior 12-month period • Record Revenues of $69.8M ◦ ATS Revenue of $53.0M, up 78% compared to $29.8M in Q2’22 ▪ Exceeded expectati
Slide 6: Q2 2023 Financial Summary
Q2 2023 Financial Summary Revenue In USD millions Q2 23 Q2 22 Y/Y Q1 23 Q/Q • Strong progress toward our long-term annual growth targets • Total revenue +47% YoY and +6% QoQ ATS Revenue $53.0 $29.8 78% $48.3 10% ◦ ATS growth of 78% YoY reflects $3.6M pull-in of revenue due to restructured contract,
Slide 7: Four Quarters of Sequential Growth = TTM Revenues of $253M
Four Quarters of Sequential Growth = TTM Revenues of $253M 50% Growth Over Prior 12-Month Period in USD $ millions $212.9 $69.8 $65.1 $66.1 $162.8 $52.3 $48.1 $48.1 $47.4 $41.2 $38.5 $35.0 +6% (3)% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2021 2022 ATS (excludi
Slide 8: ATS Revenue by Customer
ATS Revenue by Customer (each color band is a distinct customer) • ATS revenue totaled a record $53.0M in Q2 2023 ◦ 78% growth from Q2 2022 ◦ Excluding tool sales, which were $0.9M in Q2 23 and $0.3M in Q2 22, ATS revenue increased 76.5% YoY • 10 largest ATS customers = ~80% of total ATS revenues in
Slide 9: Improving Profitability and Cash Flow Metrics
Improving Profitability and Cash Flow Metrics TTM Adjusted EBITDA of $29M, 11% of Total Revenues in USD $ millions $10.3 $8.1 $7.7 $5.6 $6.5 $3.8 $(2.6) $(0.8) $(1.6) $(2.8) $(2.7) $(3.0) $(4.7) $(4.8) $(4.3) $(7.0) $(6.9) $(8.6) $(13.9) $(13.0) $(16.6) $(39.6) $(50.7) $(27.0) Q1 2021 Q2 2021 Q3 202
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: S= SKyWwater
S= 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 Q2 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 $69,811 Tool revenue (15,405) (2,346) (281) (1,128) (19,160) (984) (313) (219) (30) (1,546) (536) (936) Reve
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Q2 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) $ (8,590) Tool revenue (15,405) (2,346) (281) (1,128) (19,159) (984) (31
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Q2 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) $ (8,590) Interest expense 1,058 912 733 839 3,542 1,029 1,040 1,331 2,895 6,
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Q2 2023 GAAP EPS Numerator: 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) $ (8,590) Undistributed preferr