NASDAQ$SKYT

SkyWater Technology Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

SkyWater reported a year-over-year revenue growth of 6%.

SkyWater Technology reported a 6% year-over-year increase in revenue to $35.0 million. However, the company experienced a net loss of $13.9 million, which is 40% of the revenue. Supply chain and hiring constraints, along with delays in government program funding, impacted revenue by approximately $15 million for the third and fourth quarters.

  • Revenue grew 6% year-over-year to $35.0 million.
  • Net loss to shareholders was $13.9 million, or (40)% of revenue.
  • Adjusted EBITDA was $(2.7) million, or (7.7)% of revenue.
  • Wafer Services output increased nearly 60% compared to Q3 2020.

Headline financials

Total Revenue

$35M

Previous: $33M+6.1%
EPS (adj)

-$0.29

Previous: -$0.04-566.5%
Gross Margin

-5.2%

Previous: 22.1%-123.5%
Non-GAAP Gross Margin

-1.4%

Previous: 22.4%-106.3%
Adjusted EBITDA

-$2.7M

Previous: $5.3M-150.9%
Adjusted EBITDA Margin

-7.7%

Previous: 16.1%-147.8%
Capital Expenditures

-$29.8M

No prior period
Free Cash Flow

-$43.6M

No prior period
Net Income

-$13.9M

Previous: -$1.65M-738.6%
Operating Income

-$12M

Previous: $625K-2025.8%
Gross Profit

-$1.83M

Previous: $7.28M-125.1%
Cash & Equivalents

$8.46M

No prior period
Total Assets

$272M

No prior period

Revenue & EPS history

SkyWater · Revenue · Quarterly

$35M

Q3 2021+6.1%vs Q3 2020
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

SkyWater · $35.1M total across 2 segments · Q3 2021

  • Legacy ATS Development
    $22.4M-7.4%
  • Legacy Wafer Services
    $12.7M+44.3%

Forward guidance

SkyWater anticipates long-term growth model of 25% annual top line growth.

Tailwinds

  • Aggressively ramped Advanced Technology Services and Wafer Services businesses.
  • Sustainably grew our overall sales pipeline.
  • All of these factors give us a strong conviction in our long-term growth model of 25% annual top line growth.
  • Made important progress on our Radiation Hardened and Power Management platform qualifications.
  • Added eight new Advanced Technology Services customers in the quarter, for a total of 25 in the past twelve months

Headwinds

  • Supply chain challenges.
  • Hiring constraints.
  • Continued delays in the funding of existing United States Government programs.
  • Delayed revenue for certain Advanced Technology Services and Wafer Services programs in the amount of approximately $15 million for the third and fourth quarter of 2021.
  • Revised schedule for a significant complex multi-year Advanced Technology Services program originally estimated to be completed in 2021 to early 2022, causing revenue to be pushed similarly from 2021 to 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+4.7%

Avg return

Earnings day

+9.0%

Avg return

5 days after

+8.3%

Avg return

30 days after

65%

13 / 20 earnings

Positive

+41.4%

Q2 2024

Best reaction

-39.1%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%+5.7%+5.7%
Q4 2025+7.1%+3.6%-6.2%
Q3 2025+26.9%+50.2%+22.2%
Q1 2025+4.5%+15.6%+24.6%
Q4 2024-10.4%-15.3%-30.7%
Q3 2024-9.1%-16.1%-5.8%
Q2 2024+41.4%+41.2%+35.3%
Q1 2024-36.5%-26.0%-27.3%
Q4 2023+13.8%+21.3%+9.9%
Q3 2023+2.0%+4.3%+50.0%
Q2 2023-19.2%-30.9%-32.4%
Q1 2023-5.3%-0.7%+6.0%
Q4 2022+21.6%+30.4%+2.3%
Q3 2022+34.6%+37.3%+9.2%
Q2 2022+27.5%+17.4%-33.2%
Q1 2022+14.4%-2.7%+14.0%
Q4 2021-4.8%+10.4%+15.0%
Q3 2021-39.1%-29.8%-46.7%
Q2 2021+15.1%+26.8%+79.1%
Q1 2021+8.2%+37.4%+74.8%
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019

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