SkyWater Technology, Inc. (NASDAQ: SKYT), a leader in technology innovation, announced its Q3 2024 financial results, reflecting robust growth and operational achievements for the quarter ending September 29, 2024.
Key Financial Highlights for Q3 2024:
- Revenue: Increased 31% year-over-year to a record $93.8 million.
- Gross Margin: Rose to 21.6% GAAP, up from 19.8% in Q3 2023, with a non-GAAP gross margin of 22.3%.
- Net Income: $1.5 million, or $0.03 per diluted share on a GAAP basis, and $3.6 million, or $0.08 per diluted share on a non-GAAP basis, compared to a net loss of $7.6 million in Q3 2023.
- Adjusted EBITDA: $11.0 million, representing 11.7% of revenue, up from $8.3 million in Q3 2023.
CEO Thomas Sonderman expressed satisfaction with the company’s performance, highlighting improved operational efficiencies and record revenue. “We’re optimistic about sequential growth in Q4, driven by our Advanced Technology Services (ATS) business and strong demand from aerospace and defense (A&D) clients. Looking forward, we expect robust growth in our ATS sector and a stronger outlook for 2025,” Sonderman commented.
Business Milestones:
- Customer Investments: Record revenue fueled by over $30 million in customer-funded capital expenditures, enhancing SkyWater’s capabilities and capacity in Minnesota and Florida.
- A&D Program Execution: Outperformed expectations on an A&D program, achieving cost reductions and milestones.
- CHIPS Act Progress: SkyWater was selected for key Microelectronics Commons projects focused on scalable low-power microtechnologies for AI and national security.
- Commercial Growth: Signed a multi-year supply agreement with NanoDx, Inc. for innovative biosensing applications.
- Advanced Packaging Expansion: Appointed Bassel Haddad as SVP of Advanced Packaging, a growth sector supported by new tooling investments.
Financial Summary
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $93.8M | $71.6M | +31% |
| Gross Profit (GAAP) | $20.2M | $14.1M | +43% |
| Gross Margin (GAAP) | 21.6% | 19.8% | +180 bps |
| Net Income to Shareholders | $1.5M | $(7.6)M | NM |
| Adjusted EBITDA | $11.0M | $8.3M | +33% |
Q4 2024 Outlook:
For Q4 2024, SkyWater projects revenue between $72 million and $76 million, including approximately $11 million in tools revenue. GAAP diluted EPS is expected to range between $(0.12) and $(0.06), with non-GAAP diluted EPS projected at $(0.10) to $(0.04).
Investor Call
SkyWater will host an investor call on November 7, 2024, at 3:30 p.m. CT. The live webcast will be available on IR.SkyWaterTechnology.com.
