Neil Young's questions to SkyWater Technology (SKYT) leadership • Q2 2025
Question
Neil Young from Needham & Company inquired about the potential for future margin expansion at Fab 25, asking about specific milestones and their timing.
Answer
CEO Thomas Sonderman explained that margin expansion levers include introducing higher-margin ATS engineering revenue, charging market prices for new products, and driving cost optimization synergies between the Minnesota and Texas fabs. CFO Steve Manko added that while near-term gross margins will be compressed, the acquisition was economically sound, doubling revenue and increasing gross profit dollars, with a long-term path to exceed peer foundry margins.