Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Q4 2024 Earnings Presentation
39 slides from Skywater Technology's earnings presentation, Feb 26, 2025
Slide 1: Q4 & FY2024 Earnings Call Fab 25 Announcement
Q4 & FY2024 Earnings Call Fab 25 Announcement FEB. 26, 2025 • NASDAQ: SKYT
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: Agenda for Today's Webcast
Agenda for Today’s Webcast THOMAS STEVE SONDERMAN MANKO CEO CFO Q&A Session • Welcome and Introduction • SkyWater Earnings Review • SkyWater Earnings Review Details of Q4 and FY 2024 Financial Results Q4 and FY 2024 Recap Details of Q1 Guidance and Recent Business Highlights Financial Outloo
Slide 4: Strong Finish to Fiscal 2024
Strong Finish to Fiscal 2024 Results Demonstrate Continued ATS Strength and Record Levels of Customer CapEx Co-Investment • Strong gross margin performance • Positive non-GAAP EPS for both Q4 and FY 2024 * Q4 2022 and Q2 2023 ATS development revenue excludes impact of modified customer contracts 4 †
Slide 5: 2024 Revenue Drivers
2024 Revenue Drivers SkyWater Revenue Mix SkyWater End Market Mix ATS A&D Wafer Services Advanced Compute Tools Automotive Bio-Med Industrial Consumer & Other • Total revenue up 19% YoY • Revenue strength driven primarily by A&D • Strong 13% growth in ATS revenue • Advanced Compute now #2 end market
Slide 6: Benefits of Customer-Funded CapEx Model
Benefits of Customer-Funded CapEx Model CO-INVESTMENT YIELDS MULTIPLE BENEFITS MULTI-YEAR PERIOD OF ELEVATED CO-INVESTMENT • Creates high-value and unique capabilities Customer-Funded CapEx State-of-the-art 200mm lithography Tool funding incorporated in contract awards through 2024 $ 76 300mm Fa
Slide 7: ThermaView Announcement
ThermaView Announcement Capturing Growth in the $9B Thermal Imaging Market • First category-specific brand highlights SkyWater’s leadership supplying read-out ICs and microbolometer solutions for thermal imaging • Addressing a $9B market opportunity projected by 2027* • Solutions for defense, indust
Slide 8: Advanced Packaging Business to Begin Ramp in 2025
Advanced Packaging Business to Begin Ramp in 2025 • $120M in DOD program funding for 300mm wafer fan-out initiative Funding allocated to tool purchases, process development and integration Expected first ATS revenues in 2H-FY25 as tools are qualified Fan-Out Wafer- Hybrid Wafer • Support for dev
Slide 9: 2025 Business Outlook
2025 Business Outlook • With ongoing continuing resolutions affecting the U.S. federal budget, we are taking a conservative view for the year We expect combined ATS and Wafer Services revenue growth of approximately 5% ( ± 2% ) We expect tools revenue of ~$30 million dollars, mostly centered aro
Slide 10: SkyWater Acquisition of Infineon's Austin Fab 25
SkyWater Acquisition of Infineon’s Austin Fab 25
Slide 11: A New Milestone in SkyWater's Leadership for U.S.-Based Semiconductors
A New Milestone in SkyWater’s Leadership 2025 Acquisition of for U.S.–Based Semiconductors IFX Fab 25 +$300M Revenue Addition of 65nm, 2024 Cu interconnect at $120M program scale, high-voltage funded by DOD for process 2021 300mm fan out SKYT begins packaging line 2021 trading on Expansion with NASD
Slide 12: SkyWater Acquisition of Infineon's Austin Fab 25
SkyWater Acquisition of Infineon’s Austin Fab 25 • SkyWater to acquire fab for $110M Aerial view of Infineon’s Fab 25 facility in Austin,TX $80M purchase price + assumption of $30M in working capital Of the $80M purchase price, $55M is paid at closing − $25M deferred to year four • Strategic par
Slide 13: Positions SkyWater to Meet Long-Term Demand for U.S.-Sourced Foundational Semiconductors
Positions SkyWater to Meet Long-Term Demand for U.S.-Sourced Foundational Semiconductors TECHNOLOGY ADDITIONS APPLICATIONS MARKETS High-voltage mixed-signal High-voltage and mixed- Industrial Controls & technology signal ASICs Automation At-scale Cu Interconnect Power Management ICs Auto
Slide 14: Transaction Transforms SkyWater's Profile
Transaction Transforms SkyWater’s Profile Secure Manufacturing Center $300M+ Expands SAM High-Volume Manufacturing Advanced Packaging Incremental annual revenue for a new expected total of >$600M by >$3B* Center Center WS ATS Positions SkyWater as Leader in Balances Wafer Services +1000 U.S.–based e
Slide 15: Domestic Semiconductor Tailwinds
Domestic Semiconductor Tailwinds Industry driven demand for onshoring & supply chain diversity U.S. Government Support for Onshore Semiconductor Production Expanding Foundry Offerings for Aerospace & Defense Continuing domestic fab-lite IDM trend creating additional foundry opportunity 15
Slide 16: Transaction Expands SkyWater Share of 200mm
Transaction Expands SkyWater Share of 200mm U.S. Foundry Capacity for Foundational Nodes Foundational Nodes Capacity Pre-Transaction ≥ 65nm Other Global Capacity Post-Transaction 22% Foundries 23% Global Other Foundries TSMC 19% 20% Tower 17% Semiconductor TSMC 33% 15% Tower Semiconductor 29% SkyWat
Slide 17: Long View for 200mm Foundry Services in the U.S. is Strong
Long View for 200mm Foundry Services in the U.S. is Strong • Strong demand in industrial, We believe F25 in Austin is the most automotive, and defense capable 200mm fab in the western • Edge AI & IoT growth driving analog, hemisphere, perfectly suited to meet power, and RF needs long-term foundry de
Slide 18: Financial Review
Financial Review Q4 & FY 2024 EARNINGS CALL
Slide 19: Agenda for Today's Webcast
Agenda for Today’s Webcast THOMAS STEVE SONDERMAN MANKO CEO CFO Q&A Session • Welcome and Introduction • SkyWater Earnings Review • SkyWater Earnings Review Details of Q4 and FY 2024 Financial Results Q4 and FY 2024 Recap Details of Q1 Guidance and Recent Business Highlights Financial Outloo
Slide 20: Revenue Summary - Q4 2024
Revenue Summary - Q4 2024 $'s in USD millions Q4 2024 Q3 2024 Q/Q * Q4 2023 Y/Y * ATS development revenue $59.4 $56.4 5% $57.2 4% Wafer Services revenue $4.4 $6.7 35% $12.0 64% Combined ATS development and Wafer Services revenue * $63.8 $63.1 1% $69.2 (8)% Tools revenue $11.7 $30.7 (62)% $9.9 18% To
Slide 21: Revenue Summary - Fiscal Year 2024
Revenue Summary - Fiscal Year 2024 $'s in USD millions FY2024 FY2023 Y/Y * ATS development revenue $238.6 $210.9 13% Wafer Services revenue $26.9 $61.1 (56)% Combined ATS development and Wafer Services revenue * $265.5 $272.0 (2)% Tools revenue $76.8 $14.7 424% Total revenue * $342.3 $286.7 19% * Am
Slide 22: Gross Margin Summary - Q4 2024
Gross Margin Summary - Q4 2024 $'s in USD millions Q4 2024 Q3 2024 Q/Q * Q4 2023 Y/Y * GAAP gross profit $19.3 $20.2 5% $12.0 61% GAAP gross margin* 25.6% 21.6% 400 bps 15.2% 1,040 bps Adjustments: Equity-based compensation $0.6 $0.6 (4)% $0.3 88% Management transition expense $— $0.1 (100)% $— nm B
Slide 23: Gross Margin Summary - Fiscal Year 2024
Gross Margin Summary - Fiscal Year 2024 $'s in USD millions FY2024 FY2023 Y/Y* GAAP gross profit $69.6 $59.3 17% GAAP gross margin* 20.3% 20.7% (40) bps Adjustments: Equity-based compensation $2.1 $1.6 36% Management transition expense $0.1 $0.7 (86)% Business transformation costs $— $0.8 (100)% Res
Slide 24: Adjusted EBITDA Summary - Q4 2024
Adjusted EBITDA Summary - Q4 2024 $'s in USD millions Q4 2024 Q3 2024 Q/Q * Q4 2023 Y/Y * Net Income (Loss) $(0.7) $1.5 (147)% $(10.3) (93)% Net income (loss) as a percentage of total revenue * (0.9)% 1.6% (250) bps (13.0)% 1210 bps Interest expense $2.0 $2.0 —% $2.9 (32)% Income tax (benefit) expen
Slide 25: Adjusted EBITDA Summary - Fiscal Year 2024
Adjusted EBITDA Summary - Fiscal Year 2024 $'s in USD millions FY2024 FY2023 Y/Y * Net Income (Loss) $(6.8) $(30.8) 78% Net income (loss) as a percentage of total revenue * (2.0)% (10.7)% 870 bps Interest expense $8.8 $10.8 (18)% Income tax (benefit) expense $0.2 $(0.5) 146% Depreciation and amortiz
Slide 26: Adjusted EBITDA and Non-GAAP Net Income (Loss) Trend
Adjusted EBITDA and Non-GAAP Net Income (Loss) Trend First full year of non-GAAP profitability ($ in M) 26
Slide 27: Balance Sheet Summary
Balance Sheet Summary ($ in M) Selected FYE Balance Sheet Fiscal 2024 Selected FYE Balance Sheet Metrics at Dec. 29, 2024 Cash Flow Highlights Metrics at Dec. 31, 2023 $15M in positive cash flow Total cash $18.8 $18.3 from operations Total assets $321.0 $18M in CapEx $316.8 Total debt* $67.4 Net Deb
Slide 28: Details of 2025 Financial Outlook
Details of 2025 Financial Outlook • With ongoing continuing resolutions affecting the U.S. federal budget, we are taking a conservative view for the year We expect combined ATS and Wafer Services revenue growth of approximately 5% ( ± 2% ) We expect tools revenue of ~$30 million dollars, mostly
Slide 29: Fab 25 Financial Impact
Fab 25 Financial Impact Strong Revenue, Adjusted EBITDA, FCF Contribution SkyWater SkyWater Fab 25 Expected Illustrative Combined Fiscal 2024 Actual Fiscal 2025 Prelim. Annual P&L Contribution P&L Results Results Outlook (at Midpt) Combined ATS development + $266M +5% growth ~$300M >$575M WS revenue
Slide 30: Strategic Diversification of Revenue Mix
Strategic Diversification of Revenue Mix Illustrative Combined Revenue Mix 2025E (>$600M) Illustrative Combined End Market Mix 2025E Wafer Services A&D ATS Automotive Tools Industrial Consumer & Other Advanced Compute Bio-Med Fab 25 transaction expected to close mid-2025. Analysis shown for illustra
Slide 31: Agenda for Today's Webcast
Agenda for Today’s Webcast THOMAS STEVE SONDERMAN MANKO CEO CFO Q&A Session • Welcome and Introduction • SkyWater Earnings Review • SkyWater Earnings Review Details of Q4 and FY 2024 Financial Results Q4 and FY 2024 Recap Details of Q1 Guidance and Recent Business Highlights Financial Outloo
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q4 & FY 2024 EARNINGS CALL
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 GAAP revenue $ 48,121 $ 47,407 $ 52,326 $ 65,087 $212,941 $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 $ 93,329 $ 93,817 $ 75,487 $342,269 GAAP cost of revenue $ 49,061 $ 45,327 $ 44,049 $ 48,536 $186,973 $ 4
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 GAAP selling, general and administrative expense $ 11,690 $ 10,795 $ 10,778 $ 13,040 $ 46,303 $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 $ 12,332 $ 12,095 $ 12,430 $ 48,026 Equity-based compensation expense
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Equity-based compensation expense allocation in the consolidated statements of operations: Cost of revenue $ 1,125 $ 546 $ 456 $ 452 $ 2,578 $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 $ 504 $ 565 $ 589 $ 2,113 Research and
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Net income (loss) to shareholders $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) Interest expense 1,029 1,040 1,3
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 GAAP EPS Numerator: Net income (loss) attributable to SkyWater Technology, Inc. $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (6
Slide 38: Operating results - GAAP to non-GAAP reconciliation
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Slide 39: Q4 & FY2024 Earnings Call Fab 25 Announcement
Q4 & FY2024 Earnings Call Fab 25 Announcement FEB. 26, 2025 • NASDAQ: SKYT