SiTime(US:SITM)2024-08-08 03:26Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $43.9 million, up 58% year-on-year and up 33% sequentially, exceeding guidance of $40 million to $42 million [5][11] - Non-GAAP gross margins were 57.7%, down 20 basis points sequentially, impacted by higher overhead and manufacturing costs [12] - Non-GAAP net income was $2.8 million or $0.12 per share, compared to a loss of $1.9 million in the previous quarter [13] Business Line Data and Key Metrics Changes - Sales into the communications, enterprise, and data center market were $15.2 million, up 208% year-on-year and 55% sequentially [12] - Sales into the automotive, industrial, and aerospace market were $14.8 million, increasing 20% year-on-year and 15% sequentially [12] - Sales into the mobile, IoT, and consumer market were $13.8 million, up 33% year-on-year and 34% sequentially [12] Market Data and Key Metrics Changes - Revenue from Greater China, North America, and Europe is expected to grow by double-digit percentages in 2024 [6] - The communications enterprise data center market is projected to grow at more than 50%, with expectations of reaching $100 million in this segment [7] Company Strategy and Development Direction - SiTime is focused on increasing diversity across applications, customers, and products, which is seen as a key driver for growth [10] - The company is investing significantly in R&D and customer relationships, particularly in the AI and data center markets [7][10] - SiTime aims to maintain gross margins above 60% in the long term, despite short-term pressures from new product launches [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the inventory correction has passed, and demand is increasing, particularly in AI and optical markets [17][18] - The company expects strong revenue growth in Q3 and Q4, with a forecast of $55 million in revenue for Q3 [15] - Management expressed confidence in the growth trajectory, citing pent-up demand in data centers and a solid performance across all markets [22][23] Other Important Information - The company ended the quarter with $453 million in cash, cash equivalents, and short-term investments [14] - The Aura acquisition is contributing to revenue growth, with integration proceeding smoothly [29][31] Q&A Session Summary Question: Recovery into the second half and demand trends - Management indicated that both inventory levels have normalized and demand is increasing, particularly in AI and optical markets [17][18] Question: Guidance for September quarter and end market performance - All segments are expected to grow year-on-year, with data center fueled by AI being the fastest-growing segment [21] Question: Comments on December quarter expectations - Management expects continued growth without significant lumpiness, driven by strong demand in data centers [22][23] Question: Impact of new products on growth - New products are significantly contributing to growth, with many being launched in the current year [23] Question: Gross margin expectations and new product integration - Management expects gross margins to improve over time, returning to above 60% in the long term [19][20] Question: Aura acquisition and its impact - The Aura products are contributing to revenue growth, with payments for the acquisition remaining on schedule [28][29] Question: Reliability and performance metrics compared to quartz solutions - SiTime products have a fit rate about 100 times that of quartz, with superior performance in challenging environments [32][33] Question: Content per application in CED - Content in applications varies, with optical products being lower priced and higher-end products like OCXOs commanding higher prices [37][38]