SiTime(SITM)

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SiTime(SITM) - 2022 Q2 - Earnings Call Transcript
2022-08-04 03:12
SiTime Corporation (NASDAQ:SITM) Q2 2022 Earnings Conference Call August 3, 2022 5:00 PM ET Company Participants Brett Perry - Shelton Group Investor Relations Rajesh Vashist - Chief Executive Officer Art Chadwick - Chief Financial Officer Conference Call Participants Tore Svanberg - Stifel Alessandra Vecchi - William Blair Operator Good afternoon, and welcome to SiTime's Second Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of tod ...
SiTime (SITM) Investor Presentation - Slideshow
2022-06-26 11:08
The Heartbeat of Electronics SiTime is Leading the World of Precision Timing SiTime Corporation, May 8, 2022 Disclaimers This presentation regarding SiTime Corporation (the "Company") contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company's financial position, strategy and plans, and the Company's expectations for the timing market, are forward-looking statements. These forwardlooking statements ...
SiTime(SITM) - 2022 Q1 - Quarterly Report
2022-05-05 20:05
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39135 SiTime Corporation (Exact name of registrant as specified in its charter) Delaware 02-0713868 (State or other jurisdiction ...
SiTime(SITM) - 2022 Q1 - Earnings Call Transcript
2022-05-05 02:43
SiTime Corporation (NASDAQ:SITM) Q1 2022 Earnings Conference Call May 4, 2022 5:00 PM ET Company Participants Brett Perry - Shelton Group Investor Relations Rajesh Vashist - Chief Executive Officer Art Chadwick - Chief Financial Officer Conference Call Participants Tore Svanberg - Stifel Chris Caso - Raymond James Alessandra Vecchi - William Blair Quinn Bolton - Needham Suji Desilva - Roth Capital Operator Good afternoon, and welcome to SiTime's First Quarter 2022 Financial Results Conference Call. At this ...
SiTime(SITM) - 2021 Q4 - Annual Report
2022-02-25 21:02
Part I [Business](index=7&type=section&id=Item%201.%20Business) SiTime is a leading fabless provider of silicon-based timing solutions, including oscillators and clock ICs, serving diverse markets - SiTime is a leading provider of silicon timing solutions, including oscillators, resonators, and clock ICs, serving markets like communications, automotive, industrial, and consumer electronics[15](index=15&type=chunk) - The company operates a fabless business model, outsourcing manufacturing to third-party foundries like Bosch (for MEMS) and TSMC (for analog ICs), allowing it to focus on design, sales, and marketing[18](index=18&type=chunk)[50](index=50&type=chunk) - Substantially all revenue to date has been from oscillator systems. The company plans to aggressively expand into the clock IC and timing sync solutions markets[16](index=16&type=chunk) Revenue Concentration by Distributor (2019-2021) | Distributor | 2021 Revenue % | 2020 Revenue % | 2019 Revenue % | | :--- | :--- | :--- | :--- | | Pernas Electronics Co., Ltd. | 24% | 26% | 17% | | Quantek Technology Corporation | 10% | 18% | 22% | | Arrow Electronics, Inc. | 14% | 15% | 19% | - Revenue from its largest end customer, Apple Inc., accounted for approximately **22%**, **40%**, and **35%** of total revenue for 2021, 2020, and 2019, respectively[42](index=42&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous operational, industry, intellectual property, and ownership risks, including supply chain dependencies and customer concentration - The COVID-19 pandemic could adversely impact business through supply chain disruptions, reduced demand, and financial market volatility[72](index=72&type=chunk) - The company depends on third parties for wafer fabrication (Bosch for MEMS, TSMC for analog circuits), assembly, and testing, exposing it to supply, quality, and pricing risks[77](index=77&type=chunk)[80](index=80&type=chunk) - A large portion of revenue is dependent on a single end customer, Apple, which accounted for **22%** of revenue in 2021. The loss of this customer would significantly harm operating results[88](index=88&type=chunk) - The top three distributors accounted for **48%** of revenue in 2021, and the top ten end customers accounted for **49%** of revenue, indicating significant customer concentration[91](index=91&type=chunk) - The semiconductor industry is highly cyclical, and downturns can lead to diminished demand, overcapacity, and price erosion, which could harm the business[143](index=143&type=chunk) - MegaChips Corporation owns approximately **24%** of the company's common stock as of December 31, 2021, giving it significant influence over stockholder votes and company matters[181](index=181&type=chunk) [Unresolved Staff Comments](index=38&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[198](index=198&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) The company operates from leased facilities, including its principal executive offices in Santa Clara, California, and does not own any real property - The company's principal executive offices are in a leased facility in Santa Clara, California, under a lease that expires in March 2027[198](index=198&type=chunk) - The company does not own any real property and believes its leased facilities are adequate for current needs[198](index=198&type=chunk) [Legal Proceedings](index=38&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently party to any material legal proceedings - The company is not currently party to any material legal proceedings[199](index=199&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[200](index=200&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=40&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under 'SITM' since its 2019 IPO, with no current plans for cash dividends as earnings are retained for growth - The company's common stock has been quoted on the Nasdaq Global Market under the symbol "SITM" since November 2019[202](index=202&type=chunk) - The company has never paid cash dividends and does not intend to in the foreseeable future, planning to retain earnings for operations and growth[203](index=203&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) SiTime achieved significant 2021 growth with **88%** revenue increase to **$218.8 million** and **64%** gross margin, turning a net loss into a **$32.3 million** net income, and boosting liquidity through stock offerings Key Financial Performance (2020 vs 2021) | Metric | 2021 | 2020 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $218.8M | $116.2M | +$102.7M | +88% | | Gross Profit | $139.5M | $57.9M | +$81.5M | +141% | | Gross Margin | 64% | 50% | +14 p.p. | - | | Income (Loss) from Operations | $32.8M | ($8.6M) | +$41.5M | -481% | | Net Income (Loss) | $32.3M | ($9.4M) | +$41.6M | -444% | - The **88%** revenue growth in 2021 was driven by a **34%** increase in shipment volume and a **40%** increase in average selling price (ASP)[235](index=235&type=chunk) - The company raised **$460.6 million** in 2021 from two follow-on stock offerings, significantly boosting its cash position to **$559.5 million** at year-end[212](index=212&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) - The company is experiencing growth in demand but faces industry-wide supply constraints affecting analog circuits and OSATs, which may limit its ability to fully satisfy the increase in demand[217](index=217&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) In 2021, revenue grew **88%** to **$218.8 million**, gross margin improved to **64%**, and operating expenses increased **60%** to **$106.6 million**, resulting in **$32.8 million** income from operations Results of Operations (in thousands) | | 2021 | 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $218,808 | $116,156 | $102,652 | 88% | | Gross Profit | $139,462 | $57,932 | $81,530 | 141% | | Total Operating Expenses | $106,619 | $66,545 | $40,074 | 60% | | Income (Loss) from Operations | $32,843 | ($8,613) | $41,456 | -481% | | Net Income (Loss) | $32,277 | ($9,372) | $41,649 | -444% | - Gross margin increased by **14 percentage points** to **64%** in 2021, primarily due to higher ASPs (contributing **11%**) and improved manufacturing costs as a percentage of revenue (contributing **3%**)[239](index=239&type=chunk) - Research and development expense increased **65%** to **$52.1 million** in 2021, driven by higher personnel costs, stock-based compensation, and new product development expenses[243](index=243&type=chunk) - Selling, general and administrative expense increased **56%** to **$54.5 million** in 2021, due to higher stock-based compensation, personnel costs, and commission expenses tied to increased revenue[245](index=245&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2021, cash and cash equivalents substantially increased to **$559.5 million**, primarily from **$460.6 million** in follow-on offerings, with all debt paid down in 2020 Cash and Cash Equivalents | Date | Cash and Cash Equivalents | | :--- | :--- | | December 31, 2021 | $559.5 million | | December 31, 2020 | $73.5 million | Summary of Cash Flows (in thousands) | Activity | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $59,078 | $16,604 | $7,378 | | Net cash used in investing activities | ($33,788) | ($7,793) | ($3,202) | | Net cash provided by financing activities | $460,646 | $1,296 | $51,353 | - In 2021, the company completed two follow-on public offerings, resulting in total net proceeds of **$460.6 million**[251](index=251&type=chunk)[262](index=262&type=chunk) - The company paid down all outstanding loans of **$35.0 million** with MUFG on July 24, 2020, and closed its credit facilities with MegaChips and SMBC[250](index=250&type=chunk) [Critical Accounting Estimates](index=50&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment in revenue recognition, inventory valuation, stock-based compensation, and income taxes, particularly regarding deferred tax asset realizability - Key critical accounting estimates include revenue recognition (estimating variable consideration), inventory valuation (forecasting demand for obsolescence reserves), stock-based compensation, and income taxes[265](index=265&type=chunk) - Inventory is valued at the lower of cost or net realizable value, with write-downs for excess and obsolete inventory based on management's assessment of future demand and market conditions[267](index=267&type=chunk) - The company maintains a full valuation allowance against its deferred tax assets, as their realization is not more likely than not[271](index=271&type=chunk)[404](index=404&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency and interest rate fluctuations, though it held no debt at year-end 2021 and does not use derivatives for hedging - The company's primary market risks are foreign currency exchange rate risk and interest rate risk[274](index=274&type=chunk)[275](index=275&type=chunk) - Foreign currency risk exists as revenues are denominated in U.S. dollars, while some expenses are in foreign currencies (Malaysia, Netherlands, France, Taiwan, Japan, Ukraine)[274](index=274&type=chunk) - Interest rate risk is minimal as the company held no debt at the end of 2021 and its interest-earning cash balances are not considered highly sensitive to rate changes[275](index=275&type=chunk) [Financial Statements and Supplementary Data](index=52&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2019-2021, including the unqualified opinion from BDO USA, LLP on financial statements and internal controls - The independent auditor, BDO USA, LLP, issued an unqualified opinion on the consolidated financial statements and on the effectiveness of the company's internal control over financial reporting as of December 31, 2021[278](index=278&type=chunk)[279](index=279&type=chunk) - The critical audit matter identified was the valuation of inventories, specifically the significant judgments related to forecasting future demand and assessing obsolescence[283](index=283&type=chunk)[286](index=286&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $559,461 | $73,525 | | Accounts receivable, net | $38,376 | $23,920 | | Inventories | $23,630 | $12,350 | | Total Assets | $678,209 | $136,011 | | **Liabilities & Equity** | | | | Total Liabilities | $45,712 | $26,131 | | Total Stockholders' Equity | $632,497 | $109,880 | [Controls and Procedures](index=78&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes reported - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[426](index=426&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021, based on the COSO framework[429](index=429&type=chunk) - BDO USA, LLP, the independent auditor, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2021[430](index=430&type=chunk)[433](index=433&type=chunk) [Other Information](index=80&type=section&id=Item%209B.%20Other%20Information) On February 23, 2022, the company adopted the 2022 Inducement Award Plan, reserving **250,000 shares** for new employee equity awards - On February 23, 2022, the company adopted the 2022 Inducement Award Plan, reserving **250,000 shares** of common stock for grants to new employees as a material inducement to employment[439](index=439&type=chunk)[440](index=440&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=81&type=section&id=Items%2010-14) Information for Items 10 through 14, covering directors, executive compensation, and corporate governance, is incorporated by reference from the 2022 Annual Meeting proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[5](index=5&type=chunk)[445](index=445&type=chunk)[451](index=451&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=83&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including key governance documents, material contracts, and required certifications - This section lists all financial statements, schedules, and exhibits filed with the Form 10-K[458](index=458&type=chunk) - Filed exhibits include key governance documents, executive employment agreements, the 2019 Stock Incentive Plan, and material agreements with third parties like Robert Bosch LLC[461](index=461&type=chunk)[462](index=462&type=chunk) [Form 10-K Summary](index=87&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates no Form 10-K summary is provided in this report - None[468](index=468&type=chunk)
SiTime(SITM) - 2021 Q4 - Earnings Call Transcript
2022-02-03 02:38
SiTime Corporation (NASDAQ:SITM) Q4 2021 Earnings Conference Call February 2, 2022 5:00 PM ET Company Participants Rajesh Vashist – Chief Executive Officer Art Chadwick – Chief Financial Officer Brett Perry – Shelton Group Investor Relations Conference Call Participants Thomas O’Malley – Barclays John Pitzer – Credit Suisse Sabrina Baxamusa – William Blair Quinn Bolton – Needham Tore Svanberg – Stifel Suji Desilva – ROTH Capital Melissa Fairbanks – Raymond James Operator Good afternoon, and welcome to SiTim ...
SiTime(SITM) - 2021 Q3 - Quarterly Report
2021-11-04 20:08
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39135 SiTime Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...
SiTime(SITM) - 2021 Q3 - Earnings Call Transcript
2021-11-04 02:56
SiTime Corporation (NASDAQ:SITM) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Representatives Rajesh Vashist - Chief Executive Officer Art Chadwick - Chief Financial Officer Brett Perry - Shelton Group Investor Relations Conference Call Participants Tore Svanberg - Stifel Alessandra Vecchi - William Blair John Pitzer - Credit Suisse Quinn Bolton - Needham Suji Desilva - ROTH Capital Operator Good afternoon, and welcome to SiTime’s Third Quarter 2021 Financial Results Conference Call. ...
SiTime(SITM) - 2021 Q2 - Earnings Call Transcript
2021-08-08 01:36
SiTime Corporation (NASDAQ:SITM) Q2 2021 Results Conference Call August 4, 2021 5:00 PM ET Company Participants Leanne Sievers - Shelton Group, IR Rajesh Vashist - CEO Art Chadwick - CFO Conference Call Participants Quinn Bolton - Needham & Company Suji Desilva - ROTH Capital Alessandra Vecchi - William Blair John Pitzer - Credit Suisse Tore Svanberg - Stifel Operator Good afternoon, and welcome to SiTime’s Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen ...
SiTime(SITM) - 2021 Q2 - Quarterly Report
2021-08-05 20:01
Revenue Growth - Revenue for the three months ended June 30, 2021, increased by $23.0 million, or 107%, compared to the same period in the prior year, driven by a 66% higher volume of shipments and a 25% increase in average selling prices (ASPs) of products [85]. - For the six months ended June 30, 2021, revenue increased by $36.8 million, or 85%, primarily due to a 53% higher volume of shipments and a 21% increase in ASPs [86]. Gross Profit and Margin - Gross profit for the three months ended June 30, 2021, increased by $16.8 million, with a gross margin of 60%, compared to 46% in the same period of the prior year [90]. - Gross profit increased by $25.7 million for the six months ended June 30, 2021, compared to the same period in the prior year, driven by higher sales volume and an increase in ASPs [91]. - Gross margin improved by 11% for the six months ended June 30, 2021, attributed to higher sales volume and ASPs, along with a 3% reduction in other manufacturing costs as a percentage of revenue [93]. Customer Concentration - The largest end customer accounted for 15% of revenue for the three months ended June 30, 2021, while the top three distributors accounted for approximately 46% of revenue [88]. Business Strategy - The company plans to focus on oscillators, clock ICs, and timing synchronization solutions, aiming to aggressively expand its presence in these markets [72]. - The company aims to become the leading timing solution provider for advanced applications, leveraging advanced packaging designs for competitive advantage [72]. Operational Model - The company operates a fabless business model, allowing it to focus on design, sales, and marketing while reducing capital expenditures [77]. Impact of COVID-19 - The ongoing COVID-19 pandemic continues to create uncertainty, potentially impacting manufacturing, shipment, and overall demand for products [81]. - The company has experienced minimal impact from supplier disruptions related to COVID-19 to date, but future impacts remain uncertain [81]. Revenue Fluctuations - The company expects revenue fluctuations based on shipment volumes and ASP changes, with no guarantee of sustaining current ASP increases [87]. Research and Development Expenses - Research and development expenses rose by $8.8 million, or 61%, for the six months ended June 30, 2021, primarily due to increased personnel costs and stock-based compensation [98]. Selling, General and Administrative Expenses - Selling, general and administrative expenses increased by $8.1 million, or 52%, for the six months ended June 30, 2021, mainly due to higher stock-based compensation and personnel costs [101]. Cash Flow and Financial Position - Net cash provided by operating activities was $10.4 million for the six months ended June 30, 2021, compared to $5.7 million in the same period of the prior year [109]. - Net cash used in investing activities was $12.0 million for the six months ended June 30, 2021, primarily for purchasing manufacturing equipment [113]. - Net cash provided by financing activities was $181.6 million for the six months ended June 30, 2021, resulting from proceeds from share issuance [115]. - As of June 30, 2021, cash and cash equivalents totaled $253.5 million, significantly up from $73.5 million at the end of 2020 [106]. - The company expects continued investment in research and development to support future growth and customer acquisition [96]. - The company canceled its $50.0 million credit facility, indicating confidence in its cash position to meet operational needs for at least the next 12 months [108]. - The company paid down all of its debt in 2020, indicating a strong balance sheet [120]. Interest Rate Exposure - The company does not engage in trading or speculative investments and has not used derivative financial instruments for interest rate risk management [121]. - The company's exposure to interest rates is primarily related to its short-term revolving line of credit, which is subject to renewal [121]. - A hypothetical 10% change in interest rates would not have a material impact on the company's historical consolidated financial statements [121].