SKYT - Earnings call 4 2023 | SkyWater Technology, Inc.

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Operator

Good afternoon, my name is Audrey, and I will be your conference operator today. At this time, I'd like to welcome everyone to the SkyWater Technology Fourth Quarter 2023 Financial Results Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Claire McAdams, Investor Relations for SkyWater Technology. Please go ahead.

Claire McAdams

operator. you, Thank Manko, welcome live XXXX and from fourth and at call and quarter are remind like Good that ir.skywatertechnology.com. SkyWater's you call. With to Investor me year our Steve Officer; Executive conference Sonderman, being today Financial on full Officer. I'd Thomas to webcast afternoon, is Chief Skywater's Chief on the SkyWater website call Relations call will available for concludes. the be after webcast The shortly replay well as our investor as On website, slide today's accompany have we financial an posted the call. IR also to supplement presentation

During results cause the to statements. statements future to call, any could statements subject actual our made These and about financial materially. risks are that differ forward-looking business uncertainties results and are forward-looking

with filed and the earnings no forward-looking and including update of our Form XX-K. fiscal as Commission, on of Securities a today, we please and For discussion filings these Exchange release today risks are made All XXXX any assume our and X-K statements such our statements. to uncertainties, refer obligation to

During this will measures. financial non-GAAP call, discuss we

of which IR a turn Tom. QX to GAAP earning call to measures can financial financial on find posted X measures financial I'll over our these -- all of and presentation, non-GAAP in in earnings our supplements website. With our that, are our the to You the reconciliation

Thomas Sonderman

from up quarter in you, and was results. our million, grew QX financial from business, fourth pleased Revenues which to X% growth $XX good report everyone afternoon to on a and Thank to ATS strong Claire, expectations continued XX% due are the up call. Today, exceeded we to sequential our Development QX. record

$XX nearly million revenues tool quarter. expected, As for totaled the

quarter, expectations our of putting entering in in our are our multiyear Consistent targeted building and on volume new QX, X demand, Wafer levels of of place the platform growing performance. made continued for CapEx business. record driven sequential strong our with million, the at last As business The support quarters XX% ATS $XX necessary industrial from end of into by market straight softness, end stage from capability this Services continued growth for being a sector. spite chiefly investments production. the down broader the has development customer-funded by we in ATS going development we customer customers demand driven increased call, of the were and market are CapEx revenues our softening In discussed capacity revenue

from was changing year with of fiscal XX% of exceeded our Services ATS targets mix to revenues the For X/X Wafer mix ATS a long-term X/X, an of XXXX. about we compared to reflected revenues fiscal by with of in in strength revenues market total end XXXX, weak total within XX-XX backdrop XXXX XXXX. The growing overall an

foundry ATS we of new remain have value the have both several continue defense the business revenue the that as for development demonstrates our total and products. aerospace XXXX of the providing of and aerospace, commercial grew portfolio is our to business A&D multiple platform the XXXX. we develop and our platforms forward multiple well XX-nanometer of national growing to that year additional SkyWater's believe the for growth Altogether, this that in revenues demonstrated, technology aerospace major investment moving majority programs. offers model our the in Defense's programs our been over driving years, unique past strong in defense comprise As These a XX% to XXXX, of the believe of major strategic programs to critical same We a customer-funded customers' to programs also These in are driver revenues we for trusted half are strong signifies as demand business, and XX% as about Department include CapEx. are the that been compared over anticipated contributors compelling over investments innovation this SkyWater ATS and proposition technologies commitment increased security. believe and advanced largest our the of year. We for and our for be growth new The that accelerated growth the RadHard next our aggressively to ATS have for defense markets. technologies U.S.

A&D partners. our accelerating our is commercial ramping and progress also continued platforms customers with new Our technologies engagement and

SkyWater commercial to performance in cases expect leverage markets. fastest-growing investments use X require the to diagnostics, like be We which at numerous that are applications advanced A&D reliable happening able next CMOS our and end medical to today support computing

our is advanced and standards, semiconductor has quality strict fluids blood leverage devices development medical paying enable forecasting sequencing on multiple we require as in diagnostics sophisticated the the to is to require from applications Wafer XXXX. investment focus ATS semiconductors business. This transition Our IPO. inherence applications process materials. precise technology which and of of advances properties such and electrical These Services health ATS offers biological sampling with as through and since medical These off companies of bio SkyWater to expanded are our unique what the significantly groundbreaking processing in

enhanced which low the CMOS services our Our ] on [ look for our forward also news growth qualification sensor coming sharing Natos XX-nanometer thermal imaging. of performance numerous platforms, years, We with strong Biotechnology as announcement customer to supports in such the wafer noise health applications efforts CMOS is example. bio including recent expected category to and one just transitions continues this anticipate additional year. Progress in technology, we

baseline our engagement XX-platform PDK we are both the ongoing of our platform differentiated enablement We are efforts RH uniquely incremental half for the planned our qualification. customers with across work engaged new to as engineering parallel second the In in RadHard design currently several category, and year. these of resources towards CMOS currently strong enhance Customer lead adding with release work platforms. we qualification with RH-XX remains a

margin that foundation are SkyWater allowing expansion the build recent to a for come. strong several years to and developments I'd revenue like provide on Now growth an to update for

our years Florida, water. by defense a these production with desire specific for tied Today, commercial in recently part order and in the award devices to In are concentration incorporating to advanced facility also Department of cases, to are and packaging what packaging companies. technologies of a onshore ecosystem. large heavy announced in for produced Sky new packaging in next most Advanced advanced processes be we as vector United directly States. growth over both Defense from to up priority shared advanced the is includes will the The believe a and our capacity foundries capabilities X represents comprehensive the of most $XXX closed in a largely advance million funding First, packaging Asia Taiwan. technologies

leading development AMD, evidence Florida on exactly that, States. support technology the bringing edge this, solutions As packaging our of efforts solutions in to to compute packaging in advanced the advanced deploying deliver recently is and world-class recent DoD and applauded a United award, focused leader which production

full for Another important announcement since last of quarter chip relates submission application to Minnesota. our the

X modernizing is and facility, and next adding expand our application the infrastructure capabilities capacity equipment focused that Bloomington Our tools, necessary production the over on further our years. will development

to revenue All to while growth, multifaceted and capital any the investment approach We internal growth received date. enable these in funding incremental minimizing us requirements. of together, funding customer-funded future investments have be outside chips significant would outside accelerate to level our opportunities of support obtaining a to

workforce. higher our to operations in from strategic our In experts. in investments of our activities enhance transformation achieved outputs significantly of major value realize has utilization in the starting over and initiative a been the even past partnership Services approach the ATS proposition year decision invest pay already These of the linear monetization to operational been achieve our of have optimize Wafer on of more improving to order needed This with half XXXX, unique fab, Finally, the we record the production. our is second outside Bloomington wafer focused velocity, levels efficiencies and increased dividends.

culminated number Our of important as a developments XXXX. we close in transformation effort

that First, with better reduction growth our SkyWater's expertise our levels our aimed believe at during approximately the technology of completed across We the XX% to long-term quarter, scale of around the skill restructuring workforce R&D hiring strategy. emerging as is fourth business. XXXX continue company will approach efficiencies our operating and in leverage of that to platforms. newly aligning of select align the manufacturing the specifically the greater of we highly needs all company's resources included integrated organization a we manifest to

us run. And a towards long to expect we executed the pipeline And Second, by us business, past the were not believe planning resources of margin process capabilities that the have we of optimizing our the leveraging visibility, the we build was a drive are our going gross higher and Services A consulting half Wafer will we on to able any continue investment year-end. achieve of quickly in transformational strong with allowing decision to the the on business fees third XXXX. us focus company's growth outcome profitability. ATS will for in the to majority the corner process key is that company's we phase believe existing XXXX. to this we of year to over the outside executive the new additional second turn transformation resources enabling accelerating we our transformation-related forward, current by of And milestone process lastly, talent, the of the conclude our

to in reflects represent with ahead. Now which of growth our With over This would continue. level and turning momentum the current we the QX to development as ATS XX% expect year our outlook similar QX revenues our expect business, XXXX for revenues a ATS a range. we million QX $XX We in XXXX. nearly of which QX, entered visibility, strong

high XXXX We a tool CapEx quarter. and also $XX will we to sales million first customer-funded the expect in increase approximately estimate enter level as of

be XX% offsetting expect a down will QX. decline growth that be we from Wafer We the expect which will about in revenues, sequential Services further

will expect year. SkyWater As we strong outlook and business our of to the model year look full achieve another we growth customer-funded CapEx revenue uniqueness XXXX, ahead to enable for ATS our

XX%, First, expect XX% ATS our XX% solid with objectives in XXXX. we outperforming than growth development of range greater to to after in growth our show the growth revenues

exceed customer a years or these we to record planned and investments, will least customer-funded the level even at CapEx with We is also XXXX match levels CapEx to of by for expected strong investments million. over customers next believe revenues XXXX forecasted XXXX. $XX expect grow the in this tool our few and continue year to Furthermore, expected of

As inventory customer industrial for demand market end previously broader weakness given throughout the the soft remain to XXXX. expected in industrial market and is with a expectations stated, the broad-based correction, prolonged

less As a Wafer programs out pace phasing which our result, we are legacy profitable as resources at accelerating we to we development. ATS Services the redirect are

expect again an of of continued more XXXX in Services mix Florida to Altogether, be and our advance build more of by through compared in ATS at Services in our this all we aggressively the convert XXXX our acceleration increased development X be revenues levels. XXXX that future, which transitions capabilities our new fabs result out expand We we of Wafer our to customers expect material existing XXXX, business development ATS public-private the about launch anticipate development transformation Services platforms, XX% business. will to secure our least of in business, business model. CMOS legacy to is and will as ATS in prepare our and partnership our ATS far than the Wafer down and that demonstrated we Wafer profitable production Minnesota in

outperformed innovative ago, call positioned the model by build continue highlighting that We making to our we highly IC our we of the leverage. I with market revenue domestic since to pipeline of above-industry to SkyWater targets long-term and technologies, turn a the CAGR close are Before and believe the SkyWater Steve. turning strong our XX%. over customer to to Steve, for X-year operating years will exceeding the distinction has nearly years over IPO I'd now several to call strong available that team the X like business differentiated annual growth

Steve Manko

Tom. Thank you,

impact years. of and on Starting Before website, supplement financial financial IR the available helpful the all our find our non-GAAP sales which direct changed comparable fourth our policy is website for of IR supplement of margins. regarding can financial couple I quarterly our as to the on metrics begin tool in my summarizes adjustments last a QX, quarter review non-GAAP our our we you as results where gross the our you well on results, X will I

XX% a year-over-year. this $XX.X our million, to quarter to reached expected, quarter the our up from XXXX. The fourth revenues Now the tool compared XX% in earlier QX industrial up of turning QX markets. as million up expectations in Record XX% XXXX. total expectations Services exceeding million million in another of our record Offsetting XX% sequential due revenue, from in quarter of Wafer ATS in us, broader $X.X for ATS of sequentially exceeded $X.X was up and growth which, the results. of and nominal QX ATS XX% result in to growth softening QX revenue Fourth $XX.X ATS sales revenue was QX growth which the of was The from development amount was as to down and another environment revenues. a demand included decline

by Our non-GAAP due was points. of nearly the basis the revenue margin the quarter margin XXX compared tool development XX.X%, to quarter better sales ATS impacted to than in gross forecast. primarily more bit for favorable $XX a gross The expected, non-GAAP million

own These customers. without our a enable to tool is represent requiring our that us capabilities us and increase our by sales use As reminder, capital. to capacity CapEx funded

negative was CapEx to our fixed tool well to as expansion carry. $XX million, our our recovery which was on base therefore, a expense. below just of often of gross sales funded for have $X $XX no since approximately will they ongoing operating $XX.X this of the dollars. customers, our of expenses result and gross depreciation Additionally, primarily million no margin, profit typically And by Non-GAAP bad of declined reduce million, impact asset no is there prior debt to million us while guidance overall

the business phase $X.X Turning management We to completed in transformation fees the our of investment our process quarter. with outside consulting of million process.

benefit of strategy. our income costs also headcount support the resources with per of mentioned going share million EBITDA approximately $X.X to margin gross to and recovery $X.X expectations through with was and $X.X was net and expense going strategies was the loss expense net million, was reduction completed expansion non-GAAP Non-GAAP XX% align growth which, GAAP margin a exceeding is performance workforce tax million, share. gross the per also forward, decreased $X.XX We $XX.X operating adjusted million, $X.XX our of manufacturing a favorable and our due both loss earlier. Interest a company's long-term was better

the balance to Turning sheet.

year. to generated added improve our fiscal We P&L $XX our reduced We indebtedness $XX of our first million short-term place compared increased million position full months XXXX. in on year-end Total minimize to continue rates by the changes cash borrowing prior revolving our working XXXX. X cash from all as for capital million proceeds million funding transactions was with equity at the total upon year total available flows and interest positive taking during the to ATM of line the $XX capital consistently and from of credit. We year-end $XX with our

and metrics outlook we our financial expectations to various for as for Turning QX enter XXXX. our

million. tool ATS to $XX our mentioned, million of our As reflects a $XX we million QX that current sales with and levels expect than This Tom will assumption range. level revenue in the of of decline similar less Services revenues, visibility, Wafer $XX development

revenue which the in of to in margin reflects greater we by will contribution margin we expected expect gross the impact QX tool XX% low range. XXX the profile, sales, This Given basis XXX gross points. expect non-GAAP

approximately expenses to XXXX. operating non-GAAP million the QX, operating range quarterly $XX remain this expect expenses And million for will expect of first fiscal continue through quarter. beyond in to We non-GAAP we $XX

forecasting another For the are we year growth. of full revenue year,

solid and development XX%. growth to in tool funding $XX range revenue of the XX% investments in customer of least million expect at We ATS

as expect tools XX%. our tailwinds be and expansion growth which down We to by The The a objectives, as strong expected much will continued ATS including expect continue will in at significant offset business XXXX overall for revenue the for least resulting wafer improve. margin XXXX is development XX% improvement strong services level potentially impact as in mix reduced of the be the business gross over flow-through year-over-year trajectory our of to chief The our for gross changes partially but to slightly margin toward expense for by mix depreciation will include will quarterly ATS of year expected full gross end expectation XX% we in phases increase purchase decrease tool our portion margin year-over-year. higher these that is is into of have no customer-funded accounting in some CapEx to account, performance. expected XXXX year QX. Taking for gross basis range and the XXX on points our that forward-looking doubt the is and impact the There an financial business model to complexities is the brings XXX full modeling estimated unique the out margin. our that

that of call an needs. to a significant is today's important from understanding absolutely it's negative However, nothing with CapEx portion come about away customers' our our there funding

neutral gross sales tool on positive profit. either to impact First, have a or

foundry models we than shrink expect XX% low depreciation XX% depreciation as to our we extremely least X% over customers, expected levels XX%. are we expenditures margin reasons quarterly depreciation remain compared us, of we foreseeable revenue over one the also by revenues can scale move planned our so be low. to expect with totaling for our With the less We target XXXX confident long-term relatively years. our new we is of will in growth believe which in capital XX% of capital as reach few and our of of to these to funded will at QX, at typical levels of And next beyond our be revenues needs

non-GAAP I'll We milestone to key turn Operator, on that, forward also to over Q&A. EPS half discussing of in call questions. open to and expect turn the the future for please this success the positive corner our the in to XXXX look second line calls. With

Operator

& to go We'll Instructions] Company. Bolton at Quinn Needham first [Operator

Quinn Bolton

the a bit there. margin about tool Services the Just puts sort of pretty total sort of Wafer of revenue, filler. down being start, understand obviously, just a significantly. the the know million of is been that's for And takes. and a drag outlook, I and you've talked headwind lots of $XX But understand to revenue gross I fab

you see that questions that -- of couple got well. you of level you year. of that second of just so mentioned the follow-on the the I to target And And hit get to into half kind the a can through gross ramp year, expect of profitability would the kind then you second need of margin as talk you what in half

Steve Manko

the the ahead ahead start Go I'll on Go side. with [Indiscernible]. and revenue revenue.

Thomas Sonderman

Yes.

in the have bring revenue, production. them So ATS a the over Services as go our We, of we mode to overall years effects industry is continue obviously, spilling programs been volume transition in more of of Wafer development softening. the last several to to course, preparing

is So as year are account I not hard transitions. the fact somewhat into taking those fact utilization and business we're but have We're margins, mentioned bringing on that overall only offset of an we does an our new tools in of like ramp by prepare being And lower volume prepare into for impact to in as have a margin remarks, positive unfolds, are but development leaning next we that those my as ATS this year Services prepared importantly, while we that typical to Wafer does impact. course, gross more beyond. doing the that not into this

discussions. work So position gross add? mode in to doing doing a year this we with to for margins a our growth at business long-term still continued Steve, and consistent we're is sense, that seeing performance ATS that where previous anything makes we're level believe the we're the that

Steve Manko

coming out technology tool in to more significant being referred the this much coming to X in not but the seeing probably again, significant it, sign growth things. term only opinion, as for In the the term of than highlight we We as future opening just near first. the business, still I'll the by have funded investment continue it investments through my building could platforms. said is not programs, we tool a level our long of address you headwind. one and the in for customers. seeing this and remarks a company imagined look technology I was a And at our of think ever I'll revenue like tailwind in Yes. And

us does will have being even tool to XXXX. revenues gross have a your over And perspective, the margin a will. the if could some the mid- EPS contribution on over margin that positive a XXs to profit. So something even you by low margin small to it headwind, But course of be for non-GAAP some impacted the could year, generate of the with point, in course next it

really think over course that obtain we the something that's so of could And XXXX. we

Quinn Bolton

kind you It margin for sounds you little is half something XX% year full XX% be about? year the the a if second the XX% of 'XX. like rate at should think probably year for that like math said kind are to the higher the year you're It's in that the just we starting great of in sounds I 'XX, of It the that's works. the way than thinking

Steve Manko

to through. million I don't around only that of tool significant not see that be depending when has the investments. it quite on we something timing Again, on the come but $XX tools. we expect again, Yes. a communicated these record the the high, level think We year, tools for opportunity

bottom contribution again, significant revenue say, amount, significant an the and of line positively bit even from given should have of the in, profit the the tool the gross coming a impact as tools little margin performance contribution coming well. Now can on the I or

low that get be tools us to in, positive coming within the a point on something non-GAAP XXs saying still with or I'm So it our the the on breakeven margin slightly EPS. could should

Thomas Sonderman

the add of we just market if could take are And begin to that were well. Go thing to Quinn. one of ahead, we positioned advantage well, to course, as is turn,

Quinn Bolton

Yes.

Sorry, one for last Tom. you,

of it through starting to guys the What's side just middle the iXt does you flattish on revenue Is [Indiscernible] at when back the of think recover on Services. you the it half pretty bio kind that it's of Wafer kind this headwinds into to health sequentially the a of are bottom Services to I the trending starts understand obviously, Just level transition Wafer Wafer Services of year, would in about the the industrial with Service, expecting year? Do the year business year? the -- talked business think you legacy, bottoms. Wafer

Thomas Sonderman

Yes.

expecting Services, we're of see programs that ability half we the we again, see to and this dependent year, on then would into at get first customer So bottom that highly QX transitioned products their recovery point. a have would and start they in market. post maybe And to the the rate rate the which to at is that their Wafer which to ramp going

to goal is them to Our to prepare ramp.

We excited pipeline of about new that the now programs will but are very customer, will pace depth, the coming play, come the the on have the effectively. breadth that we they that effect through to and there number J make us will grow allow curve depend we will a believe the into is transition programs and

Operator

We'll to Kumar Sandler. Piper at Harsh move next

Harsh Kumar

it, there just I something then kind coming has ask Is Or mostly curious I it, so tied growth? of that going been year? model strategy out the this guess kind in ATS this is about happened sort own had are in a Revenues you down. prompted of shift weaker focus ATS of, more as the flushing that But your else drives business. to is a on, was industrial I'll And Was Wafer spurt I there couple as perhaps? the of questions anything maybe revenues. market, well. that second call my in the anyways. Historically, company or the a maybe one end

Thomas Sonderman

our first consistent through at move clearly doing. it's programs our really the cycle while the to doing ATS to all Wafer been same delivering question, development the as answer maximize Services can quickly are we about ability That's Yes. We as everything we've output. what time Well, possible transformation. to so

a while think solid towards the to these the team. phasing I SkyWater kind execute programs, products out legacy new as move kind it's delivering of out the we always testament not ability for and performance spun And is only plan to positioning Cypress. when the been of transition our financial we of those good

the We allow We've programs, are a call new pace. that all position broad business and fill the term, we're which, mature it and talking hard been was exactly really, our be DoD lot developed executed to in a leaning energy they we a very programs as the there And pace. was put it, of have we've grow to never already market 'XX And some to taking what really to driving legacy a as now year to and weaker these technologies, ATS into said, Steve? in and doing. fab add, specifically, we've been transformation. maybe, of moving of that's the faster advantage put it, Anything at at into move the fast a to long

Steve Manko

response. Harsh? Good

Harsh Kumar

wafer out. Sorry. And sounds My second like correct? services it's one was regarding flushing the just guess. I that's basically industrial, strictly

Thomas Sonderman

mean products a -- lot I Yes. legacy the products. the industrial of are

tools And and in as ATS happening as going for faster transitions these well. ATS just those there feel well. parallel, of inventory drive new as building that And I see get they're there we're continue ultimately inventory. type to year a the drive space. public, lot as what think customer, transitions of we to products, which industrial installed, obviously, we of really And this in was that's very that And unfolds. the our primary Infineon effect digesting made these has

Operator

Mertens TD Cowen. And at move to next we'll Robert

Unknown Analyst

This is for on Rob Mertens Krish.

one that aero materially And calendar have shift like Wafer recover? What look The revenues. of first throughout defense I the will this in a the one, you'd were year of then expect to 'XX as big would sort 'XX year start year? this mix to Services you calendar follow-up. mentioned And and customers part

Thomas Sonderman

put continue in mean I 'XX. as in to I A&D XX% I over my think to is remarks, Yes. going was grow. It

'XX. a very quickly. Again, programs there's further to of increase focus moving that lot We those expect in on

and of through contributor continue as to we pace this advantage strong broader expect commercial just into that. next transition and year some of taking be we Wafer to the programs, well. a the our we're year market, So And A&D for given and discussed, Services of as the weakness

Unknown Analyst

based Great. sort December in heard That's than then correctly thinking $X.X like in follow-up. are I fees on fees the $XX that make helpful. And then the just were to want consulting what sure guide quarters? you just million a quarter? OpEx, million the they the of million $XX of March look to out there consulting quick I And would

Steve Manko

we release in transformation quarter. the not to And you the million and $XX.X referred the can The around broken tables year. what Tom for out the is Yes. recurring cost for were And went of again again, XXXX. million mentioned, non-GAAP to those year the to, there in in is see the those expectation an as earnings $X.X supplements

Operator

Richard to Shannon go we'll Next, Craig-Hallum. at

Richard Shannon

thinking the Maybe of absorb And I have the to the first the I ask the about and exiting numbers try here. wonder this numbers really all rate -- if just year. with terms could question through here give here, in is here both to is wanted for thoughts question guide Steve. run all of Tried for just sales. your your I gross us I to you the exit year, tool to tried margins and without

change, that. exiting think this started this XX% with lot number about I where year, after here of XX.X% or upper You is XX% depreciation first the we kicking or mean, or how the should of get Obviously, half a got the we in something that? you a quarter. into XXs off

Steve Manko

second we'll that XXXX, depend question. revenues quarter and on that in in And coming to seeing it's coming place, the is this expecting and We're and communicating Yes, the starting tool of again, that out, of depreciation see play take off We've the through. good going down. year. really been level the falling

been impacted time. So forward to that big we've quite like that [Indiscernible], for I by said, looking a be some though, the revenues. tool was tailwind

still revenue, the look of about for at XX% I XX%. to excluding we'll dollars coming line and believe contribution a XXXX, cost we ago, over the at we side business better $XX have we tool the through of million, than on course quarters think as doing a few around still profit base talked continue above gross revenue our to incremental

margin be a course and bit Now drag revenue. on we pull the this you excluding for the that's margin that incremental polls Again, expect going tool But a than contribution we out that's year, the of revenue. do over talk about better of when to still growth gross expect number. a the XX% the

Richard Shannon

to little a tool of down to here, Okay. Maybe question through better here. bit I'll nail my a questions try really. that a guess follow-on sales and run I here. on model try couple

your some past thoughts prepared then Were 'XX? and be year expect I think, at the on do sales you million you Tom, this heard a you saying 'XX were years about in levels remarks tool and number more I than this. $XX even higher or to

Thomas Sonderman

year next Well, Yes. I said, this and model so so seeing for again, as levels the for several year even through similar next we're 'XX, of... and years,

Richard Shannon

Literally that's is this. question right. make contributing get what I just about thinking Obviously, commercial are announced important earlier more we versus this contributors to year to from follow-up the is not past one big magnitude, to visibility the contract a customers. the year. But want this to this To here, sure customers I government degree seeing what multi-tools. contributions degree obviously you is this only a commercial government

Thomas Sonderman

capabilities place, A&D investing There consistent And the kind commercial into in are majority these put of majority Yes. [Indiscernible]. investor of the plan I now. I would can tool where those the we say, right would is, the customers, space, investments. They and to leveraging are majority but within with some on But commercial say model. A&D that is definitely we the sector. the majority are the

Steve Manko

this is, past, had we've what mentioned, programs. And tool again, than not which truly see much when individual as size, we one-off in larger you for investments the of

bot development that there platform, many could customers build and revenues that platform Although see tool be this that's road. here out purposes. still business a really size, you it's part the or to model, can offered will tool be to for a down our that case, it's of be contribution of and one still by the and When

of So when development indication customers good see growth this coming significant than again, investments coming size you off of to that's that in in a future years manufacture number a with platform. of

Operator

questions I'll closing further back this no remarks. are at to Mr. time. over the Sandman, call There you turn for

Thomas Sonderman

and all the conveying strong I at our to long-term to us call confidence and operator. you, execute of Thank today's profitability successfully SkyWater by our towards want close objectives. growth ability have

in We forward I call to X-year to our call. exceeding now objectives a confidence that, targets. and to in growth again on May. And of employees profitability well. QX continue ability intend our look our amazing future Thank today's to execute revenue Our to you. growth earnings talking have conclude with on We delivered our build as annual you long-term your will rate X%,

Operator

- And again, this participation. you concludes your for today's conference Thank call.

may disconnect. now You

SkyWater Technology (SKYT) 26 Feb 242023 Q4 Earnings call transcript