Featured Skywater Technology shares slip after execs signal a pinch in revenue

Published on November 2nd, 2021 📆 | 2255 Views ⚑

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Skywater Technology shares slip after execs signal a pinch in revenue

Shares in SkyWater Technology, the Bloomington-based chipmaker what went public this spring, fell sharply in after-hours trading Tuesday after it disclosed a hurdle to revenue from production constraints.

The company added eight new customers in the July-to-September quarter but faced significant headwinds, Thomas Sonderman, SkyWater’s chief executive, said.

Revenue grew 6% to $35 million, but supply chain and labor issues meant approximately $15 million in revenue has been delayed, Sonderman said.

The company reported a net loss of $13.9 million, or 36 cents a share in the quarter. It lost $1.7 million, or 9 cents a share, in the same period a year ago.

Adjusted for one-time event, SkyWater had a net loss of $11.5 million, or 29 cents a share. Analysts expected an adjusted loss of 14 cents a share. A year ago, SkyWater’s adjusted loss was loss was $800,000, or 4 cents a share, in the third quarter.

“Supply chain challenges and hiring constraints plus continued delays in the funding of existing United States government programs had a magnified near-term effect on the company,” Sonderman said in a statement.

SkyWater priced its IPO at $14 a share on April 21. Since then, its shares have generally traded well above that level and peaked at $36.80 a share in early September.

Shares closed Tuesday at $32.63 a share, down 4.7%, but following its post-trading earnings release, SkyWater shares fell 11% to around $28.90.

Revenue in advanced technology services unit, which develops new processes and chips for clients, fell 8% in the quarter to $22.4 million. Its wafer services revenue, which handles volume manufacturing for clients, was up 44% to $12.7 million.

By comparison, revenue in advanced technology services grew 43% in 2020 and 35% in the second quarter this year.

SkyWater has scheduled a conference call for 9 a.m. Wednesday for executives to discuss results further.

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