SkyWater Technology, Inc. (NASDAQ:SKYT) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET

Company Participants

Claire McAdams - IR
Thomas Sonderman - President & CEO
Steve Manko - CFO

Conference Call Participants

Nicolas Doyle - Needham & Company
Krish Sankar - TD Cowen
Robert Aguanno - Piper Sandler

Operator

Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to the SkyWater Technology Q1 2024 Financial Results Conference Call all lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to Claire McAdams, Investor Relations for SkyWater. Claire, please go ahead.

Claire McAdams

Thank you, operator. Good afternoon, and welcome to SkyWater's first quarter 2024 conference call. With me on the call today from SkyWater are Thomas Sonderman, 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 posted an investor slide presentation to accompany today's call as well as a financial supplement which summarizes our quarterly and annual financial results for the last three years, including all non-GAAP adjustments and comparisons to our GAAP results, as well as the impact of tool sales on our gross margins.

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 and our fiscal 2023 Form 10-K.

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, our financial supplement and in our Q1 earnings presentation, all three of which are posted on our Investor Relations website.

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

Thomas Sonderman

Thank you, Claire, and good afternoon to everyone on the call. I'm pleased to report another record quarter for SkyWater with revenue up $80 million. ATS development revenue exceeded our expectations to reach a new record of $61 million, up 7% from Q4 and up 28% compared to Q1 of 2023. This growth was driven by continued strength in our aerospace and defense, quantum computing and biomedical programs.