SkyWater Technology, Inc. reported a significant improvement in its financial performance for the fiscal year ending December 29, 2024, with total revenue reaching $342.3 million, a 19% increase from $286.7 million in the previous fiscal year. The company achieved a gross profit of $69.6 million, up 17% from $59.3 million in fiscal year 2023. Notably, the net loss attributable to SkyWater decreased by 78% to $6.8 million, compared to a loss of $30.8 million in the prior year, reflecting a substantial reduction in operational losses.
The increase in revenue was primarily driven by a 424% surge in customer-funded tool revenue, which rose to $76.8 million, while revenue from Advanced Technology Services (ATS) development increased by 13% to $238.6 million. However, revenue from Wafer Services declined by 56% to $26.9 million, attributed to decreased activity in the automotive segment due to higher inventory levels and softening demand. The company also reported a 48% increase in research and development expenses, totaling $15.0 million, as it continued to invest in enhancing its platform capabilities.
Strategically, SkyWater announced a pending acquisition of Infineon Technologies AG’s 200 mm fab in Austin, Texas, for approximately $110 million, which is expected to enhance its manufacturing capabilities. The acquisition is set to be financed through debt and is subject to customary closing conditions, including regulatory approvals. This move aligns with SkyWater's growth strategy to diversify its customer base and expand its presence in high-margin end markets, particularly in defense and advanced computing sectors.
Operationally, SkyWater's workforce increased to 702 employees as of December 29, 2024, reflecting its commitment to scaling operations. The company has also made strides in reducing its revenue concentration, with Infineon accounting for only 7% of total revenue, down from nearly 100% in 2017. The company continues to focus on expanding its customer relationships and enhancing its technology offerings, particularly in the areas of advanced packaging and radiation-hardened electronics.
Looking ahead, SkyWater remains optimistic about its growth trajectory, bolstered by government initiatives such as the CHIPS and Science Act, which provides funding for semiconductor manufacturing. The company has submitted an application for funding under this act, which, if approved, could further support its operational expansion and technological advancements. However, management acknowledges the inherent risks associated with market conditions and operational capacity, emphasizing the need for continued strategic execution to achieve its long-term objectives.
About SkyWater Technology, Inc
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