SkyWater Technology, Inc
SKYT NASDAQ

SKYT
SkyWater Technology, Inc NASDAQ
 
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Upcoming Earnings
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Jul 292021

SkyWater loses big on the back of weak earnings

Recently listed semiconductor engineering company SkyWater Technologies sinks to its lowest price since its IPO to top TradingView’s loser list this week after disappointing preliminary Q2 results sent shares down over 45%.

SkyWater Technologies, which is a semiconductor engineering and fabrication firm, saw its shares plummet 45% on Tuesday as investors reacted to a new investment and a disappointing second quarter outlook. SkyWater only went public on April 21, when its shares opened 11% above the IPO price of $14 per share, popping to $18.68 before closing the day at $17.74. The stock has had a good run since then, reaching a peak of $34.43 in June on the back of pleasing Q1 results and an open chip design collab for its latest product with community chip creation platform Efabless.

Prices have stayed steady since then, trading between the $25 and $30 mark, but Tuesday’s losses took the stock right down to $15.75, only slightly above its IPO price, which raised $112 million in capital. SkyWater expects to bring in up to $41.5 million in revenue for Q2, significantly lower than the $50 billion analysts were expecting. That will result in a net loss of between $7 million and $8 million. Analysts were expecting the company to post its final loss in 2021 before breaking even in 2022, but SkyWater will now need a much faster growth rate to achieve that.

To take the sting out of things, the firm is looking to expand its capabilities after its board of directors has also approved a $56 million strategic capital investment into expanding its Minnesota facility, with the aim of accelerating its entry into the latest chip design markets.

These strategic investments evidence our commitment to our customers to co-create emerging technologies and help ensure we are in position to deliver long-term value to our shareholders. We believe our investment in GaN technologies -- which expand possibilities for next generation microelectronics -- enhances SkyWater's position for leadership in the aerospace and defense, industrial and automotive markets,

CEO Thomas Sonderman said.

Prices rebounded slightly on Wednesday, lifting 11%.