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 ...

SiTime Conference Call Summary Company Overview - **Company**: SiTime - **Industry**: Semiconductor, specifically focusing on precision timing solutions Key Points Industry and Market Position - SiTime operates in the precision timing market, which is critical for various electronic applications, including data centers, communications, and automotive systems [4][10][11] - The total addressable market (TAM) for SiTime is projected to be around $11 billion, with significant segments in oscillators, resonators, and clocks [13][38] - SiTime has shipped approximately 4 billion MEMS units, significantly outpacing competitors who have shipped around 100 million units [10] Product Offerings - SiTime's product categories include: - **MEMS Oscillators**: Key for precision timing in electronics - **Clocks**: Recently expanded through acquisition, allowing for a more integrated product offering [14] - **Standalone Resonators**: A new addition to their product line [13] - The company emphasizes the importance of MEMS technology, which offers advantages over traditional quartz, including size, thermal stability, and reliability [25][29] Competitive Landscape - SiTime is currently the only company that combines MEMS technology with analog and systems expertise in the timing market [15][16] - The company has established a strong moat through proprietary processes, design capabilities, and unique tools developed in-house [16][18] Growth Opportunities - SiTime sees significant growth potential in various sectors: - **Data Centers**: High demand for precision timing in networking components such as NIC cards and optical modules [21][32] - **Automotive and Industrial**: Growth expected in ADAS and robotics, with a focus on safety-oriented products [38][43] - **Consumer Electronics**: Opportunities in modems and smart devices, with expectations for growth in 2026 [27][48] Financial Performance - SiTime reported a significant growth year, with analysts projecting around $300 million in revenue, marking a substantial increase from previous years [37] - The company aims for gross margins around 60%, with expectations for continued expansion as the product mix evolves [39][46] Seasonality and Demand - Historical seasonality shows a decline of about 20% from Q4 to Q1, but this is expected to improve due to a shift in business composition towards data centers [40] - SiTime has been proactive in managing supply chain and demand, ensuring that current growth is sustainable and not merely a result of advanced procurement [34] M&A and Strategic Initiatives - SiTime is open to further acquisitions, particularly in the clocking area and software synchronization, to enhance its product offerings [19] - The recent acquisition of Aura has been successful in securing design wins, although the integration and realization of these wins may take time [19][27] Conclusion - SiTime is positioned for strong growth across multiple sectors, leveraging its unique technology and market position to capitalize on emerging opportunities in data centers, automotive, and consumer electronics [50]