SkyWater Technology, Inc. (NASDAQ:SKYT) Q4 2022 Earnings Conference Call February 13, 2023 4:30 PM ET

Company Participants

Claire McAdams - Investor Relations

Thomas Sonderman - President & Chief Executive Officer

Steve Manko - Chief Financial Officer

Conference Call Participants

Krish Sankar - Cowen & Company

Raji Gill - Needham & Company

Natalia Winkler - Jefferies

Harsh Kumar - Piper Sandler

Richard Shannon - Craig Hallum

Operator

Please standby, we’re about to begin. Good afternoon, ladies and gentlemen. Welcome to the SkyWater Technology Fourth Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode and please be advised that this call is being recorded. After the speakers' prepared remarks, there will be a question-and-answer session. [Operator Instructions]

And at this time, I'll turn things over to Ms. Claire McAdams, Head of Investor Relations. Ms. McAdams, please go ahead.

Claire McAdams

Thank you, Operator. Good afternoon and welcome to SkyWater's fourth quarter fiscal 2022 conference call. With me on the call today from SkyWater are Thomas Sonderman, President and Chief Executive Officer; and Steve Manko, Chief Financial Officer. I'd like to remind you that our call is being webcast live on Skywater's Investor Relations website at ir.skywatertechnology.com. The webcast will be available for replay shortly after the call concludes. On our IR website, we have also posted an investor slide presentation to accompany today's call.

During the call, any statements made about our future financial results and business are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. 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 our fiscal 202110-K filed on March 10 of last year and subsequent 10-Q filings. All forward-looking statements are made as of today and we assume no obligation to update any such statements. During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings release as well as in our Q4 earnings presentation both of which are available on our Investor Relations website.

With that, I'll turn the call over to Tom.

Thomas Sonderman

Thank you, Claire and good afternoon to everyone on the call. We are pleased to report a strong finish to 2022 with new records achieved in quarterly revenues, gross profit and EBITDA. Q4 revenues exceeded our expectations and were a record $65.1 million, growing 24% higher than our previous record set in Q3. This revenue upside helped drive fiscal 2022 growth above our long-term target of 25% to $213 million for the year. The record revenue level, along with strong gross margin performance in the second half helped drive the significant improvement in our 2022 financial metrics which included record EBITDA for Q4 and overall positive EBITDA generation for the full year.