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

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