SiTime(SITM)

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SiTime (SITM) Q1 Earnings and Revenues Surpass Estimates
ZACKS· 2025-05-07 23:40
Company Performance - SiTime reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and compared to a loss of $0.08 per share a year ago, representing an earnings surprise of 136.36% [1] - The company posted revenues of $60.31 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 11.67%, and compared to year-ago revenues of $33.02 million [2] - SiTime has surpassed consensus EPS estimates four times over the last four quarters and has topped consensus revenue estimates four times as well [2] Stock Outlook - SiTime shares have declined approximately 23% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.21 on revenues of $57.25 million, and for the current fiscal year, it is $1.50 on revenues of $258.67 million [7] - The estimate revisions trend for SiTime is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Electronics - Miscellaneous Products industry, to which SiTime belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]
SiTime(SITM) - 2025 Q1 - Earnings Call Transcript
2025-05-07 22:02
Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 83% year-over-year to $60.3 million, with gross margins at 57.4% and EPS at $0.26 per share [9][16] - Non-GAAP operating income improved by $10.3 million or 16 percentage points compared to the same quarter last year, reaching $2.1 million [17] - Non-GAAP net income for Q1 was $6.3 million, translating to $0.26 per share [17] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) segment revenue was $29.3 million, up 198% year-over-year [16] - Automotive, Industrial, and Defense segment revenue was $14.1 million, up 10% year-over-year [16] - Mobile, IoT, and Consumer segment revenue was $16.9 million, up 64% year-over-year, with sales to the largest customer increasing by 76% to $11.1 million [16] Market Data and Key Metrics Changes - The CED business has shown significant sequential growth for four consecutive quarters, driven by AI strength [10] - The company expects continued growth in the data center business through 2025, supported by increased demand for higher network bandwidth [11][10] Company Strategy and Development Direction - The company focuses on high-value timing markets and applications, aiming to transform the $10 billion timing market with differentiated products [8] - The strategy includes launching new clocking products that integrate oscillators with clocks and software, creating a complete system solution [12][13] - The company anticipates the clocking business could generate significant revenue growth in the coming years, with a target of $100 million from this segment [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic operating environment with uncertainties but remains confident in the company's ability to navigate challenges [72][74] - The company expects revenue growth of 45% to 50% year-over-year for Q2 2025, with gross margins expected to remain flat compared to Q1 [19] - Management reaffirms a growth target of 25% to 30% for the full year, driven by product differentiation and a strong design win funnel [43] Other Important Information - The company ended Q1 with $398.9 million in cash and short-term investments and no debt [18] - CapEx for Q1 was $16.4 million, primarily for production equipment, with expectations for total CapEx for the year to be in the mid- to high $30 million range [18][69] Q&A Session Summary Question: Expectations for growth from the largest customer - Management expects continued growth from the largest customer, though the percentage may vary due to the nature of consumer products and external factors like tariffs [21][24] Question: Margin expansion outlook - Management remains committed to achieving a gross margin target of 60% by the end of the year, despite pressures from lower-margin consumer business [25][28][29] Question: Growth profile in the data center segment - Management indicates strong continuous momentum in the data center segment, with opportunities across various components including switches and server racks [32][34] Question: Full-year growth outlook - Management reaffirms the growth target of 25% to 30% for the base business, with additional growth expected from new design wins [42][43] Question: CapEx levels - Management expects CapEx to remain elevated in Q2, with a total for the year projected to be in the mid- to high $30 million range [69]
SiTime(SITM) - 2025 Q1 - Earnings Call Transcript
2025-05-07 22:00
Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 83% year-over-year to $60.3 million, with gross margins at 57.4% and EPS at $0.26 per share [7][14] - Non-GAAP operating income improved by $10.3 million or 16 percentage points compared to the same quarter last year, reaching $2.1 million [15] - Non-GAAP net income for Q1 was $6.3 million, reflecting strong operational performance [15] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) business revenue tripled year-over-year to $29.3 million, representing 49% of total revenue [14][8] - Automotive, Industrial, and Defense segment revenue increased by 10% year-over-year to $14.1 million, accounting for 23% of total revenue [14] - Mobile, IoT, and Consumer segment revenue rose by 64% year-over-year to $16.9 million, making up 28% of total revenue [14] Market Data and Key Metrics Changes - Revenue from the largest customer grew over 75% year-over-year, contributing significantly to overall growth [8][14] - The CED business has shown significant sequential growth for four consecutive quarters, driven by AI infrastructure demands [8] Company Strategy and Development Direction - The company focuses on high-value timing markets and applications, leveraging differentiated products to capture market share [6][7] - A strategy to integrate oscillators with clocks and software is being pursued, creating a new clock category that enhances performance and simplifies designs [10][11] - The company aims for a gross margin target of 60% by the end of the year, despite pressures from lower-margin consumer business [24][26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about continued growth, particularly in the AI data center market, with no signs of slowdown [30][31] - The company is navigating macroeconomic uncertainties while focusing on controllable factors such as product differentiation and customer acquisition [66][68] - The outlook for Q2 2025 anticipates revenue growth of 45% to 50% year-over-year, with expectations for continued strong performance across all segments [17] Other Important Information - The company generated $15 million in cash from operations, with a strong balance sheet showing $398.9 million in cash and short-term investments and no debt [16] - Capital expenditures for Q1 were $16.4 million, primarily for production equipment [16] Q&A Session Summary Question: Expectations for growth from the largest customer - Management expects continued growth, though not necessarily at the same percentage rate, due to the nature of consumer products and market dynamics [20][22] Question: Outlook for gross margin expansion - Management remains committed to achieving a gross margin target of 60%, despite pressures from new consumer business [24][26] Question: Growth profile in the data center segment - Management confirmed strong continuous momentum in the data center segment, with opportunities across various applications [30][31] Question: Full-year growth outlook - Management reaffirmed a growth target of 25% to 30% for the base business, with additional growth from new design wins [39] Question: CapEx expectations - Management indicated that CapEx would remain elevated for Q2, with a total expected for the year in the mid- to high 30s million range [63]
SiTime(SITM) - 2025 Q1 - Quarterly Report
2025-05-07 21:39
Revenue and Profitability - Revenue for the three months ended March 31, 2025, increased by $27.3 million, or 83%, compared to the same period in the prior year, primarily due to increased sales volume and higher average selling prices [86]. - Gross profit for the same period increased by $12.7 million, with a gross margin of 50%, down from 53% in the prior year [89]. - Gross profit increased by $19.0 million mainly from higher revenue, offset by increased amortization and manufacturing costs [89]. - Gross margin decreased by 3% for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to a change in product mix and higher amortization from acquired intangibles [90]. Market and Product Development - The total timing market is estimated to be approximately $10 billion, with the company focusing on transforming this market with innovative solutions [79]. - The company expects to address market demands with new or enhanced solutions, focusing on oscillators, clock ICs, and timing synchronization solutions [69]. - The company’s Precision Timing solutions are designed to be resilient to harsh environmental conditions, making them suitable for applications in AI infrastructure, automotive electronics, and industrial markets [77]. Customer Concentration - Sales from the largest end customer accounted for 18% of revenue for the three months ended March 31, 2025, while the top three customers accounted for approximately 64% of revenue [87]. Business Model and Operations - The company operates a fabless business model, allowing for production flexibility and lower capital expenditure compared to traditional semiconductor companies [82]. - Total operating expenses increased by $5.7 million, or 11%, for the three months ended March 31, 2025, with research and development expenses rising by $4.5 million (18%) and selling, general and administrative expenses increasing by $2.9 million (12%) compared to the prior year [92][94][96]. Cash Flow and Investments - Cash and cash equivalents increased to $38.8 million as of March 31, 2025, from $6.1 million as of December 31, 2024, while short-term investments decreased to $360.1 million from $412.7 million [105]. - Net cash provided by operating activities was $15.0 million for the three months ended March 31, 2025, primarily due to non-cash expenses of $36.7 million [111]. - Net cash provided by investing activities was $36.2 million, with significant payments for short-term investments and capital expenditures [113]. - Financing activities included tax withholdings of $13.5 million and earnouts of $5.0 million related to the Aura transaction [114]. - The company believes existing cash and short-term investments will be sufficient to meet cash needs for at least the next 12 months [109]. Strategic Initiatives - The company acquired clocking products from Aura Semiconductor in December 2023, significantly expanding its presence in the clocking market and enhancing its product portfolio [80]. - The company plans to expand its sales and marketing efforts through increased collaboration with distributors and direct online sales [79]. - The company expects continued investment in research and development to support future growth, with expenses anticipated to increase in absolute dollars [93]. Interest and Other Income - Interest income decreased by $2.3 million, or 35%, for the three months ended March 31, 2025, due to lower investment balances and interest rates [100]. - Other income (expense), net, increased by $0.2 million for the three months ended March 31, 2025, primarily due to lower net unrealized losses on foreign exchange rates [102].
SiTime(SITM) - 2025 Q1 - Quarterly Results
2025-05-07 20:13
Financial Performance - Q1 2025 net revenue increased by 83% year-over-year to $60.3 million, compared to $33.0 million in Q1 2024[2] - GAAP gross profit for Q1 2025 was $30.3 million, representing a gross margin of 50.3%[3] - Non-GAAP gross profit for Q1 2025 was $34.6 million, with a non-GAAP gross margin of 57.4%[4] - GAAP net loss for Q1 2025 was $23.9 million, or $1.01 per diluted share[3] - Non-GAAP net income for Q1 2025 was $6.3 million, or $0.26 per diluted share[4] Cash and Investments - Total cash, cash equivalents, and short-term investments amounted to $398.9 million as of March 31, 2025[4] - Cash and cash equivalents increased significantly to $38,841,000 from $6,106,000, marking a growth of approximately 536.5%[18] - Short-term investments in held-to-maturity securities decreased to $360,079,000 from $412,728,000, a decline of about 12.7%[18] Assets and Liabilities - Total assets decreased to $872,105,000 as of March 31, 2025, from $884,959,000 on December 31, 2024, representing a decline of approximately 1.0%[18] - Total current liabilities decreased slightly to $106,655,000 from $108,449,000, a reduction of about 1.6%[18] - Total liabilities decreased to $179,591,000 from $185,240,000, a reduction of about 3.5%[18] - Stockholders' equity decreased to $692,514,000 from $699,719,000, reflecting a decline of approximately 1.0%[18] - The accumulated deficit increased to $(205,878,000) from $(182,001,000), indicating a worsening of approximately 13.0%[18] Operational Highlights - The company anticipates continued strong growth in Q2 2025, driven by customer enthusiasm for new products[3] - SiTime granted 47,238 restricted stock units (RSUs) to 15 newly hired non-executive individuals as part of its inducement plan[8] - The company incurred a payment of $5.0 million related to the Aura transaction in Q1 2025[4] - SiTime's semiconductor MEMS programmable solutions are aimed at enhancing performance, size, power efficiency, and reliability in the timing industry[10] Inventory and Receivables - Accounts receivable decreased to $28,114,000 from $38,209,000, a decline of about 26.4%[18] - Inventories increased to $82,632,000 from $76,741,000, representing an increase of approximately 7.6%[18] Property and Equipment - Property and equipment, net increased to $98,231,000 from $82,475,000, reflecting a growth of approximately 19.0%[18]
SiTime Reports First Quarter 2025 Financial Results
Globenewswire· 2025-05-07 20:10
Q1 Net Revenue Increased 83% to $60.3 MillionSANTA CLARA, Calif., May 07, 2025 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the Precision Timing company, today announced financial results for the first quarter ended March 31, 2025. Net revenue in the first quarter of 2025 was $60.3 million, as compared to $33.0 million in the year ago quarter. “Our Q1 revenue growth of 83% year-over-year highlights the strength of our business across our end markets,” said Rajesh Vashist, CEO and chairman of SiTi ...
SiTime Corporation to Announce First Quarter 2025 Financial Results on May 7, 2025
Newsfilter· 2025-04-09 20:10
Group 1 - SiTime Corporation will announce its first quarter 2025 financial results on May 7, 2025, after market close [1] - The conference call to discuss the results will be led by CEO Rajesh Vashist and CFO Beth Howe at 2:00 p.m. Pacific Time [1] - Analysts and investors can join the conference call through a live webcast or by registering for a dial-in number [1] Group 2 - SiTime Corporation specializes in Precision Timing, offering semiconductor MEMS programmable solutions that enhance product performance, size, power efficiency, and reliability [2] - The company has shipped over 3 billion devices, indicating a significant impact on the timing industry [2]
Is the Options Market Predicting a Spike in SiTime (SITM) Stock?
ZACKS· 2025-03-28 14:30
Investors in SiTime Corporation (SITM) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $130.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...
SiTime to Present at the Morgan Stanley Technology, Media & Telecom Conference on March 4
Newsfilter· 2025-03-03 13:00
Core Insights - SiTime Corporation, a leader in Precision Timing solutions, will present at the Morgan Stanley Technology, Media & Telecom Conference on March 4, 2025 [1] - The presentation will include a fireside chat hosted by SiTime's CEO and CFO at 4:50 p.m. PST [1] - A live and archived webcast of the fireside chat will be accessible on SiTime's Investor Relations website [2] Company Overview - SiTime Corporation specializes in semiconductor MEMS programmable solutions that enhance product performance, reduce size, lower power consumption, and improve reliability [3] - The company has shipped over 3 billion devices, significantly impacting the timing industry [3]
SiTime to Present at the Morgan Stanley Technology, Media & Telecom Conference on March 4
Globenewswire· 2025-03-03 13:00
Company Overview - SiTime Corporation is recognized as the Precision Timing company, specializing in semiconductor MEMS programmable solutions that enhance product performance, reduce size, lower power consumption, and improve reliability [3]. Upcoming Event - SiTime's CEO, Rajesh Vashist, and CFO, Beth Howe, will present at the Morgan Stanley Technology, Media & Telecom Conference on March 4, 2025, at 4:50 p.m. PST [1]. - A live and archived webcast of the fireside chat will be accessible in the Events section of SiTime's Investor Relations website [2]. Industry Impact - SiTime has shipped over 3 billion devices, indicating a significant influence on the timing industry [3].