Year-over-Year Net Sales Growth of 34%
BLOOMINGTON, Minn. — (BUSINESS WIRE) — August 3, 2021 — SkyWater Technology (NASDAQ: SKYT) today announced financial results for the second quarter of 2021, ended July 4, 2021.
- Net sales grew 34% year-over-year to $41.2 million
- Net loss to shareholders of $7.0 million, or (17)% of net sales
- Adjusted EBITDA of $(0.8) million, or (2.0)% of net sales
“Both our Wafer Services and Advanced Technology Services businesses grew significantly over the prior year,” said SkyWater president and CEO Thomas Sonderman. “During the quarter, our Wafer Services business expanded aggressively in support of the IoT and automotive sectors. We also continued to win new Advanced Technology Services business at a healthy rate bolstering future growth, with several new customer wins in the bio-medical space. Two of our existing customers selected SkyWater for additional technology services at our Florida facility, demonstrating the strategic value that U.S.-based advanced packaging solutions can bring to our customers.”
SkyWater’s Board approved a strategic capital investment of $56 million. The majority of this is targeted to expand capacity at the company’s Minnesota fab which is expected to increase overall output capacity by at least 40% and to enable accelerated revenue growth. The remainder is focused on expediting SkyWater’s entry into the gallium nitride (GaN) market, a promising technology for electric vehicles, 5G, and consumer electronics, among others. Its properties enable higher charging efficiencies, smaller chip size and lighter weight for many applications.
Sonderman continued, “We believe SkyWater can fill the need for a U.S.-based 200 mm foundry that offers both technology development and scaled manufacturing for GaN-based solutions allowing us to rapidly expand the serviceable market with our unique Technology as a ServiceSM model, driving higher revenue and gross margins for the company over the long term.”
Sonderman concluded, “We are pleased with our year-over-year top line performance and remain confident in our long-term revenue growth target of approximately 25% for 2021 and beyond.”
Q2 2021 Summary: |
|||||||||||||||||||||
GAAP |
|
|
|
|
|
|
|
|
|
||||||||||||
In USD millions, except per share data |
Q2 21 |
|
Q2 20 |
|
Y/Y |
|
Q1 21 |
|
Q/Q |
||||||||||||
Advanced Technology Services sales |
$ |
26.9 |
|
|
$ |
19.9 |
|
|
35 |
|
% |
|
$ |
38.1 |
|
|
(29 |
|
)% |
||
Wafer Services sales |
$ |
14.3 |
|
|
$ |
10.9 |
|
|
31 |
|
% |
|
$ |
10.0 |
|
|
43 |
|
% |
||
Net sales |
$ |
41.2 |
|
|
$ |
30.8 |
|
|
34 |
|
% |
|
$ |
48.1 |
|
|
(14 |
|
)% |
||
| Gross profit |
$ |
1.8 |
|
|
$ |
5.5 |
|
|
(67 |
|
)% |
|
$ |
9.2 |
|
|
(80 |
|
)% |
||
| Gross margin |
|
4.4 |
% |
|
|
17.8 |
% |
|
(1,340 |
) |
bps |
|
|
19.1 |
% |
|
(1,470 |
) |
bps |
||
| Net loss to shareholders |
($ |
7.0 |
) |
|
($ |
5.3 |
) |
|
(32 |
|
)% |
|
($ |
2.8 |
) |
|
(148 |
|
)% |
||
| Basic loss per share |
$ |
(0.20 |
) |
|
$ |
(0.29 |
) |
|
31 |
|
% |
|
$ |
(1.04 |
) |
|
81 |
|
% |
||
| Non-GAAP |
|
|
|
|
|
|
|
|
|
||||||||||||
| In USD millions, except per share data |
Q2 21 |
|
Q2 20 |
|
Y/Y |
|
Q1 21 |
|
Q/Q |
||||||||||||
| Non-GAAP gross profit |
$ |
3.0 |
|
|
$ |
5.6 |
|
|
(47 |
|
)% |
|
$ |
9.3 |
|
|
(68 |
|
)% |
||
| Non-GAAP gross margin |
|
7.2 |
% |
|
|
18.1 |
% |
|
(1,090 |
) |
bps |
|
|
19.3 |
% |
|
(1,210 |
) |
bps |
||
| Non-GAAP net loss to shareholders |
($ |
5.1 |
) |
|
($ |
4.1 |
) |
|
(24 |
|
)% |
|
($ |
1.6 |
) |
|
(215 |
|
)% |
||
| Non-GAAP basic loss per share |
$ |
(0.15 |
) |
|
$ |
(0.23 |
) |
|
35 |
|
% |
|
$ |
(0.65 |
) |
|
77 |
|
% |
||
| Adjusted EBITDA |
$ |
(0.8 |
) |
|
$ |
2.5 |
|
|
(133 |
|
)% |
|
$ |
5.6 |
|
|
(114 |
|
)% |
||
| Adjusted EBITDA margin |
|
(2.0 |
%) |
|
|
8.0 |
% |
|
(1,000 |
) |
bps |
|
|
11.7 |
% |
|
(1,370 |
) |
bps |
||
