What happened
Shares of SkyWater Technology (SKYT +0.33%) have gotten destroyed today, down by 40% as of 11:10 a.m. EDT, after the company reported preliminary second-quarter results. SkyWater is also planning to invest in capacity expansion.
So what
Revenue in the second quarter is estimated to be in the range of $41 million to $41.5 million, while analysts were expecting the semiconductor company to generate $50 million in sales. That should result in a net loss of $7 million to $8 million, with an adjusted EBITDA loss of $500,000 to $1.5 million. SkyWater completed its IPO during the quarter, raising $112 million in capital.
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"SkyWater accomplished much in the second quarter, including our initial public offering," CFO Steve Manko commented in a release. "This achievement is a great testament to our team members, customers and partners."
Now what
SkyWater is planning to invest $56 million in order to expand manufacturing capacity of its gallium nitride (GaN) technology.
"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," CEO Thomas Sonderman added. "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."
Piper Sandler analyst Harsh Kumar reiterated an overweight rating on SkyWater shares while increasing the firm's price target from $26 to $28.
