SkyWater Technology, Inc. (SKYT) Bundle
A Brief History of SkyWater Technology, Inc.
SkyWater Technology, Inc. has emerged as a significant player in the semiconductor industry since its inception. As of 2024, the company continues to focus on providing advanced semiconductor manufacturing services and has positioned itself as a leader in the U.S. market.
Financial Performance Overview
For the first nine months of 2024, SkyWater reported a revenue of $266.8 million, representing a 29% increase from $207.5 million in the same period of 2023. The growth was primarily driven by a rise in ATS development and tools revenue, despite a decline in wafer services revenue. The table below summarizes the revenue by service type for the first nine months of 2024 and 2023:
| Service Type | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) |
|---|---|---|
| ATS Development | $179,244 | $153,735 |
| Wafer Services | $22,490 | $49,079 |
| Tools | $65,048 | $4,715 |
| Total | $266,782 | $207,529 |
Operating Results
In terms of operating income, SkyWater reported a profit of $3.9 million for the first nine months of 2024, a significant turnaround from an operating loss of $8.8 million in the same period of 2023. The following table outlines key operating metrics for the same periods:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Income (Loss) | $3,906 | $(8,835) |
| Net Income (Loss) | $(6,114) | $(20,431) |
| Gross Profit | $50,329 | $47,282 |
Investment and Growth Initiatives
SkyWater's investment in research and development has also increased significantly, with expenses rising to $10.8 million in the first nine months of 2024 from $7.3 million in 2023, reflecting a commitment to innovation and capacity expansion. The company has actively engaged in government programs aimed at bolstering the domestic semiconductor supply chain, which has positively influenced its revenue growth.
Liquidity and Financial Position
As of September 29, 2024, SkyWater reported total assets of $315.1 million, with total liabilities amounting to $246.5 million. The shareholders’ equity stood at $68.6 million, reflecting an increase from $60.7 million at the end of 2023. The company had cash and cash equivalents of $20.7 million, improving from $18.4 million at the end of the previous year.
Recent Developments
In August 2022, the U.S. government enacted the CHIPS Act, which has provided significant incentives to semiconductor manufacturers, including a 25% investment tax credit for qualified investments. SkyWater's strategic alignment with such initiatives has positioned it favorably to capitalize on the growing demand for semiconductor manufacturing capabilities in the U.S.
Stock Performance
SkyWater's stock performance has seen fluctuations, but it has generally trended positively in response to its financial improvements and industry developments. The company has a history of securing funding through its ATM program, although no shares were sold under this program in 2024, compared to significant sales in the prior year. As of September 29, 2024, the company had the capacity to raise an additional $74.9 million under this program.
Conclusion
SkyWater Technology, Inc. has demonstrated resilience and growth potential within the semiconductor sector. The company's ongoing investments in technology and strategic initiatives align with broader industry trends and government support, positioning it for continued success in the evolving market landscape.
A Who Owns SkyWater Technology, Inc. (SKYT)
Ownership Structure
As of September 29, 2024, SkyWater Technology, Inc. (SKYT) has a defined ownership structure consisting of common stockholders and non-controlling interests. The company has issued 47,643 shares of common stock, with an additional non-controlling interest of 12,390, resulting in total shareholders' equity of 68,554 (in thousands).
Major Shareholders
The principal shareholder of SkyWater Technology is Oxbow Industries, LLC, which has a significant ownership stake in the company. This ownership influences the operational decisions and strategic direction of SkyWater Technology.
Shareholder Equity Breakdown
| Type of Shareholder | Shares Issued | Amount (in thousands) |
|---|---|---|
| Common Stock | 47,643 | 477 |
| Additional Paid-in Capital | N/A | 187,004 |
| Accumulated Deficit | N/A | (131,317) |
| Total Shareholders’ Equity (SkyWater Technology, Inc.) | N/A | 56,164 |
| Noncontrolling Interests | N/A | 12,390 |
| Total Shareholders’ Equity | N/A | 68,554 |
Recent Stock Performance
As of late 2024, SkyWater Technology's stock has shown significant activity. The company has an open market sale agreement under its ATM (At the Market) program, allowing it to sell up to $100,000 in shares. Up to September 29, 2024, it has sold a total of 2,516,586 shares at an average price of $9.96, generating gross proceeds of approximately $25,070 before commissions.
Financial Overview
For the nine months ending September 29, 2024, SkyWater Technology reported a total revenue of $266,782 (in thousands), up from $207,529 in the same period in 2023, marking a 29% increase. The net loss attributable to SkyWater Technology, Inc. for the same period was $6,114 (in thousands), showing a substantial improvement from a loss of $20,431 in 2023.
Liquidity and Capital Resources
As of September 29, 2024, SkyWater Technology had cash and cash equivalents of $20,684 and total liabilities of $315,079. The company also maintained a revolving credit facility with an outstanding balance of $21.3 million, with remaining availability of $75.6 million.
Conclusion on Ownership and Financial Health
SkyWater Technology’s ownership structure, primarily influenced by Oxbow Industries, LLC, and its financial performance indicate a company that is strategically positioned within the semiconductor industry. The recent financial results reflect a positive trend despite previous losses, highlighting the company’s potential for growth and stability moving forward.
SkyWater Technology, Inc. (SKYT) Mission Statement
Overview of Mission Statement
SkyWater Technology, Inc. (SKYT) emphasizes its commitment to being a trusted partner in semiconductor manufacturing and technology development. The company's mission statement focuses on innovation, collaboration, and delivering high-quality solutions to its customers.
Financial Performance
As of September 29, 2024, SkyWater reported a revenue of $266.8 million for the first nine months of 2024, reflecting a 29% increase from $207.5 million in the same period of 2023. The third quarter of 2024 saw revenue of $93.8 million, compared to $71.6 million in the third quarter of 2023, marking a 31% increase.
Revenue Breakdown
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| ATS Development | $56,390 | $53,891 | $179,244 | $153,735 |
| Wafer Services | $6,718 | $14,490 | $22,490 | $49,079 |
| Tools | $30,709 | $3,243 | $65,048 | $4,715 |
| Total Revenue | $93,817 | $71,624 | $266,782 | $207,529 |
Cost and Profit Analysis
The cost of revenue for the first nine months of 2024 was $216.5 million, up from $160.2 million in 2023, indicating a 35% increase. The gross profit for the same period was $50.3 million, a slight increase from $47.3 million in 2023.
Expenses Overview
Research and development expenses rose to $10.8 million in the first nine months of 2024, compared to $7.3 million in 2023, reflecting a growth of 48%. Selling, general, and administrative expenses were $35.6 million in 2024, decreasing from $48.8 million in 2023, a reduction of 27%.
Net Income/Loss
SkyWater reported a net loss of $6.1 million for the first nine months of 2024, a significant improvement compared to a net loss of $20.4 million in the same period of the previous year, reflecting a 70% reduction in losses.
Cash and Liquidity Position
As of September 29, 2024, the company had cash and cash equivalents of $20.7 million and availability under its revolving credit facility of $75.6 million. The outstanding balance under the revolving credit facility was $21.3 million.
Capital Expenditures
For the first nine months of 2024, SkyWater incurred approximately $15.8 million in capital expenditures, a substantial increase from $4.5 million in the same period of 2023. These expenditures are primarily aimed at enhancing manufacturing capabilities and supporting growth initiatives.
Contract Liabilities
| Contract Liabilities Type | September 29, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Current Contract Liabilities | $73,353 | $49,551 |
| Long-term Contract Liabilities | $41,145 | $65,754 |
| Total Contract Liabilities | $114,498 | $115,305 |
Outlook and Strategic Initiatives
SkyWater’s mission highlights the importance of supporting U.S. semiconductor supply chains, particularly in response to government initiatives aimed at strengthening domestic manufacturing capabilities. The company remains focused on innovation and expanding its technological offerings to meet evolving market demands.
How SkyWater Technology, Inc. (SKYT) Works
Company Overview
SkyWater Technology, Inc. is a U.S.-based independent, pure-play technology foundry that specializes in advanced semiconductor development and manufacturing services. The company operates a fabrication facility in Minnesota and offers advanced packaging services from its Florida facility.
Financial Performance
As of September 29, 2024, SkyWater reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $93.8 million | $71.6 million | $266.8 million | $207.5 million |
| Gross Profit | $20.2 million | $14.1 million | $50.3 million | $47.3 million |
| Operating Income (Loss) | $4.7 million | ($4.2 million) | $3.9 million | ($8.8 million) |
| Net Income (Loss) | $2.6 million | ($6.6 million) | ($3.0 million) | ($16.7 million) |
| Net Income (Loss) Attributable to SkyWater | $1.5 million | ($7.6 million) | ($6.1 million) | ($20.4 million) |
| Net Income (Loss) per Share (Basic) | $0.03 | ($0.16) | ($0.13) | ($0.45) |
Revenue Breakdown
Revenue for SkyWater is derived from several service types. The following table illustrates the revenue by service type for Q3 2024 and YTD 2024:
| Service Type | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| ATS Development | $56.4 million | $53.9 million | $179.2 million | $153.7 million |
| Wafer Services | $6.7 million | $14.5 million | $22.5 million | $49.1 million |
| Tools | $30.7 million | $3.2 million | $65.0 million | $4.7 million |
| Total Revenue | $93.8 million | $71.6 million | $266.8 million | $207.5 million |
Operating Expenses
SkyWater's operating expenses include research and development, as well as selling, general, and administrative expenses. The following table summarizes these expenses for Q3 2024 and YTD 2024:
| Expense Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Research and Development | $3.4 million | $2.2 million | $10.8 million | $7.3 million |
| Selling, General, and Administrative | $12.1 million | $16.1 million | $35.6 million | $48.8 million |
Cash Flow Summary
For the nine months ended September 29, 2024, SkyWater's cash flow details are as follows:
| Cash Flow Activity | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $19.7 million | ($21.7 million) |
| Net Cash Used in Investing Activities | ($15.8 million) | ($4.5 million) |
| Net Cash Used in Financing Activities | ($1.6 million) | $13.5 million |
Balance Sheet Highlights
As of September 29, 2024, SkyWater's balance sheet included the following key figures:
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $315.1 million |
| Total Liabilities | $246.5 million |
| Total Shareholders’ Equity | $68.6 million |
Contract Liabilities and Assets
SkyWater maintains significant contract liabilities and assets, which are summarized as follows:
| Contract Liabilities | Current Liabilities | Long-term Liabilities | Total Liabilities |
|---|---|---|---|
| Deferred Revenue | $70.2 million | $41.1 million | $111.4 million |
Liquidity and Capital Resources
As of September 29, 2024, SkyWater's liquidity position includes:
| Liquidity Item | Amount |
|---|---|
| Cash and Cash Equivalents | $20.7 million |
| Available Revolver | $75.6 million |
| Outstanding Revolver Balance | $21.3 million |
Investment Activities
SkyWater's capital expenditures for the first nine months of 2024 were approximately:
| Investment Activity | Amount |
|---|---|
| Total Capital Expenditures | $15.8 million |
How SkyWater Technology, Inc. (SKYT) Makes Money
Revenue Streams
SkyWater Technology, Inc. generates revenue through multiple streams, primarily focusing on:
- Advanced Technology Services (ATS) Development
- Wafer Services
- Tools and Equipment Sales
Financial Performance Overview
For the third quarter of 2024, SkyWater reported total revenue of $93.8 million, a 31% increase compared to $71.6 million in the third quarter of 2023. For the first nine months of 2024, revenue was $266.8 million, up 29% from $207.5 million during the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| ATS Development | $56,390 | $53,891 | $179,244 | $153,735 |
| Wafer Services | $6,718 | $14,490 | $22,490 | $49,079 |
| Tools | $30,709 | $3,243 | $65,048 | $4,715 |
| Total Revenue | $93,817 | $71,624 | $266,782 | $207,529 |
Cost Structure
The cost of revenue for Q3 2024 was $73.6 million, which represents a 28% increase from $57.5 million in Q3 2023. The cost of revenue for the first nine months of 2024 was $216.5 million, compared to $160.2 million for the same period in 2023.
Operating Expenses
Operating expenses have shown varied trends:
- Research and Development (R&D): $10.8 million in the first nine months of 2024, up from $7.3 million in 2023.
- Selling, General, and Administrative (SG&A): $35.6 million in the first nine months of 2024, down from $48.8 million in 2023.
Profitability Analysis
SkyWater's gross profit for Q3 2024 was $20.2 million, marking a 43% increase from $14.1 million in Q3 2023. For the first nine months of 2024, gross profit was $50.3 million, compared to $47.3 million in 2023.
The operating income for Q3 2024 stood at $4.7 million, compared to an operating loss of $4.2 million in Q3 2023. The first nine months of 2024 resulted in an operating income of $3.9 million, contrasting with an operating loss of $8.8 million in the previous year.
Net Income and Loss
Net loss attributable to SkyWater Technology, Inc. was $6.1 million for the first nine months of 2024, a significant improvement from a net loss of $20.4 million in 2023. For Q3 2024, the net income attributable to SkyWater was $1.5 million, compared to a loss of $7.6 million in Q3 2023.
Cash Flow and Liquidity
As of September 29, 2024, SkyWater had cash and cash equivalents of $20.7 million. The company utilized $15.8 million for capital expenditures in the first nine months of 2024, up from $4.5 million in 2023.
Market Dynamics
SkyWater's revenue growth is propelled by increasing demand for semiconductor manufacturing services, particularly driven by U.S. government initiatives to strengthen the domestic supply chain. However, the company faced challenges in wafer service revenue, which declined by 54% due to reduced activity in automotive end-markets.
Customer Concentration
For the three-month period ending September 29, 2024, two customers accounted for 69% of total revenue, indicating a high level of customer concentration risk.
Future Outlook
SkyWater's growth strategy includes continued investment in technology and capacity to meet increasing customer demand, supported by federal incentives such as the CHIPS Act, which offers a 25% manufacturing investment credit.
SkyWater Technology, Inc. (SKYT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- SkyWater Technology, Inc. (SKYT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SkyWater Technology, Inc. (SKYT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SkyWater Technology, Inc. (SKYT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.