SiTime (NasdaqGM:SITM) Q3 2025 Earnings Call November 05, 2025 05:00 PM ET Company ParticipantsQuinn Bolton - Managing Director of Equity ResearchChris Caso - Managing DirectorRajesh Vashist - CEOBrett Perry - VP of Investor RelationsBeth Howe - EVP and CFOConference Call ParticipantsTore Svanberg - Managing Director and Senior Semiconductor AnalystOperatorGood afternoon and welcome to SiTime's third quarter 2025 financial results conference call. After the Speaker's presentation, there will be a question-a ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $83.6 million, representing a 45% year-over-year increase [5][12] - Gross margins improved to 58.8%, up 70 basis points year-over-year [13] - Non-GAAP earnings per share (EPS) more than doubled to $0.87 [14] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) revenue surged 115% year-over-year to $42.1 million, accounting for 51% of total revenue [12][13] - Sales in the automotive, industrial, and defense markets totaled $20.2 million, up 14% year-over-year [13] - Mobile IoT and consumer market sales increased 4% year-over-year to $21.3 million [13] Market Data and Key Metrics Changes - Double-digit percentage growth was observed in every geographic region during Q3 [6] - Demand from CED, communications, enterprise, and data center customers significantly increased, marking the sixth consecutive quarter of triple-digit growth in CED [6] Company Strategy and Development Direction - The company is focusing on AI-driven applications, particularly in networking and computing hardware [5] - The introduction of the Titan platform aims to capture a $4 billion standalone resonator market, with expectations of growth to $1 billion by 2028 [9][10] - Continued investment in R&D and customer engagement is emphasized to drive sustained growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth momentum, driven by strong bookings and demand across all segments [6][11] - The company anticipates revenue for Q4 to be between $100 million and $103 million, with gross margins projected at 60% to 60.5% [15] Other Important Information - Non-GAAP operating income for Q3 was $15.4 million, an improvement of $11.4 million year-over-year [14] - The company ended the quarter with $810 million in cash and short-term investments [14] Q&A Session Summary Question: What is driving the strength in Q4? - Management noted continuation of trends and sequential growth across segments, with AI and data center business leading the growth [18] Question: How do clocks and resonators impact oscillator opportunities? - Management indicated that while clocks can bring in more oscillator opportunities, significant revenue from resonators is not expected until late 2026 or 2027 [19][20] Question: What is the margin profile of the Titan family? - The ASPs for Titan are lower than oscillators and clocks, but gross margins are expected to be in the 60% range [25][26] Question: Any updates on M&A activities? - The company is interested in M&A to gain scale but is focusing on near-term opportunities rather than long-term atomic clock technologies [27][28] Question: What are the expectations for seasonality in the business? - Management expects to see typical seasonal trends from Q4 to Q1, but strong demand across the portfolio may mitigate some seasonal impacts [52][53]