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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2023
___________________________
SkyWater Technology, Inc.
(Exact name of registrant as specified in its charter)
___________________________
Delaware001-4034537-1839853
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
2401 East 86th Street
Bloomington, Minnesota
55425
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (952) 851-5200
___________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered under Section 12(b) of the Exchange Act:
Title of Each Class
Trading
Symbol
Name of Each Exchange
on Which Registered
Common stock, par value $0.01 per shareSKYTThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o


Item 2.02    Results of Operations and Financial Condition
On August 7, 2023, SkyWater Technology, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended July 2, 2023. The press release is furnished herewith as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in that filing.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits
The following documents are filed as exhibits to this report:
Exhibit Number
Description of Exhibit
99.1
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SkyWater Technology, Inc.
Date: August 7, 2023/s/ Thomas J. Sonderman
Name:Thomas J. Sonderman
Title:President and Chief Executive Officer


Exhibit 99.1

image_0a.jpg
SkyWater Technology Reports Second Quarter 2023 Results
Record Revenues and Continued Year-over-Year Increase in Gross Margin
BLOOMINGTON, Minn., – August 7, 2023 – SkyWater Technology (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the second quarter of 2023, ended July 2, 2023.
Highlights for Q2 2023:
•Revenue increased 47% year-over-year to a record $69.8 million.
•Gross margin increased to 23.9% on a GAAP basis, compared to 4.4% in Q2 2022, and increased to 24.7% on a non-GAAP basis, compared to 5.6% in Q2 2022.
•Net loss to shareholders of $8.6 million, or $(0.19) per share on a GAAP basis, and net loss to shareholders of $6.4 million, or $(0.14) per share on a non-GAAP basis, compared to net loss to shareholders of $13.0 million, or $(0.32) per share on a GAAP basis, and net loss to shareholders $10.8 million, or $(0.27) per share on a non-GAAP basis in Q2 2022.
•Adjusted EBITDA of $6.5 million, or 9.3% of revenue, compared to $(1.6) million, or (3.4)% of revenue in Q2 2022.

“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,” commented Thomas Sonderman, SkyWater president and chief executive officer. “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. 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.”
Q2 Business Highlights:
•Record revenues exceeded expectations due to continued strong customer demand, the expansion of multiple key Advanced Technology Services (ATS) programs year to date, and a $3.6 million pull-in of revenues that resulted from the restructuring of one ATS contract.
•Gross margin expansion continues to reflect strong flow-through performance on the year-on-year revenue growth.
•Continued progress on the productization and qualification of SkyWater’s 90nm RadHard platform, in preparation for the planned production ramp in 2025.
•Growing engagement with multiple commercial ATS customers, particularly in the bio-health and advanced computing end markets, each of which could contribute multiple-$M of revenue for SkyWater in 2023.
•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.
1

Q2 2023 Summary:
GAAP
In USD millions, except per share dataQ2 23Q2 22Y/YQ1 23Q/Q
Advanced Technology Services revenue$53.0$29.878%$48.310%
Wafer Services revenue$16.8$17.6(4)%$17.8(6)%
Revenue$69.8$47.447%$66.16%
Gross profit$16.7$2.1701%$16.51%
Gross margin23.9%4.4%1,950 bps24.9%(100) bps
Net loss to shareholders$(8.6)$(13.0)34%$(4.3)(101)%
Basic loss per share$(0.19)$(0.32)41%$(0.10)(97)%
Non-GAAP
In USD millions, except per share dataQ2 23Q2 22Y/YQ1 23Q/Q
Non-GAAP gross profit$17.0$2.6548%$16.91%
Non-GAAP gross margin24.7%5.6%1,910 bps25.8%(110) bps
Non-GAAP net loss to shareholders$(6.4)$(10.8)41%$(2.5)(160)%
Non-GAAP basic loss per share$(0.14)$(0.27)217%$(0.06)(133)%
Adjusted EBITDA$6.5$(1.6)nm$8.1(20)%
Adjusted EBITDA margin9.3%(3.4)%1,270 bps12.3%(300) bps
nm - Not meaningful
Q2 2023 Results:
•Revenue: Revenue of $69.8 million increased 47% year-over-year. Advanced Technology Services revenue of $53.0 million increased 78% year-over-year driven primarily by continued momentum with key customers in the Aerospace & Defense sector, as well as a $3.6 million revenue pull-in following the restructuring of an ATS program with a commercial customer. Advanced Technology Services revenue contained $0.9 million of tool revenue in the second quarter of 2023 and $0.3 million in the second quarter of 2022. Wafer Services revenue of $16.8 million decreased (4)% compared to the second quarter of 2022.
•Gross Profit: GAAP gross profit was $16.7 million, or 23.9% of revenue, compared to gross profit of $2.1 million, or 4.4% of revenue, in the second quarter of 2022. Non-GAAP gross profit was $17.0 million, or 24.7% of revenue, compared to non-GAAP gross profit of $2.6 million, or 5.6% of revenue, in the second quarter of 2022. With no associated costs related to the $3.6 million revenue pull-in referenced above, the restructuring of this commercial customer contract benefited Q2’23 gross margin by approximately 400 bp.
•Operating Expenses: GAAP operating expenses were $20.2 million, compared to $13.2 million in the second quarter of 2022, and included $3.8 million of project-based consulting fees that were not a component of operating expenses in the second quarter of 2022. These project-based consulting fees included $2.5 million of management consulting transformation fees related to long-term improvement in automation and operational efficiency and $1.3 million of specialist fees related to the CHIPS Act application process. GAAP operating expenses also included $1.4 million of additional bad debt accrual that was not a component of operating expenses in the second quarter of 2022.
•Net Loss: GAAP net loss to shareholders of $8.6 million, or $(0.19) per share, compared to a net loss to shareholders of $13.0 million, or $(0.32) per share, in the second quarter of 2022. Non-GAAP net loss to shareholders of $6.4 million, or $(0.14) per share, compared to a non-GAAP net loss to shareholders of $10.8 million, or $(0.27) per share, in the second quarter of 2022.
•Adjusted EBITDA: Adjusted EBITDA was $6.5 million, or 9.3% of revenue, compared to $(1.6) million, or (3.4)% of revenue, in the second quarter of 2022. The benefit of the $3.6 million revenue pull-in was more than offset by the additional $5.2 million of operating expenses referenced above, which resulted in a net negative impact on EBITDA margin of approximately 200 bp.
A reconciliation between historical GAAP and non-GAAP information is contained in the tables below in the section titled, “Non-GAAP Financial Measures.”
2

Investor Webcast
SkyWater will host a conference call on Monday, August 7, 2023, at 3:30 p.m. CT to discuss its second quarter 2023 financial results. A live webcast of the call will be available online at IR.SkyWaterTechnology.com.
About SkyWater Technology
SkyWater (NASDAQ: SKYT) is a U.S.-based semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Foundry. SkyWater’s Technology as a Service model streamlines the path to production for customers with development services, volume production and heterogeneous integration solutions in its world-class U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology with diverse categories including mixed-signal CMOS, ROICs, rad-hard ICs, power management, MEMS, superconducting ICs, photonics, carbon nanotubes and interposers. SkyWater serves growing markets including aerospace & defense, automotive, biomedical, cloud & computing, consumer, industrial and IoT. For more information, visit: www.skywatertechnology.com.
Cautionary Statement Regarding Preliminary Results
The Company’s results for the fiscal quarter ended July 2, 2023 are preliminary, unaudited and subject to the finalization of the Company’s second quarter review and full-year audit and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. The Company cautions that actual results may differ materially from those described in this press release.
SkyWater Technology Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Company’s current expectations or forecasts of future events, rather than past, events and outcomes, and such statements are not guarantees of future performance. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information or predictions concerning the Company’s future business, results of operations, financial performance, plans and objectives, competitive position, market trends, and potential growth and market opportunities. In some cases, you can identify forward-looking statements by words such as “intends,” “estimates,” “predicts,” “potential,” “continues,” “anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will,” “targets,” “projects,” “seeks” or the negative of these terms or other comparable terminology.
Forward-looking statements are subject to risks, uncertainties and assumptions, which may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Key factors that could cause the Company’s actual results to be different than expected or anticipated include, but are not limited to: our goals and strategies; our future business development, financial condition and results of operations; our ability to continue operating our sole semiconductor foundry at full capacity; our ability to appropriately respond to changing technologies on a timely and cost-effective basis; our customer relationships and our ability to retain and expand our customer relationships; our ability to accurately predict our future revenues for the purpose of appropriately budgeting and adjusting our expenses; our expectations regarding dependence on our largest customers; our ability to diversify our customer base and develop relationships in new markets; the performance and reliability of our third-party suppliers and manufacturers; our ability to procure tools, materials, and chemicals amid industry-wide supply chain shortages; our ability to control costs, including our operating and capital expenses; the size and growth potential of the markets for our solutions, and our ability to serve and expand our presence in those markets; the level of demand in our customers’ end markets; our ability to attract, train and retain key qualified personnel in a competitive labor market; adverse litigation judgments, settlements or other litigation-related costs; changes in trade policies, including the imposition of tariffs; our ability to raise additional capital or financing; our ability to accurately forecast demand; the level and timing of U.S. government program funding; our ability to maintain compliance with certain U.S. government contracting requirements; regulatory developments in the United States and foreign countries; our ability to protect our intellectual property rights; our ability to meet our long-term growth targets; and other factors discussed in the “Risk Factors” section of the annual report on Form 10-K the Company filed with the SEC on March 15, 2023 and in other documents that the Company files with the SEC, which are available at http://www.sec.gov. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
Source String: SkyWater Technology (SKYT-IR)
SkyWater Investor Contact: Claire McAdams | claire@headgatepartners.com
SkyWater Media Contact: Lauri Julian | Media@SkyWaterTechnology.com
3

SKYWATER TECHNOLOGY, INC.
Consolidated Balance Sheets
(Unaudited)
July 2, 2023January 1, 2023
(in thousands, except share data)
Assets
Current assets:
Cash and cash equivalents$16,178 $30,025 
Accounts receivable, net77,085 62,670 
Inventories16,024 13,397 
Prepaid expenses and other current assets9,069 10,290 
Income tax receivable107 169 
Total current assets118,463 116,551 
Property and equipment, net169,540 179,915 
Intangible assets, net5,216 5,608 
Other assets5,517 3,690 
Total assets$298,736 $305,764 
Liabilities and shareholders' equity
Current liabilities:
Current portion of long-term debt$1,964 $1,855 
Accounts payable14,182 21,102 
Accrued expenses32,112 25,212 
Short-term financing, net of unamortized debt issuance costs54,233 55,817 
Deferred revenue - current27,943 28,186 
Total current liabilities130,434 132,172 
Long-term liabilities:
Long-term debt, less current portion and net of unamortized debt issuance costs34,778 35,181 
Long-term incentive plan— 1,643 
Deferred revenue - long-term59,839 67,967 
Deferred income tax liability, net1,202 1,239 
Other long-term liabilities9,601 13,585 
Total long-term liabilities105,420 119,615 
Total liabilities235,854 251,787 
Shareholders’ equity:
Preferred stock, $0.01 par value per share (80,000,000 shares authorized, zero shares issued and outstanding)— — 
Common stock, $0.01 par value per share (200,000,000 shares authorized; 45,399,761 and 43,704,876 shares issued and outstanding)454 437 
Additional paid-in capital166,179 147,304 
Accumulated deficit(107,310)(94,072)
Total shareholders’ equity, SkyWater Technology, Inc.59,323 53,669 
Noncontrolling interests3,559 308 
Total shareholders’ equity62,882 53,977 
Total liabilities and shareholders’ equity$298,736 $305,764 

4

SKYWATER TECHNOLOGY, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months EndedSix Months Ended
July 2, 2023April 2, 2023July 3, 2022July 2, 2023July 3, 2022
(in thousands, except share data)
Revenue$69,811 $66,094 $47,407 $135,905 $95,528 
Cost of revenue53,144 49,626 45,327 102,770 94,388 
Gross profit16,667 16,468 2,080 33,135 1,140 
Research and development2,396 2,668 2,361 5,063 4,643 
Selling, general and administrative expense17,820 14,895 10,795 32,716 22,485 
Operating income (loss)(3,549)(1,095)(11,076)(4,644)(25,988)
Interest expense(2,950)(2,471)(1,040)(5,421)(2,069)
Income (loss) before income taxes(6,499)(3,566)(12,116)(10,065)(28,057)
Income tax expense (benefit)25 — 63 25 (131)
Net income (loss)(6,524)(3,566)(12,179)(10,090)(27,926)
Less: net income attributable to noncontrolling interests2,066 707 826 2,773 1,685 
Net income (loss) attributable to SkyWater Technology, Inc.$(8,590)$(4,273)$(13,005)$(12,863)$(29,611)
Net income (loss) per share attributable to common shareholders, basic and diluted:$(0.19)$(0.10)$(0.32)$(0.29)$(0.74)
Weighted average shares used in computing net income (loss) per common share, basic and diluted:44,743,269 43,817,417 40,203,050 44,280,343 40,031,615 

5

SKYWATER TECHNOLOGY, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
July 2, 2023July 3, 2022
(in thousands)
Cash flows from operating activities:
Net income (loss)$(10,090)$(27,926)
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:
Depreciation and amortization14,559 13,657 
Amortization of debt issuance costs included in interest expense876 348 
Long-term incentive and stock-based compensation3,820 5,334 
Cash paid for contingent consideration in excess of initial valuation— (375)
Deferred income taxes(37)(137)
Cash paid for operating leases(12)— 
Cash paid for finance leases(415)— 
Provision for credit losses3,602 — 
Changes in operating assets and liabilities:
Accounts receivable(17,425)(1,024)
Inventories(2,627)(3,865)
Prepaid expenses and other assets(496)(751)
Accounts payable and accrued expenses(1,344)6,047 
Deferred revenue(8,371)(5,170)
Income tax receivable and payable62 — 
Net cash used in operating activities(17,898)(13,862)
Cash flows from investing activities:
Purchase of software and licenses(612)(400)
Purchases of property and equipment(2,718)(5,463)
Net cash used in investing activities(3,330)(5,863)
Cash flows from financing activities:
Draws on revolving line of credit121,350 — 
Paydowns of revolving line of credit(123,810)— 
Net proceeds on Revolver— 18,946 
Net proceeds from tool financing496 — 
Repayment of VIE financing(791)(509)
Cash paid for finance leases(456)(416)
Proceeds from the issuance of common stock pursuant to the employee stock purchase plan1,276 1,128 
Proceeds from the issuance of common stock, net of commissions12,144 — 
Cash paid on license technology obligations(2,350)(500)
Net contributions (distributions) from (to) noncontrolling interest(478)(867)
Net cash provided by financing activities7,381 17,782 
Net uses of cash and cash equivalents(13,847)(1,943)
Cash and cash equivalents - beginning of period30,025 12,917 
Cash and cash equivalents - end of period$16,178 $10,974 
6

Supplemental Revenue Information by Quarter

Q2 2023Q1 2023Q4 2022Q3 2022Q2 2022Q1 2022
(in thousands)
Wafer Services revenue$16,802 $17,788 $17,211 $17,154 $17,584 $21,546 
Advanced Technology Services revenue53,009 48,306 47,876 35,172 29,823 26,575 
Total Revenue$69,811 $66,094 $65,087 $52,326 $47,407 $48,121 
Tool revenue (included in ATS)$936 $536 $30 $219 $313 $984 
Tool cost of revenue$290 $484 $46 $152 $200 $984 
Revenue impact of new contract with significant customer (included in Wafer Services revenue)$— $— $— $— $— $8,230 
Cost of revenue impact of new contract with significant customer$— $— $— $— $— $10,887 
Non-GAAP Financial Measures
We provide supplemental, non-GAAP financial information that our management utilizes to evaluate our ongoing financial performance and provide additional insight to investors as supplemental information to our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GAAP gross profit, non-GAAP gross margin, non-GAAP net loss to shareholders, and non-GAAP net loss per share. We provide these non-GAAP financial measures because we believe this non-GAAP presentation provides a baseline for analyzing trends in our business and to exclude certain items that may not be indicative of our core operating results. The non-GAAP financial measures disclosed in this earnings press release should not be viewed as an alternative to, or more meaningful than, the reported results prepared in accordance with GAAP. In addition, because our non-GAAP measures are not determined in accordance with GAAP, these measures are susceptible to differing calculations, and not all comparable or peer companies may calculate their non-GAAP measures in the same manner. As a result, the non-GAAP financial measures presented in this earnings press release may not be directly comparable to similarly titled measures presented by other companies.
We also provide adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin as supplemental non-GAAP measurements. We define adjusted EBITDA as net income (loss) before interest expense, income tax provision (benefit), depreciation and amortization, equity-based compensation and certain other items that we do not view as indicative of our ongoing performance, including SkyWater Florida start-up costs, management transition expense, and net income attributable to non-controlling interests. We believe adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items from net income or loss in arriving at adjusted EBITDA because the amounts of these items can vary substantially within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income determined in accordance with GAAP. Certain items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance, including, but not limited to, the cost of capital, income taxes, and the historic cost bases of long-lived assets, none of which are reflected in adjusted EBITDA. Our presentation of adjusted EBITDA should not be construed as an indication that our results will be unaffected by the items excluded from adjusted EBITDA. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, the exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual, unless otherwise expressly indicated.
The following tables present a reconciliation of the most directly comparable financial measures, calculated and presented in accordance with GAAP, to our non-GAAP financial measures.
7

SKYWATER TECHNOLOGY, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Three Months Ended
July 2, 2023April 2, 2023July 3, 2022
(in thousands)
Total revenue$69,811 $66,094 $47,407 
Tool revenue (5)(936)(536)(313)
GAAP cost of revenue$53,144 $49,626 $45,327 
Cost of tool revenue (5)$(290)$(484)$(200)
Equity-based compensation (3)(291)(513)(546)
Management transition expense (6)$(705)$— $— 
SkyWater Florida start-up costs (2)— — (113)
Non-GAAP cost of revenue$51,858 $48,629 $44,468 
GAAP gross profit$16,667 $16,468 $2,080 
GAAP gross margin23.9 %24.9 %4.4 %
Tool revenue (5)(936)(536)(313)
Cost of tool revenue (5)290 484 200 
Equity-based compensation (3)291 513 546 
Management transition expense (6)705 — — 
SkyWater Florida start-up costs (2)— — 113 
Non-GAAP gross profit$17,017 $16,929 $2,626 
Non-GAAP gross margin24.7 %25.8 %5.6 %
GAAP research and development$2,396 $2,668 $2,361 
Equity-based compensation (3)(217)(162)(128)
Non-GAAP research and development$2,179 $2,506 $2,233 
GAAP selling, general and administrative expenses$17,820 $14,895 $10,795 
Equity-based compensation (3)(1,459)(1,178)(1,444)
Management transition expense (6)(130)— — 
SkyWater Florida start-up costs (2)— — (45)
Non-GAAP selling, general and administrative expenses$16,231 $13,717 $9,306 

8

Three Months Ended
July 2,
2023		April 2,
2023		July 3,
2022
(in thousands)
GAAP net loss to shareholders$(8,590)$(4,273)$(13,005)
Tool revenue (5)(936)(536)(313)
Cost of tool revenue (5)290 484 200 
Equity-based compensation (3)1,967 1,853 2,118 
Management transition expense (6)835 — — 
SkyWater Florida start-up costs (2)— — 158 
Non-GAAP net loss to shareholders$(6,434)$(2,472)$(10,842)
Equity-based compensation allocation in the consolidated statements of operations (3):
Cost of revenue$291 $513 $546 
Research and development217 162 128 
Selling, general and administrative expenses1,459 1,178 1,444 
$1,967 $1,853 $2,118 
Management transition expense allocation in the consolidated statements of operations (6):
Cost of revenue$705 $— $— 
Selling, general and administrative expenses130 — — 
$835 $— $— 
SkyWater Florida start-up costs allocation in the consolidated statements of operations (2):
Cost of revenue$— $— $113 
Selling, general and administrative expenses— — 45 
$— $— $158 
9

Three Months Ended
July 2, 2023
GAAPNon-GAAP
Computation of net loss per common share, basic and diluted:(in thousands, except per share data)
Numerator:
Net loss attributable to SkyWater Technology, Inc.(8,590)(6,434)
Denominator:
Weighted-average common shares outstanding, basic and diluted44,743 44,743 
Net loss per common share, basic and diluted$(0.19)$(0.14)
Three Months Ended
April 2, 2023
GAAPNon-GAAP
Computation of net loss per common share, basic and diluted:(in thousands, except per share data)
Numerator:
Net loss attributable to SkyWater Technology, Inc.(4,273)(2,472)
Denominator:
Weighted-average common shares outstanding, basic and diluted43,817 43,817 
Net loss per common share, basic and diluted$(0.10)$(0.06)
Three Months Ended
July 3, 2022
GAAPNon-GAAP
Computation of net loss per common share, basic and diluted:(in thousands, except per share data)
Numerator:
Net loss attributable to SkyWater Technology, Inc.(13,005)(10,842)
Denominator:
Weighted-average common shares outstanding, basic and diluted40,203 40,203 
Net loss per common share, basic and diluted$(0.32)$(0.27)
10

Three Months EndedSix Months Ended
July 2, 2023April 2, 2023July 3, 2022July 2, 2023July 3, 2022
(in thousands)
Net loss to shareholders$(8,590)$(4,273)$(13,005)$(12,863)$(29,611)
Interest expense (1)2,950 2,471 1,040 5,421 2,069 
Income tax (benefit) expense25 — 63 25 (131)
Depreciation and amortization7,207 7,352 7,198 14,559 13,657 
EBITDA1,592 5,550 (4,704)7,142 (14,016)
Equity-based compensation (3)1,967 1,853 2,118 3,820 5,334 
Net income attributable to noncontrolling interests (4)2,066 707 826 2,773 1,685 
Management transition expense (6)835 — — 835 — 
SkyWater Florida start-up costs (2)— — 158 — 560 
Adjusted EBITDA$6,460 $8,110 $(1,602)$14,570 $(6,437)
__________________
(1)Includes losses related to the extinguishment of our revolving credit agreement in 2022.
(2)Represents start-up costs associated with our 200 mm heterogeneous integration facility in Kissimmee, Florida, which includes legal fees, recruiting expenses, retention awards and facility start-up expenses. These expenses are not representative of our expected ongoing costs. Effective 2023, our Kissimmee, Florida plant is up and running and no longer in its start-up phase.
(3)Represents non-cash equity-based compensation expense.
(4)Represents net income attributable to our VIE, which was formed for the purpose of purchasing the land and building of our primary operating facility in Bloomington, Minnesota. Since depreciation and interest expense are excluded from net loss in our adjusted EBITDA financial measure, we also exclude the net income attributable to the VIE.
(5)Tool revenue and cost of tool revenue represent the revenue and external costs related to the services we provide to qualify customer funded tool technologies as our customers invest in our capabilities to expand our technology platforms.
(6)Represents severance and other costs related to the reorganization of the manufacturing and operations leadership team.
11
v3.23.2
Cover
May 08, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2023
Entity Registrant Name SkyWater Technology, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40345
Entity Tax Identification Number 37-1839853
Entity Address, Address Line One 2401 East 86th Street
Entity Address, City or Town Bloomington
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55425
City Area Code 952
Local Phone Number 851-5200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.01 per share
Trading Symbol SKYT
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001819974
Amendment Flag false
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