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Skywater Technology shares plunge 23% on news of revenue constraint

SkyWater Technology shares fell 23% in early trading this morning after the Bloomington-based chipmaker announced a sales hurdle when it announced quarterly results on Tuesday evening.

The company gained eight new customers in the July through September quarter but has faced significant headwinds, said Thomas Sonderman, CEO of SkyWater.

Sales rose 6% to $ 35 million, but supply chain and labor issues caused sales to be delayed by about $ 15 million, Sonderman said.

SkyWater scheduled an executive conference call this morning to discuss the results with analysts and investors. The stocks fell about $ 8 to about $ 25.50 in the first few minutes of trading.

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

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

“Supply chain challenges and recruitment restrictions, as well as persistent delays in funding existing US government programs, had an increased short-term effect on the company,” Sonderman said in a statement.

SkyWater priced its IPO on April 21 at $ 14 per share. Since then, its stocks have generally traded well above this level, peaking at $ 36.80 per share in early September.

Revenue in Advanced Technology Services, which develops new processes and chips for customers, decreased 8% to $ 22.4 million in the quarter. Revenue from wafer services, which handles volume manufacturing for customers, increased 44% to $ 12.7 million.

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