The following is a summary of the SkyWater Technology, Inc. (SKYT) Q2 2024 Earnings Call Transcript:
Financial Performance:
SkyWater Technology reported a record Q2 2024 revenue of $93 million.
Non-GAAP positive earnings per share (EPS) were achieved for the first time, with strong growth driven mainly by the aerospace and defense segments.
Non-GAAP gross margin reached 18.9%, at the upper end of their guidance, supported by a mix of ATS and Wafer Services revenue.
Net income was reported at $0.02 per share on a non-GAAP basis.
Business Progress:
The company is experiencing strong demand for its Advanced Technology Services (ATS), especially from aerospace and defense programs.
Introduction of the multi-beam high productivity direct write patterning system to expand technological capabilities, targeting secure chip identification and advanced packaging among others.
Announced a successful customer transition from ATS to Wafer Services with biomedical pioneer QuantumPsi, highlighting continued engagement in innovative medical technologies.
Outlook for growth in ATS development revenue for 2024 is projected to increase by 10% to 20% over 2023.
Opportunities:
The addition of new capabilities in fabs through customer-funded tool installations signals a strong customer commitment and co-investment trend.
Launch of a multi-beam e-beam lithography system enhances SkyWater's technological offerings, catering to advanced design needs and potentially attracting more high-value customers.
Entering the advanced packaging market with tools for a 300mm capable fan-out packaging line, addressing a clear demand for domestic advanced services.
Expansion into next-generation biomedical and thermal imaging technologies.
Risks:
Wafer Services revenue continues to show weakness due to the broader industrial market downturn, expected to persist for additional quarters.
More details: SkyWater Technology IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.