SiTime (NasdaqGM:SITM) Q4 2025 Earnings call February 04, 2026 05:00 PM ET Company ParticipantsBeth Howe - CFOBrett Perry - VP of Investor RelationsQuinn Bolton - Managing Director in Equity ResearchRajesh Vashist - CEOTom O'Malley - Director in Equity ResearchConference Call ParticipantsChris Caso - Managing Director and Senior Equity AnalystGary Mobley - Managing Director and Senior AnalystJim Schneider - Senior Equity AnalystSujith Desilva - Managing Director and Senior Research AnalystTore Svanberg - Ma ...

Financial Data and Key Metrics Changes - SiTime reported Q4 2025 revenue of $113.3 million, a 66% increase year-over-year, with earnings per share tripling from $0.48 to $1.53 [8][9] - For the full year 2025, revenue reached $326.7 million, up 61% year-over-year, with gross margins expanding to 59.3% [15][9] - Non-GAAP operating profit for 2025 was $58.6 million, representing 18% of revenue, with cash flow from operations improving to $87.2 million from $23.2 million in 2024 [15][16] Business Line Data and Key Metrics Changes - The Communications Enterprise and Data Center (CED) segment grew 160% year-over-year, contributing $64.6 million or 57% of total revenue in Q4 [16][10] - Automotive, industrial, and aerospace segments delivered $24.5 million, or 22% of revenue, increasing 19% year-over-year [17] - Consumer, IoT, and mobile revenue was $24.2 million, or 21% of total revenue, up 7% year-over-year [17] Market Data and Key Metrics Changes - Demand for oscillators used in 1.6 terabit optical modules increased by 50% in 2026 forecasts, indicating strong market growth [10] - The book-to-bill ratio was over 1.5 at the end of Q4, reflecting strong demand across the customer base [9] - The company expects significant growth in 2026 driven by AI CapEx spending and increased demand for high-performance networking infrastructure [10][12] Company Strategy and Development Direction - SiTime aims to lead in high-value precision timing applications and deliver differentiated system-level solutions [13] - The acquisition of Renesas' timing business is expected to enhance SiTime's product portfolio and accelerate growth, particularly in the CED segment [24][28] - The company plans to maintain a long-term growth rate of 25%-30% post-acquisition, leveraging the strengths of both businesses [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2026, citing strong demand in AI and data centers as key growth drivers [39][40] - The company anticipates continued growth across all segments, with specific opportunities in aerospace and defense applications [40] - Management highlighted the importance of maintaining a strong supply chain to support growth and meet increasing demand [82][84] Other Important Information - The acquisition of Renesas' timing business is valued at $1.5 billion in cash and approximately 4.13 million newly issued SiTime shares [28] - The transaction is expected to close by the end of 2026, subject to regulatory approvals [28] Q&A Session Summary Question: What is the source of the strong bookings reflected in the book-to-bill ratio of 1.5? - Management indicated that most bookings are coming from the CED segment due to its significant growth and customer demand [31] Question: Can you elaborate on the potential for cross-selling opportunities with Renesas? - Management confirmed that there is minimal product overlap, allowing for significant cross-selling opportunities between SiTime's oscillators and Renesas' clock products [42] Question: What is the expected duration of the backlog associated with the book-to-bill ratio? - Management noted that while customers are booking longer, the majority of orders are expected within 12 months, with a focus on Q1 and Q2 [56] Question: How do you expect the acquisition to impact gross margins? - Management stated that the acquisition is expected to enhance gross margins, potentially reaching the upper end of the long-term target of 60%-65% [60] Question: Are there any capacity constraints anticipated in the supply chain? - Management expressed confidence in the supply chain, noting that they have caught up with previous challenges and are well-positioned to meet demand [83]

SiTime (NasdaqGM:SITM) Q4 2025 Earnings call February 04, 2026 05:00 PM ET Speaker0Good afternoon and welcome to SiTime's fourth quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please pres ...

Acquired Business Expected to Generate $300 Million in Revenue in 12 Months Post-Close, with 70% Gross MarginHigh-Growth AI Datacenter-Comms Represents ~75% of Acquired Revenue Accelerates SiTime’s Path to $1 Billion of Revenue as the Premier Pure-Play Precision Timing Company Signed Partnership MOU to Explore SiTime’s MEMS Resonator Integration in Renesas’ Embedded ComputingSiTime Conference Call Today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) SANTA CLARA, Calif. and TOKYO, Feb. 04, 2026 (GLOBE NE ...

SiTime to Acquire Renesas' Timing Business Accelerates Path to $1 Billion of Revenue as a Premier Pure-Play Precision Timing Company Forward Looking Statements This presentation and our discussion today regarding SiTime Corporation (the "Company") may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including statements regarding the benefits of the transaction, the anticipated timing of the closing of the transaction, statements re ...

Core Insights - SiTime Corporation will participate in the 28th Annual Needham Growth Conference, with CEO Rajesh Vashist scheduled for a fireside chat on January 13, 2026 [1] - The company will also be available for meetings with attending investors throughout the day [1] Company Overview - SiTime Corporation specializes in Precision Timing, offering semiconductor MEMS programmable solutions that enhance product performance, reduce size, lower power consumption, and improve reliability [3] - The company has shipped over 3.5 billion devices, indicating a significant impact on the timing industry [3]

Core Insights - SiTime Corporation has launched the Endura® temperature compensated oscillator (Super-TCXO), designed for position, navigation, and timing (PNT) applications, which offers significant improvements in holdover and accuracy [1] Product Features - The ENDR-TTT provides up to 20 times longer holdover and 20 times better PNT accuracy, enhancing resistance to spoofing [1] - It features ±50 ppb stability over temperature, a -55ºC to +125ºC operating temperature range, and 30,000 g operational shock resistance, which is up to 20 times better than quartz alternatives [1] - The product also includes a typical g-sensitivity of 0.004 ppb/g, which is up to 50 times better than quartz alternatives, and ±0.5 ppm aging over 20 years, eliminating the need for field recalibration [1] Market Applications - The ENDR-TTT is targeted at GNSS receivers in aerospace, defense, and industrial markets, providing uninterrupted network operation even when GNSS signals are unavailable or degraded [1] - The product is expected to set a new standard for ruggedized Precision Timing, with a focus on superior performance, low power consumption, and compact size [1] Availability - SiTime's ENDR-TTT is currently sampling, with mass production anticipated in the first quarter of 2026 [1]

Core Insights - SiTime Corporation reported a 45% increase in net revenue for Q3 2025, reaching $83.6 million compared to $57.7 million in Q3 2024 [1][2] - The company anticipates continued growth, projecting to exceed 50% year-over-year growth for 2025, driven by strong demand in its Communications-Enterprise-Datacenter business [2] Financial Performance - GAAP gross profit for Q3 2025 was $44.7 million, representing a gross margin of 53.5% [2][11] - Non-GAAP gross profit was $49.1 million, with a non-GAAP gross margin of 58.8% [3][17] - GAAP operating expenses totaled $60.7 million, leading to a GAAP loss from operations of $16.0 million [2][11] - Non-GAAP income from operations was $15.4 million, with a non-GAAP operating margin of 18.5% [3][17] Cash Position - As of September 30, 2025, the company had total cash, cash equivalents, and short-term investments amounting to $809.6 million [3] Stock Awards - On November 3, 2025, SiTime granted 27,923 restricted stock units (RSUs) to 19 newly hired individuals as part of its Inducement Award Plan [6] Conference Call - SiTime scheduled a conference call to discuss its Q3 2025 financial results on November 5, 2025 [7][8] Company Overview - SiTime Corporation specializes in Precision Timing solutions, offering semiconductor MEMS programmable solutions that enhance product performance, size, power efficiency, and reliability [9]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $69.5 million, representing a 58% increase year over year [8][15] - Gross margin increased to 58.2%, up 80 basis points sequentially [15] - EPS rose to $0.47, up from $0.12 a year ago [9][15] - Non-GAAP operating income improved by $9.9 million or 16 percentage points compared to the same quarter last year [16] Business Line Data and Key Metrics Changes - The Comms Enterprise Data Center (CED) segment grew 137% year over year to $36 million [15] - Automotive, industrial, and defense markets saw an 11% year-over-year increase to $16.5 million [15] - Mobile IoT and consumer market revenue increased by 23% year over year to $17 million [15] Market Data and Key Metrics Changes - All markets and geographies demonstrated continued growth, with double-digit percentage increases in Mobile IoT, Consumer, and Auto Defense Industrial segments [12] - The automotive market is experiencing growth driven by fully autonomous operations, with significant traction in robotaxis and defense spending [13] Company Strategy and Development Direction - The company is focused on high-value applications in AI data centers, automated driving, defense, and industrial sectors [8] - Plans to accelerate product development and customer acquisition in the AI data center market [11] - Continued investment in R&D and customer acquisition while improving operating leverage [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, highlighting strong demand in AI infrastructure and continued momentum across markets [14][20] - The company anticipates sequential revenue growth in Q3 and Q4, expecting at least 40% revenue growth for the second consecutive year [14][20] Other Important Information - The company completed a follow-on public offering of 2 million shares at $200 per share, raising $388 million in net proceeds [18] - The balance sheet remains strong with $796.7 million in cash and short-term investments and no debt [19] Q&A Session Summary Question: Expectations for growth by segment - Management expects CED, led by AI, to continue as the strongest growth area, with stronger seasonality in consumer markets in the second half [21][22] Question: Guidance for the mobile segment - The policy remains to provide guidance only when visibility is sufficient, and the current year allows for inclusion of mobile products in guidance [23][25] Question: Mobile IoT consumer business performance - Management noted that the mobile IoT consumer business is dynamic and subject to seasonality, with expectations for stronger performance in the second half of the year [32][34] Question: Non-data center segments outlook - There is some softness in automotive, but growth is expected in industrial and aerospace markets, with significant opportunities in the coming years [38][40] Question: Gross margin expectations from new products - New products are expected to contribute positively to gross margins, with significant ASP increases anticipated [43][45] Question: Content opportunities in data center equipment - The company is uniquely positioned to provide system-level solutions, which enhances dollar content in data center applications [48][50] Question: Success of the Symphonic product - The Symphonic product targets mobile consumer IoT and is expected to have a higher ASP due to its system-level integration [58][59] Question: Strength in CED segment - Management noted that visibility into the CED segment has improved, with continued strength and demand expected [63][64]

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]