BLOOMINGTON, Minn. - SkyWater Technology (NASDAQ: SKYT), a U.S.-based semiconductor manufacturer, today announced the appointment of Bassel Haddad as the new Senior Vice President and General Manager of Advanced Packaging (NYSE:PKG). Haddad, who brings over two decades of experience in strategic leadership and business transformation, will oversee technology development, engineering, marketing, and operations for SkyWater's Florida fabrication facility.
Haddad's role will focus on scaling the advanced packaging business for both defense and commercial sectors, as well as fostering collaborations with government partners, technology centers, and university programs. John Sakamoto, President and COO of SkyWater, expressed confidence in Haddad's ability to drive growth and build a strong commercial manufacturing presence, citing his successful tenure at Intel (NASDAQ:INTC).
With a background in silicon, platforms, and systems across various markets, Haddad has managed large-scale business lines and engineering projects. His experience at Intel, most recently as Vice President and General Manager of Edge Device & AI Products, involved managing a multi-billion dollar portfolio and spearheading innovations in edge AI and IoT.
In the context of the slowing pace of Moore's Law, Haddad emphasized the significance of 2.5D and 3D advanced packaging as a key area of semiconductor technology innovation. He highlighted SkyWater's unique position as a leading domestic supplier of advanced packaging solutions, expressing his eagerness to contribute to the company's growth through innovation and operational excellence.
SkyWater is recognized as a DMEA-accredited Category 1A Trusted Supplier and offers a Technology as a Service model that supports customers from development to volume production. The company caters to markets such as aerospace & defense, automotive, biomedical, industrial, and quantum computing.
This announcement is based on a press release statement. SkyWater's forward-looking statements are subject to risks and uncertainties, and actual results may differ from those projected. The company has stated that it does not assume any obligation to update these forward-looking statements.
In other recent news, SkyWater Technology reported a record-breaking second quarter in 2024, with revenues reaching $93 million and non-GAAP positive EPS for the first time. The company's growth was primarily driven by its aerospace and defense business, as Advanced Technology Services (ATS) development revenue hit nearly $62 million, marking an 18% increase year-over-year. Tool revenues also surpassed expectations, reaching $26 million. Despite underperformance in the broader industrial segment, Wafer Services revenue was slightly above expectations.
Looking ahead, SkyWater Technology forecasts a 10-20% revenue growth in ATS development for the rest of the year, although Wafer Services revenue is expected to decline significantly. The company also reported strong free cash flow generation and debt reduction in the quarter. In the third quarter, total revenue is expected to be in the mid $90 million range, with a non-GAAP gross margin in the mid to high teens.
SkyWater Technology anticipates revenue growth from new ATS customers transitioning to Wafer Services in late 2025 and into 2026. The company's focus will continue to be on aerospace and defense programs, thermal imaging, and advanced packaging development in its Florida facility.
InvestingPro Insights
As SkyWater Technology (NASDAQ: SKYT) welcomes Bassel Haddad to lead its Advanced Packaging business, investors and industry observers are keenly watching the company's financial health and market performance. With a market capitalization of $442.98 million, SkyWater's strategic moves in the semiconductor space are underpinned by significant financial metrics and analyst insights.
Recent data from InvestingPro shows a robust revenue growth of 27.8% over the last twelve months as of Q2 2024, indicating the company's ability to expand its sales in a competitive sector. This is further bolstered by a quarterly revenue growth of 33.69% in Q1 2024, reflecting the company's momentum in capturing market share. However, SkyWater's gross profit margin stands at 17.93%, which suggests that while the company is growing its top line, it suffers from weak gross profit margins—a point of consideration for investors focusing on profitability.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, signaling potential optimism in SkyWater's financial prospects. Yet, they also caution that analysts do not anticipate the company will be profitable this year, underscoring the challenges SkyWater faces in achieving bottom-line growth. Furthermore, with a high Price / Book multiple of 8.61, the company's stock is trading at a premium compared to its book value, which could be a reflection of the market's valuation of its growth potential or technology assets.
For those interested in delving deeper, InvestingPro offers additional insights. There are currently 9 more InvestingPro Tips available for SkyWater Technology, which can provide investors with a comprehensive understanding of the company's financial landscape and future outlook.
The appointment of Haddad is a strategic step for SkyWater as it aims to leverage advanced packaging technology to stay at the forefront of semiconductor innovation. With the backdrop of these financial metrics and insights, stakeholders can better gauge how leadership changes and market strategies may influence the company's trajectory.
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