SkyWater sees CHIPS Act boost
US specialist foundry SkyWater Technology has posted revenues up 47% year-over-year to a record $69.8 million.
“We are pleased to report continued momentum in the second quarter and strong financial results, including another record revenue quarter, which exceeded our expectations and approached the $70 million level,” said Thomas Sonderman, president and chief executive officer of SkyWater.
The company is a key player for the US CHIPS and Science Act, providing specialist chip making processes in the US, and is working on photonic chips for quantum computer startup PsiQuantum.
“Testament to our improved operating performance and execution over the last several quarters, our trailing-twelve-month revenues now total $253 million, an increase of 50% over the prior 12-month period,” said Sonderman.
- SkyWater opens for silicon interposer business
- PsiQuantum to ramp up silicon photonics with Skywater
The revenues exceeded expectations due to continued strong customer demand, the expansion of multiple key Advanced Technology Services (ATS) programs year to date, and a $3.6 million pull-in of revenues that resulted from the restructuring of one ATS contract said the company. The ATS revenue of $53.0 million increased 78% year-over-year driven primarily by continued momentum with key customers in the Aerospace & Defense sector.
Operating profit were $16.7 million, or 23.9% of revenue, compared to $2.1 million, or 4.4% of revenue, in the second quarter of 2022.
It is also continuing the productization and qualification of a 90nm RadHard platform for space designs in preparation for the planned production ramp in 2025 through a key deal with Vorago.
- Skywater opens up space chip design with Vorago deal
- CEO interview: Sonderman on SkyWater’s technology
“Now a little more than halfway through the year, it’s evident that our ATS revenue growth is proving itself to be relatively decoupled from the macro weakness affecting the overall semiconductor industry, and our diversified portfolio of products, customers, and end markets, as well as improved operational execution, provides us with increased confidence in our ability to achieve our long-term annual revenue growth objective of 25% in 2023,” said Soderman.
Growing engagement with multiple commercial ATS customers, particularly in the bio-health and advanced computing end markets, could contribute several million dollars of revenue for SkyWater in 2023, he says.
“Continued progress proceeding through the application process for CHIPS Act funding, as we believe we are well-positioned to be a major beneficiary in the years to come, both at our existing sites in Minnesota and Florida, as well as our innovative and transformative partnership with Purdue University and the State of Indiana,” he said.
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GAAP |
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In USD millions, except per share data |
Q2 23 |
|
Q2 22 |
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Y/Y |
|
Q1 23 |
|
Q/Q |
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Advanced Technology Services revenue |
$53.0 |
|
$29.8 |
|
78% |
|
$48.3 |
|
10% |
|
Wafer Services revenue |
$16.8 |
|
$17.6 |
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(4)% |
|
$17.8 |
|
(6)% |
|
Revenue |
$69.8 |
|
$47.4 |
|
47% |
|
$66.1 |
|
6% |
|
Gross profit |
$16.7 |
|
$2.1 |
|
701% |
|
$16.5 |
|
1% |
|
Gross margin |
23.9% |
|
4.4% |
|
1,950 bps |
|
24.9% |
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(100) bps |
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|
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|
|
|
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