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. But all that has to be defined and has to be awarded. And are they also increasing the activity along with the government? And then, as far as the $99 million, this was for the second phase. Ms. McAdams, you may begin your conference. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. We believe the biohealth market remains an important growth area for SkyWater, and we look forward to discussing it in more detail in upcoming calls. We continue our technology transfer efforts with Adeia for ZiBond and DBI hybrid wafer bonding technologies. During this call, we will discuss non-GAAP financial measures. Steve, anything to add on the lumpiness in terms of the RH90 funding? 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. "Sinc "Sinc 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? 10 stocks we like better thanSkyWater Technology, Inc.When our award-winning analyst team hasa stock tip, it can pay to listen. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG That was a great update. There's a lot of unpredictability. Additionally, we have several other biohealth customers, all of which continue to receive development funding and strong customer interest. 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. And I would just say that the attrition has stabilized, we're below our levels pre-IPO. This reflects a total cost of revenue decline to $44 million in Q3, which benefited from a onetime cost reversal of $800,000. In addition, we are working with an alpha customer on our first hybrid bonding ETS engagement. Yes. CORNERSTONE ENVIRONMENTAL CONSULTING [email protected] ADSPO18-207064 Brian is charged with further deepening Sky SkyWater's relationships within all levels of government. Thank you and congratulations on great results and positive momentum across all the metrics. 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. Weebit's ReRAM test chips have been fully integrated with SkyWater's S130 platform and are now entering the qualification phase. 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. 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. 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. Like Q2, we achieved a higher level of overall ATS wafer moves in the quarter, which allowed us to achieve better fab utilization and margin performance. 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. We expect total investments in Florida cost of revenue will continue to average approximately $2.5 million per quarter. But all that has to be defined and has to be awarded. We expect total investments in Florida cost of revenue will continue to average approximately $2.5 million per quarter. Thomas Sonderman -- President and Chief Executive Officer. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG That's both our historical customer Infineon and some of our new volume customers, as well as all of our ATS partners. The Commons program has been launched by the Department of Defense. The lists do not show all contributions to every state ballot measure, or each independent expenditure committee 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. You're getting funding, I believe, from the Minnesota fab to help expand there. All those are still very much in an ATS mode. ET. The webcast will be available for replay shortly after the call concludes. 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. As I've also said, there's four elements to CHIPS. Quarterly SG&A expenses are expected to be approximately $10 million to $10.4 million, excluding stock-based compensation. And a large percentage of them actually are nongovernment. First just going back to the Phase 1 portion, has the funding for that for Phase 1 have been completed now? 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? WebAbout Our Coalition. So I'll start, and Steve can add additional color. And a portion of that, like I mentioned, we'll be using subcontractors and tool vendors with that $99 million of funding as well. 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? 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. My name is Abby, and I will be your conference operator today. This is the National Semiconductor Technology center concept, which $5 billion is tied to advanced packaging and heterogeneous integration. The third component of our cost structure relates to the significant amount of unabsorbed fixed costs that reflect the investments we are making for the long-term growth of the company. Join Piper Sandler & Co for this virtual event to learn more about digital transformation and its impact on the future of identity as we know it. We expect that to materialize over the next 24 to 30 months depending upon, again, when tools arrive, when projects get initiated. 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. This is with our partners. With our current visibility, we expect the first quarter of 2023 will show strong year-over-year growth. 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. And we will take our next question from Krish Sankar with Cowen. Your line is open. Thank you. Now, I'll turn to the balance sheet. We discussed how our success with the RH90 program is a prime example of our differentiated approach for strengthening the domestic semiconductor manufacturing ecosystem. 16th November. The first question I wanted to ask about either Tom or Steve is related to the RH90 program. I'll now turn the call over to Steve for more information on SkyWater's financial and operational performance in the third quarter. 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. And then, Minnesota and then even further out with Purdue is all going to be gated on when the CHIPS proposals are being submitted, being approved and begin to move into execution. ET. 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. Darby and The Dead 2022 1080p HULU WEBRip 1400MB DD5 1 x264-GalaxyRG These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. Your line is open. Our plan of attack is to execute the business we have. There's CHIPS Act money coming, this increased geopolitical tension as a result. So first phase was development. Sandler O'Neill Partners, founded in 1988, was a boutique investment banking firm with offices in New York, San Francisco, Atlanta, Chicago and Boston. 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. We are continuing our preparations to offer Deca's M-Series fan-out wafer level packaging technology, working with external equipment and service suppliers to support the fabrication of our initial demonstration vehicles. Throughout 2022, we have been reporting on the progress and achievements in our Rad-Hard program, with the ongoing successes in Phase 1 leading up to the anticipated Phase 2 award. And then, I had a follow-up. 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. Yes. 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. So Google is one partner, Trusted Semi Solutions and Case are the other partners. 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. Like Q2, we achieved a higher level of overall ATS wafer moves in the quarter, which allowed us to achieve better fab utilization and margin performance. Last month, we were pleased to host Congresswoman Betty McCollum and the DoD's Undersecretary of Defense for Research and Engineering, Ms. Heidi Shyu, at our headquarters in Bloomington. So they typically have a really nice return on investment. That's great to see. There's $2 billion tied to Commons. The third component of our cost structure relates to the significant amount of unabsorbed fixed costs that reflect the investments we are making for the long-term growth of the company. 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. One is Google for $15 million. Last quarter, I focused on several aspects of the RH90 platform that make our technology the strongest option available for strategic extreme environment applications. We have the biohealth space we've talked about, the connectivity space, also the high-performance computing space. 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 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. The increased revenue levels in both ATS and Wafer Services continue to support our revenue growth targets for 2022. And I think our model is uniquely positioned to take advantage of that. In the case of Google, it's a derivative of that Rad-Hard platform. But we also talked about some of the challenges with ongoing maintenance technicians in our facility. We have multiple development programs. I appreciate that. 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. Raji Gill -- Needham and Company -- Analyst. Just the real world doesn't work that easy. 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. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Written by Or is there still another quarter or two of funding from that desk still making its way through the P&L? There's CHIPS Act money coming, this increased geopolitical tension as a result. 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. This was an incredible accomplishment for our Florida team and partners and provides the vast majority of funding required to expand the capabilities and capacity at our Florida fab. 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. We've talked about some of the challenges that we've had, but also the positive results in overcoming those challenges. And that way, they're positioned for the next upswing. But it's important to note that for the next couple of years, we aren't expecting any chips dollars. 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. Yes. Yes. This is to create innovation centers around the fab -- lab to fab concept. I'll adjust it in two ways. We were also progressing in our efforts to stabilize fab operations, which includes completing our additions to manufacturing headcount in Q3, adding more automation and increasing tool availability, all of which resulted in increases in fab efficiency and which makes moving wafers through the fab steadier and more predictable. Wafer Services revenue was $17.2 million, down slightly from Q2 and up 36% from Q3 of last year. We also continue to expand our current ATS programs, leading to increased ATS revenues in the quarter. 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. Steven Chin -- Cowen and Company -- Analyst. But it's important to note that for the next couple of years, we aren't expecting any chips dollars. Yes, great question and good to hear your voice, Harsh. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Thank you, Steve. First just going back to the Phase 1 portion, has the funding for that for Phase 1 have been completed now? We expect continued strong EBITDA ahead for Q4. With that, I'll turn the call back to Claire, and welcome your questions on SkyWater. 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. Your line is open. 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. 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. 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 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. The new offering will provide a differentiated domestically sourced high-performance 200-millimeter platform that we expect to generate significant commercial interest for a range of low-power industrial embedded and automotive applications. As expected, gross margin also benefited from a more favorable revenue mix, given that ATS revenue increased to 67% of sales. How your sort of commercial customers are responding to what's going on at the fab? And this is all around creating the design ecosystem for the RH90 platform. While concerns around overall macro weakness and specific downward revisions and semiconductor industry demand forecasts are apparent, SkyWater remains relatively decoupled from these trends. 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. 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. 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. [Operator instructions] Thank you. Hi. SkyWater Technology, Inc. (NASDAQ: SKYT) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. This August, at our Bloomington headquarters, Senator Amy Klobuchar held a press conference highlighting the importance of key technology providers in Minnesota. Yes. We also complement that with $9 million of our own investment. Sounds good. The underbanked represented 14% of U.S. households, or 18. This is with our partners. I'm just curious how those fixed costs ultimately will get absorbed and you could really see even more leverage in the gross margin model? And that way, they're positioned for the next upswing. 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. So just curious, how should we think about the CHIPS Act relative to kind of your internal kind of capex projects? 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. 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? On an ongoing basis, you should look at our Q3 non-GAAP gross margin performance as improving to 15.4%. In August, we filed a universal shelf registration statement for up to $250 million. Wafer Services sales were similar to Q2 and up 36% year over year. Chewy and Amazon 'well-positioned' for the changing macro environment - Wells Fargo Virgin Galactic (SPCE) macroeconomic headwinds continue to mount, says analyst So first on the Florida Build Back Better Regional Challenge, that is not at all tied to the CHIPS Act. Moving now to operating expenses. So Steve, just a question on the cost structure breakout and that's really helpful to understand. Throughout 2022, we have been reporting on the progress and achievements in our Rad-Hard program, with the ongoing successes in Phase 1 leading up to the anticipated Phase 2 award. And then, Minnesota and then even further out with Purdue is all going to be gated on when the CHIPS proposals are being submitted, being approved and begin to move into execution. We have the biohealth space we've talked about, the connectivity space, also the high-performance computing space. Or is more head count would be needed given the current growth outlook going into next year? Wondering how we should think about capex in relationship to the CHIPS Act? Wafer Services sales were similar to Q2 and up 36% year over year. 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. Invest in what you are passionate for or care about. This is supported by important program design wins and awards, including the recent RH90 Phase 2 award and the additional Phase 1 award, which are driving a sizable portion of our growth in the second half of this year. sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31 billion. And are they also increasing the activity along with the government? GAAP gross profit increased significantly in Q3 to $8.3 million or 15.8% of revenues. SkyWater Technology, Inc. (SKYT 4.53%) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. First off, congratulations on the strong results and also the strong execution in the quarter. We're seeing some of that in the numbers. So first phase was development. Working with Deca, we have also completed installation of our adaptive patterning engine, which is a key enabling capability for the Deca process technology. Join Piper Sandler & Co for this virtual event to learn more about digital transformation and its impact on the future of identity as we know it. Chewy and Amazon 'well-positioned' for the changing macro environment - Wells Fargo Virgin Galactic (SPCE) macroeconomic headwinds continue to mount, says analyst OK. 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. I'll start with the recent appointment of Brian Lenihan as our vice president of government relations. Yes. CORNERSTONE ENVIRONMENTAL CONSULTING [email protected] ADSPO18-207064 When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. 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. Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. And a large percentage of them actually are nongovernment. 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. 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. I think you mentioned the $36 million grant. Or is more head count would be needed given the current growth outlook going into next year? We expect continued incremental revenue growth in Q4 will be primarily driven by the Rad-Hard program, as well as other ATS programs contributing to our revenue momentum, albeit with the uptick expected to be more modest than what we reported in Q3. The webcast will be available for replay shortly after the call concludes. 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. 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. 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. As expected, gross margin also benefited from a more favorable revenue mix, given that ATS revenue increased to 67% of sales. We continue our technology transfer efforts with Adeia for ZiBond and DBI hybrid wafer bonding technologies. And we will take our next question from Krish Sankar with Cowen. I'd like to remind you that our call is being webcast live on SkyWater's investor relations website at ir.skywatertechnology.com. 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! 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. That's right -- they think these 10 stocks are even better buys. Yes, the original program was $170 million total award for the development phase. That's when you can expect to see -- and we believe that those costs will start to be absorbed. Our ATS programs, on the other hand, are quite profitable as we move more and more ATS wafers through the fab, that business contributes an increasing amount of gross profit dollars. When it goes to productization and manufacturing in 2025 on RH90. *Stock Advisor returns as of November 7, 2022. And the level of activities that we can generate for ATS doesn't really affect our overall wafer output, but it significantly drives our revenue and profitability. I'll start with the recent appointment of Brian Lenihan as our vice president of government relations. With our current visibility, we expect the first quarter of 2023 will show strong year-over-year growth. 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. 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. Sounds good. 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. Given our strong ATS pipeline, we will be recruiting and looking to hire additional engineers into our organization. We see that being absorbed starting in 2025 as we talk about getting RH90 programs into production at that point in time. 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. sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing Fanatics at $31 billion. Do Not Sell My Personal Information (CA Residents Only). 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. We're seeing some of that in the numbers. Our total cost of revenue in Q3 included approximately $4.6 million of unabsorbed costs. So I believe we're well positioned for both of those. 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. That's all I have. There's a lot of energy around and having been in the industry as long as I have, you see these ups and downs. And thanks for the question. That's all I have. Finally, I'm pleased to announce a recent milestone for one of our emerging memory solutions. And this is all around creating the design ecosystem for the RH90 platform. Second phase is productization and qualification. As a follow-up, the world is changing. "Sinc Hi. 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? 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. Making the world smarter, happier, and richer. And I think our model is uniquely positioned to take advantage of that. I guess, foundries in the U.S. are seeing a lot of attention and affection from the government. 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. 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. That one is a little bit more tangible on how that goes. Since our last call, we have put into place additional funding alternatives at our disposal as we continue our plans for growth. So Google is one partner, Trusted Semi Solutions and Case are the other partners. That's right -- theythink these 10stocks are even better buys. 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. Today's conference is being recorded. And the level of activities that we can generate for ATS doesn't really affect our overall wafer output, but it significantly drives our revenue and profitability. Importantly, these incremental and more profitable customer programs are resulting in a significant flow through to gross profit. And that's exactly what we're seeing. There's the building of fabs, which is $39 billion. 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 are continuing our preparations to offer Deca's M-Series fan-out wafer level packaging technology, working with external equipment and service suppliers to support the fabrication of our initial demonstration vehicles. I would like to welcome everyone to the SkyWater Technology third quarter 2022 financial results conference call. Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. Its Friday: Digital Transformations Impact on Identity Virtual Event: August 7, 2020. Total depreciation for the year is expected to be approximately $26 million to $28 million, of which $6 million to $7 million is related to the Rad-Hard program and approximately $15 million is associated with the acquisition purchase accounting. Hello, and welcome to Protocol Entertainment, your guide to the business of the gaming and media industries. [Operator instructions] Thank you. Ms. McAdams, you may begin your conference. Again, we've talked about over 50 active ATS engagements. As far as the Minnesota facility, that would be the one that would go after initial CHIPS funding the most aggressively because it is an existing facility, we would look at adding capacity. We expect that to materialize over the next 24 to 30 months depending upon, again, when tools arrive, when projects get initiated. My name is Abby, and I will be your conference operator today. Raji Gill -- Needham and Company -- Analyst. 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. On a GAAP basis, operating expenses of $13.4 million were relatively consistent from Q2. All of that has been consumed except for around $33 million. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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. And then, the last is the investment tax credit, which is 25% for all equipment procured starting in the next fiscal year, which began in October, so that could be an immediate benefit for SkyWater as well. 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. So Steve, I think so much for the guidance for the current quarter. Information for research of yearly salaries, wage level, bonus and compensation data comparison. Yeah. 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. We will take our next question from Harsh Kumar with Piper Sandler. We expect continued incremental revenue growth in Q4 will be primarily driven by the Rad-Hard program, as well as other ATS programs contributing to our revenue momentum, albeit with the uptick expected to be more modest than what we reported in Q3. This is tied to two programs we've announced. Let me add my congratulations as a lot of this increased momentum here recently. 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. To make the world smarter, happier, and richer. As we build out our Rad-Hard capabilities in Minnesota and heterogeneous integration capabilities in Florida, both of which are expected to drive significant future revenue growth. You guys talked about increased momentum with customers. Wafer Services revenue was $17.2 million, down slightly from Q2 and up 36% from Q3 of last year. Thank you and congratulations on great results and positive momentum across all the metrics. 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? Congrats again. So that has been awarded. I guess, foundries in the U.S. are seeing a lot of attention and affection from the government. We discussed how our success with the RH90 program is a prime example of our differentiated approach for strengthening the domestic semiconductor manufacturing ecosystem. SkyWater Technology, Inc. (NASDAQ: SKYT) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. So I'll start, and Steve can add additional color. On our Augustearnings call we indicated that the Phase 2 award was imminent, and we are pleased to make this important announcement in September. We don't expect any of the awards to start until sometime mid next year. 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. And then, there's $11 billion for R&D and innovation. Thanks for taking my question. The underbanked represented 14% of U.S. households, or 18. In fact, we significantly exceeded our gross margin forecast for the quarter, as Steve will detail in his prepared remarks. Weebit's ReRAM test chips have been fully integrated with SkyWater's S130 platform and are now entering the qualification phase. During the RH90 base program phase, we work with our partners to firmly establish key components of the growing RH90 ecosystem. From there, though, it depends on how the monies flow and what other partnerships we have on really financing whatever growth would come through CHIPS, whether we're talking about doing something to our current location in Minnesota or Florida or something different with a larger scale like we have planned for Indiana. As a reminder, there are three elements of our technology road map underway in Florida, IBAS, Deca and our work with Adeia. Mark, good question. wikifolios knnen jederzeit Auszeichnungen verlieren oder auch neue erhalten. This is Steven calling on behalf of Krish. And that would be going away from ATS derived dollars to Wafer Services dollars. Yes. And with that, I'll turn the call over to Tom. 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. SkyWater Technology, Inc. (SKYT 4.53%) Q3 2022 Earnings Call Nov 07, 2022, 4:30 p.m. 4 days ago. Yes. You just outlined geopolitically with the economy. This is to create innovation centers around the fab -- lab to fab concept. So we still do have open requisitions for maintenance techs within organization, and I expect that to continue over the course of 2023. As a reminder, there are three elements of our technology road map underway in Florida, IBAS, Deca and our work with Adeia. 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. We still believe that there is opportunity for significant growth going forward in 2023. Your line is open. We announced a $27 million option, what we call the option grant for that first award. Yes. 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. 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. 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. Guys, I had a quick question. 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. 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. We expect neutral to no benefit from our tax assets in 2022 or 2023. Very nice guys. 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. Last month, we were pleased to host Congresswoman Betty McCollum and the DoD's Undersecretary of Defense for Research and Engineering, Ms. Heidi Shyu, at our headquarters in Bloomington. 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? To illustrate how our model reflects such high level of operating leverage and flow through, last quarter, I broke out our cost structure into three major components. On our IR website, we also have posted an investor slide presentation to accompany today's call. Piper Sandler & Co. P.S. 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