SkyWater Technology Reports Third Quarter 2022 Results
SkyWater Technology (NASDAQ: SKYT) reported record third-quarter revenues of $52.3 million, marking a 49% year-over-year increase and a 10% rise sequentially. Despite a net loss of $6.9 million, the company achieved an adjusted EBITDA of $3.8 million with a gross margin improvement to 15.8%. Key highlights include a $100 million Phase 2 Rad-Hard award and a $36 million grant in Florida. Looking ahead, SkyWater anticipates continued revenue growth in Q4, driven by key partnerships and ongoing developments in the semiconductor ecosystem.
- Record Q3 revenue of $52.3 million, up 49% YoY.
- Adjusted EBITDA of $3.8 million, marking a significant recovery.
- Gross margin improved to 15.8%, up 2100 bps YoY.
- Received $100 million Phase 2 Rad-Hard award for RH90 platform.
- Awarded $36 million grant to expand advanced packaging in Florida.
- Net loss of $6.9 million, although improved by 50% YoY.
- Cash and cash equivalents decreased to $9.3 million from $12.9 million earlier in 2022.
Record Quarterly Revenues Up
-
Total revenue of
, up$52.3 million 49% year over year. -
Net loss to shareholders of
, or (13)% of revenue.$6.9 million -
Adjusted EBITDA of
, or$3.8 million 7.3% of revenue.
“We are pleased to report record third-quarter revenues of over
“As we look ahead, we anticipate continued growth in revenues for the fourth quarter, driven by momentum in several ATS programs, including the expansion of activities to ready our RH90 platform for productization. While the overall semiconductor industry is experiencing softening business conditions, as we enter 2023, we at
Recent Business Updates:
-
Received the highly-anticipated Phase 2 Rad-Hard award, valued at nearly
, to advance our RH90 platform to productization and qualification$100 million -
Receipt of a landmark
grant award in$36 million Florida to expand our capacity for advanced packaging and heterogeneous integration technologies -
Selection as the exclusive foundry service provider to manufacture semiconductor devices for the new partnership between
Google and theU.S. Department of Commerce’sNational Institute of Standards and Technology (NIST) -
Strong momentum towards building a stronger domestic semiconductor ecosystem through the CHIPS Act, which in Q3 included:
-
Joining Secretary of Commerce Raimondo, Secretary of State Blinken,
Senator Young , andIndiana Governor Holcomb atPurdue University to discuss our role with universities like Purdue in obtaining CHIPS Act funding -
Welcoming
Senator Klobuchar andCongresswoman McCollum at ourMinnesota headquarters to discuss how the CHIPS Act will strengthen domestic semiconductor production and boost American competitiveness and innovation -
Welcoming
Senator Rubio at ourFlorida facility to discuss the importance of secure semiconductor manufacturing inthe United States
-
Joining Secretary of Commerce Raimondo, Secretary of State Blinken,
- Completion of Phase 1 of the IBAS interposer technology development program for critical emerging technologies; this program has now moved into the Phase 2 and Phase 3 stages of platform development
- Strong progress with multiple bio-health customers, as their biosensor solutions continue to progress towards production
- Weebit’s ReRAM test chips have been fully integrated with SkyWater’s S130 platform and are now entering the qualification phase
- Significant gross margin improvement and positive EBITDA performance driven by strong growth of ATS revenue, increased fab efficiency, and execution of our cost reduction plan
-
The strong revenue growth year-to-date, combined with a positive outlook for continued growth in Q4, provides greater confidence that our 2022 revenues will meet or potentially exceed our long-term annual growth objective of
25%
Q3 2022 Summary:
GAAP |
|
|
|
|
|
|
|
|
|
In USD millions, except per share data |
Q3 22 |
|
Q3 21 |
|
Y/Y |
|
Q2 22 |
|
Q/Q |
|
|
|
|
|
|
|
|
|
|
Wafer Services revenue |
|
|
|
|
|
|
|
|
(2)% |
Revenue |
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
|
|
nm |
|
|
|
nm |
Gross margin |
|
|
(5.2)% |
|
2100 bps |
|
|
|
1140 bps |
Net loss to shareholders |
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
In USD millions, except per share data |
Q3 22 |
|
Q3 21 |
|
Y/Y |
|
Q2 22 |
|
Q/Q |
Non-GAAP gross profit (loss) |
|
|
|
|
nm |
|
|
|
|
Non-GAAP gross margin |
|
|
(1.4)% |
|
1820 bps |
|
|
|
1120 bps |
Non-GAAP net loss to shareholders |
|
|
|
|
|
|
|
|
|
Non-GAAP basic loss per share |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
nm |
|
|
|
nm |
Adjusted EBITDA margin |
|
|
( |
|
1500 bps |
|
( |
|
1070 bps |
Q3 2022 Results:
-
Revenue: Revenue of
increased$52.3 million 49% year-over-year as a result of growth in ATS programs and improved pricing terms for wafer services.Advanced Technology Services revenue of increased$35.2 million 57% year-over-year, reflecting the momentum we are gaining with several key customers.Advanced Technology Services revenue contained of tool revenue in the third quarter of 2022 and$0.2 million in the third quarter of 2021. Wafer Services revenue of$0.3 million increased$17.2 million 36% compared to the third quarter of 2021, driven primarily by the more favorable pricing and continued growth of the Wafer Services business as a result of adding more customers and programs. -
Gross Profit: GAAP gross profit was
, or$8.3 million 15.8% of revenue, compared to GAAP gross profit of , or (5.2)% of revenue, in the third quarter of 2021. Non-GAAP gross profit was$(1.8) million , or$8.8 million 16.8% of revenue excluding tool sales, compared to non-GAAP gross profit of , or (1.4)% of revenue excluding tool sales, in the third quarter of 2021. The improvement was primarily the result of strong growth of$(0.5) million Advanced Technology Services revenue, increased fab efficiency and execution of our cost reduction plan. Non-GAAP gross profit for the third quarter of 2022 excludes of equity-based compensation and$0.6 million Florida start-up costs, compared to in the third quarter of 2021. Cost of revenue in the third quarter of 2022 also contained$1.3 million for the heterogeneous integration facility and$3.2 million in depreciation related to the radiation hardened program, compared to$1.4 million and$2.3 million , respectively, in the third quarter of 2021.$1.7 million -
Net Loss: GAAP net loss to shareholders was
, or$6.9 million per share, compared to a net loss to shareholders of$(0.17) , or$13.9 million per share, in the third quarter of 2021. Non-GAAP net loss to shareholders was$(0.36) , or$5.1 million per share, compared to a net loss to shareholders of$(0.13) , or$11.5 million per share, in the third quarter of 2021.$(0.29) -
Adjusted EBITDA: Adjusted EBITDA was
, or$3.8 million 7.3% of revenue, compared to or (7.7)% of revenue in the third quarter of 2021.$(2.7) million -
Balance Sheet: Cash and cash equivalents were
at quarter end, compared to$9.3 million as of$12.9 million January 2, 2022 .
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
About
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; changes in local, regional, national and international economic or political conditions, including those resulting from rising inflation and interest rates, a recession, or intensified international hostilities; the impact of the COVID-19 pandemic on our business, results of operations and financial condition and our customers, suppliers and workforce; the impact of the COVID-19 pandemic on the global economy; the level and timing of
Consolidated Balance Sheets (Unaudited) |
|||||||
|
|
|
|
||||
|
(in thousands, except share data) |
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,322 |
|
|
$ |
12,917 |
|
Accounts receivable, net |
|
49,051 |
|
|
|
39,381 |
|
Inventories |
|
12,189 |
|
|
|
17,500 |
|
Prepaid expenses and other current assets |
|
6,120 |
|
|
|
3,854 |
|
Income tax receivable |
|
744 |
|
|
|
745 |
|
Total current assets |
|
77,426 |
|
|
|
74,397 |
|
Property and equipment, net |
|
183,650 |
|
|
|
180,475 |
|
Intangible assets, net |
|
6,092 |
|
|
|
3,891 |
|
Other assets |
|
3,780 |
|
|
|
4,835 |
|
Total assets |
$ |
270,948 |
|
|
$ |
263,598 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
1,051 |
|
|
$ |
1,021 |
|
Accounts payable |
|
19,119 |
|
|
|
7,637 |
|
Accrued expenses |
|
28,659 |
|
|
|
17,483 |
|
Current portion of contingent consideration |
|
— |
|
|
|
816 |
|
Deferred revenue - current |
|
24,212 |
|
|
|
20,808 |
|
Total current liabilities |
|
73,041 |
|
|
|
47,765 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt, less current portion and unamortized debt issuance costs |
|
72,677 |
|
|
|
58,428 |
|
Long-term incentive plan |
|
3,172 |
|
|
|
4,039 |
|
Deferred revenue - long-term |
|
74,078 |
|
|
|
88,094 |
|
Deferred income tax liability, net |
|
965 |
|
|
|
995 |
|
Other long-term liabilities |
|
10,934 |
|
|
|
4,350 |
|
Total long-term liabilities |
|
161,826 |
|
|
|
155,906 |
|
Total liabilities |
|
234,867 |
|
|
|
203,671 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
415 |
|
|
|
398 |
|
Additional paid-in capital |
|
127,067 |
|
|
|
115,208 |
|
Accumulated deficit |
|
(91,029 |
) |
|
|
(54,479 |
) |
Total shareholders’ equity, |
|
36,453 |
|
|
|
61,127 |
|
Non-controlling interests |
|
(372 |
) |
|
|
(1,200 |
) |
Total shareholders’ equity |
|
36,081 |
|
|
|
59,927 |
|
Total liabilities and shareholders’ equity |
$ |
270,948 |
|
|
$ |
263,598 |
|
Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in thousands, except share and per share data) |
||||||||||||||
Revenue |
$ |
52,326 |
|
|
$ |
35,025 |
|
|
$ |
147,854 |
|
|
$ |
124,315 |
|
Cost of revenue |
|
44,049 |
|
|
|
36,852 |
|
|
|
138,437 |
|
|
|
115,164 |
|
Gross profit |
|
8,277 |
|
|
|
(1,827 |
) |
|
|
9,417 |
|
|
|
9,151 |
|
Research and development |
|
2,580 |
|
|
|
2,253 |
|
|
|
7,223 |
|
|
|
7,519 |
|
Selling, general and administrative expenses |
|
10,778 |
|
|
|
9,626 |
|
|
|
33,263 |
|
|
|
33,644 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(1,670 |
) |
|
|
— |
|
|
|
(2,556 |
) |
Operating loss |
|
(5,081 |
) |
|
|
(12,036 |
) |
|
|
(31,069 |
) |
|
|
(29,456 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Paycheck Protection Program loan forgiveness |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,453 |
|
Interest expense |
|
(1,331 |
) |
|
|
(733 |
) |
|
|
(3,400 |
) |
|
|
(2,703 |
) |
Total other (expense) income |
|
(1,331 |
) |
|
|
(733 |
) |
|
|
(3,400 |
) |
|
|
3,750 |
|
Loss before income taxes |
|
(6,412 |
) |
|
|
(12,769 |
) |
|
|
(34,469 |
) |
|
|
(25,706 |
) |
Income tax expense (benefit) |
|
87 |
|
|
|
194 |
|
|
|
(44 |
) |
|
|
(4,468 |
) |
Net loss |
|
(6,499 |
) |
|
|
(12,963 |
) |
|
|
(34,425 |
) |
|
|
(21,238 |
) |
Less: net income attributable to non-controlling interests |
|
440 |
|
|
|
907 |
|
|
|
2,125 |
|
|
|
2,422 |
|
Net loss attributable to |
$ |
(6,939 |
) |
|
$ |
(13,870 |
) |
|
$ |
(36,550 |
) |
|
$ |
(23,660 |
) |
Net loss per share attributable to common shareholders, basic and diluted: |
$ |
(0.17 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.94 |
) |
Weighted average shares used in computing net loss per common share, basic and diluted: |
|
40,669,322 |
|
|
|
39,059,743 |
|
|
|
40,245,736 |
|
|
|
25,609,281 |
|
Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
|
|
|
|
||||
|
(in thousands) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(34,425 |
) |
|
$ |
(21,238 |
) |
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
20,740 |
|
|
|
20,300 |
|
Gain on Paycheck Protection Program loan forgiveness |
|
— |
|
|
|
(6,453 |
) |
Gain on sale of property and equipment |
|
— |
|
|
|
(74 |
) |
Amortization of debt issuance costs included in interest expense |
|
521 |
|
|
|
530 |
|
Long-term incentive and stock-based compensation |
|
7,033 |
|
|
|
10,403 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(2,556 |
) |
Cash paid for contingent consideration in excess of initial valuation |
|
(816 |
) |
|
|
(6,644 |
) |
Deferred income taxes |
|
(30 |
) |
|
|
(4,841 |
) |
Non-cash revenue related to customer equipment |
|
— |
|
|
|
(2,481 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
773 |
|
|
|
(5,091 |
) |
Inventories |
|
(4,686 |
) |
|
|
(3,737 |
) |
Prepaid expenses and other assets |
|
(1,212 |
) |
|
|
4,713 |
|
Accounts payable and accrued expenses |
|
16,705 |
|
|
|
(2,913 |
) |
Deferred revenue |
|
(10,612 |
) |
|
|
(15,831 |
) |
Income tax payable and receivable |
|
1 |
|
|
|
(1,328 |
) |
Net cash used in operating activities |
|
(6,008 |
) |
|
|
(37,241 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchase of software and licenses |
|
(400 |
) |
|
|
(819 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
149 |
|
Purchases of property and equipment |
|
(11,325 |
) |
|
|
(29,777 |
) |
Net cash used in investing activities |
|
(11,725 |
) |
|
|
(30,447 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock pursuant to the initial public offering, net of underwriting discounts and commissions |
|
— |
|
|
|
104,212 |
|
Net proceeds on Revolver |
|
14,522 |
|
|
|
(30,289 |
) |
Proceeds from the issuance of common stock pursuant to the employee stock purchase plan |
|
1,800 |
|
|
|
— |
|
Cash paid for offering costs |
|
— |
|
|
|
(1,867 |
) |
Proceeds from ATM Program, net of underwriting discounts and commissions |
|
2,186 |
|
|
|
— |
|
Cash paid for capital leases |
|
(1,158 |
) |
|
|
(591 |
) |
Distributions to VIE member |
|
(1,297 |
) |
|
|
(1,968 |
) |
Cash paid on license technology obligations |
|
(1,150 |
) |
|
|
— |
|
Repayment of Financing |
|
(765 |
) |
|
|
(787 |
) |
Net cash provided by financing activities |
|
14,138 |
|
|
|
68,710 |
|
Net change in cash and cash equivalents |
|
(3,595 |
) |
|
|
1,022 |
|
Cash and cash equivalents - beginning of period |
|
12,917 |
|
|
|
7,436 |
|
Cash and cash equivalents - end of period |
$ |
9,322 |
|
|
$ |
8,458 |
|
Supplemental Revenue and Cost of Revenue Information by Quarter |
||||||||||||||||||
|
|
Q2 2021 |
|
Q3 2021 |
|
Q4 2021 |
|
Q1 2022 |
|
Q2 2022 |
|
Q3 2022 |
||||||
|
(in thousands) |
|||||||||||||||||
Wafer Services revenue |
|
$ |
14,312 |
|
$ |
12,652 |
|
$ |
14,174 |
|
$ |
21,546 |
|
$ |
17,584 |
|
$ |
17,154 |
|
|
|
26,877 |
|
|
22,373 |
|
|
24,359 |
|
|
26,575 |
|
|
29,823 |
|
|
35,172 |
Revenue |
|
$ |
41,189 |
|
$ |
35,025 |
|
$ |
38,533 |
|
$ |
48,121 |
|
$ |
47,407 |
|
$ |
52,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tool revenue (included in ATS revenue) |
|
$ |
2,346 |
|
$ |
281 |
|
$ |
1,127 |
|
$ |
984 |
|
$ |
313 |
|
$ |
219 |
Tool cost of revenue |
|
$ |
1,223 |
|
$ |
281 |
|
$ |
701 |
|
$ |
984 |
|
$ |
200 |
|
$ |
152 |
Revenue impact of new contract with significant customer |
|
|
— |
|
|
— |
|
|
— |
|
|
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
We also provide adjusted 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 fair value changes in contingent considerations, management fees, inventory write-down, corporate conversion and IPO related costs, Paycheck Protection Program loan forgiveness, SkyWater Florida start-up costs, net income attributable to non-controlling interests, and management transition expense. 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 listed above from net income or loss in arriving at adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods and 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
The following tables present a reconciliation of the most directly comparable financial measures, calculated and presented in accordance with
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
||||||
|
(in thousands) |
||||||||||
GAAP revenue |
$ |
52,326 |
|
|
$ |
35,025 |
|
|
$ |
47,407 |
|
Tool revenue |
|
219 |
|
|
|
281 |
|
|
|
313 |
|
|
|
|
|
|
|
||||||
GAAP cost of revenue |
$ |
44,049 |
|
|
$ |
36,852 |
|
|
$ |
45,327 |
|
Equity-based compensation (1) |
|
(456 |
) |
|
|
(967 |
) |
|
|
(546 |
) |
SkyWater Florida start-up costs (2) |
|
(114 |
) |
|
|
(374 |
) |
|
|
(113 |
) |
Cost of tool revenue (3) |
|
(152 |
) |
|
|
(281 |
) |
|
|
(200 |
) |
Non-GAAP cost of revenue |
$ |
43,327 |
|
|
$ |
35,230 |
|
|
$ |
44,468 |
|
|
|
|
|
|
|
||||||
GAAP gross profit |
$ |
8,277 |
|
|
$ |
(1,827 |
) |
|
$ |
2,080 |
|
GAAP gross margin |
|
15.8 |
% |
|
|
(5.2 |
) % |
|
|
4.4 |
% |
Equity-based compensation (1) |
|
456 |
|
|
|
967 |
|
|
|
546 |
|
SkyWater Florida start-up costs (2) |
|
114 |
|
|
|
374 |
|
|
|
113 |
|
Tool revenue (3) |
|
(219 |
) |
|
|
(281 |
) |
|
|
(313 |
) |
Cost of tool revenue (3) |
|
152 |
|
|
|
281 |
|
|
|
200 |
|
Non-GAAP gross profit |
$ |
8,780 |
|
|
$ |
(486 |
) |
|
$ |
2,626 |
|
Non-GAAP gross margin |
|
16.8 |
% |
|
|
(1.4 |
) % |
|
|
5.6 |
% |
|
|
|
|
|
|
||||||
GAAP research and development |
$ |
2,580 |
|
|
$ |
2,253 |
|
|
$ |
2,361 |
|
Equity-based compensation (1) |
|
(115 |
) |
|
|
(341 |
) |
|
|
(128 |
) |
Non-GAAP research and development |
$ |
2,465 |
|
|
$ |
1,912 |
|
|
$ |
2,233 |
|
|
|
|
|
|
|
||||||
GAAP selling, general and administrative expenses |
$ |
10,778 |
|
|
$ |
9,626 |
|
|
$ |
10,795 |
|
SkyWater Florida start-up costs (2) |
|
— |
|
|
|
(60 |
) |
|
|
(45 |
) |
Management transition expense (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
Equity-based compensation (1) |
|
(1,128 |
) |
|
|
(2,086 |
) |
|
|
(1,444 |
) |
Management fees (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP selling, general and administrative expenses |
$ |
9,650 |
|
|
$ |
7,480 |
|
|
$ |
9,306 |
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
||||||
|
(in thousands) |
||||||||||
GAAP net loss to |
$ |
(6,939 |
) |
|
$ |
(13,870 |
) |
|
$ |
(13,005 |
) |
Corporate conversion and initial public offering related costs (6) |
|
— |
|
|
|
208 |
|
|
|
— |
|
SkyWater Florida start-up costs (2) |
|
114 |
|
|
|
434 |
|
|
|
158 |
|
Fair value changes in contingent consideration (7) |
|
— |
|
|
|
(1,670 |
) |
|
|
— |
|
Equity-based compensation (1) |
|
1,699 |
|
|
|
3,394 |
|
|
|
2,118 |
|
Non-GAAP net loss to shareholders |
$ |
(5,126 |
) |
|
$ |
(11,504 |
) |
|
$ |
(10,729 |
) |
|
|
|
|
|
|
||||||
Equity-based compensation allocation in the consolidated statements of operations: |
|
|
|
|
|
||||||
Cost of revenue |
$ |
456 |
|
|
$ |
967 |
|
|
$ |
546 |
|
Research and development |
|
115 |
|
|
|
341 |
|
|
|
128 |
|
Selling, general and administrative expenses |
|
1,128 |
|
|
|
2,086 |
|
|
|
1,444 |
|
|
$ |
1,699 |
|
|
$ |
3,394 |
|
|
$ |
2,118 |
|
|
|
|
|
|
|
||||||
SkyWater Florida start-up costs allocation in the consolidated statements of operations: |
|
|
|
|
|
||||||
Cost of revenue |
$ |
114 |
|
|
$ |
374 |
|
|
$ |
113 |
|
Selling, general and administrative expenses |
|
— |
|
|
|
60 |
|
|
|
45 |
|
|
$ |
114 |
|
|
$ |
434 |
|
|
$ |
158 |
|
|
Three Months Ended
|
||||||
|
GAAP |
|
Non-GAAP |
||||
Computation of net loss per common share, basic and diluted: |
(in thousands, except per share data) |
||||||
Numerator: |
|
|
|
||||
Net loss attributable to |
$ |
(6,939 |
) |
|
$ |
(5,126 |
) |
Denominator: |
|
|
|
||||
Weighted-average common shares outstanding, basic and diluted |
|
40,669 |
|
|
|
40,669 |
|
Net loss per common share, basic and diluted |
$ |
(0.17 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
||||
|
Three Months Ended
|
||||||
|
GAAP |
|
Non-GAAP |
||||
Computation of net loss per common share, basic and diluted: |
(in thousands, except per share data) |
||||||
Numerator: |
|
|
|
||||
Net loss attributable to |
$ |
(13,870 |
) |
|
$ |
(11,504 |
) |
Denominator: |
|
|
|
||||
Weighted-average Class B preferred units outstanding, basic and diluted |
|
39,060 |
|
|
|
39,060 |
|
Net loss per Class B preferred unit, basic and diluted |
$ |
(0.36 |
) |
|
$ |
(0.29 |
) |
|
|
|
|
||||
|
Three Months Ended |
||||||
|
GAAP |
|
Non-GAAP |
||||
Computation of net loss per common share, basic and diluted: |
(in thousands, except per share data) |
||||||
Numerator: |
|
|
|
||||
Net loss attributable to |
$ |
(13,005 |
) |
|
$ |
(10,729 |
) |
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 |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(in thousands) |
||||||||||||||||||
Net loss to shareholders |
$ |
(6,939 |
) |
|
$ |
(13,870 |
) |
|
$ |
(13,005 |
) |
|
$ |
(36,550 |
) |
|
$ |
(23,660 |
) |
Interest expense |
|
1,331 |
|
|
|
733 |
|
|
|
1,040 |
|
|
|
3,400 |
|
|
|
2,703 |
|
Income tax expense (benefit) |
|
87 |
|
|
|
194 |
|
|
|
63 |
|
|
|
(44 |
) |
|
|
(4,468 |
) |
Depreciation and amortization |
|
7,083 |
|
|
|
6,964 |
|
|
|
7,198 |
|
|
|
20,740 |
|
|
|
20,300 |
|
EBITDA |
|
1,562 |
|
|
|
(5,979 |
) |
|
|
(4,704 |
) |
|
|
(12,454 |
) |
|
|
(5,125 |
) |
Paycheck Protection Program loan forgiveness |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,453 |
) |
Corporate conversion and initial public offering related costs (6) |
|
— |
|
|
|
208 |
|
|
|
— |
|
|
|
— |
|
|
|
1,729 |
|
SkyWater Florida start-up costs (2) |
|
114 |
|
|
|
434 |
|
|
|
158 |
|
|
|
674 |
|
|
|
938 |
|
Management transition expense (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
435 |
|
Fair value changes in contingent consideration (7) |
|
— |
|
|
|
(1,670 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,556 |
) |
Equity-based compensation (1) |
|
1,699 |
|
|
|
3,394 |
|
|
|
2,118 |
|
|
|
7,033 |
|
|
|
10,397 |
|
Management fees (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
332 |
|
Net income attributable to non-controlling interests (8) |
|
440 |
|
|
|
907 |
|
|
|
826 |
|
|
|
2,125 |
|
|
|
2,422 |
|
Adjusted EBITDA |
$ |
3,815 |
|
|
$ |
(2,706 |
) |
|
$ |
(1,602 |
) |
|
$ |
(2,622 |
) |
|
$ |
2,119 |
|
__________________ |
|
(1) |
Represents non-cash equity-based compensation expense. |
(2) |
Represents start-up costs associated with our 200 mm heterogeneous integration facility in |
(3) |
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. |
(4) |
Represents expense for the departure of our former Chief Administrative Officer, which includes primarily severance benefits. |
(5) |
Represents a related party transaction with |
(6) |
Represents expenses directly associated with the corporate conversion and IPO, such as professional, consulting, legal and accounting services. This also includes bonus awards granted to employees upon the completion of the IPO. These expenses are not indicative of our ongoing costs and were discontinued following the completion of our initial public offering |
(7) |
Represents non-cash valuation adjustment of contingent consideration to fair market value during the period. |
(8) |
Represents net income attributable to our VIE, which was formed for the purpose of purchasing our land, building with the proceeds of a bank loan. 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221107005977/en/
SkyWater Investor Contact:
SkyWater Media Contact:
Source:
FAQ
What were SkyWater's revenue figures for Q3 2022?
What is the significance of the Phase 2 Rad-Hard award for SkyWater?
How did SkyWater's adjusted EBITDA perform in Q3 2022?
What is the outlook for SkyWater's revenue in Q4 2022?