Record Revenues and Continued Year-over-Year
Increase in Gross Margin
SkyWater Technology (NASDAQ: SKYT), the trusted technology
realization partner, today announced financial results for the
second quarter of 2023, ended July 2, 2023.
Highlights for Q2 2023:
- Revenue increased 47% year-over-year to a record $69.8
million.
- Gross margin increased to 23.9% on a GAAP basis, compared to
4.4% in Q2 2022, and increased to 24.7% on a non-GAAP basis,
compared to 5.6% in Q2 2022.
- Net loss to shareholders of $8.6 million, or $(0.19) per share
on a GAAP basis, and net loss to shareholders of $6.4 million, or
$(0.14) per share on a non-GAAP basis, compared to net loss to
shareholders of $13.0 million, or $(0.32) per share on a GAAP
basis, and net loss to shareholders $10.8 million, or $(0.27) per
share on a non-GAAP basis in Q2 2022.
- Adjusted EBITDA of $6.5 million, or 9.3% of revenue, compared
to $(1.6) million, or (3.4)% of revenue in Q2 2022.
“We are pleased to report continued momentum in the second
quarter and strong financial results, including another record
revenue quarter, which exceeded our expectations and approached the
$70 million level,” commented Thomas Sonderman, SkyWater president
and chief executive officer. “Testament to our improved operating
performance and execution over the last several quarters, our
trailing-twelve-month revenues now total $253 million, an increase
of 50% over the prior 12-month period. Now a little more than
halfway through the year, it’s evident that our ATS revenue growth
is proving itself to be relatively decoupled from the macro
weakness affecting the overall semiconductor industry, and our
diversified portfolio of products, customers, and end markets, as
well as improved operational execution, provides us with increased
confidence in our ability to achieve our long-term annual revenue
growth objective of 25% in 2023.”
Q2 Business Highlights:
- Record revenues exceeded expectations due to continued strong
customer demand, the expansion of multiple key Advanced Technology
Services (ATS) programs year to date, and a $3.6 million pull-in of
revenues that resulted from the restructuring of one ATS
contract.
- Gross margin expansion continues to reflect strong flow-through
performance on the year-on-year revenue growth.
- Continued progress on the productization and qualification of
SkyWater’s 90nm RadHard platform, in preparation for the planned
production ramp in 2025.
- Growing engagement with multiple commercial ATS customers,
particularly in the bio-health and advanced computing end markets,
each of which could contribute multiple-$M of revenue for SkyWater
in 2023.
- Continued progress proceeding through the application process
for CHIPS Act funding, as we believe we are well-positioned to be a
major beneficiary in the years to come, both at our existing sites
in Minnesota and Florida, as well as our innovative and
transformative partnership with Purdue University and the State of
Indiana.
Q2 2023 Summary:
GAAP
In USD millions, except per share data
Q2 23
Q2 22
Y/Y
Q1 23
Q/Q
Advanced Technology Services revenue
$53.0
$29.8
78%
$48.3
10%
Wafer Services revenue
$16.8
$17.6
(4)%
$17.8
(6)%
Revenue
$69.8
$47.4
47%
$66.1
6%
Gross profit
$16.7
$2.1
701%
$16.5
1%
Gross margin
23.9%
4.4%
1,950 bps
24.9%
(100) bps
Net loss to shareholders
$(8.6)
$(13.0)
34%
$(4.3)
(101)%
Basic loss per share
$(0.19)
$(0.32)
41%
$(0.10)
(97)%
Non-GAAP
In USD millions, except per share data
Q2 23
Q2 22
Y/Y
Q1 23
Q/Q
Non-GAAP gross profit
$17.0
$2.6
548%
$16.9
1%
Non-GAAP gross margin
24.7%
5.6%
1,910 bps
25.8%
(110) bps
Non-GAAP net loss to shareholders
$(6.4)
$(10.8)
41%
$(2.5)
(160)%
Non-GAAP basic loss per share
$(0.14)
$(0.27)
217%
$(0.06)
(133)%
Adjusted EBITDA
$6.5
$(1.6)
nm
$8.1
(20)%
Adjusted EBITDA margin
9.3%
(3.4)%
1,270 bps
12.3%
(300) bps
nm - Not meaningful
Q2 2023 Results:
- Revenue: Revenue of $69.8 million increased 47%
year-over-year. Advanced Technology Services revenue of $53.0
million increased 78% year-over-year driven primarily by continued
momentum with key customers in the Aerospace & Defense sector,
as well as a $3.6 million revenue pull-in following the
restructuring of an ATS program with a commercial customer.
Advanced Technology Services revenue contained $0.9 million of tool
revenue in the second quarter of 2023 and $0.3 million in the
second quarter of 2022. Wafer Services revenue of $16.8 million
decreased (4)% compared to the second quarter of 2022.
- Gross Profit: GAAP gross profit was $16.7 million, or
23.9% of revenue, compared to gross profit of $2.1 million, or 4.4%
of revenue, in the second quarter of 2022. Non-GAAP gross profit
was $17.0 million, or 24.7% of revenue, compared to non-GAAP gross
profit of $2.6 million, or 5.6% of revenue, in the second quarter
of 2022. With no associated costs related to the $3.6 million
revenue pull-in referenced above, the restructuring of this
commercial customer contract benefited Q2’23 gross margin by
approximately 400 bp.
- Operating Expenses: GAAP operating expenses were $20.2
million, compared to $13.2 million in the second quarter of 2022,
and included $3.8 million of project-based consulting fees that
were not a component of operating expenses in the second quarter of
2022. These project-based consulting fees included $2.5 million of
management consulting transformation fees related to long-term
improvement in automation and operational efficiency and $1.3
million of specialist fees related to the CHIPS Act application
process. GAAP operating expenses also included $1.4 million of
additional bad debt accrual that was not a component of operating
expenses in the second quarter of 2022.
- Net Loss: GAAP net loss to shareholders of $8.6 million,
or $(0.19) per share, compared to a net loss to shareholders of
$13.0 million, or $(0.32) per share, in the second quarter of 2022.
Non-GAAP net loss to shareholders of $6.4 million, or $(0.14) per
share, compared to a non-GAAP net loss to shareholders of $10.8
million, or $(0.27) per share, in the second quarter of 2022.
- Adjusted EBITDA: Adjusted EBITDA was $6.5 million, or
9.3% of revenue, compared to $(1.6) million, or (3.4)% of revenue,
in the second quarter of 2022. The benefit of the $3.6 million
revenue pull-in was more than offset by the additional $5.2 million
of operating expenses referenced above, which resulted in a net
negative impact on EBITDA margin of approximately 200 bp.
A reconciliation between historical GAAP and non-GAAP
information is contained in the tables below in the section titled,
“Non-GAAP Financial Measures.”
Investor Webcast
SkyWater will host a conference call on Monday, August 7, 2023,
at 3:30 p.m. CT to discuss its second quarter 2023 financial
results. A live webcast of the call will be available online at
IR.SkyWaterTechnology.com.
About SkyWater Technology
SkyWater (NASDAQ: SKYT) is a U.S.-based semiconductor
manufacturer and a DMEA-accredited Category 1A Trusted Foundry.
SkyWater’s Technology as a Service model streamlines the path to
production for customers with development services, volume
production and heterogeneous integration solutions in its
world-class U.S. facilities. This pioneering model enables
innovators to co-create the next wave of technology with diverse
categories including mixed-signal CMOS, ROICs, rad-hard ICs, power
management, MEMS, superconducting ICs, photonics, carbon nanotubes
and interposers. SkyWater serves growing markets including
aerospace & defense, automotive, biomedical, cloud &
computing, consumer, industrial and IoT. For more information,
visit: www.skywatertechnology.com.
Cautionary Statement Regarding Preliminary Results
The Company’s results for the fiscal quarter ended July 2, 2023
are preliminary, unaudited and subject to the finalization of the
Company’s second quarter review and full-year audit and should not
be viewed as a substitute for full financial statements prepared in
accordance with GAAP. The Company cautions that actual results may
differ materially from those described in this press release.
SkyWater Technology Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements that are based on the Company’s current
expectations or forecasts of future events, rather than past,
events and outcomes, and such statements are not guarantees of
future performance. Forward-looking statements include all
statements other than statements of historical fact contained in
this presentation, including information or predictions concerning
the Company’s future business, results of operations, financial
performance, plans and objectives, competitive position, market
trends, and potential growth and market opportunities. In some
cases, you can identify forward-looking statements by words such as
“intends,” “estimates,” “predicts,” “potential,” “continues,”
“anticipates,” “plans,” “expects,” “believes,” “should,” “could,”
“may,” “will,” “targets,” “projects,” “seeks” or the negative of
these terms or other comparable terminology.
Forward-looking statements are subject to risks, uncertainties
and assumptions, which may cause the Company’s actual results,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. Key
factors that could cause the Company’s actual results to be
different than expected or anticipated include, but are not limited
to: our goals and strategies; our future business development,
financial condition and results of operations; our ability to
continue operating our sole semiconductor foundry at full capacity;
our ability to appropriately respond to changing technologies on a
timely and cost-effective basis; our customer relationships and our
ability to retain and expand our customer relationships; our
ability to accurately predict our future revenues for the purpose
of appropriately budgeting and adjusting our expenses; our
expectations regarding dependence on our largest customers; our
ability to diversify our customer base and develop relationships in
new markets; the performance and reliability of our third-party
suppliers and manufacturers; our ability to procure tools,
materials, and chemicals amid industry-wide supply chain shortages;
our ability to control costs, including our operating and capital
expenses; the size and growth potential of the markets for our
solutions, and our ability to serve and expand our presence in
those markets; the level of demand in our customers’ end markets;
our ability to attract, train and retain key qualified personnel in
a competitive labor market; adverse litigation judgments,
settlements or other litigation-related costs; changes in trade
policies, including the imposition of tariffs; our ability to raise
additional capital or financing; our ability to accurately forecast
demand; the level and timing of U.S. government program funding;
our ability to maintain compliance with certain U.S. government
contracting requirements; regulatory developments in the United
States and foreign countries; our ability to protect our
intellectual property rights; our ability to meet our long-term
growth targets; and other factors discussed in the “Risk Factors”
section of the annual report on Form 10-K the Company filed with
the SEC on March 15, 2023 and in other documents that the Company
files with the SEC, which are available at http://www.sec.gov. The
Company assumes no obligation to update any forward-looking
statements, which speak only as of the date of this press
release.
SKYWATER TECHNOLOGY,
INC.
Consolidated Balance
Sheets
(Unaudited)
July 2, 2023
January 1, 2023
(in thousands, except share
data)
Assets
Current assets:
Cash and cash equivalents
$
16,178
$
30,025
Accounts receivable, net
77,085
62,670
Inventories
16,024
13,397
Prepaid expenses and other current
assets
9,069
10,290
Income tax receivable
107
169
Total current assets
118,463
116,551
Property and equipment, net
169,540
179,915
Intangible assets, net
5,216
5,608
Other assets
5,517
3,690
Total assets
$
298,736
$
305,764
Liabilities and shareholders'
equity
Current liabilities:
Current portion of long-term debt
$
1,964
$
1,855
Accounts payable
14,182
21,102
Accrued expenses
32,112
25,212
Short-term financing, net of unamortized
debt issuance costs
54,233
55,817
Deferred revenue - current
27,943
28,186
Total current liabilities
130,434
132,172
Long-term liabilities:
Long-term debt, less current portion and
net of unamortized debt issuance costs
34,778
35,181
Long-term incentive plan
—
1,643
Deferred revenue - long-term
59,839
67,967
Deferred income tax liability, net
1,202
1,239
Other long-term liabilities
9,601
13,585
Total long-term liabilities
105,420
119,615
Total liabilities
235,854
251,787
Shareholders’ equity:
Preferred stock, $0.01 par value per share
(80,000,000 shares authorized, zero shares issued and
outstanding)
—
—
Common stock, $0.01 par value per share
(200,000,000 shares authorized; 45,399,761 and 43,704,876 shares
issued and outstanding)
454
437
Additional paid-in capital
166,179
147,304
Accumulated deficit
(107,310
)
(94,072
)
Total shareholders’ equity, SkyWater
Technology, Inc.
59,323
53,669
Noncontrolling interests
3,559
308
Total shareholders’ equity
62,882
53,977
Total liabilities and shareholders’
equity
$
298,736
$
305,764
SKYWATER TECHNOLOGY,
INC.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended
Six Months Ended
July 2, 2023
April 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
(in thousands, except share
data)
Revenue
$
69,811
$
66,094
$
47,407
$
135,905
$
95,528
Cost of revenue
53,144
49,626
45,327
102,770
94,388
Gross profit
16,667
16,468
2,080
33,135
1,140
Research and development
2,396
2,668
2,361
5,063
4,643
Selling, general and administrative
expense
17,820
14,895
10,795
32,716
22,485
Operating income (loss)
(3,549
)
(1,095
)
(11,076
)
(4,644
)
(25,988
)
Interest expense
(2,950
)
(2,471
)
(1,040
)
(5,421
)
(2,069
)
Income (loss) before income taxes
(6,499
)
(3,566
)
(12,116
)
(10,065
)
(28,057
)
Income tax expense (benefit)
25
—
63
25
(131
)
Net income (loss)
(6,524
)
(3,566
)
(12,179
)
(10,090
)
(27,926
)
Less: net income attributable to
noncontrolling interests
2,066
707
826
2,773
1,685
Net income (loss) attributable to SkyWater
Technology, Inc.
$
(8,590
)
$
(4,273
)
$
(13,005
)
$
(12,863
)
$
(29,611
)
Net income (loss) per share attributable
to common shareholders, basic and diluted:
$
(0.19
)
$
(0.10
)
$
(0.32
)
$
(0.29
)
$
(0.74
)
Weighted average shares used in computing
net income (loss) per common share, basic and diluted:
44,743,269
43,817,417
40,203,050
44,280,343
40,031,615
SKYWATER TECHNOLOGY,
INC.
Consolidated Statements of
Cash Flows
(Unaudited)
Six Months Ended
July 2, 2023
July 3, 2022
(in thousands)
Cash flows from operating activities:
Net income (loss)
$
(10,090
)
$
(27,926
)
Adjustments to reconcile net income (loss)
to net cash flows used in operating activities:
Depreciation and amortization
14,559
13,657
Amortization of debt issuance costs
included in interest expense
876
348
Long-term incentive and stock-based
compensation
3,820
5,334
Cash paid for contingent consideration in
excess of initial valuation
—
(375
)
Deferred income taxes
(37
)
(137
)
Cash paid for operating leases
(12
)
—
Cash paid for finance leases
(415
)
—
Provision for credit losses
3,602
—
Changes in operating assets and
liabilities:
Accounts receivable
(17,425
)
(1,024
)
Inventories
(2,627
)
(3,865
)
Prepaid expenses and other assets
(496
)
(751
)
Accounts payable and accrued expenses
(1,344
)
6,047
Deferred revenue
(8,371
)
(5,170
)
Income tax receivable and payable
62
—
Net cash used in operating activities
(17,898
)
(13,862
)
Cash flows from investing activities:
Purchase of software and licenses
(612
)
(400
)
Purchases of property and equipment
(2,718
)
(5,463
)
Net cash used in investing activities
(3,330
)
(5,863
)
Cash flows from financing activities:
Draws on revolving line of credit
121,350
—
Paydowns of revolving line of credit
(123,810
)
—
Net proceeds on Revolver
—
18,946
Net proceeds from tool financing
496
—
Repayment of VIE financing
(791
)
(509
)
Cash paid for finance leases
(456
)
(416
)
Proceeds from the issuance of common stock
pursuant to the employee stock purchase plan
1,276
1,128
Proceeds from the issuance of common
stock, net of commissions
12,144
—
Cash paid on license technology
obligations
(2,350
)
(500
)
Net contributions (distributions) from
(to) noncontrolling interest
(478
)
(867
)
Net cash provided by financing
activities
7,381
17,782
Net uses of cash and cash equivalents
(13,847
)
(1,943
)
Cash and cash equivalents - beginning of
period
30,025
12,917
Cash and cash equivalents - end of
period
$
16,178
$
10,974
Supplemental Revenue Information by Quarter
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
(in thousands)
Wafer Services revenue
$
16,802
$
17,788
$
17,211
$
17,154
$
17,584
$
21,546
Advanced Technology Services revenue
53,009
48,306
47,876
35,172
29,823
26,575
Total Revenue
$
69,811
$
66,094
$
65,087
$
52,326
$
47,407
$
48,121
Tool revenue (included in ATS)
$
936
$
536
$
30
$
219
$
313
$
984
Tool cost of revenue
$
290
$
484
$
46
$
152
$
200
$
984
Revenue impact of new contract with
significant customer (included in Wafer Services revenue)
$
—
$
—
$
—
$
—
$
—
$
8,230
Cost of revenue impact of new contract
with significant customer
$
—
$
—
$
—
$
—
$
—
$
10,887
Non-GAAP Financial Measures
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 results reported using U.S. generally accepted
accounting principles (GAAP). We provide non-GAAP gross profit,
non-GAAP gross margin, non-GAAP net loss to shareholders, and
non-GAAP net loss per share. We provide these non-GAAP financial
measures because we believe this non-GAAP presentation provides a
baseline for analyzing trends in our business and to exclude
certain items that may not be indicative of our core operating
results. The non-GAAP financial measures disclosed in this earnings
press release should not be viewed as an alternative to, or more
meaningful than, the reported results prepared in accordance with
GAAP. In addition, because our non-GAAP measures are not determined
in accordance with GAAP, these measures are susceptible to
differing calculations, and not all comparable or peer companies
may calculate their non-GAAP measures in the same manner. As a
result, the non-GAAP financial measures presented in this earnings
press release may not be directly comparable to similarly titled
measures presented by other companies.
We also provide adjusted earnings before interest, income taxes,
depreciation and amortization (EBITDA) and adjusted EBITDA margin
as supplemental non-GAAP measurements. We define adjusted EBITDA as
net income (loss) before interest expense, income tax provision
(benefit), depreciation and amortization, equity-based compensation
and certain other items that we do not view as indicative of our
ongoing performance, including SkyWater Florida start-up costs,
management transition expense, and net income attributable to
non-controlling interests. We believe adjusted EBITDA is a useful
performance measure because it allows for an effective evaluation
of our operating performance when compared to our peers, without
regard to our financing methods or capital structure. We exclude
the items from net income or loss in arriving at adjusted EBITDA
because the amounts of these items can vary substantially within
our industry depending upon accounting methods, book values of
assets, capital structures and the method by which the assets were
acquired. Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net income determined in
accordance with GAAP. Certain items excluded from adjusted EBITDA
are significant components in understanding and assessing financial
performance, including, but not limited to, the cost of capital,
income taxes, and the historic cost bases of long-lived assets,
none of which are reflected in adjusted EBITDA. Our presentation of
adjusted EBITDA should not be construed as an indication that our
results will be unaffected by the items excluded from adjusted
EBITDA. In future fiscal periods, we may exclude such items and may
incur income and expenses similar to these excluded items.
Accordingly, the exclusion of these items and other similar items
in our non-GAAP presentation should not be interpreted as implying
that these items are non-recurring, infrequent or unusual, unless
otherwise expressly indicated.
The following tables present a reconciliation of the most
directly comparable financial measures, calculated and presented in
accordance with GAAP, to our non-GAAP financial measures.
SKYWATER TECHNOLOGY,
INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three Months Ended
July 2, 2023
April 2, 2023
July 3, 2022
(in thousands)
Total revenue
$
69,811
$
66,094
$
47,407
Tool revenue (5)
(936
)
(536
)
(313
)
GAAP cost of revenue
$
53,144
$
49,626
$
45,327
Cost of tool revenue (5)
$
(290
)
$
(484
)
$
(200
)
Equity-based compensation (3)
(291
)
(513
)
(546
)
Management transition expense (6)
$
(705
)
$
—
$
—
SkyWater Florida start-up costs (2)
—
—
(113
)
Non-GAAP cost of revenue
$
51,858
$
48,629
$
44,468
GAAP gross profit
$
16,667
$
16,468
$
2,080
GAAP gross margin
23.9
%
24.9
%
4.4
%
Tool revenue (5)
(936
)
(536
)
(313
)
Cost of tool revenue (5)
290
484
200
Equity-based compensation (3)
291
513
546
Management transition expense (6)
705
—
—
SkyWater Florida start-up costs (2)
—
—
113
Non-GAAP gross profit
$
17,017
$
16,929
$
2,626
Non-GAAP gross margin
24.7
%
25.8
%
5.6
%
GAAP research and development
$
2,396
$
2,668
$
2,361
Equity-based compensation (3)
(217
)
(162
)
(128
)
Non-GAAP research and development
$
2,179
$
2,506
$
2,233
GAAP selling, general and administrative
expenses
$
17,820
$
14,895
$
10,795
Equity-based compensation (3)
(1,459
)
(1,178
)
(1,444
)
Management transition expense (6)
(130
)
—
—
SkyWater Florida start-up costs (2)
—
—
(45
)
Non-GAAP selling, general and
administrative expenses
$
16,231
$
13,717
$
9,306
Three Months Ended
July 2, 2023
April 2, 2023
July 3, 2022
(in thousands)
GAAP net loss to shareholders
$
(8,590
)
$
(4,273
)
$
(13,005
)
Tool revenue (5)
(936
)
(536
)
(313
)
Cost of tool revenue (5)
290
484
200
Equity-based compensation (3)
1,967
1,853
2,118
Management transition expense (6)
835
—
—
SkyWater Florida start-up costs (2)
—
—
158
Non-GAAP net loss to shareholders
$
(6,434
)
$
(2,472
)
$
(10,842
)
Equity-based compensation allocation in
the consolidated statements of operations (3):
Cost of revenue
$
291
$
513
$
546
Research and development
217
162
128
Selling, general and administrative
expenses
1,459
1,178
1,444
$
1,967
$
1,853
$
2,118
Management transition expense allocation
in the consolidated statements of operations (6):
Cost of revenue
$
705
$
—
$
—
Selling, general and administrative
expenses
130
—
—
$
835
$
—
$
—
SkyWater Florida start-up costs allocation
in the consolidated statements of operations (2):
Cost of revenue
$
—
$
—
$
113
Selling, general and administrative
expenses
—
—
45
$
—
$
—
$
158
Three Months Ended July
2, 2023
GAAP
Non-GAAP
Computation of net loss per common share,
basic and diluted:
(in thousands, except per
share data)
Numerator:
Net loss attributable to SkyWater
Technology, Inc.
(8,590
)
(6,434
)
Denominator:
Weighted-average common shares
outstanding, basic and diluted
44,743
44,743
Net loss per common share, basic and
diluted
$
(0.19
)
$
(0.14
)
Three Months Ended
April 2, 2023
GAAP
Non-GAAP
Computation of net loss per common share,
basic and diluted:
(in thousands, except per
share data)
Numerator:
Net loss attributable to SkyWater
Technology, Inc.
(4,273
)
(2,472
)
Denominator:
Weighted-average common shares
outstanding, basic and diluted
43,817
43,817
Net loss per common share, basic and
diluted
$
(0.10
)
$
(0.06
)
Three Months Ended July
3, 2022
GAAP
Non-GAAP
Computation of net loss per common share,
basic and diluted:
(in thousands, except per
share data)
Numerator:
Net loss attributable to SkyWater
Technology, Inc.
(13,005
)
(10,842
)
Denominator:
Weighted-average common shares
outstanding, basic and diluted
40,203
40,203
Net loss per common share, basic and
diluted
$
(0.32
)
$
(0.27
)
Three Months Ended
Six Months Ended
July 2, 2023
April 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
(in thousands)
Net loss to shareholders
$
(8,590
)
$
(4,273
)
$
(13,005
)
$
(12,863
)
$
(29,611
)
Interest expense (1)
2,950
2,471
1,040
5,421
2,069
Income tax (benefit) expense
25
—
63
25
(131
)
Depreciation and amortization
7,207
7,352
7,198
14,559
13,657
EBITDA
1,592
5,550
(4,704
)
7,142
(14,016
)
Equity-based compensation (3)
1,967
1,853
2,118
3,820
5,334
Net income attributable to noncontrolling
interests (4)
2,066
707
826
2,773
1,685
Management transition expense (6)
835
—
—
835
—
SkyWater Florida start-up costs (2)
—
—
158
—
560
Adjusted EBITDA
$
6,460
$
8,110
$
(1,602
)
$
14,570
$
(6,437
)
__________________
(1)
Includes losses related to the
extinguishment of our revolving credit agreement in 2022.
(2)
Represents start-up costs
associated with our 200 mm heterogeneous integration facility in
Kissimmee, Florida, which includes legal fees, recruiting expenses,
retention awards and facility start-up expenses. These expenses are
not representative of our expected ongoing costs. Effective 2023,
our Kissimmee, Florida plant is up and running and no longer in its
start-up phase.
(3)
Represents non-cash equity-based
compensation expense.
(4)
Represents net income
attributable to our VIE, which was formed for the purpose of
purchasing the land and building of our primary operating facility
in Bloomington, Minnesota. Since depreciation and interest expense
are excluded from net loss in our adjusted EBITDA financial
measure, we also exclude the net income attributable to the
VIE.
(5)
Tool revenue and cost of tool
revenue represent the revenue and external costs related to the
services we provide to qualify customer funded tool technologies as
our customers invest in our capabilities to expand our technology
platforms.
(6)
Represents severance and other
costs related to the reorganization of the manufacturing and
operations leadership team.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230807865573/en/
SkyWater Investor Contact: Claire McAdams |
claire@headgatepartners.com SkyWater Media Contact: Lauri Julian |
Media@SkyWaterTechnology.com
SkyWater Technology (NASDAQ:SKYT)
Historical Stock Chart
From May 2024 to Jun 2024
SkyWater Technology (NASDAQ:SKYT)
Historical Stock Chart
From Jun 2023 to Jun 2024