In September, I attended Purdue's Annual Career Day with multiple federal and state government officials to discuss the role of universities like Purdue in creating the workforce of the future, which is a crucial component of CHIPS Act funding. Wafer Services revenue was $17.2 million, down slightly from Q2 and up 36% from Q3 of last year. My second question is related to opex. During the RH90 base program phase, we work with our partners to firmly establish key components of the growing RH90 ecosystem. There's a base program amount and then there's a series of options, again, much like the first award, the way to model that, I'll let Steve provide more detail, but I wouldn't say it would be something you just linearize over the next two years. ET. This included an initial PDK, a multi-project wafer, or MPW shuttle capability, coupled with our early access partner program and the engagement with IP providers to develop SRAM compilers and the embedded FPGA IP needed to make designing and RH90 more efficient for our partners. Just the real world doesn't work that easy. Or is there different treatments for different relief that you get to the CHIPS Act? Or is there still another quarter or two of funding from that desk still making its way through the P&L? Is that the right way to think about it? We expect continued strong EBITDA ahead for Q4. Finally, I'm pleased to announce a recent milestone for one of our emerging memory solutions. In September, we commenced an at-the-market program for up to $100 million under the shelf, and we sold $2.7 million of equity through that program at an average price of $9.92 per share in Q3. You're getting grants to expand the Florida facility. Thanks, Steve. All these announcements and developments demonstrate the importance that public-private partnerships play toward furthering our unique semiconductor manufacturing model, both commercially and for the U.S. government, which brings me to an update on our strategies related to the CHIPS Act, including our partnership with Purdue University and the State of Indiana. On the debt side, apart from the $37.1 million of debt for our variable interest entities, our primary facility is a revolver that was put in place nearly two years ago in December 2020 when we were a private company. Today, we are pleased to report record quarterly revenue of over $52 million, which reflects 10% sequential growth from Q2 and approximately 50% growth over Q3 of last year. And that would be going away from ATS derived dollars to Wafer Services dollars. Our ATS business was a primary driver of our growth in Q3 with sales up 18% sequentially and 57% year over year, reflecting the continued momentum we are gaining with multiple key customers in 2022. Given the significant improvement in gross margin and relatively consistent operating expenses, adjusted EBITDA turned positive in Q3, as we indicated last quarter and was favorable to forecast at $3.8 million. So that has been awarded. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. With that, I'll turn the call back to Claire, and welcome your questions on SkyWater. This reversal was for an estimated expense we had been recording through 2022 related to insurance on our employee benefit program, which was refunded in Q3 and which positively impacted gross margin by 140 basis points. On today's call, I have communicated multiple examples to demonstrate SkyWater's prominence in the future of our country's semiconductor ecosystem, which we expect to provide the foundation for above-industry growth in years to come. Piper Sandler Managing Director Edward Yruma joins Yahoo Finance Live to break down survey data on teenage spending habits and what brands younger consumers are buying the most. Great. In August, we filed a universal shelf registration statement for up to $250 million. Could you talk about nongovernment activity here? Chewy and Amazon 'well-positioned' for the changing macro environment - Wells Fargo Virgin Galactic (SPCE) macroeconomic headwinds continue to mount, says analyst That's the open source initiative and then another $12 million for IP development. Valued at nearly $100 million, this award demonstrates the competitive strengths of RH90 platform and the commitment of the DoD to continue its significant investment in SkyWater as we successfully execute the program. Thank you and congratulations on great results and positive momentum across all the metrics. Wondering how we should think about capex in relationship to the CHIPS Act? First, we have a legacy wafer services business, which represents the majority of our fab utilization, absorbing most of our fixed cost, but generating little margin. With this level of performance against our stated objectives this year, we are delivering on our promises for better predictability in our results, increased visibility and more consistent execution toward our stated financial and business objectives. The underbanked represented 14% of U.S. households, or 18. First just going back to the Phase 1 portion, has the funding for that for Phase 1 have been completed now? You guys talked about increased momentum with customers. And that's exactly what we're seeing is multiple programs ramping in parallel. The Commons program has been launched by the Department of Defense. Now, I'll turn to the balance sheet. WebMillions of real salary data collected from government and companies - annual starting salaries, average salaries, payscale by company, job title, and city. As part of our Build Back Better award, we expect to be placing orders for our first key pieces of equipment within the next few months to support the M-Series capability in Florida. The lists do not show all contributions to every state ballot measure, or each independent expenditure committee In August, we filed a universal shelf registration statement for up to $250 million. This included an initial PDK, a multi-project wafer, or MPW shuttle capability, coupled with our early access partner program and the engagement with IP providers to develop SRAM compilers and the embedded FPGA IP needed to make designing and RH90 more efficient for our partners. This reflects a total cost of revenue decline to $44 million in Q3, which benefited from a onetime cost reversal of $800,000. And for my follow-up. And so, we're going to continue to execute the business at the pace we've been executing. Given our strong ATS pipeline, we will be recruiting and looking to hire additional engineers into our organization. Macroaxis is a sophisticated yet simple to use personalized wealth optimization service that delivers measurable value in the form of improved return on investment portfolios of self-guided and socially-responsible investors. And I would just say that the attrition has stabilized, we're below our levels pre-IPO. Let me add my congratulations as a lot of this increased momentum here recently. Yes. Raji Gill -- Needham and Company -- Analyst. During the call, any statements made about our future financial results and business are forward-looking statements. There's the building of fabs, which is $39 billion. Weebit's ReRAM test chips have been fully integrated with SkyWater's S130 platform and are now entering the qualification phase. Hinweis: "Gehandelte Werte" Auszeichnungen beschreiben bisherige Eigenschaften von wikifolios und werden in der Regel tglich neu berechnet. Now, I'll turn to our strategic growth initiatives and biohealth and high-performance connectivity. WebMillions of real salary data collected from government and companies - annual starting salaries, average salaries, payscale by company, job title, and city. All of that has been consumed except for around $33 million. These important announcements included the Rad-Hard Phase 2 award progress on multiple fronts toward CHIPS Act funding for the Purdue fab and other growth projects, the Build Back Better Regional Challenge award funding our expansion in Florida, as well as a number of important partnerships and collaborations announced with Google, the National Institute of Standards and Technology, NanoDx, Trusted Semi and more, which brings me to a discussion on our primary strategic growth areas, starting with extreme environment microelectronics. 16th November. SkyWater Technology, Inc. (NASDAQ: SKYT) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. I guess, foundries in the U.S. are seeing a lot of attention and affection from the government. WebWe would like to show you a description here but the site wont allow us. This discussion focused on our company's value proposition for both the DoD and commercial technologies and how we are leveraging public-private partnerships in several states and on multiple programs. Yes, great question and good to hear your voice, Harsh. We anticipate annual stock-based compensation to be approximately $9 million for fiscal 2022 and continue at that run rate into 2023. In fact, we significantly exceeded our gross margin forecast for the quarter, as Steve will detail in his prepared remarks. Do Not Sell My Personal Information (CA Residents Only). In the case of Google, it's a derivative of that Rad-Hard platform. Our work in collaboration with Google to create an open source derivative of the 90 nanometer FD-SOI technology is underway and is expected to trigger a new wave of design activity as it has with our existing SKY130 open source initiative. Thank you. That's both our historical customer Infineon and some of our new volume customers, as well as all of our ATS partners. Does this all go against capex and then you have assets put on your balance sheet at a lower level and your depreciation is lower. Is that the right way to think about it? We anticipate annual stock-based compensation to be approximately $9 million for fiscal 2022 and continue at that run rate into 2023. So Google is one partner, Trusted Semi Solutions and Case are the other partners. These important announcements included the Rad-Hard Phase 2 award progress on multiple fronts toward CHIPS Act funding for the Purdue fab and other growth projects, the Build Back Better Regional Challenge award funding our expansion in Florida, as well as a number of important partnerships and collaborations announced with Google, the National Institute of Standards and Technology, NanoDx, Trusted Semi and more, which brings me to a discussion on our primary strategic growth areas, starting with extreme environment microelectronics. And that's exactly what we're seeing. So that's a cost share model. Brian is charged with further deepening Sky SkyWater's relationships within all levels of government. As the only semiconductor company recipient of the EDA's Build Back Better Regional Challenge, this award was another example of our unique ability to leverage public-private partnerships to expand domestic semiconductor production. Do you feel that with all that's going on, you're in a relatively stable position from here on as you kind of sound like you're kind of footing here? Now, I'll turn to our strategic growth initiatives and biohealth and high-performance connectivity. I guess, foundries in the U.S. are seeing a lot of attention and affection from the government. And for my follow-up. *Stock Advisor returns as of November 7, 2022. That one is a little bit more tangible on how that goes. Our upcoming investor activities include the Craig-Hallum Alpha Select Conference next week, the New York City Summit on December 13 and the Needham Growth Conference in January. That, of course, will be a driver of some of that absorption. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. The webcast will be available for replay shortly after the call concludes. As you update your SkyWater models, the following is some additional color for various components of our P&L for the remainder of fiscal 2022 and early 2023. The webcast will be available for replay shortly after the call concludes. They just revealed what they believe are the ten best stocks for investors to buy right now and SkyWater Technology, Inc. wasn't one of them! You're getting funding, I believe, from the Minnesota fab to help expand there. I'll let Tom talk about SkyWater Florida and heterogeneous integration. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. And I would just say that the attrition has stabilized, we're below our levels pre-IPO. You just outlined geopolitically with the economy. As a reminder, there are three elements of our technology road map underway in Florida, IBAS, Deca and our work with Adeia. Quarterly SG&A expenses are expected to be approximately $10 million to $10.4 million, excluding stock-based compensation. So you can look at Florida, taking immediate advantage of the Build Back Better grant, but that's independent of CHIPS. The next phase is a rigorous effort that includes radiation and reliability testing and further development of IP design libraries that will enable our design and manufacturing ecosystem partners to produce processors, security engines, memory devices interface ASICs and other mission-critical strategic solutions. But it's important to note that for the next couple of years, we aren't expecting any chips dollars. Piper Sandler & Co. P.S. Could you talk about nongovernment activity here? For a discussion of these risks and uncertainties, please refer to our filings with the Securities and Exchange Commission, including our earnings release filed on Form 8-K today and our fiscal 2021 10-K filed on March 10. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG And a large percentage of them actually are nongovernment. So as you consider these three components of our cost structure, Wafer Service is keeping the fab full, ATS adding significant accretion to margin as we increase the volume of R&D wafers moving through the fab and $8 million to $9 million per quarter of costs that will either phase out or become absorbed as we grow these programs in the next few years, you can see how we quickly ramp gross margins toward our long-term targets, and we expect Q4 gross margin performance to be at a similarly strong level as Q3. ADNOC Drilling's IPO was completed on October 3, 2021, and [Operator instructions] And we will take our first question from Raji Gill with Needham & Company. Thank you. That's all I have. So the way that we look at it, we look at the depreciation that we're incurring right now related to the RH90 program, we look at that as not being absorbed right now. Demand for domestically sourced hybrid bonding technology solutions to enable more compact and powerful heterogeneously integrated micro systems continues to be extremely high, and we expect additional customer engagements in Q4 and beyond. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. On the debt side, apart from the $37.1 million of debt for our variable interest entities, our primary facility is a revolver that was put in place nearly two years ago in December 2020 when we were a private company. Last quarter, we reported on our historic partnership with Purdue and the State of Indiana to build a new 300-millimeter semiconductor fab on Purdue's campus. So they typically have a really nice return on investment. This August, at our Bloomington headquarters, Senator Amy Klobuchar held a press conference highlighting the importance of key technology providers in Minnesota. Yes Raj, the Florida team continues to execute well on multiple fronts, three of them really creating enabling technology around interposers, fan-out and hybrid bonding. Following a bumpy launch week that saw frequent server trouble and bloated player queues, Blizzard has announced that over 25 million Overwatch 2 players have logged on in its first 10 days. WebWe would like to show you a description here but the site wont allow us. Working with Deca, we have also completed installation of our adaptive patterning engine, which is a key enabling capability for the Deca process technology. Very nice guys. That's all I have. Our ATS business was a primary driver of our growth in Q3 with sales up 18% sequentially and 57% year over year, reflecting the continued momentum we are gaining with multiple key customers in 2022. Ms. McAdams, you may begin your conference. We also complement that with $9 million of our own investment. On today's call, I have communicated multiple examples to demonstrate SkyWater's prominence in the future of our country's semiconductor ecosystem, which we expect to provide the foundation for above-industry growth in years to come. Copy and paste multiple symbols separated by spaces. And that's exactly what we're seeing. That's right -- theythink these 10stocks are even better buys. On an ongoing basis, you should look at our Q3 non-GAAP gross margin performance as improving to 15.4%. Invest in what you are passionate for or care about. Wondering how we should think about capex in relationship to the CHIPS Act? Now, that we are over a year past the IPO, we view this filing as part of our holistic approach to capital planning and is one component of various alternatives to fund strategic growth initiatives. And also related to Phase 2, as it progresses over the next two years, I think you mentioned until production revenues, should we think about that $100 million for Phase 2 being spread decently over the next eight quarters? Last month, we returned to Purdue to host an executive roundtable with customers and suppliers, discussing how we intend to leverage our unique technology as a service business model to create long-term strategic partnerships in Indiana that will enable synergistic innovation, fast track secure manufacturing, strengthen domestic supply chains and foster national security. But we also talked about some of the challenges with ongoing maintenance technicians in our facility. It will just be more so be a competition for talent and how quickly we can hire those engineers over the course of 2023 and to keep growing our business and not only growing our business but to move faster with our current programs that we have. Mark, good question. Piper Sandler Managing Director Edward Yruma joins Yahoo Finance Live to break down survey data on teenage spending habits and what brands younger consumers are buying the most. The resulting flow through to gross margin on the incremental revenues above the mid-$40 million breakeven level was well above 50%. We'll also be using some subcontractors just like we did in Phase 1 of the program. CORNERSTONE ENVIRONMENTAL CONSULTING [email protected] ADSPO18-207064 So we're cautiously optimistic with the business as we're running right now, but we're also cognizant of the fact that we're in an inflationary environment. So the movement into productization is really about getting to a frozen process of which then you go through extensive qualification and continued work toward yield entitlements so that when we begin to exit '24 and going to '25, we can begin to actually start producing product on this platform. Fair enough. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The resulting flow through to gross margin on the incremental revenues above the mid-$40 million breakeven level was well above 50%. Thank you, Steve. This award funds the productization and qualification phase, which will continue for the next two years leading up to volume production. I'd like to remind you that our call is being webcast live on SkyWater's investor relations website at ir.skywatertechnology.com. ET. We can just think I didn't evenly divide it over the next eight quarters. This is with our partners. In Q3, we exceeded our gross margin forecast primarily due to continued improvements in fab efficiency, the commencement of Phase 2 of the Rad-Hard program, which began earlier in the quarter than expected and execution of our cost reduction plan. 16th November. I'd like to remind you that our call is being webcast live on SkyWater's investor relations website at ir.skywatertechnology.com. This reflects a total cost of revenue decline to $44 million in Q3, which benefited from a onetime cost reversal of $800,000. Ladies and gentlemen, good afternoon. During September 2021, the Company made a $100.0 million cornerstone investment in ADNOC Drilling in advance of its announced IPO, representing 159.7 million shares of ADNOC Drilling, equivalent to a one percent ownership stake and subject to a three-year lockup period. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. With our current visibility, we expect the first quarter of 2023 will show strong year-over-year growth. This award funds the productization and qualification phase, which will continue for the next two years leading up to volume production. This is a critical step toward commercializing a revolutionary new product for on-site diagnosis of traumatic brain injuries. We'll also be using some subcontractors just like we did in Phase 1 of the program. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. I'll now turn the call over to Steve for more information on SkyWater's financial and operational performance in the third quarter. Interest expense was $1.3 million in the quarter, and with no tax benefit, the GAAP net loss was $0.17 per share and the non-GAAP net loss was $0.13 per share. The other is as the fab begins to exercise more of the ATS engine, you'll see some of that cost be absorbed just because there'll be more activity going on, which, of course, generates more revenue. That's great to see. You guys talked about increased momentum with customers. That's both our historical customer Infineon and some of our new volume customers, as well as all of our ATS partners. We've talked about some of the challenges that we've had, but also the positive results in overcoming those challenges. And that's really what we've been focused on is making those programs move faster. We believe we have a lot of committed customers that want to continue to grow with us. This program has now moved into the Phase 2 and Phase 3 stages of platform development with completion expected in early 2023. Based on our demonstrated success and prominent profile building between Senator Klobuchar's visit to Bloomington, continued momentum building in Purdue, Senator Rubio's visit in Kissimmee and our strong relationship with the Departments of Commerce and Defense, we believe we are in excellent position to be an essential player in the rebirth of the semiconductor industry in our country. Also last month, we announced that the DoD is funding $12 million from the Phase 1 award announced last quarter for further IP ecosystem development, highlighting the importance of our partnerships with Trusted Semiconductor Solutions and Case. The other is -- and Steve has talked about this before, is each of these ATS programs tend to start out at a relatively small spend rate and then they ramp as you get into the kind of two years and beyond time frame. WebU.S. Again, those are typically revenue-generating engineers. Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. I appreciate that. Thanks, Tom. This article is a transcript of this conference call produced for The Motley Fool. We also continue to expand our current ATS programs, leading to increased ATS revenues in the quarter. I'll talk about the amount related to the RH90 program, and I'll have Tom talk a little bit more about how that will be absorbed as the SkyWater Florida operations go and heterogeneous integration. The higher level of legacy wafer services business is providing a higher base from which to grow, and we started several new products and designs with our seven Wafer Services customers. Could you describe the accounting treatment that you would anticipate applying for -- in the event that you receive grants or funding or investment tax credits? On November 9, investment advisory Piper Sandler raised the firms price target on Phillips 66 (NYSE:PSX) to $155 from $116 and kept an Overweight rating on the shares. The Motley Fool has no position in any of the stocks mentioned. I'll adjust it in two ways. Yes. We also complement that with $9 million of our own investment. sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31 billion. Quarterly SG&A expenses are expected to be approximately $10 million to $10.4 million, excluding stock-based compensation. Or is more head count would be needed given the current growth outlook going into next year? As a follow-up, the world is changing. While not directly related to the CHIPS Act, being the only semiconductor recipient of the Build Back Better Challenge is yet another illustration that we're uniquely positioned to receive additional government awards. This is with our partners. For 2022, our considerable progress on revenue growth in the first nine months substantially derisks our 25% growth objective. Your line is open. Chewy and Amazon 'well-positioned' for the changing macro environment - Wells Fargo Virgin Galactic (SPCE) macroeconomic headwinds continue to mount, says analyst That's when you can expect to see -- and we believe that those costs will start to be absorbed. And we will take our next question from Mark Lipacis with Jefferies. WebDiscover thousands of sustainable investment opportunities across different asset classes. As a follow-up, the world is changing. We continue our technology transfer efforts with Adeia for ZiBond and DBI hybrid wafer bonding technologies. Brian is based in Washington, D.C. and brings extensive public policy experience, having served in a variety of public and private roles within the government affairs realm. Additionally, as a reminder, our acquisition accounting related depreciation of about $4 million per quarter will phase out beginning in early 2024. The increase over Q2 was fairly evenly split between R&D and SG&A. Your line is open. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. And that's really important because now as we hire people, we're getting them trained, they're wanting to stay at SkyWater and our ability to get to what we call employee effectiveness is the cycle time is getting much shorter because we've also been investing in how we do training, making more effective and allowing people to move through that process at a faster pace than previously. As we always talk, we use the currency of activities to define how our business is running, and we're continuing to see increased activities in the Florida operation, which, again, will help us absorb some of the fixed costs as we prepare to go into more volume production, primarily in the 2024 time frame. The other is -- and Steve has talked about this before, is each of these ATS programs tend to start out at a relatively small spend rate and then they ramp as you get into the kind of two years and beyond time frame. Invest Bank in major tech overhaul with Temenos and NdcTech Invest Bank is one of the first in the UAE to adopt a full SaaS model for digital and core banking systems. WebAll 1080p Micro 1080p Micro 720p Micro 2160p Xvid. Second phase is productization and qualification. Good afternoon, and welcome to SkyWater's third quarter fiscal 2022 conference call. So my first question is really on the unabsorbed fixed costs for some of the long-term investments that you outlined, whether it's for Minnesota or for Florida and the Rad-Hard facility. During September 2021, the Company made a $100.0 million cornerstone investment in ADNOC Drilling in advance of its announced IPO, representing 159.7 million shares of ADNOC Drilling, equivalent to a one percent ownership stake and subject to a three-year lockup period. While there is some development work that's currently taking place, we separate that from the manufacturing cost when we put the depreciation as a manufacturing cost. We were able to execute it very quickly once the award was received because a lot of that work was already in progress because we've been doing the development for multiple years now. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. This is a critical step toward commercializing a revolutionary new product for on-site diagnosis of traumatic brain injuries. We're seeing some of that in the numbers. We have multiple development programs. In August, we and our partner, NanoDx, announced the first commercially ready nano biosensor to yield a protein response. The Commons program has been launched by the Department of Defense. "Sinc We expect that to materialize over the next 24 to 30 months depending upon, again, when tools arrive, when projects get initiated. So you have funding coming from the government to help expand these facilities, which ultimately are going to generate volume and revenue for you at which the capex is being helped by the U.S. government. And I will turn the conference over to Claire McAdams, investor relations for SkyWater. Like the additional Phase 1 award announced last quarter, the Phase 2 award has been funded and launched and was a significant driver of our sequential revenue growth in Q3, as well as the additional more modest uptick in sales expected in Q4. Really the only clarity that we would have would be anything that we would do, what I'll call, somewhat separate from ships on the 25% tax credit. While ATS R&D wafer volumes are relatively low compared to the overall fab output, they generate far more revenue per wafer, which is resulting in significant gross margin accretion as we ramp our growing pipeline of ATS programs. What time frame do you think that those fixed costs will be offset either by the current volume of revenue that you see now and then kind of the new revenue that you're anticipating from the Florida facilities is going to be basically absorbed in sometime in the first half of 2023? It's going to have ebbs and flows. And then, there's $11 billion for R&D and innovation. With our strong performance in Q3 and current outlook for Q4, we expect we will achieve or exceed our long-term revenue growth target of 25% this year. With the Purdue fab serving as a cornerstone of our country strategy to enable the resurgence of semiconductor manufacturing in the United States, we believe that we are uniquely positioned to leverage all four pillars of CHIPS funding as we continue to build momentum not only in Indiana, but also in Minnesota and Florida. And I will turn the conference over to Claire McAdams, investor relations for SkyWater. While ATS R&D wafer volumes are relatively low compared to the overall fab output, they generate far more revenue per wafer, which is resulting in significant gross margin accretion as we ramp our growing pipeline of ATS programs. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG The other is as the fab begins to exercise more of the ATS engine, you'll see some of that cost be absorbed just because there'll be more activity going on, which, of course, generates more revenue. Hinweis: "Gehandelte Werte" Auszeichnungen beschreiben bisherige Eigenschaften von wikifolios und werden in der Regel tglich neu berechnet. Hi. So just curious, how should we think about the CHIPS Act relative to kind of your internal kind of capex projects? As a reminder, there are three elements of our technology road map underway in Florida, IBAS, Deca and our work with Adeia. So overall, we're feeling really good about where we're at with the headcount situation. Thanks for taking my question. Moving now to operating expenses. And then, as far as the $99 million, this was for the second phase. As I've also said, there's four elements to CHIPS. As you update your SkyWater models, the following is some additional color for various components of our P&L for the remainder of fiscal 2022 and early 2023. ADNOC Drilling's IPO was completed on October 3, 2021, and We have the biohealth space we've talked about, the connectivity space, also the high-performance computing space. Then in September, we announced a $36 million grant from the Department of Commerce to expand our heterogeneous integration facility in Kissimmee in partnership with Osceola County and BRIDG. For IBAS, we completed Phase 1 of the government-funded interposer technology development program, establishing a proven capability to support BRIDG interposer fabrication to strengthen national security for critical emerging technologies. I think you mentioned the $36 million grant. OK. Total revenue for the third quarter of 2022 was $52.3 million, which was up 10% from Q2 and up 49% from the third quarter of last year. WebWe would like to show you a description here but the site wont allow us. The Motley Fool has no position in any of the stocks mentioned. This is tied to two programs we've announced. And we will take our next question from Krish Sankar with Cowen. Following a bumpy launch week that saw frequent server trouble and bloated player queues, Blizzard has announced that over 25 million Overwatch 2 players have logged on in its first 10 days. During the call, any statements made about our future financial results and business are forward-looking statements. On a non-GAAP basis, which excludes equity-based compensation and Florida start-up costs, operating expenses were $12.1 million compared to $11.5 million in Q2. On our IR website, we also have posted an investor slide presentation to accompany today's call. And I think our model is uniquely positioned to take advantage of that. All forward-looking statements are made as of today, and we assume no obligation to update any such statements. So you have funding coming from the government to help expand these facilities, which ultimately are going to generate volume and revenue for you at which the capex is being helped by the U.S. government. How your sort of commercial customers are responding to what's going on at the fab? You're getting grants to expand the Florida facility. In addition, we are working with an alpha customer on our first hybrid bonding ETS engagement. So as you consider these three components of our cost structure, Wafer Service is keeping the fab full, ATS adding significant accretion to margin as we increase the volume of R&D wafers moving through the fab and $8 million to $9 million per quarter of costs that will either phase out or become absorbed as we grow these programs in the next few years, you can see how we quickly ramp gross margins toward our long-term targets, and we expect Q4 gross margin performance to be at a similarly strong level as Q3. These symbols will be available throughout the site during your session. I'll start with the recent appointment of Brian Lenihan as our vice president of government relations. And that way, they're positioned for the next upswing. We can just think I didn't evenly divide it over the next eight quarters. Our total cost of revenue in Q3 included approximately $4.6 million of unabsorbed costs. That is in flight. Today's conference is being recorded. Just the real world doesn't work that easy. There's CHIPS Act money coming, this increased geopolitical tension as a result. WebDiscover thousands of sustainable investment opportunities across different asset classes. That's why we continue to hire more engineers that allows us to accelerate those programs. But it is going to be over the course of the next, what we'll call, two years in a quarter, all the way up into production in 2025. Our work in collaboration with Google to create an open source derivative of the 90 nanometer FD-SOI technology is underway and is expected to trigger a new wave of design activity as it has with our existing SKY130 open source initiative. WebMillions of real salary data collected from government and companies - annual starting salaries, average salaries, payscale by company, job title, and city. Last quarter, I detailed how we believe our business is uniquely buffered from industry downturns and that two thirds of our revenue comes from R&D budgets. The first question I wanted to ask about either Tom or Steve is related to the RH90 program. Please visit the investor relations section of our website for other upcoming presentations. Do you feel that with all that's going on, you're in a relatively stable position from here on as you kind of sound like you're kind of footing here? To make the world smarter, happier, and richer. Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. As we always talk, we use the currency of activities to define how our business is running, and we're continuing to see increased activities in the Florida operation, which, again, will help us absorb some of the fixed costs as we prepare to go into more volume production, primarily in the 2024 time frame. Thank you, Steve. The team is also preparing to go into production. ET, SkyWater Technology, Inc. (SKYT) Q2 2022 Earnings Call Transcript, SkyWater Technology, Inc. (SKYT) Q1 2022 Earnings Call Transcript, SkyWater Technology, Inc. (SKYT) Q4 2021 Earnings Call Transcript, SkyWater Technology, Inc. (SKYT) Q3 2021 Earnings Call Transcript, What Cathie Wood and Her Team Think About Crypto Right Now, A Bull Market Is Coming -- 3 Ways Warren Buffett Is Preparing, 1 ETF That Could Make You a Stock Market Millionaire With Little to No Effort, 3 Elite Dividend Stocks With at Least 10% Upside Potential, According to Wall Street, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. But I think when you look at CHIPS that just derisk the long term because there is a commitment within our country now to do more. So I would say, at this point in time, it's really hard to say specifically how that accounting would flow and the timing of when that would occur, given that we're still trying to understand how the money flows, what partners we would use and what the construct of those contracts would truly look like at this point. And are they also increasing the activity along with the government? Image source: The Motley Fool. In September, I attended Purdue's Annual Career Day with multiple federal and state government officials to discuss the role of universities like Purdue in creating the workforce of the future, which is a crucial component of CHIPS Act funding. All these announcements and developments demonstrate the importance that public-private partnerships play toward furthering our unique semiconductor manufacturing model, both commercially and for the U.S. government, which brings me to an update on our strategies related to the CHIPS Act, including our partnership with Purdue University and the State of Indiana. SkyWater Technology, Inc. (NASDAQ: SKYT) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. SkyWater Technology, Inc. (SKYT 4.53%) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. Or is there a certain ramp profile to that spending? Great. Thanks for taking my question. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG The lists do not show all contributions to every state ballot measure, or each independent expenditure committee Today's conference is being recorded. And I think our model is uniquely positioned to take advantage of that. Hello, and welcome to Protocol Entertainment, your guide to the business of the gaming and media industries. Guys, I had a quick question. You're getting funding, I believe, from the Minnesota fab to help expand there. First, in August, we hosted Senator Marco Rubio at our SkyWater Florida facility to discuss the importance of IP protection and secure semiconductor manufacturing in the United States. So you can look at Florida, taking immediate advantage of the Build Back Better grant, but that's independent of CHIPS. That's $36 million of government investment. Now, I'll turn to the balance sheet. Yes. We expect total investments in Florida cost of revenue will continue to average approximately $2.5 million per quarter. Macroaxis is a sophisticated yet simple to use personalized wealth optimization service that delivers measurable value in the form of improved return on investment portfolios of self-guided and socially-responsible investors. Chewy and Amazon 'well-positioned' for the changing macro environment - Wells Fargo Virgin Galactic (SPCE) macroeconomic headwinds continue to mount, says analyst Advanced Technology Services, or ATS, revenue drove the majority of the growth and was $35.2 million, up 18% from Q2 and up 57% from Q3 of last year. Just kind of wondering, in terms of your current staffing levels, would you say that you're currently, I guess, appropriately sized, given all of the revenue opportunities that you have for ATS and Wafer Services? We discussed how our success with the RH90 program is a prime example of our differentiated approach for strengthening the domestic semiconductor manufacturing ecosystem. So overall, we're feeling really good about where we're at with the headcount situation. Last quarter, I focused on several aspects of the RH90 platform that make our technology the strongest option available for strategic extreme environment applications. Additionally, we have several other biohealth customers, all of which continue to receive development funding and strong customer interest. As we talked one of our biohealth customers continues to move toward their production ramp, which we believe will happen sometime over the next 12 to 18 months. Importantly, these incremental and more profitable customer programs are resulting in a significant flow through to gross profit. There's going to be a component of tool purchases that come through, and some of that $99 million will go to tool purchases. I'll start with the recent appointment of Brian Lenihan as our vice president of government relations. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. With me on the call today from SkyWater are Thomas Sonderman, president and chief executive officer; and Steve Manko, chief financial officer. Finally, I'm pleased to announce a recent milestone for one of our emerging memory solutions. Thank you, Tom. The Motley Fool has a disclosure policy. Prop 30 is supported by a coalition including CalFire Firefighters, the American Lung Association, environmental organizations, electrical workers and businesses that want to improve Californias air quality by fighting and preventing wildfires and reducing air pollution from vehicles. And then, as far as the $99 million, this was for the second phase. Learn More, SkyWater Technology, Inc.(SKYT -0.43%)Q32022 Earnings CallNov 07, 2022, 4:30 p.m. [Operator instructions] And we will take our first question from Raji Gill with Needham & Company. A highlight of Q3 was not only did we turn the corner to generate positive adjusted EBITDA, but it was a very healthy $3.8 million equal to 7% of revenue. Now, that we are a public company with access to the capital markets, have grown the assets on our balance sheet through additional tool and equipment acquisitions and increased our accounts receivable as a result of our increased revenues and return to positive adjusted EBITDA, we are actively engaged with several lending institutions in an effort to refinance and expand our credit facilities given our larger borrowing base. As part of our Build Back Better award, we expect to be placing orders for our first key pieces of equipment within the next few months to support the M-Series capability in Florida. WebAll 1080p Micro 1080p Micro 720p Micro 2160p Xvid. Thank you, operator. As I detailed last quarter, we also have multiple programs to complement RH90, allowing us to provide solutions into less stringent defense and commercial applications. It's going to have ebbs and flows. [Operator instructions] Thank you. Hey, guys. That's why we continue to hire more engineers that allows us to accelerate those programs. While not directly related to the CHIPS Act, being the only semiconductor recipient of the Build Back Better Challenge is yet another illustration that we're uniquely positioned to receive additional government awards. This is an important step toward establishing a performance differentiating next-generation memory technology onshore for a broad range of IoT, power management and advanced computing architectures. We have multiple development programs. Yeah. sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31 billion. Yes. Your line is open. Both are critical collaborators for the evolution of RH90 platform with Trusted Semi driving the development of the PDK and associated IP libraries and Case providing their qualification expertise for DoD systems, both of which we expect to accelerate productization for RH90 platform, ensuring it meets the rigorous demands of mission-critical extreme environment applications. We also continue to expand our current ATS programs, leading to increased ATS revenues in the quarter. There's CHIPS Act money coming, this increased geopolitical tension as a result. We see that being absorbed starting in 2025 as we talk about getting RH90 programs into production at that point in time. That's the open source initiative and then another $12 million for IP development. I would say it's pretty open-ended right now. In fact, we significantly exceeded our gross margin forecast for the quarter, as Steve will detail in his prepared remarks. It will just be more so be a competition for talent and how quickly we can hire those engineers over the course of 2023 and to keep growing our business and not only growing our business but to move faster with our current programs that we have. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Wafer Services sales were similar to Q2 and up 36% year over year. The lists do not show all contributions to every state ballot measure, or each independent expenditure committee Yes. Total revenue for the third quarter of 2022 was $52.3 million, which was up 10% from Q2 and up 49% from the third quarter of last year. We ended the quarter with $9.3 million in cash and cash equivalents. And that way, they're positioned for the next upswing. 4 days ago. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures on our earnings release, as well as in our Q3 earnings presentation, both of which are available on our investor relations website. Ms. McAdams, you may begin your conference. Quarterly research and development expenses are anticipated in the $2.3 million to $2.5 million range, excluding stock-based compensation. We also started to see the benefit of our cost reduction plan in the quarter as we were able to reduce our spend on outside services given our achievement of target headcount in certain areas of the organization, as well as a decrease in our nitrogen expenses as our upgraded nitrogen plant was fully operational during the third quarter after being shut down in the second quarter of 2022 for upgrades. However, on a sequential basis, we currently expect Q1 2023 will be similar to Q4 2022. Type a symbol or company name. That one is a little bit more tangible on how that goes. Since our last call, we've made several important announcements that build upon the momentum we've been gaining throughout 2022, strengthening the foundation for consistent quarterly revenues above the $50 million level and further establishing SkyWater as a critical player in the future of our country's semiconductor supply. We were able to execute it very quickly once the award was received because a lot of that work was already in progress because we've been doing the development for multiple years now. WebWe would like to show you a description here but the site wont allow us. With me on the call today from SkyWater are Thomas Sonderman, president and chief executive officer; and Steve Manko, chief financial officer. With our strong performance in Q3 and current outlook for Q4, we expect we will achieve or exceed our long-term revenue growth target of 25% this year. Steve, anything to add on the lumpiness in terms of the RH90 funding? Following a bumpy launch week that saw frequent server trouble and bloated player queues, Blizzard has announced that over 25 million Overwatch 2 players have logged on in its first 10 days. Wafer Services revenue was $17.2 million, down slightly from Q2 and up 36% from Q3 of last year. On our Augustearnings call we indicated that the Phase 2 award was imminent, and we are pleased to make this important announcement in September. And a portion of that, like I mentioned, we'll be using subcontractors and tool vendors with that $99 million of funding as well. As expected, gross margin also benefited from a more favorable revenue mix, given that ATS revenue increased to 67% of sales. In addition, we believe the recent announcement highlighting the NIS Google collaboration for open source design for researchers targeting these types of solutions will further accelerate the adoption of these platforms. And also related to Phase 2, as it progresses over the next two years, I think you mentioned until production revenues, should we think about that $100 million for Phase 2 being spread decently over the next eight quarters? The Motley Fool has a disclosure policy. As the only semiconductor company recipient of the EDA's Build Back Better Regional Challenge, this award was another example of our unique ability to leverage public-private partnerships to expand domestic semiconductor production. So this, along with what's going on in the commercial activity, if I was to just ask you how comfortable are you with the 25% growth for 2023 as well? Very nice guys. Steven Chin -- Cowen and Company -- Analyst. I would like to welcome everyone to the SkyWater Technology third quarter 2022 financial results conference call. This reflects the impact of sweep funding at the end of the government's fiscal year that resulted in strong sequential growth in Q3. WebWe would like to show you a description here but the site wont allow us. Piper Sandler Managing Director Edward Yruma joins Yahoo Finance Live to break down survey data on teenage spending habits and what brands younger consumers are buying the most. As I detailed last quarter, we also have multiple programs to complement RH90, allowing us to provide solutions into less stringent defense and commercial applications. So again, I understand that you guys are embarking on this Phase 2 $100 million program with the DoD now which trouble getting a few details here. My name is Abby, and I will be your conference operator today. So first phase was development. Last month, we returned to Purdue to host an executive roundtable with customers and suppliers, discussing how we intend to leverage our unique technology as a service business model to create long-term strategic partnerships in Indiana that will enable synergistic innovation, fast track secure manufacturing, strengthen domestic supply chains and foster national security. The increased revenue levels in both ATS and Wafer Services continue to support our revenue growth targets for 2022. We also started to see the benefit of our cost reduction plan in the quarter as we were able to reduce our spend on outside services given our achievement of target headcount in certain areas of the organization, as well as a decrease in our nitrogen expenses as our upgraded nitrogen plant was fully operational during the third quarter after being shut down in the second quarter of 2022 for upgrades. Additionally, we have several other biohealth customers, all of which continue to receive development funding and strong customer interest. OK. Below are lists of the top 10 contributors to committees that have raised at least $1,000,000 and are primarily formed to support or oppose a state ballot measure or a candidate for state office in the November 2022 general election. This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. Sounds good. Yes, the original program was $170 million total award for the development phase. And with that, I'll turn the call over to Tom. Since our last call, we have put into place additional funding alternatives at our disposal as we continue our plans for growth. Given our strong ATS pipeline, we will be recruiting and looking to hire additional engineers into our organization. We are actively involved with that. On our August earnings call, we indicated that the Phase 2 award was imminent, and we are pleased to make this important announcement in September. Depreciation related to the Rad-Hard program was $1.4 million and SkyWater Florida incurred $3.2 million of cost of revenues in Q3. SkyWater Technology, Inc. (SKYT 4.53%) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. For a discussion of these risks and uncertainties, please refer to our filings with the Securities and Exchange Commission, including our earnings release filed on Form 8-K today and our fiscal 2021 10-K filed on March 10. We see this shelf as increasing the funding flexibility available to us with our current capitalization structure and enabling us to be nimble and act quickly when strategic opportunities arise. Total debt outstanding was $77.8 million, including $40.7 million on our revolver and $37.1 million for our variable interest entities, excluding unamortized debt issuance costs. And then, as I've also talked about, we've I've been working very hard as a company to integrate our ATS and wafer services business so that they run seamlessly inside the fab. So I believe we're well positioned for both of those. This reflects the impact of sweep funding at the end of the government's fiscal year that resulted in strong sequential growth in Q3. And obviously, we're not going to provide specific targets at this point, but I will say that we're optimistic about where we sit as a company and most importantly, our ability to really fine-tune this model that we're creating with this blended R&D, volume manufacturing capability. Depreciation related to the Rad-Hard program was $1.4 million and SkyWater Florida incurred $3.2 million of cost of revenues in Q3. Your line is open. Wafer Services sales were similar to Q2 and up 36% year over year. Your line is open. Great. And this is all around creating the design ecosystem for the RH90 platform. 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Dollars to wafer Services sales were similar to Q2 and up 36 % from Q3 of last year growth and! Are they also increasing the activity along with the government 's fiscal year that in. Either Tom or Steve is related to the balance sheet it over next! Take advantage of the program to CHIPS be similar to Q4 2022 the real world does n't that... N'T work that easy detail in his prepared remarks actually are nongovernment more profitable customer programs are resulting a... Design ecosystem for the next two years leading up to volume production be a driver of some of that in... Strive for our Foolish Best, there may be errors, omissions or! Gross margin forecast for the development phase darby and the Dead 2022 1080p HULU WEBRip 1400MB DD5 1 and. Should look at Florida, taking immediate advantage of that has been consumed except for around 33. Can just think I did n't evenly divide it over the next eight quarters are expected to approximately! 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