SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the first quarter 2025 ended March 30, 2025. “We’re pleased to report t...
BLOOMINGTON, Minn.: SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the first quarter 2025 ended March 30, 2025.
“We’re pleased to report that our financial results for the first quarter reflect modest upside to our expectations entering the year,” commented Thomas Sonderman, CEO. “A significant rebound in sequential growth for our Wafer Services business reflected strong traction with lead customers for our ThermaView℠ platform launched in January. In our Advanced Technology Services (ATS) business, the continued federal budget delays affecting overall Department of Defense (DOD) program funding are resulting in a near-term softening of our anticipated ATS growth trajectory, following record revenues achieved in 2024. We are confident in our ability to execute towards another record ATS revenue year in 2025, provided that the funding delays in Washington, DC are resolved soon. With our current visibility, and provided that the requisite program funding proceeds as planned, we believe we will achieve year-over-year revenue growth in both ATS and Wafer Services, expansion of our gross margin profile, strong adjusted EBITDA, and non-GAAP positive EPS for fiscal 2025. Finally, we look forward to sharing additional details of our long-term strategic vision for the acquisition of Infineon’s Fab 25, following an anticipated closing in mid-2025.”
Recent Business Highlights
Q1 2025 Financial Summary
GAAP |
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In millions, except per share data | Q1 2025 |
| Q1 2024 |
| Y/Y * |
| Q4 2024 |
| Q/Q * |
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ATS development revenue (1) | $52.5 |
| $61.2 |
| (14)% |
| $59.4 |
| (12)% |
Wafer Services revenue | $7.5 |
| $10.0 |
| (25)% |
| $4.4 |
| 70% |
Combined ATS development and Wafer Services revenue | $60.1 |
| $71.2 |
| (16)% |
| $63.8 |
| (6)% |
Tools revenue (2) | $1.2 |
| $8.5 |
| (86)% |
| $11.7 |
| (90)% |
Total revenue * | $61.3 |
| $79.6 |
| (23)% |
| $75.5 |
| (19)% |
Gross profit | $14.3 |
| $13.0 |
| 10% |
| $19.3 |
| (26)% |
Gross margin * | 23.3% |
| 16.3% |
| 700 bps |
| 25.6% |
| (226) bps |
Net loss to shareholders | $(7.3) |
| $(5.7) |
| (28)% |
| $(0.7) |
| (943)% |
Basic and diluted loss per share | $(0.15) |
| $(0.12) |
| (25)% |
| $(0.01) |
| (1400)% |
Net income (loss) margin to shareholders | (12.0)% |
| (7.2)% |
| (480) bps |
| (0.9)% |
| (1,110) bps |
Non-GAAP |
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In millions, except per share data | Q1 2025 |
| Q1 2024 |
| Y/Y * |
| Q4 2024 |
| Q/Q * |
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Non-GAAP gross profit | $14.8 |
| $13.4 |
| 10 % |
| $20.1 |
| (26) % |
Non-GAAP gross margin * | 24.2% |
| 16.9% |
| 730 bps |
| 26.6% |
| (240) bps |
Non-GAAP net income (loss) to shareholders | $(3.7) |
| $(3.7) |
| — % |
| $1.9 |
| (295) % |
Non-GAAP basic income (loss) per share | $(0.08) |
| $(0.08) |
| — % |
| $0.04 |
| (300) % |
Non-GAAP diluted income (loss) per share | $(0.08) |
| $(0.08) |
| — % |
| $0.04 |
| (300) % |
Adjusted EBITDA | $4.0 |
| $4.9 |
| (18) % |
| $10.2 |
| (61) % |
Adjusted EBITDA margin | 6.6% |
| 6.2% |
| 40 bps |
| 13.5% |
| (690) bps |
____________________ | |
* Amounts calculated based on figures reported in thousands | |
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(1) | ATS development revenue represents GAAP revenue primarily derived from process development services, tool installation and qualification services, facility and tool access, leases where SkyWater serves as lessor, and security services. |
(2) | Tools revenue represents GAAP revenue primarily derived from the procurement and subsequent sale of equipment to our customers. While this equipment is owned by our customers, the equipment is retained in one of our fabs and is used to complete ATS customer programs. |
Q1 2025 Results
A reconciliation between GAAP and non-GAAP financial measures is contained in the tables below in the section titled “Non-GAAP Financial Measures.”
Q2 2025 Financial Outlook
For the second quarter of 2025, we expect total revenue to be in the range of $55 million to $60 million, and less than $1 million is expected to be tools revenue. We expect GAAP diluted net loss per share to be in the range of $(0.20) to $(0.26) and non-GAAP diluted net loss per share to be in the range of $(0.16) to $(0.22).
This outlook for non‑GAAP diluted net loss per share excludes anticipated equity-based compensation expense of approximately $2 million, or $0.04 per share. Non-GAAP diluted net loss per share should be considered in addition to, but not as a substitute for, our financial information presented in accordance with GAAP.
Investor Webcast
SkyWater will host a conference call today, Wednesday, May 7, 2025, at 3:30 p.m. CT (4:30 p.m. ET) to discuss its first quarter 2025 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 Supplier. SkyWater’s Technology as a Service model streamlines the path to production for customers with development services, high-volume production and heterogeneous integration solutions in its U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology within diverse categories including mixed-signal CMOS, read-out ICs, rad-hard ICs, MEMS, superconducting ICs, photonics and advanced packaging. SkyWater serves critical domestic markets including aerospace & defense, automotive, biomedical, industrial and quantum computing. For more information, visit: www.skywatertechnology.com.
Cautionary Statement Regarding Preliminary Results
The Company’s results for the first quarter ended March 30, 2025 are preliminary, unaudited and subject to the finalization of the Company’s first 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 press release, 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 fabrication facilities 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; our ability to complete the Fab 25 acquisition on anticipated timing and terms; upon completion of such acquisition, our ability to integrate the operations of the Fab 25 facility with our operations and risks associated with operating the Fab 25 facility; the performance and reliability of our third-party suppliers and manufacturers; our ability to procure tools, materials, and chemicals; 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; adverse litigation judgments, settlements or other litigation-related costs; changes in trade policies, including the imposition of or increase in tariffs; our ability to raise additional capital or financing; our ability to accurately forecast demand; changes in local, regional, national and international economic or political conditions, including those resulting from increases in inflation and interest rates, a recession, or intensified international hostilities; 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; 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 14, 2025 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. Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| March 30, 2025 |
| December 29, 2024 | ||||
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| (in thousands, except per share data) | ||||||
Assets |
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Current assets |
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Cash and cash equivalents | $ | 51,234 |
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| $ | 18,844 |
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Accounts receivable (net of allowance for credit losses of $597 and $279, respectively) |
| 39,108 |
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| 54,332 |
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Contract assets (net of allowance for credit losses of $16 and $11, respectively) |
| 20,466 |
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| 20,890 |
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Inventory |
| 14,221 |
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| 14,535 |
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Prepaid expenses and other current assets |
| 25,322 |
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| 23,476 |
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Total current assets |
| 150,351 |
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| 132,077 |
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Property and equipment, net |
| 162,842 |
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| 165,431 |
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Intangible assets, net |
| 7,786 |
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| 7,779 |
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Other assets |
| 5,784 |
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| 8,488 |
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Total assets | $ | 326,763 |
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| $ | 313,775 |
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Liabilities and shareholders’ equity |
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Current liabilities |
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Current portion of long-term debt | $ | 4,941 |
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| $ | 5,073 |
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Accounts payable |
| 11,691 |
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| 29,590 |
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Accrued expenses |
| 27,942 |
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| 36,829 |
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Short-term financing, net of unamortized debt issuance costs |
| 21,535 |
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