SkyWater shares rise 20% as execs explain move to expand production capacity
The company’s capital spending plan will erode short-term profit margins but set it up for sustained revenue growth, executives told investors Wednesday.
Executives at SkyWater Technology Inc., the largest semiconductor maker in Minnesota, unveiled for investors a five-year plan for the company to reach the profitability levels of the chip industry’s leaders.
But for the next year or so, they said profits will be constrained as SkyWater spends heavily on new production capacity, in part to overcome industry shortages.
Shares in SkyWater, which became a public company in March, plunged nearly 40% last week when it revealed a $56 million spending plan to boost the output at its factory near the Mall of America in Bloomington.
But the share price recovered much of that ground Wednesday when executives discussed the decision during a quarterly results conference call. SkyWater shares finished the day up 20% to $20.24.
Read SkyWater’s story in the Star Tribune here: SkyWater shares rise 20%.