Slide 1: SkyWater Technology Q3 2023 Financial Results
SkyWater Technology (Nasdaq: SKYT) Q3 2023 Financial Results November 8, 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: Recent Business Highlights
Recent Business Highlights • Year-to-date revenues of $208 million, up 40% compared to the first nine months of 2022, are ahead of our long- term annual revenue growth objectives due to strong demand and improved operational execution for our Advanced Technology Services (ATS) business, which has al
Slide 5: Q3 2023 Financial Progress
Q3 2023 Financial Progress • Continued Strong Financial Performance ◦ Unprecedented fifth straight quarter of sequential Revenue growth ▪ Year to date revenues of $208 million are up 40% year over year ◦ Five quarters of strong Gross Margins and positive Adjusted EBITDA ▪ Year to date Adjusted EBITD
Slide 6: Q3 2023 Financial Summary
Q3 2023 Financial Summary In USD millions Q3 23 Q3 22 Y/Y Q2 23 Q/Q Revenue • Strong progress toward our long-term annual growth targets ATS Revenue $57.1 $35.2 62% $53.0 8% • Total revenue +37% YoY and +3% QoQ ◦ ATS growth of 62% YoY reflects strong customer demand as well as Wafer Services Revenue
Slide 7: Five Quarters of Sequential Revenue Growth
Five Quarters of Sequential Revenue Growth First 9 months of 2023 Revenues up 40% Over Prior Year Period in USD $ millions +6% (3)% * Q4 2022 and Q2 2023 ATS amount excludes impact of modified customer contracts † Q1 2022 wafer services amount excludes impact of modified customer contracts Proprieta
Slide 8: ATS Revenue by Customer
ATS Revenue by Customer (each color band is a distinct customer) • ATS revenue totaled a record $57.1M in Q3 2023 ◦ 62% growth from Q3 2022 ◦ Tool sales were $3.2M in Q3 2023 and $0.2M in Q3 2022 • 10 largest ATS customers = ~80% of total ATS revenues in both 2022 and 2023 • Approximately 50 active
Slide 9: Improving Profitability and Cash Flow Metrics
Improving Profitability and Cash Flow Metrics in USD $ millions * Q4 2022 and Q2 2023 Net Loss and Adjusted EBITDA included $4.7M and $3.6M revenue events with no associated costs, respectively. Proprietary 9
Slide 10: 2023 Business Outlook
2023 Business Outlook • Achieving strong ATS growth this year, despite 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 RadHard – which is a key dr
Slide 11: Se SKyWwater
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Slide 12: 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 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We continuously evaluate the non-GAAP financial measures we use, the manner in which non-GAAP financial measures are calculated, and the adjustments we make to GAAP results to derive our non-GAAP financial measures. In the third quarter of 2023, we made the following
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 Q3 2023 GAAP 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 $ 71,624 GAAP cost of revenue $ 38,935 $ 39,377 $ 36,852 $ 55,156 $170,320 $ 49,061 $ 45,
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 Q3 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) $ (7,568) Equity-based compensation 235 6,768 3,394 2,
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 Q3 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) $ (7,568) Interest expense 1,058 912 733 839 3,542 1,029 1,
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 2023 Q2 2023 Q3 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) $ (7,568) Und