[Risk Factor Summary](index=4&type=section&id=Risk%20Factor%20Summary) This section provides a high-level overview of the principal risks facing the company, including macroeconomic conditions, industry cyclicality, customer dependence, and supply chain reliance [Risk Factor Summary](index=4&type=section&id=Risk%20Factor%20Summary) This section provides a high-level overview of the principal risks facing the company, including macroeconomic conditions, industry cyclicality, customer dependence, and supply chain reliance - Global macroeconomic conditions and the cyclical nature of the semiconductor industry are identified as significant risks that have harmed and may continue to harm the business[8](index=8&type=chunk) - The company has historically depended on a limited number of customers for a significant portion of its revenue, and the loss of a large customer could significantly reduce revenue[8](index=8&type=chunk) - Reliance on third parties for raw materials, wafer fabrication, assembly, packaging, and testing exposes the company to supply chain risks, including potential shortages, quality issues, and price increases[8](index=8&type=chunk) - A significant portion of operations is located outside the United States, subjecting the company to additional risks such as geopolitical instability and increased management complexity[8](index=8&type=chunk) PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2025, including balance sheets, statements of operations, stockholders' equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a significant increase in total assets to **$1.27 billion** from **$885.0 million** at the end of 2024, driven by cash and short-term investments, while total liabilities slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $172,522 | $6,106 | | Short-term investments | $624,144 | $412,728 | | Total current assets | $918,901 | $544,060 | | **Total Assets** | **$1,269,136** | **$884,959** | | **Total Liabilities** | **$168,455** | **$185,240** | | **Total Stockholders' Equity** | **$1,100,681** | **$699,719** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three and six months ended June 30, 2025, the company reported significant year-over-year revenue growth, with Q2 revenue increasing to **$69.5 million**, and a narrowed net loss of **$(20.2) million** for the quarter Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $69,494 | $43,866 | $129,808 | $76,888 | | Gross Profit | $36,052 | $21,523 | $66,387 | $39,183 | | Loss from Operations | $(24,611) | $(32,320) | $(52,721) | $(67,358) | | Net Loss | $(20,179) | $(26,769) | $(44,056) | $(55,473) | | Net Loss Per Share, basic | $(0.84) | $(1.16) | $(1.85) | $(2.42) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity substantially increased during the first six months of 2025, rising from **$699.7 million** to **$1.1 billion**, primarily due to **$387.3 million** from a follow-on public offering and **$29.7 million** from an ATM offering, partially offset by a net loss - The company raised **$387.3 million** in net proceeds from a follow-on public offering of 2,012,500 shares in June 2025[17](index=17&type=chunk)[52](index=52&type=chunk) - An additional **$29.7 million** in net proceeds was raised through an At-The-Market (ATM) offering of 150,000 shares during the second quarter of 2025[17](index=17&type=chunk)[50](index=50&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities provided **$30.4 million**, investing activities used **$247.4 million**, and financing activities provided **$383.4 million**, resulting in a net increase in cash and cash equivalents of **$166.4 million** Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,376 | $1,548 | | Net cash provided by (used in) investing activities | $(247,364) | $78,412 | | Net cash provided by (used in) financing activities | $383,404 | $(72,791) | | **Net increase in cash and cash equivalents** | **$166,416** | **$7,169** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information supporting the financial statements, including the company's single operating segment, geographic revenue breakdown, equity incentive plans, and **$30.2 million** in future non-cancelable purchase commitments - The company operates in one reportable segment: the design, development, and sale of Precision Timing solutions[63](index=63&type=chunk) Revenue by Geographic Area (Six Months Ended June 30, in thousands) | Country | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | $47,395 | $25,536 | | Taiwan | $33,255 | $21,611 | | United States | $8,951 | $7,623 | | Singapore | $7,075 | $6,468 | | Other | $33,132 | $15,650 | | **Total** | **$129,808** | **$76,888** | - As of June 30, 2025, the company had total future non-cancelable purchase commitments of **$30.2 million**[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial results, highlighting a **58%** year-over-year revenue increase for Q2 2025, improved gross margin to **52%**, increased operating expenses, and significantly strengthened liquidity from public offerings Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $69,494 | $43,866 | $25,628 | 58% | | Gross Profit | $36,052 | $21,523 | $14,529 | 68% | | Gross Margin | 52% | 49% | - | 2.8 p.p. | - The increase in revenue for Q2 and the first six months of 2025 was primarily due to an increase in sales volume and higher average selling prices from a change in product mix[89](index=89&type=chunk) - The company's largest end customer accounted for **17%** of revenue in Q2 2025, while the top three distributors accounted for **66%** of revenue[90](index=90&type=chunk) - Research and development expenses increased by **20%** YoY in Q2 2025, driven by higher spending on new product development, increased stock-based compensation, and higher headcount[98](index=98&type=chunk)[100](index=100&type=chunk) - The company's liquidity position was significantly enhanced by raising **$387.3 million** from a follow-on public offering and **$29.7 million** from an ATM offering during the first half of 2025[118](index=118&type=chunk)[119](index=119&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency risk, considered minimal due to U.S. dollar denominated revenues, and interest rate risk, due to substantial holdings of cash, cash equivalents, and short-term investments totaling **$796.6 million** - Foreign currency risk is not considered material because substantially all revenue is denominated in U.S. dollars[131](index=131&type=chunk) - The company is exposed to interest rate risk with **$172.5 million** in cash and cash equivalents and **$624.1 million** in short-term investments as of June 30, 2025; a hypothetical **10%** change in interest rates would affect interest income by approximately **$0.9 million** for the six-month period[132](index=132&type=chunk)[133](index=133&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, the CEO and CFO concluded that the disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[136](index=136&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[137](index=137&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, and no liability for claims was deemed probable or reasonably estimable as of June 30, 2025 - The company did not have any amounts accrued for litigation and contingencies as of June 30, 2025, as no liability was determined to be both probable and reasonably estimable[66](index=66&type=chunk)[139](index=139&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks, including semiconductor industry cyclicality, heavy reliance on a few major customers and distributors (with Apple as the largest end customer), dependence on limited third-party suppliers (Bosch, TSMC), international trade policies, and geopolitical risks - The company is subject to the highly cyclical nature of the semiconductor industry, which can lead to significant fluctuations in product demand, inventory levels, and average selling prices[142](index=142&type=chunk) - The top three distributors accounted for **66%** of revenue in Q2 2025, and the largest end customer, Apple Inc., accounted for **17%** of revenue, highlighting significant customer concentration risk[143](index=143&type=chunk)[144](index=144&type=chunk) - The company operates a fabless model, relying on third parties like Bosch for MEMS wafers and TSMC for analog circuits, which exposes it to supply chain disruptions, capacity constraints, and quality control issues[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - A significant portion of operations are outside the U.S., including R&D in Ukraine and manufacturing suppliers in Asia, creating exposure to geopolitical risks, such as tensions between China and Taiwan[165](index=165&type=chunk)[166](index=166&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This section discloses that four executive officers adopted Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025, to facilitate planned sales of company stock - During the quarter ended June 30, 2025, four executive officers, including the Executive VPs of Engineering, Sales, Marketing, and Legal, adopted Rule 10b5-1 trading plans[274](index=274&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications required by the Sarbanes-Oxley Act - The exhibits filed with this report include key corporate governance documents and certifications from the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act[276](index=276&type=chunk)

[Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) SiTime achieved significant Q2 2025 revenue growth, with non-GAAP metrics indicating profitability despite GAAP net losses [Key Financial Metrics (GAAP & Non-GAAP)](index=1&type=section&id=1.1%20Key%20Financial%20Metrics%20(GAAP%20%26%20Non-GAAP)) This section presents a comparative overview of SiTime's Q2 2025 GAAP and non-GAAP financial performance, highlighting revenue growth and profitability differences Q2 2025 Key Financial Metrics Overview | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (GAAP) | | :-------------------------------- | :--------------- | :----------------- | :--------------- | | Net Revenue | $69.5 million | $69.5 million | $43.9 million | | Gross Profit | $36.1 million | $40.5 million | $21.5 million | | Gross Margin | 51.9% | 58.2% | 49.1% | | Operating Expenses | $60.7 million | $33.3 million | $53.8 million | | Income (Loss) from Operations | $(24.6) million | $7.2 million | $(32.3) million | | Net Income (Loss) | $(20.2) million | $11.6 million | $(26.8) million | | Diluted EPS | $(0.84) | $0.47 | $(1.16) | | Total Cash, Cash Equivalents & Short-term Investments (as of June 30, 2025) | $796.7 million | N/A | N/A | - Net revenue increased **58% year-over-year** to **$69.5 million** in Q2 2025 compared to $43.9 million in Q2 2024[2](index=2&type=chunk) - Non-GAAP net income was **$11.6 million**, or **$0.47 per diluted share**, in Q2 2025[4](index=4&type=chunk) [Business Performance and Market Commentary](index=1&type=section&id=1.2%20Business%20Performance%20and%20Market%20Commentary) SiTime's CEO highlighted continued momentum across end markets, attributing strong revenue growth, particularly in the Communications, Enterprise, and Data Center (CED) market, to the company's focus on high-performance applications and AI-driven demand for Precision Timing solutions - Revenue from the Communications, Enterprise, and Data Center (CED) market grew **137% year over year**, driven by AI-fueled demand for Precision Timing solutions[3](index=3&type=chunk) - The company's focus on high-performance applications is demonstrating continued momentum across its end markets[3](index=3&type=chunk) [Company Information](index=1&type=section&id=Company%20Information) This section provides an overview of SiTime Corporation, its non-GAAP financial reporting practices, and forward-looking statement disclaimers [About SiTime](index=2&type=section&id=2.1%20About%20SiTime) SiTime Corporation is a Precision Timing company specializing in semiconductor MEMS programmable solutions, offering high performance, smaller size, lower power, and better reliability, with over 3.5 billion devices shipped - SiTime Corporation is known as the **Precision Timing company**[9](index=9&type=chunk) - The company's semiconductor MEMS programmable solutions enable product differentiation through higher performance, smaller size, lower power, and better reliability[9](index=9&type=chunk) - SiTime has shipped over **3.5 billion devices**, indicating significant market penetration and impact on the timing industry[9](index=9&type=chunk) [Use of Non-GAAP Financial Information](index=1&type=section&id=2.2%20Use%20of%20Non-GAAP%20Financial%20Information) SiTime provides non-GAAP financial measures to offer supplemental information on financial and business trends, believing they provide additional insight into ongoing performance and core operational activities for more consistent period-over-period comparisons - Non-GAAP financial measures are presented to provide supplemental information on financial and business trends, offering additional insight into ongoing performance and core operational activities[6](index=6&type=chunk) - Non-GAAP measures exclude stock-based compensation expense, amortization of acquired intangibles, and acquisition-related expenses for more consistent and meaningful comparisons[6](index=6&type=chunk) - The presentation of non-GAAP information is not intended to be a substitute for GAAP financial information[5](index=5&type=chunk) [Forward-Looking Statements](index=2&type=section&id=2.3%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially, with SiTime disclaiming any obligation to update these statements - The press release contains forward-looking statements that involve risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially[10](index=10&type=chunk) - Key risks include expectations and trends related to new product growth, product differentiation, market acceptance, and the ability to accurately forecast future performance[10](index=10&type=chunk) - SiTime undertakes no obligation to update these forward-looking statements, which are based on information available at the time they are made[10](index=10&type=chunk) [GAAP Financial Statements](index=3&type=section&id=GAAP%20Financial%20Statements) This section presents SiTime's unaudited GAAP financial statements, including condensed consolidated statements of operations and balance sheets [Unaudited GAAP Condensed Consolidated Statements of Operations](index=3&type=section&id=3.1%20Unaudited%20GAAP%20Condensed%20Consolidated%20Statements%20of%20Operations) The GAAP Condensed Consolidated Statements of Operations detail SiTime's financial performance for both the three and six months ended June 30, 2025, showing significant revenue growth but continued net losses [Three Months Ended June 30, 2025](index=3&type=section&id=3.1.1%20Three%20Months%20Ended%20June%2030,%202025) For the three months ended June 30, 2025, SiTime reported a 58% increase in revenue year-over-year, reaching $69.5 million, but recorded a GAAP net loss of $20.2 million GAAP Condensed Consolidated Statements of Operations (Three Months) | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Revenue | $69,494 | $60,314 | $43,866 | | Cost of Revenue | $33,442 | $29,978 | $22,343 | | Gross Profit | $36,052 | $30,336 | $21,523 | | Research and Development | $30,563 | $30,026 | $25,490 | | Selling, General and Administrative | $28,228 | $26,856 | $25,190 | | Total Operating Expenses | $60,663 | $58,444 | $53,843 | | Loss from Operations | $(24,611) | $(28,108) | $(32,320) | | Net Loss | $(20,179) | $(23,877) | $(26,769) | | Net Loss per Diluted Share | $(0.84) | $(1.01) | $(1.16) | - Revenue for Q2 2025 was **$69.494 million**, a **58.4% increase** from $43.866 million in Q2 2024[12](index=12&type=chunk) - GAAP net loss improved to **$(20.179) million** in Q2 2025 from $(26.769) million in Q2 2024[12](index=12&type=chunk) [Six Months Ended June 30, 2025](index=4&type=section&id=3.1.2%20Six%20Months%20Ended%20June%2030,%202025) For the six months ended June 30, 2025, SiTime's revenue grew to $129.8 million, a 68.8% increase, while the GAAP net loss improved to $44.1 million GAAP Condensed Consolidated Statements of Operations (Six Months) | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Revenue | $129,808 | $76,888 | | Cost of Revenue | $63,421 | $37,705 | | Gross Profit | $66,387 | $39,183 | | Research and Development | $60,589 | $51,034 | | Selling, General and Administrative | $55,086 | $49,102 | | Total Operating Expenses | $119,108 | $106,541 | | Loss from Operations | $(52,721) | $(67,358) | | Net Loss | $(44,056) | $(55,473) | | Net Loss per Diluted Share | $(1.85) | $(2.42) | - Revenue for the six months ended June 30, 2025, was **$129.808 million**, up **68.8%** from $76.888 million in the same period of 2024[14](index=14&type=chunk) - GAAP net loss for the six months ended June 30, 2025, was **$(44.056) million**, an improvement from $(55.473) million in the prior year period[14](index=14&type=chunk) [Unaudited GAAP Condensed Consolidated Balance Sheets](index=8&type=section&id=3.2%20Unaudited%20GAAP%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, SiTime's balance sheet shows a significant increase in total assets, primarily driven by a substantial rise in cash and short-term investments, leading to a strong increase in total stockholders' equity GAAP Condensed Consolidated Balance Sheets (as of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :------------------------------- | | Cash and Cash Equivalents | $172,522 | $6,106 | | Short-term Investments | $624,144 | $412,728 | | Total Current Assets | $918,901 | $544,060 | | Total Assets | $1,269,136 | $884,959 | | Total Current Liabilities | $107,542 | $108,449 | | Total Liabilities | $168,455 | $185,240 | | Total Stockholders' Equity | $1,100,681 | $699,719 | - Cash and cash equivalents increased significantly to **$172.5 million** as of June 30, 2025, from $6.1 million at December 31, 2024[20](index=20&type=chunk) - Total assets grew to **$1.27 billion** as of June 30, 2025, from $885.0 million at December 31, 2024[20](index=20&type=chunk) [Non-GAAP Financial Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Reconciliation) This section provides a reconciliation of GAAP to non-GAAP financial measures for both the three and six months ended June 30, 2025 [Unaudited Reconciliation of Non-GAAP Adjustments (Three Months)](index=5&type=section&id=4.1%20Unaudited%20Reconciliation%20of%20Non-GAAP%20Adjustments%20(Three%20Months)) For the three months ended June 30, 2025, SiTime's non-GAAP adjustments significantly transformed GAAP losses into non-GAAP profitability, with non-GAAP net income of $11.6 million Non-GAAP Reconciliation (Three Months Ended June 30, 2025) | Metric | GAAP (in thousands) | Adjustments (in thousands) | Non-GAAP (in thousands) | | :-------------------------------- | :------------------ | :------------------------- | :-------------------- | | Gross Profit | $36,052 | $4,398 | $40,450 | | Gross Margin | 51.9% | N/A | 58.2% | | Total Operating Expenses | $60,663 | $(27,373) | $33,290 | | Income (Loss) from Operations | $(24,611) | $31,771 | $7,160 | | Net Income (Loss) | $(20,179) | $31,771 | $11,592 | | Diluted EPS | $(0.84) | $1.31 | $0.47 | - Non-GAAP gross margin for Q2 2025 was **58.2%**, compared to GAAP gross margin of 51.9%[16](index=16&type=chunk) - Non-GAAP income from operations was **$7.16 million** (**10.3% of revenue**) in Q2 2025, a significant improvement from GAAP loss from operations of $(24.611) million[16](index=16&type=chunk) [Unaudited Reconciliation of Non-GAAP Adjustments (Six Months)](index=6&type=section&id=4.2%20Unaudited%20Reconciliation%20of%20Non-GAAP%20Adjustments%20(Six%20Months)) For the six months ended June 30, 2025, non-GAAP adjustments converted a GAAP net loss of $44.1 million into a non-GAAP net income of $17.9 million, or $0.73 per diluted share Non-GAAP Reconciliation (Six Months Ended June 30, 2025) | Metric | GAAP (in thousands) | Adjustments (in thousands) | Non-GAAP (in thousands) | | :-------------------------------- | :------------------ | :------------------------- | :-------------------- | | Gross Profit | $66,387 | $8,671 | $75,058 | | Gross Margin | 51.1% | N/A | 57.8% | | Total Operating Expenses | $119,108 | $(53,278) | $65,830 | | Income (Loss) from Operations | $(52,721) | $61,949 | $9,228 | | Net Income (Loss) | $(44,056) | $62,000 | $17,893 | | Diluted EPS | $(1.85) | $2.58 | $0.73 | - Non-GAAP gross margin for the six months ended June 30, 2025, was **57.8%**, consistent with the prior year period[18](index=18&type=chunk) - Non-GAAP income from operations for the first half of 2025 was **$9.228 million** (**7.1% of revenue**), a significant turnaround from a non-GAAP loss of $(11.036) million in the prior year period[18](index=18&type=chunk) [Additional Company Updates](index=1&type=section&id=Additional%20Company%20Updates) This section provides updates on SiTime's inducement plan grants, conference call details, and investor relations contacts [Inducement Plan Grants](index=1&type=section&id=5.1%20Inducement%20Plan%20Grants) SiTime granted 50,654 restricted stock units (RSUs) on August 4, 2025, to 24 newly hired individuals globally under its Amended and Restated 2022 Inducement Award Plan, with vesting scheduled quarterly - SiTime granted an aggregate of **50,654 restricted stock units (RSUs)** on August 4, 2025[7](index=7&type=chunk) - These RSUs were approved under SiTime's Amended and Restated 2022 Inducement Award Plan as a material inducement to employment for **24 newly hired individuals** globally[7](index=7&type=chunk) - Vesting occurs quarterly, with one-fourth vesting on the first February 20, May 20, August 20, or November 20 falling in the one-year anniversary quarter of the vesting start date, and then 1/16th quarterly thereafter[7](index=7&type=chunk) [Conference Call Information](index=1&type=section&id=5.2%20Conference%20Call%20Information) SiTime scheduled a conference call for August 6, 2025, at 2:00 p.m. Pacific Time to discuss its Q2 2025 financial results and business outlook, with access via registration or webcast - A conference call to discuss Q2 2025 financial results was scheduled for **August 6, 2025, at 2:00 p.m. Pacific Time** (5:00 p.m. Eastern Time)[8](index=8&type=chunk) - Participants can register to receive a dial-in number and PIN or access a live audio webcast on the investor relations section of SiTime's website (investor.sitime.com)[8](index=8&type=chunk) - An archived webcast replay of the call will be available on the website[8](index=8&type=chunk) [Investor Relations Contacts](index=8&type=section&id=5.3%20Investor%20Relations%20Contacts) Investor relations inquiries for SiTime Corporation can be directed to Shelton Group or to SiTime's Chief Financial Officer, Beth Howe - Investor Relations contacts are Shelton Group (Leanne Sievers | Brett Perry) and SiTime Corporation's Chief Financial Officer, Beth Howe[21](index=21&type=chunk)

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 [5]. Recent Financial Activity - SiTime completed a follow-on public offering of 2,012,500 shares of common stock at a public price of $200.00 per share, resulting in net proceeds of approximately $387.4 million after deducting underwriting discounts and commissions [1]. Underwriting Details - The offering was managed by UBS Investment Bank and Stifel as joint lead book-running managers, with Needham & Company and Goldman Sachs & Co. LLC also serving as joint book-running managers [2].

Group 1 - SiTime Corporation announced a follow-on public offering of 1,750,000 shares at a price of $200.00 per share, expecting gross proceeds of $350 million before expenses [1] - The offering is set to close on June 27, 2025, subject to customary closing conditions [1] - SiTime has granted underwriters a 30-day option to purchase up to 262,500 additional shares at the public offering price [2] Group 2 - UBS Investment Bank and Stifel are the joint lead book-running managers for the offering, with Needham & Company and Goldman Sachs also involved as joint book-running managers [2] - A registration statement for these securities was filed with the U.S. Securities and Exchange Commission on February 26, 2024, and became effective upon filing [3] - The offering is being made only by means of a prospectus supplement and accompanying prospectus [3] Group 3 - SiTime Corporation specializes in precision timing solutions, offering semiconductor MEMS programmable solutions that enhance product performance, size, power efficiency, and reliability [5] - The company has shipped over 3.5 billion devices, indicating a significant impact on the timing industry [5]

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 [5] Proposed Offering - SiTime has filed a preliminary prospectus supplement for a proposed follow-on public offering of $350,000,000 of its common stock, with an additional option for underwriters to purchase up to $52,500,000 of shares [1] - The offering is contingent on market conditions, and there is no guarantee regarding its completion or the final terms [1] Underwriters - UBS Investment Bank and Stifel are serving as joint lead book-running managers for the offering, with Needham & Company also participating as a joint book-running manager [2] Regulatory Filings - A registration statement for the shares was filed with the U.S. Securities and Exchange Commission on February 26, 2024, and became effective upon filing [3]

Core Insights - The article discusses the investment potential of SiTime (SITM), highlighting its market trends and opportunities for investors [1] Company Overview - SiTime is positioned in a growing market, with analysts providing insights into its performance and future prospects [1] Market Trends - The video associated with the article offers valuable insights into current market trends that could impact SiTime's growth [1] Investment Opportunities - The analysis suggests that there are potential investment opportunities within SiTime, making it a company to watch for investors [1]

Group 1 - SiTime (NASDAQ: SITM) has experienced a stock price increase due to recent successes in AI data centers and communications infrastructure [1] - The current valuation of SiTime is believed to reflect much of the momentum gained from these successes [1] - Henriot Capital emphasizes a quant-driven investment approach, focusing on data-driven decisions without human bias [1] Group 2 - The investment philosophy at Henriot Capital is centered around simplicity and common sense, aiming to build a hedge fund with a clear purpose and disciplined focus [1] - The motto "invest first, investigate later" indicates a strategy of purchasing based on model recommendations before conducting further research [1]

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]

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]

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]