Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — B. Riley Securities' Virtual Quantum Investor Day (March 2025)
51 slides from Skywater Technology's conference presentation, Mar 7, 2025
Slide 1: B. Riley Securities' Virtual Quantum Investor Day
B. Riley Securities' Virtual Quantum Investor Day Q1 Investor Presentation MAR. 7, 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: America's Foundry at a Glance
America’s Foundry at a Glance $342M SKYT >$350M Quality Revenue Traded on NASDAQ CapEx Funding (Fiscal 2024) since 2021 Co-Investment Certified (expected for 2020-2026) • IATF16949 (Auto) • AS9100 (Aero/Aviation) Front-end Wafer • ISO 9001 Processing • ISO 4001 • ISO 13485 (Medical) ~30% IFX Fab 25
Slide 4: SkyWater Opportunity
SkyWater Opportunity Domestic semiconductor trends and next-generation technologies fuel growth HIGH OPERATING UNIQUE TECH PORTFOLIO LEVERAGE BUSINESS MARGIN EXPANSION GROWTH MODEL FOUNDRY MODEL “Tech ETF” - USG and customer Demonstrated financial High-growth In-demand technology unique exposure to
Slide 5: Chip Technologies
Chip Technologies Mixed-Signal CMOS Rad-Hard MEMS Superconducting Photonics CONNECTED DEVICES, SENSORS ADVANCED COMPUTING & SENSOR INTEGRATION & ARTIFICIAL INTELLIGENCE Flexible Solutions Leading Strategic Microfluidics Foundry service Capabilities for for Commercial Rad-Hard Solutions Microbolomete
Slide 6: 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 marke
Slide 7: SkyWater's Role in the Quantum Computing Ecosystem
SkyWater’s Role in the Quantum Computing Ecosystem Creating a U.S. foundry model foundation for quantum innovation • Trusted Foundry for Quantum: DMEA- accredited, ensuring secure, domestic quantum chip production. • Broad Architecture Support: Technology capabilities and support for a wide range of
Slide 8: Quantum Computing Architectures & SkyWater's Role
Quantum Computing Architectures & SkyWater’s Role Quantum Architecture SkyWater’s Role Superconducting Actively Supporting Qubits (D-Wave) Actively Supporting Photonic Qubits (PsiQuantum) Trapped Ions Capability match Silicon Spin Capability match Qubits Topological Capability match Qubits 8
Slide 9: Technical Capabilities for Quantum Applications
Technical Capabilities for Quantum Applications SkyWater Capabilities Proprietary Nb film processing Superconducting Josephson-Junction fabrication Qubits Multi-layer Nb wiring Ultra low-loss dielectrics Images Courtesy of D-Wave Low-loss SiN waveguide fabrication Photonics Qubits Optical coupler fa
Slide 10: Service Offering and Market Dynamics
Service Offering and Market Dynamics
Slide 11: We streamline the concept to production journey.
We streamline the concept to production journey. TECHNOLOGY AS A SERVICE (TaaS) ADVANCED TECHNOLOGY WAFER SERVICES SERVICES Enable co-creation of differentiated Supply customers with ICs and solutions which are the unique microdevices for commercial or expression of the combined mission ready produc
Slide 12: TaaS: Concept to Production Services
TaaS: Concept to Production Services Advanced Technology CONCEPT & FEASIBILITY Services (ATS) TECHNOLOGY DEMONSTRATION Wafer Services PROCESS DEVELOPMENT Technology DEVICE DESIGN as a Service: Efficient R&D Accelerated DEVICE QUALIFICATION Time-to-Market Volume Manufacturing VOLUME MANUFACTURI
Slide 13: Life of a SkyWater Wafer
Life of a SkyWater Wafer Cycles of learning through Advanced Technology Services (ATS) development enable customers to demonstrate and scale new ideas ATS CoL 3a Value is created through Cycles of Learning Learning and IP (CoL); end state product CoL 1 CoL 2 CoL 3b Prototype Generation, Process Wafe
Slide 14: 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 Compute, Industrial 14 ©2024 All Rights Reserved. Proprietary & Confidential
Slide 15: 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 16: Targeting High-Potential Commercial Markets
Targeting High-Potential Commercial Markets NEXT-GENERATION MEDICAL ADVANCED COMPUTE INDUSTRIAL CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Increasing societal healthcare • Accelerating AI adoption • Sensorization of everything expenditure rates • Rise of chiplet technology • Edge computing
Slide 17: Meeting Demand for Innovation and Trusted Supply
Meeting Demand for Innovation and Trusted Supply ENABLING DEVELOPMENT OF AN CUSTOMIZING EXISTING TECHNOLOGY PROVIDING TRUSTED SUPPLY ENTIRELY CUSTOM TECHNOLOGY END MARKET: END MARKET: END MARKET: AI-enabled sensors Quantum Computing Secure A&D WHY SkyWater WINS: WHY SkyWater WINS: WHY SkyWater WINS:
Slide 18: 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 19: 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 20: 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 21: Significant Growth Opportunities
Significant Growth Opportunities Expand Capacity and Pursue M&A Create Opportunities Co-Develop Unique IP Next-Generation Expand Markets: Technologies Advanced Grow Advanced Packaging Technology & Other High Services Growth Diversify Customer Base 21 ©2024 All Rights Reserved. Proprietary & Confiden
Slide 22: SkyWater Acquisition of Infineon's Austin Fab 25
SkyWater Acquisition of Infineon’s Austin Fab 25
Slide 23: SkyWater Acquisition of Infineon's Austin Fab
SkyWater Acquisition of Infineon’s Austin Fab 25 Announced February 26, 2025 • 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
Slide 24: 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 25: 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 26: 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 27: 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 27
Slide 28: 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 29: 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 30: 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 31: 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 32: Financials
FINANCIALS MAR. 7, 2025 • NASDAQ: SKYT
Slide 33: 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 33
Slide 34: 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 35: 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
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 $(0.5) 146% Depreciation and amortiz
Slide 41: Adjusted EBITDA and Non-GAAP Net Income (Loss) Trend
Adjusted EBITDA and Non-GAAP Net Income (Loss) Trend First full year of non-GAAP profitability ($ in M) 41
Slide 42: 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 43: 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 44: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q4 & FY 2024 EARNINGS CALL
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 50: Operating results - GAAP to non-GAAP reconciliation
| SkyWater Technology, Inc. 2022 2023 2024 Fiscal Year | Operating results - GAAP to non-GAAP reconciliation at a2 a3 On at a2 as On at a2 as On 2022 2023 2024 Sasha x at win id ang acs may — ATS domlopeent evsee fs zssor s 2asi0 $ s4oss $ argus | arz70 s soors s suger s7.ro |s 618s s erce $ sooo $
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SkyWater Technology — B. Riley Securities' Virtual Quantum Investor Day (March 2025) on 6ix