SkyWater Technology Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
SkyWater Technology Reports Q2 2024 Financial Results
SkyWater Technology, Inc. (NASDAQ:SKYT), the trusted technology realization partner, today announced its financial results for the second quarter of 2024 ending on June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Q1 2024 | QoQ Change | Consensus Estimate | Comparison to Estimate |
|---|---|---|---|---|---|---|---|
| Total Revenue | $93.3 million | $69.6 million | +34% | $80.2 million | +16.4% | $82.9 million | +12.6% |
| GAAP Earnings Per Share (EPS) | $-0.04 | $-0.19 | +78.9% | $-0.10 | +60% | $-0.11 | +63.6% |
| Non-GAAP Earnings Per Share (EPS) | $0.02 | $-0.04 | +150% | $-0.03 | +166.7% | - | |
| Adjusted EBITDA | $8.1 million | $10.3 million | -21.4% | $7.2 million | +12.5% | - | |
| Gross Margin | 18.3% (GAAP) | 23.9% (GAAP) | -5.6pp | 15.5% | +2.8pp | - | |
| Non-GAAP Gross Margin | 18.9% | 25.3% | -6.4pp | 16.0% | +2.9pp | - | |
| Net Loss to Shareholders (GAAP) | $1.9 million | $8.6 million | -77.9% | $7.3 million | -74% | - | |
| Non-GAAP Net Income to Shareholders | $0.8 million | $-2.0 million | +140% | $-1.5 million | +153.3% | - |
SkyWater Technology saw a remarkable revenue increase of 34% year-over-year, hitting a record $93.3 million. Although gross margin decreased year-over-year to 18.3% on a GAAP basis, the company's efficiency improvements are apparent with lesser losses per share and positive non-GAAP EPS. The revenue growth surpassed the consensus estimate by 12.6%, indicating strong market performance and operational success.
Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | YoY Change | Previous Guidance |
|---|---|---|---|---|
| Advanced Technology Services (ATS) | $61.7 million | $52.4 million | +18% | Exceeded |
| Tools Revenue | $25.9 million | $0.9 million | +2777.8% | Exceeded |
| Wafer Services | $5.8 million | $17.1 million | -66% | Below |
ATS development revenue showed an 18% year-over-year increase, surpassing expectations and reflecting strong operational execution. The Tools revenue surged significantly, indicating robust demand, while Wafer Services revenue decreased by 66% compared to Q2 2023.
Operational Highlights
| Metric | Q2 2024 |
|---|---|
| Adjusted EBITDA | $8.1 million (8.7% of revenue) |
| Cash Flow Generation | Strong |
The company reports record revenue results along with strategic cost-control efforts to generate positive non-GAAP EPS and strong operating cash flow in Q2 2024.
Executive Comments
Thomas Sonderman, SkyWater Chief Executive Officer, remarked, “We are pleased to report continued strong results for our unique and differentiated Advanced Technology Services business... With record levels of customer-funded CapEx... indicative of the new revenue baseline required to support future profitability and positive cash flow from operations as we move into next year and beyond."
Dividends and Share Repurchase Program
No information on dividends or share repurchase programs was announced in the earnings release.
Forward Guidance
The company did not provide specific forward guidance but noted that customer commitments to fund technical capabilities and future growth remain strong.
Stock Price Movement
Following the earnings release, SkyWater Technology's stock saw a decline of 4.02%.
This comprehensive performance underscores SkyWater Technology’s potential and highlights its significant strides in operational efficiency and revenue growth.
