OCAC (SKYT) Stock

Understand OCAC: how it makes money

SkyWater Technology provides semiconductor engineering and process development support, and semiconductor manufacturing services, to co-create and produce analog, mixed-signal, power discrete, MEMS, and rad-hard integrated circuits, generating revenue from these development and manufacturing services sold to customer programs.

The profit model is driven by customer program activity that turns into recurring semiconductor development and wafer services revenue, with a smaller contribution from legacy tools and wafer-related revenue.

Business quality (Solid): Clear service-based business model with observable customer engagement metrics, but current profitability is weak, reflected in a negative operating margin.

Valuation: At 15× earnings, SKYT trades 71% below the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

• Customer engagement is measurable: The company tracks Active Customer Engagements, reported at 55, which supports monitoring program momentum.
• Service scope spans multiple semiconductor program types: Revenue candidates include advanced technology services development and wafer services, advanced custom services and wafer services, and aerospace and defense services.
• Notable customer program activity: A specific Google-sponsored open-source 130-nanometer multi-project wafer shuttle is associated with 40 customer engagement counts in the provided metrics.

Bear case

• Profitability is currently negative at the operating level: For the period ending 2026-03-29, operating margin is -3.3% despite a gross margin of 20.0%.
• Revenue mix includes smaller legacy components: Legacy tools revenue is listed as 0.02B, and legacy wafer services revenue is listed as 0.01B, suggesting less contribution from these items versus advanced services.
• Gross margin does not translate into operating profit: With gross margin at 20.0% and operating margin at -3.3%, operating costs and expenses outweigh gross profit in the reported period.

Related Companies (Business model: Fabless Semiconductors; 8 closest by market cap; US-domiciled)

• Photronics, Inc. (PLAB)
• Wolfspeed, Inc. (WOLF)
• Shoals Technologies Group, Inc. (SHLS)
• Ambiq Micro, Inc. (AMBQ)
• T1 Energy Inc (TE)
• Arteris, Inc. (AIP)
• Kopin Corporation (KOPN)
• indie Semiconductor, Inc. (INDI)