SkyWater Technology, Inc. (SKYT) closed at $7.85 in the latest trading session, marking a -0.25% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.The the stock of company has fallen by 24.25% in the past month, lagging the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33%.The investment community will be closely monitoring t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-40345 SkyWater Technology, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

SkyWater (SKYT) Q4 2024 Earnings Call February 26, 2025 03:35 PM ET Company Participants Claire McAdams - Investor RelationsThomas Sonderman - CEO & DirectorSteve Manko - CFOKrish Sankar - Managing DirectorNick Doyle - Vice President Conference Call Participants Harsh Kumar - Managing Director & Senior Research AnalystRichard Shannon - Senior Research Analyst Operator Good morning. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the SkyWa ...

SkyWater Technology, Inc. (NASDAQ:SKYT) Q4 2024 Earnings Call February 26, 2025 8:30 AM ET Company Participants Claire McAdams - Investor Relations Thomas Sonderman - Chief Executive Officer Steve Manko - Chief Financial Officer Conference Call Participants Krish Sankar - TD Cowen Harsh Kumar - Piper Sandler Richard Shannon - Craig-Hallum Operator Good morning. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the SkyWater Technology Fourth ...

SkyWater Technology, Inc. (SKYT) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.07 per share. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 157.14%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced earnings of $0.08, delivering a surprise of 500%.Over the last four quarters, ...

Revenue Performance - Revenue for Q4 2024 was $75.5 million, a decrease of 5% year-over-year, while total revenue for fiscal year 2024 reached a record $342.3 million, an increase of 19% year-over-year[4][17]. - Total revenue for the fiscal year ended December 29, 2024, was $342.3 million, an increase from $286.7 million in 2023[30]. - Total revenue for Q4 2024 was $75,487,000, a decrease from $93,817,000 in Q3 2024, indicating a 19.5% decline quarter-over-quarter[34]. - For Q1 2025, SkyWater expects total revenue to be in the range of $59 million to $63 million, with GAAP diluted net loss per share projected between $(0.14) to $(0.20)[18]. Profitability and Margins - Gross margin for Q4 2024 improved to 25.6% on a GAAP basis and 26.6% on a non-GAAP basis, compared to 15.2% and 17.4% respectively in Q4 2023[4][11]. - Adjusted EBITDA for fiscal year 2024 was $34.3 million, representing 10.0% of revenue, down from $37.2 million or 13.0% of revenue in fiscal year 2023[13]. - Adjusted EBITDA for the fiscal year ended December 29, 2024, was $34,282,000, with an adjusted EBITDA margin of 10.0%[47]. - Non-GAAP gross profit for the three-month period was $20,065,000, with a non-GAAP gross margin of 26.6%[43]. Net Loss and Earnings Per Share - The net loss to shareholders for Q4 2024 was $0.7 million, or $(0.01) per diluted share on a GAAP basis, a significant improvement from a net loss of $10.3 million, or $(0.22) per diluted share in Q4 2023[4][16]. - GAAP net loss to shareholders was $6.8 million, or $(0.14) per diluted share, significantly improved from a net loss of $30.8 million, or $(0.68) per diluted share, in 2023; non-GAAP net income was $2.7 million, or $0.06 per diluted share, compared to a non-GAAP net loss of $7.7 million, or $(0.17) per diluted share, in 2023[20]. - The net loss for the fiscal year ended December 29, 2024, was $2,517,000, a significant improvement from a net loss of $25,093,000 for the previous year[33]. - For the three-month period ended December 29, 2024, SkyWater reported a net loss of $679,000, compared to a net income of $1,512,000 for the previous quarter, reflecting a significant decline in performance[46]. Operating Expenses - GAAP operating expenses were $63.1 million, a decrease from $74.1 million in 2023, while non-GAAP operating expenses increased slightly to $56.0 million from $54.7 million in 2023[20]. - GAAP research and development expense increased to $4,214,000 for the three-month period, up from $3,431,000 in the previous quarter[43]. - Non-GAAP research and development expense for the fiscal year was $14,698,000, significantly higher than $9,050,000 in the previous year[43]. Cash Flow and Assets - Net cash provided by operating activities increased to $15,244,000, compared to $10,081,000 in the prior year, reflecting a 51.5% year-over-year growth[33]. - Total current assets decreased to $132.1 million from $146.4 million as of December 31, 2023[28]. - Cash and cash equivalents at the end of the fiscal year were $18,844,000, slightly up from $18,382,000 at the beginning of the fiscal year[33]. - The company experienced a net cash used in investing activities of $18,479,000, compared to $10,489,000 in the previous year, indicating increased investment outflows[33]. Strategic Initiatives - SkyWater launched the ThermaView℠ platform, targeting a $9 billion market for thermal imaging applications, enhancing its position in the semiconductor ecosystem[6]. - The company announced a preliminary $16 million CHIPS funding award, expected to be combined with $19 million in state incentives to enhance production capabilities[6]. - The company plans to continue expanding its Technology as a Service model to enhance production capabilities and market reach[22]. - Significant progress was made in transitioning multiple ATS development programs into production, including partnerships with Lumotive and NanoDX[6].

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $10.39, reflecting a -1.42% change from the previous day, which is less than the S&P 500's daily loss of 0.43% [1] - Over the past month, shares of SkyWater Technology have decreased by 8.82%, underperforming the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6% [1] Upcoming Earnings - The company's earnings report is scheduled for February 26, 2025, with projected earnings per share (EPS) of -$0.07, indicating a 250% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $74.1 million, down 6.38% from the year-ago period [2] Analyst Estimates - Recent changes in analyst estimates for SkyWater Technology are crucial as they reflect short-term business trends [3] - Upward revisions in estimates indicate analysts' positive outlook on the company's operations and profit generation capabilities [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988 [5] - Currently, SkyWater Technology holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 134, placing it in the bottom 47% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for SkyWater Technology, Inc. (SKYT) [1][4]. Group 1: Analyst Recommendations - SkyWater Technology has an average brokerage recommendation (ABR) of 1.60, indicating a position between Strong Buy and Buy, with 60% of recommendations being Strong Buy and 20% being Buy [2]. - The ABR suggests a buying opportunity for SkyWater Technology, but relying solely on this information may not be advisable due to the limited success of brokerage recommendations in guiding investors [4][9]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell recommendations [5][9]. - The interests of brokerage firms may not align with those of retail investors, resulting in limited insight into future stock price movements [6]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, is considered a more reliable indicator of near-term price performance, based on earnings estimate revisions, and is distinct from the ABR [7][10]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, while the ABR may not always be up-to-date [11]. Group 4: Current Earnings Estimates for SKYT - The Zacks Consensus Estimate for SkyWater Technology remains unchanged at -$0.05, indicating steady analyst views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for SkyWater Technology, suggesting caution despite the Buy-equivalent ABR [13].

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $9.27, reflecting a -0.43% change from the previous trading day's closing, underperforming the S&P 500 which lost 0.27% [1] - Over the past month, shares of SkyWater Technology experienced a loss of 17.83%, significantly trailing the Computer and Technology sector's gain of 1.69% and the S&P 500's gain of 4.27% [2] Upcoming Financial Results - SkyWater Technology is set to announce its earnings on February 26, 2025, with projected earnings of -$0.07 per share, indicating a year-over-year decline of 250% [3] - The Zacks Consensus Estimate for revenue is projected at $74.1 million, down 6.38% from the same period last year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates for SkyWater Technology are crucial as they reflect changing near-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks SkyWater Technology at 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 152, placing it in the bottom 40% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $10.14, reflecting a -0.98% change from the previous day's closing price, underperforming the S&P 500's gain of 0.36% [1] - Over the past month, shares of SkyWater Technology have decreased by 17.29%, lagging behind the Computer and Technology sector's performance of 0% and the S&P 500's increase of 2.11% [1] Earnings Forecast - The upcoming earnings report for SkyWater Technology is anticipated to show an EPS of -$0.07, representing a 250% decline compared to the same quarter last year [2] - Revenue is projected to be $74.1 million, indicating a 6.38% decrease from the corresponding quarter of the previous year [2] Analyst Estimates - Recent changes in analyst estimates for SkyWater Technology reflect current business trends, with positive revisions indicating optimism regarding the company's profitability [3] - The Zacks Rank system, which evaluates these estimate changes, currently ranks SkyWater Technology at 3 (Hold) [5] Industry Context - SkyWater Technology operates within the Electronics - Semiconductors industry, which is part of the Computer and Technology sector [6] - This industry holds a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries, suggesting a favorable position compared to lower-ranked industries [6]