SkyWater reports loss as Q4 sales decline

SkyWater Technology Inc., a semiconductor foundry based in Bloomington, Minnesota, recently disclosed a net loss of U$0.7 million for the fourth quarter of 2024, with sales revenue amounting to US$75.5 million. This marked a 20 percent decrease from the previous quarter, where the company recorded sales of US$93.8 million and a net profit of US$1.5 million. In comparison to the same period in 2023, the loss in the fourth quarter of 2024 was mitigated despite a 5 percent decline in sales.

Throughout the entirety of 2024, SkyWater reported a net loss of US$6.8 million against total revenues of US$342.3 million. The annual revenue saw a notable 19 percent increase from US$286.7 million in the previous year, while the loss was significantly reduced from US$30.8 million in 2023.

There are indications that SkyWater is effectively enhancing its margins, a trend that is expected to be further supported by the recent acquisition of a wafer fab located in Austin, Texas, previously owned by Infineon. Additionally, the company has received equipment to bolster fan-out wafer-level packaging operations in Florida, a development that is anticipated to drive growth in advanced packaging revenues in 2025.

CEO Thomas Sonderman expressed confidence in the company's performance, stating, "“Our financial results for fiscal year 2024 demonstrate the strength of our highly differentiated, technology foundry business model, within a dynamic and growing domestic semiconductor ecosystem. In the nearly four years since our IPO, we have successfully transformed a mature fabrication facility into a monetized Advanced Technology Services (ATS) business, which has grown to a scale that supported record revenues and profitability for SkyWater in 2024."

Despite the positive long-term outlook, SkyWater anticipates a further decline in revenue in the short term. The company's forecast for the first quarter of 2025 projects a loss on revenues ranging between US$59 million and US$63 million. This represents a 23.4 percent decrease from the revenue generated in the first quarter of 2024. Interestingly, following this announcement, the company's share price surged by approximately 12 percent, reportedly surpassing analysts' earnings expectations.