SkyWater Technology, Inc. reported significant financial improvements in its third quarter and first nine months of fiscal 2024 compared to the same periods in 2023. For the three-month period ended September 29, 2024, the company achieved revenue of $93.8 million, a 31% increase from $71.6 million in the prior year. Gross profit also rose to $20.2 million, up 43% from $14.1 million. Operating income turned positive at $4.7 million, contrasting with an operating loss of $4.2 million in Q3 2023. Net income for the quarter was $2.6 million, compared to a net loss of $6.6 million in the same quarter last year.

For the nine-month period, revenue reached $266.8 million, a 29% increase from $207.5 million in 2023. Gross profit for this period was $50.3 million, up from $47.3 million. However, the company reported a net loss of $6.1 million for the first nine months, an improvement from a net loss of $20.4 million in the same period of 2023.

The increase in revenue was driven by a notable rise in tools revenue, which surged to $30.7 million in Q3 2024 from $3.2 million in Q3 2023. Conversely, Wafer Services revenue decreased by $7.8 million, or 54%, during the same period. The company attributed the overall revenue growth to improved customer-funded capital investments and enhanced cash collection efforts.

SkyWater's total assets as of September 29, 2024, were $315.1 million, slightly down from $316.8 million at the end of 2023. Total liabilities decreased to $246.5 million from $256.1 million, while total shareholders' equity increased to $56.2 million from $53.7 million. Cash and cash equivalents rose to $20.7 million, up from $18.4 million at the end of 2023.

The company has also made strategic moves, including a funding agreement with Oxbow Industries for up to $12.5 million, expiring in March 2026. Additionally, SkyWater is involved in a technology and economic development agreement for the Center for NeoVation in Florida, committing to bring the facility to full production capacity within five years.

Despite these positive developments, SkyWater continues to face challenges, including material weaknesses in internal controls over financial reporting, which management is actively working to address. The semiconductor industry remains impacted by macroeconomic conditions, but the company is positioned to leverage funding opportunities from the CHIPS Act for modernization and equipment upgrades.