SkyWater Technology, Inc. (NASDAQ:SKYT) Q2 2023 Earnings Call Transcript

And all this is really about just getting there as fast as possible. So again, think of it as an accelerant into the business.

Richard Shannon: My second question is just looking at the wafer services business here specifically. Seeing it kind of flattish over the last few quarters, if I’m looking at my numbers correctly here and thinking your biggest customer maybe even perhaps seeing some impact of the traditional semiconductor cycle and maybe you can characterize what you’re seeing in wafer services the rest of the year. Not only the business that exists today, but any contributions you may see from ATS customers that can transition to wafer services later this year?

Thomas Sonderman: Yes, so again, very astute, Richard. We’ve been running somewhat flat on wafer services. We have been prioritizing ATS. Obviously within ATS, we have our DoD programs, which I alluded to. There’s a lot of desire to move quickly as possible on those. And of course, we’re dealing in a macro environment where semis are soft. And so, we believe we’ve been able to maintain a consistent level of wafer services output plus or minus 1 million call it on a quarter by quarter basis. But what we’re doing in the meantime is accelerating the growth in ATS. And so, and it really goes back to your prior question, our ability to link all that together so that when the demand does come across the board with the recovery that we can take advantage of that and grow and scale the volume portion of the business, but do it in a way where it’s complimentary to our ATS business, which isn’t slowing down at all.

The demand for our ATS services has never been higher. And so, the ability to do both of those is exactly why, we’re investing with some outside help to ensure that we can take advantage of the capabilities and the opportunities that we have before us.

Operator: There are no further questions at this time. I will turn the call to Thomas Sonderman.

Thomas Sonderman: Thank you, operator. I want to close today’s call by conveying the strong confidence all of us at SkyWater have and our ability to execute successfully towards our long-term growth and profitability objectives. Our amazing employees have now delivered consistent execution for several quarters. We intend to continue to build your confidence as well, and look forward to talking with you again on our Q3 call in early November. And with that, I’ll conclude our Q2 2023 earnings call.

Operator: This concludes today’s conference call. We thank you for joining. You may now disconnect your lines.