0001819974false00018199742024-05-082024-05-08

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): May 8, 2024
___________________________
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 May 8, 2024, SkyWater Technology, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2024. 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: May 8, 2024
/s/ Thomas J. Sonderman
Name:Thomas J. Sonderman
Title:Chief Executive Officer


Exhibit 99.1

image_0.jpg
SkyWater Technology Reports First Quarter 2024 Results
Seventh Straight Quarter of Record Revenue and 20% Growth Year-Over-Year
BLOOMINGTON, Minn., – May 8, 2024 – SkyWater Technology, Inc. (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the first quarter 2024 ended March 31, 2024.
Financial Highlights for Q1 2024:
•Revenue increased 20% year-over-year to a record $79.6 million.
•Gross margin decreased to 16.3% on a GAAP basis, compared to 24.9% in Q1 2023, and decreased to 16.9% on a non-GAAP basis, compared to 25.7% in Q1 2023.
•Net loss to shareholders of $5.7 million, or $0.12 per share on a GAAP basis, and net loss to shareholders of $3.7 million, or $0.08 per share on a non-GAAP basis, compared to net loss to shareholders of $4.3 million, or $0.10 per share on a GAAP basis, and net loss to shareholders of $2.4 million, or $0.06 per share on a non-GAAP basis in Q1 2023.
•Adjusted EBITDA of $4.9 million, or 6.2% of revenue, compared to $8.1 million, or 12.3% of revenue in Q1 2023.

“We entered 2024 with strong momentum and revenue growth exceeding our earlier expectations for our differentiated Advanced Technology Services business, with ATS development revenue increasing 7% sequentially from our prior record set in Q4 2023,” commented Thomas Sonderman, SkyWater chief executive officer. “While Q1 tool revenue came in lower than forecast due to delays in equipment deliveries, we remain at the forefront of an expected unprecedented year in customer-funded capital investments to enhance SkyWater’s technical capabilities in support of future growth in ATS and Wafer Services. We continue to anticipate another year of revenue growth for SkyWater in 2024, demonstrating that our unique business model offers a compelling value proposition for the development of new technology platforms and products.”

Recent Business Highlights:
•Record Q1 Advanced Technology Service (ATS) development revenue exceeded expectations due to continued strong progress in multiple ATS programs within both the aerospace and defense and commercial end markets.
•Our recent collaboration with Lumotive to start production of the world's first commercially-available optical beam steering chip marks another program transition from ATS development to Wafer Services, enabling mass production of dynamic optical metasurfaces for use in automated driving, robotics, and industrial manufacturing systems.
•Customer-funded capex funding and awards since 2020 now exceed $100 million, with a pipeline over the next three-year timeframe anticipated to be in the range of $200 million, which we believe enables SkyWater to continue to achieve strong growth and high operating leverage with minimal requirements for substantial self-funded capital investments.
•Revenue profile for fiscal 2024 continues to indicate a growth year for SkyWater, expected to be driven by increased ATS development revenue, a record year for customer-funded capex, and a decreasing contribution from legacy products.

1

Q1 2024 Summary:
GAAP
In millions, except per share data
Q1 2024Q1 2023Y/YQ4 2023Q/Q
ATS development revenue (1)
$61.2$47.828%$57.27%
Tools revenue (2)
$8.5$0.5NM$9.9(15)%
Wafer Services revenue$10.0$17.8(44)%$12.0(17)%
Total revenue
$79.6$66.120%$79.21%
Gross profit$13.0$16.5(21)%$12.08%
Gross margin16.3%24.9%(860) bps15.2%110 bps
Net loss to shareholders$(5.7)$(4.3)34%$(10.3)(45)%
Basic loss per share$(0.12)$(0.10)20%$(0.22)(45)%
Net loss margin to shareholders
(7.2)%(6.5)%(70) bps(13.0)%580 bps
__________________
NM - Not meaningful
(1)ATS development revenue represents GAAP revenue primarily derived from process development services, tool installation and qualification services, facility and tool access, and security services.
(2)Tools revenue and cost of tools revenue primarily represent GAAP amounts that arise from the procurement and subsequent sale of equipment to our customers. This equipment is used to complete ATS customer programs.
Non-GAAP
In millions, except per share data
Q1 2024Q1 2023Y/YQ4 2023Q/Q
Non-GAAP gross profit$13.4$17.0(21)%$13.8(3)%
Non-GAAP gross margin16.9%25.7%(880) bps17.4%(50) bps
Non-GAAP net loss to shareholders$(3.7)$(2.4)51%$(1.1)242%
Non-GAAP basic loss per share$(0.08)$(0.06)33%$(0.02)300%
Adjusted EBITDA$4.9$8.1(39)%$10.6(53)%
Adjusted EBITDA margin6.2%12.3%(610) bps13.4%(720) bps
Q1 2024 Results:
•Revenue: Revenue of $79.6 million increased 20% year-over-year. ATS development revenue of $61.2 million increased 28% year-over-year. Tools revenue was $8.5 million in the first quarter of 2024 compared to $0.5 million in the first quarter of 2023. Wafer Services revenue of $10.0 million decreased 44% compared to the first quarter of 2023.
•Gross Profit: GAAP gross profit was $13.0 million, or 16.3% of total revenue, compared to gross profit of $16.5 million, or 24.9% of total revenue, in the first quarter of 2023. Non-GAAP gross profit was $13.4 million, or 16.9% of total revenue, compared to non-GAAP gross profit of $17.0 million, or 25.7% of total revenue, in the first quarter of 2023. Cost of revenue for the first quarter of 2024 included an approximately $8 million accrual reflecting the anticipated additional costs for us to complete certain development milestones for a significant aerospace and defense program.
•Operating Expenses: GAAP operating expenses were $15.2 million, compared to $17.6 million in the first quarter of 2023. The first quarter of 2023 included $2.2 million of credit losses that did not repeat in the first quarter of 2024.
•Net Loss: The GAAP net loss to shareholders was $5.7 million, or $0.12 per share, compared to a net loss to shareholders of $4.3 million, or $0.10 per share, in the first quarter of 2023. The Non-GAAP net loss to shareholders was $3.7 million, or $0.08 per share, compared to a non-GAAP net loss to shareholders of $2.4 million, or $0.06 per share, in the first quarter of 2023.
•Adjusted EBITDA: Adjusted EBITDA was $4.9 million, or 6.2% of total revenue, compared to $8.1 million, or 12.3% of total revenue, in the first quarter of 2023.
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 Wednesday, May 8, 2024, at 3:30 p.m. CT to discuss its first quarter 2024 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, read-out ICs, 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 first quarter ended March 31, 2024 are preliminary, unaudited and subject to the finalization of the Company’s first 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 fabrication facilities 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; 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, 2024 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.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, 2024December 31, 2023
(in thousands, except share data)
Assets
Current assets
Cash and cash equivalents$20,002 $18,382 
Accounts receivable (net of allowance for credit losses of $96 and $180, respectively)
57,895 65,961 
Contract assets (net of allowance for credit losses of $62 and $99, respectively)
24,922 29,666 
Inventory15,558 15,341 
Prepaid expenses and other current assets24,528 16,853 
Income tax receivable82 172 
Total current assets142,987 146,375 
Property and equipment, net157,281 159,367 
Intangible assets, net6,320 5,672 
Other assets5,693 5,342 
Total assets$312,281 $316,756 
Liabilities and shareholders’ equity
Current liabilities
Current portion of long-term debt$3,631 $3,976 
Accounts payable25,919 19,614 
Accrued expenses30,512 48,291 
Short-term financing, net of unamortized debt issuance costs32,612 22,765 
Contract liabilities56,109 49,551 
Total current liabilities148,783 144,197 
Long-term liabilities
Long-term debt, less current portion and net of unamortized debt issuance costs35,665 36,098 
Long-term contract liabilities58,605 65,754 
Deferred income tax liability, net623 679 
Other long-term liabilities9,204 9,327 
Total long-term liabilities104,097 111,858 
Total liabilities252,880 256,055 
Shareholders’ equity
Preferred stock, $0.01 par value per share (80,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2024 and December 31, 2023)
— — 
Common stock, $0.01 par value per share (200,000,000 shares authorized; 47,338,069 and 47,028,159 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)
473 470 
Additional paid-in capital181,802 178,473 
Accumulated deficit(130,932)(125,203)
Total shareholders’ equity, SkyWater Technology, Inc.
51,343 53,740 
Noncontrolling interests8,058 6,961 
Total shareholders’ equity
59,401 60,701 
Total liabilities and shareholders’ equity
$312,281 $316,756 
4



SKYWATER TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
Three-Month Period Ended
March 31, 2024December 31, 2023April 2, 2023
(in thousands, except share data)
Revenue$79,636 $79,154 $66,094 
Cost of revenue66,656 67,143 49,626 
Gross profit12,980 12,011 16,468 
Research and development expense
4,012 2,872 2,668 
Selling, general, and administrative expense
11,169 15,092 14,895 
Operating loss(2,201)(5,953)(1,095)
Interest expense(2,390)(2,898)(2,471)
Loss before income taxes(4,591)(8,851)(3,566)
Income tax expense (benefit)41 (450)— 
Net loss(4,632)(8,401)(3,566)
Less: net income attributable to noncontrolling interests1,097 1,924 707 
Net loss attributable to SkyWater Technology, Inc.$(5,729)$(10,325)$(4,273)
Net loss per share attributable to common shareholders, basic and diluted$(0.12)$(0.22)$(0.10)
Weighted average shares used in computing net loss per common share, basic and diluted47,098,519 47,020,395 43,817,417 
5



SKYWATER TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three-Month Period Ended
March 31, 2024April 2, 2023
(in thousands)
Cash flows from operating activities
Net loss$(4,632)$(3,566)
Adjustments to reconcile net loss to net cash flows used in operating activities
Depreciation and amortization5,065 7,352 
Amortization of debt issuance costs included in interest expense440 357 
Long-term incentive and equity-based compensation2,072 1,853 
Deferred income taxes(56)— 
Provision for credit losses(121)2,154 
Changes in operating assets and liabilities
Accounts receivable and contract assets12,933 (6,875)
Inventories(217)(969)
Prepaid expenses and other assets(8,025)(2,653)
Accounts payable and accrued expenses(10,883)(3,494)
Contract liabilities, current and long-term(590)(5,245)
Income tax receivable and payable90 — 
Net cash used in operating activities(3,924)(11,086)
Cash flows from investing activities
Purchase of software and licenses(811)(213)
Purchases of property and equipment(1,259)(2,851)
Net cash used in investing activities(2,070)(3,064)
Cash flows from financing activities
Draws on revolving line of credit90,500 59,350 
Paydowns of revolving line of credit(81,930)(63,310)
Proceeds from tool financings920 494 
Principal payments on long-term debt
(862)(317)
Cash paid for principal on finance leases
(274)(343)
Proceeds from the issuance of common stock pursuant to equity compensation plans1,260 1,275 
Proceeds from the issuance of common stock under the ATM— 2,696 
Cash paid on licensed technology obligations(2,000)(1,850)
Net distributions to noncontrolling interest— (30)
Net cash provided by (used in) financing activities7,614 (2,035)
Net increase (decrease) in cash and cash equivalents1,620 (16,185)
Cash and cash equivalents - beginning of period18,382 30,025 
Cash and cash equivalents - end of period$20,002 $13,840 
6



Supplemental Financial Information by Quarter

Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
(in thousands)
ATS development revenue (1)
$61,185 $57,170 $53,891 $52,073 $47,770 
Tools revenue (2)
8,459 9,936 3,243 936 536 
Wafer Services revenue9,992 12,048 14,490 16,802 17,788 
Total revenue$79,636 $79,154 $71,624 $69,811 $66,094 
Tools revenue (2)
$8,459 $9,936 $3,243 $936 $536 
Cost of tools revenue (2)
8,260 9,125 2,861 290 484 
Tools gross profit (loss)
$199 $811 $382 $646 $52 
Revenue impact of modified customer contracts
$— $— $— $3,601 $— 
Cost of revenue impact of modified customer contracts
— — — — — 
Gross profit (loss) impact of modified customer contracts
$— $— $— $3,601 $— 
__________________
(1)ATS development revenue represents GAAP revenue primarily derived from process development services, tool installation and qualification services, facility and tool access, and security services.
(2)Tools revenue and cost of tools revenue primarily represent GAAP amounts that arise from the procurement and subsequent sale of equipment to our customers. This equipment is used to complete ATS customer programs.
7



Non-GAAP Financial Measures
We provide supplemental, non-GAAP financial information that our management regularly evaluates to 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 to shareholders per share. Our management uses these non-GAAP financial measures to make informed operating decisions, complete strategic planning, prepare annual budgets, and evaluate Company and management performance. We believe these non-GAAP financial measures are useful performance measures to our investors because they provide a baseline for analyzing trends in our business and 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 these non-GAAP financial measures are not determined in accordance with GAAP, other companies, including our peers, may calculate their non-GAAP financial measures differently than we do. 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 measures. We define adjusted EBITDA as net (loss) income before interest expense, income tax (benefit) expense, depreciation and amortization, equity-based compensation and certain other items that we do not view as indicative of our ongoing performance, including net income attributable to noncontrolling interests, business transformation costs, and restructuring costs. Our management uses adjusted EBITDA and adjusted EBITDA margin to make informed operating decisions, complete strategic planning, prepare annual budgets, and evaluate Company and management performance. We believe adjusted EBITDA is a useful performance measure to our investors because it allows for an effective evaluation of our operating performance when compared to other companies, including our peers, without regard to financing methods or capital structures. We exclude the items listed above from net income or loss in arriving at adjusted EBITDA because the amounts of these items can vary substantially within our industry depending on the accounting methods and policies used, book values of assets, capital structures, and the methods by which assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net (loss) income determined in accordance with GAAP. Certain items excluded from adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost bases of depreciable 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 financial measures 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.
8



SKYWATER TECHNOLOGY, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Three-Month Period Ended
March 31, 2024December 31, 2023April 2, 2023
(in thousands)
GAAP revenue
$79,636 $79,154 $66,094 
GAAP cost of revenue$66,656 $67,143 $49,626 
Equity-based compensation (1)
(455)(313)(513)
Restructuring costs (2)
— (679)— 
Business transformation costs (3)
— (806)— 
Non-GAAP cost of revenue$66,201 $65,345 $49,113 
GAAP gross profit$12,980 $12,011 $16,468 
GAAP gross margin16.3 %15.2 %24.9 %
Equity-based compensation (1)
$455 $313 $513 
Restructuring costs (2)
— 679 — 
Business transformation costs (3)
— 806 — 
Non-GAAP gross profit$13,435 $13,809 $16,981 
Non-GAAP gross margin16.9 %17.4 %25.7 %
GAAP research and development expense
$4,012 $2,872 $2,668 
Equity-based compensation (1)
(107)134 (162)
Restructuring costs (2)
— (655)— 
Non-GAAP research and development expense
$3,905 $2,351 $2,506 
GAAP selling, general, and administrative expense
$11,169 $15,092 $14,895 
Equity-based compensation (1)
(1,510)(1,008)(1,178)
Restructuring costs (2)
— (587)— 
Business transformation costs (3)
— (5,341)— 
Non-GAAP selling, general, and administrative expense
$9,659 $8,156 $13,717 
GAAP net loss to shareholders$(5,729)$(10,325)$(4,273)
Equity-based compensation (1)2,072 1,187 1,853 
Restructuring costs (2)
— 1,921 — 
Business transformation costs (3)
— 6,147 — 
Non-GAAP net loss to shareholders$(3,657)$(1,070)$(2,420)
9



Three-Month Period Ended
March 31, 2024December 31, 2023April 2, 2023
(in thousands)
Equity-based compensation allocation in the consolidated statements of operations (1):
Cost of revenue$455 $313 $513 
Research and development expense
107 (134)162 
Selling, general, and administrative expense
1,510 1,008 1,178 
$2,072 $1,187 $1,853 
Restructuring costs allocation in the consolidated statements of operations (2):
Cost of revenue$— $679 $— 
Research and development expense— 655 — 
Selling, general, and administrative expense— 587 — 
$— $1,921 $— 
Business transformation costs allocation in the consolidated statements of operations (3):
Cost of revenue$— $806 $— 
Selling, general, and administrative expense— 5,341 — 
$— $6,147 $— 
10



Three-Month Period Ended
March 31, 2024
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.$(5,729)$(3,657)
Denominator:
Weighted-average common shares outstanding, basic and diluted47,099 47,099 
Net loss per common share, basic and diluted$(0.12)$(0.08)
Three-Month Period Ended
December 31, 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.$(10,325)$(1,070)
Denominator:
Weighted-average common shares outstanding, basic and diluted47,020 47,020 
Net loss per common share, basic and diluted$(0.22)$(0.02)
Three-Month Period 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.$(4,273)$(2,420)
Denominator:
Weighted-average common shares outstanding, basic and diluted43,817 43,817 
Net loss per common share, basic and diluted$(0.10)$(0.06)
11



Three-Month Period Ended
March 31, 2024December 31, 2023April 2, 2023
(in thousands)
Net loss to shareholders (GAAP)$(5,729)$(10,325)$(4,273)
Net loss margin to shareholders(7.2)%(13.0)%(6.5)%
Interest expense
$2,390 $2,898 $2,471 
Income tax expense (benefit)
41 (450)— 
Depreciation and amortization5,065 7,279 7,352 
EBITDA1,767 (598)5,550 
Equity-based compensation (1)
2,072 1,187 1,853 
Restructuring costs (2)
— 1,921 — 
Business transformation costs (3)
— 6,147 — 
Net income attributable to noncontrolling interests (4)
1,097 1,924 707 
Adjusted EBITDA$4,936 $10,581 $8,110 
Adjusted EBITDA margin
6.2 %13.4 %12.3 %
__________________
(1)Represents non-cash equity-based compensation expense.
(2)Represents severance and other costs related to the reorganization of our resources.
(3)Represents expenses related to long-term transformation activities focused on improvement in automation and operational efficiency and includes project-based management consulting fees and the write-off of abandoned software assets.
(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 interest expense is added back to net loss to shareholders in our adjusted EBITDA financial measure, we also add back the net income attributable to the VIE as its net income is derived from interest the VIE charges SkyWater.
12
v3.24.1.u1
Cover
May 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 08, 2024
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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