SiTime(US:SITM)2024-02-14 02:20Financial Data and Key Metrics Changes - Revenue for Q4 2023 was $42.4 million, up 19% sequentially, and at the higher end of the outlook range [20][22] - Non-GAAP gross margins were 58.3%, an increase of 10 basis points sequentially [36] - Non-GAAP EPS was $0.24 per share compared to $0.06 in Q3 [22] Business Line Data and Key Metrics Changes - Sales into mobile, IoT, and consumer segments were $17.1 million, or 40% of sales, down 4% from Q3 [20] - Sales into industrial, automotive, and aerospace segments were $15.6 million, or 37% of sales, up 19% from Q3 [21] - Sales into communications and enterprise segments increased 64% sequentially to $9.7 million, or 23% of sales [21] Market Data and Key Metrics Changes - Sales into data center and communication segments were up 64% from Q3 to Q4 2023, with expectations for 50% growth in 2024 [16] - The consumer market showed mixed results, with some growth expected but challenges in the automotive sector [40][70] Company Strategy and Development Direction - The company aims for sequential growth throughout 2024, with expectations for revenue to exceed 2023 levels and return to a model of 30% annual growth [17][35] - The acquisition of Aura Semiconductor's clocking products is seen as a key milestone in expanding the served market [28] - The company is focusing on AI applications, with strong engagement with top cloud service providers and AI server suppliers [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was characterized by declining revenue in the first half due to over-ordering and weak demand, but the second half showed improvement [14] - The company expects to navigate the current environment with unique technology addressing a large and growing market [24] - Management expressed optimism about growth in the data center and AI segments, while acknowledging mixed signals in other markets [40][70] Other Important Information - Non-GAAP operating loss for Q4 was $1.9 million, an improvement of $3.7 million sequentially [22] - The company ended Q4 with $528 million in cash, cash equivalents, and short-term investments [37] Q&A Session Summary Question: Guidance expectations for each market segment - Management indicated positive growth in consumer and data center markets, while automotive showed mixed potential [25][26] Question: Customer inventory status - Management confirmed continued improvement in channel inventory drawdown, with expectations for normalization by Q2 [59] Question: Visibility into data center growth - Management highlighted strong engagement with major platforms and expected significant growth in the data center segment [61] Question: Impact of Aura acquisition on customer relationships - Management noted that the integration of Aura's products is enhancing relationships with partners and customers [46] Question: Future revenue growth expectations - Management indicated that while growth is expected to return to 30%, it may take time to reach previous revenue highs [88]