SiTime(US:SITM)2025-05-07 22:00Financial 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 [7][14] - Non-GAAP operating income improved by $10.3 million or 16 percentage points compared to the same quarter last year, reaching $2.1 million [15] - Non-GAAP net income for Q1 was $6.3 million, reflecting strong operational performance [15] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) business revenue tripled year-over-year to $29.3 million, representing 49% of total revenue [14][8] - Automotive, Industrial, and Defense segment revenue increased by 10% year-over-year to $14.1 million, accounting for 23% of total revenue [14] - Mobile, IoT, and Consumer segment revenue rose by 64% year-over-year to $16.9 million, making up 28% of total revenue [14] Market Data and Key Metrics Changes - Revenue from the largest customer grew over 75% year-over-year, contributing significantly to overall growth [8][14] - The CED business has shown significant sequential growth for four consecutive quarters, driven by AI infrastructure demands [8] Company Strategy and Development Direction - The company focuses on high-value timing markets and applications, leveraging differentiated products to capture market share [6][7] - A strategy to integrate oscillators with clocks and software is being pursued, creating a new clock category that enhances performance and simplifies designs [10][11] - The company aims for a gross margin target of 60% by the end of the year, despite pressures from lower-margin consumer business [24][26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about continued growth, particularly in the AI data center market, with no signs of slowdown [30][31] - The company is navigating macroeconomic uncertainties while focusing on controllable factors such as product differentiation and customer acquisition [66][68] - The outlook for Q2 2025 anticipates revenue growth of 45% to 50% year-over-year, with expectations for continued strong performance across all segments [17] Other Important Information - The company generated $15 million in cash from operations, with a strong balance sheet showing $398.9 million in cash and short-term investments and no debt [16] - Capital expenditures for Q1 were $16.4 million, primarily for production equipment [16] Q&A Session Summary Question: Expectations for growth from the largest customer - Management expects continued growth, though not necessarily at the same percentage rate, due to the nature of consumer products and market dynamics [20][22] Question: Outlook for gross margin expansion - Management remains committed to achieving a gross margin target of 60%, despite pressures from new consumer business [24][26] Question: Growth profile in the data center segment - Management confirmed strong continuous momentum in the data center segment, with opportunities across various applications [30][31] Question: Full-year growth outlook - Management reaffirmed a growth target of 25% to 30% for the base business, with additional growth from new design wins [39] Question: CapEx expectations - Management indicated that CapEx would remain elevated for Q2, with a total expected for the year in the mid- to high 30s million range [63]