SkyWater Technology, a leading semiconductor company, recently reported its second-quarter financial results for 2024, highlighting a record $93 million in revenue and positive non-GAAP EPS for the first time. The strong performance was driven by a 17% increase in total revenue from the previous quarter and a 34% increase from the second quarter of 2023. Thomas Sonderman, the company's Chief Executive Officer, led the call, emphasizing the strategic importance of the company's aerospace and defense programs and the addition of a new high productivity, direct right patterning system in their Minnesota fab.
Record Revenue and Positive EPS
SkyWater's Q2 2024 results showed a robust performance, with a record $93 million in revenue. This achievement was attributed to the strong demand in the aerospace and defense sector, which exceeded forecasts due to pull-ins of demand on multiple programs. The company's strategic focus on improving cycle times and agile operations played a crucial role in delivering these results. Moreover, the non-GAAP positive EPS for the first time in the quarter underscores the company's financial health and profitability potential.
Strategic Aerospace and Defense Programs
The aerospace and defense sector has emerged as a significant growth driver for SkyWater. The company's ATS development revenue exceeded expectations, with a 1% increase from Q1 and a substantial 18% growth year-over-year. This growth is primarily attributed to the demand for specialized ASICs and thermal imaging technologies in the aerospace and defense industry. The company's commitment to innovation and operational execution has positioned SkyWater as a trusted domestic source for critical semiconductor technology in this sector.
Innovation and Expansion
SkyWater's strategic investments in cutting-edge technologies, such as the multi-beam high productivity, direct right patterning system, have positioned the company for future growth. This new system, the first of its kind multicolumn e-beam lithography, enables sub-50-nanometer geometries and supports strong customer demand for advanced packaging solutions. The company's focus on next-generation medical technologies, biomedical devices, and advanced compute and thermal imaging platforms further underscores its commitment to innovation and market differentiation.
Outlook and Future Investments
Looking ahead, SkyWater expects continued growth in its ATS development business, driven by the strategic aerospace and defense programs. The company anticipates a slightly front-loaded year for ATS development in 2024, with a focus on transitioning customers from ATS to wafer services, particularly in the biomedical sector. SkyWater also plans to invest heavily in its Florida operation, with $120 million in outside funding to complete tooling and facilitateization. These investments are expected to add critical new capabilities and capacity to the business, aligning with the company's long-term growth objectives.
Conclusion
SkyWater Technology's Q2 2024 financial results reflect a strong performance, driven by strategic focus and operational execution. The company's commitment to innovation and strategic investments in advanced technologies position it for future growth, particularly in the aerospace and defense sector. With a positive outlook and a clear focus on customer-funded CapEx investments, SkyWater is well-positioned to capitalize on the opportunities in the semiconductor market and maintain its competitive edge.