SiTime(US:SITM)2021-11-04 02:56Financial Data and Key Metrics Changes - SiTime reported Q3 revenue of $63 million, representing a 42% sequential increase and a 93% year-over-year increase [10][28] - Non-GAAP gross margins reached 66.9%, up 560 basis points sequentially and up 1,480 basis points year-over-year [30] - Non-GAAP net income was $21.9 million, or 35% of sales, with earnings of $1.03 per share, more than double the previous quarter's net income of $9.6 million [31] Business Line Data and Key Metrics Changes - Sales into the mobile IoT and consumer segment were $31.9 million, accounting for 51% of total sales, up 47% sequentially and 53% year-over-year [28] - Sales into the industrial, automotive, and aerospace segment were $20.9 million, representing 33% of sales, up 54% sequentially and 227% year-over-year [29] - Sales into the communications and enterprise segment were $10.2 million, or 16% of sales, up 11% sequentially and 90% year-over-year [29] Market Data and Key Metrics Changes - The automotive and data center markets are expected to each become $100 million businesses for SiTime in the coming years, driven by the rise of electric vehicles and data center demands [14][15] - SiTime has secured design wins with 10 customers in the data center market, with an annualized revenue opportunity of $30 million [17] Company Strategy and Development Direction - SiTime is focused on aggressive customer acquisition and accelerating the development of high-value solutions [11] - The company plans to double its product introduction rate in 2022, launching six major products [22] - SiTime aims to expand its market presence and product portfolio to capitalize on the growing demand for precision timing solutions [25] Management's Comments on Operating Environment and Future Outlook - Management expects supply chain constraints to persist through 2022 but believes the company's strong partnerships will help navigate these challenges [23] - The company anticipates revenue growth of at least 30% in the next year, supported by strong customer demand and visibility into future orders [36][50] - Management acknowledges potential cost headwinds from rising manufacturing costs but remains optimistic about maintaining healthy gross margins [37][74] Other Important Information - SiTime ended the quarter with $267 million in cash and no bank debt, reflecting a strong balance sheet [32] - The company is investing in its own manufacturing equipment to increase capacity and reduce costs [39] Q&A Session Summary Question: Which market is expected to grow faster, automotive or data center? - Management indicated that the data center market is expected to grow faster, but automotive is also experiencing significant growth due to the surge in electric vehicles [44][46] Question: Can you elaborate on the gross margin improvements? - Management noted that gross margin improvements were driven by a favorable product mix and pricing environment, with expectations of some cost pressures in the future [47][48] Question: What is the outlook for revenue growth next year? - Management expressed confidence in achieving at least 30% revenue growth next year, citing strong visibility into customer orders [50] Question: How is SiTime positioned in the MEMS oscillator market? - Management revised the total addressable market for MEMS oscillators to over $1 billion, indicating strong growth potential [57] Question: What are the key reasons for gaining traction in automotive and data center markets? - Management highlighted high performance and the ability to provide comprehensive solutions as key factors driving customer adoption in both markets [102]