Press Release

SiTime Reports Third Quarter 2022 Financial Results

SANTA CLARA, Calif., Nov. 02, 2022 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the third quarter ended September 30, 2022.

Net revenue in the third quarter of 2022 was $73.1 million, a 16.0% increase from the $63.0 million in the third quarter of 2021 and an 8.0% decrease from the $79.4 million in the second quarter of 2022.

Generally Accepted Accounting Principles (GAAP) Results

In the third quarter of 2022, GAAP gross margins were $47.3 million, or 64.7% of revenue, GAAP operating expenses were $43.8 million, or 59.9% of revenue, GAAP income from operations was $3.5 million, or 4.8% of revenue and GAAP net income was $5.8 million, or $0.26 per diluted share.

Total cash and cash equivalents were $41.6 million and short-term investments were $522.2 million on September 30, 2022.

Non-GAAP Results

This press release and its attachments include certain non-GAAP supplemental performance measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

In the third quarter of 2022, non-GAAP gross margins were $47.7 million, or 65.2% of revenue, non-GAAP operating expenses were $28.1 million, or 38.4% of revenue, non-GAAP income from operations was $19.6 million, or 26.8% of revenue and non-GAAP net income was $21.9 million, or $0.97 per diluted share.

The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

SiTime believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to SiTime’s financial condition and results of operations. SiTime believes that these non-GAAP financial measures provide additional insight into SiTime’s ongoing performance and core operational activities and has chosen to provide these measures for more consistent and meaningful comparison between periods. These measures should only be used to evaluate SiTime’s results of operations in conjunction with the corresponding GAAP measures. The non-GAAP results exclude the effect of stock-based compensation and related payroll taxes.

Inducement Plan Grants

SiTime granted restricted stock unit awards (“RSUs”) on November 2, 2022 that were approved by the Compensation Committee of its Board of Directors under SiTime’s 2022 Inducement Award Plan, as a material inducement to employment to 31 newly hired non-executive individuals globally. The RSUs were approved in accordance with Nasdaq Listing Rule 5635(c)(4). The inducement grants consisted of an aggregate of 64,083 RSUs. For 53,487 of the RSUs one-fourth of the RSUs will vest on the first February 20, May 20, August 20, or November 20 falling in the one-year anniversary quarter of the applicable vesting start date, and then 1/16th of the RSUs vest in equal quarterly installments on each February 20, May 20, August 20, and November 20, thereafter, subject to each such employee’s continued service on each vesting date. For 10,596 of the RSUs 1/16th of the RSUs vest in equal quarterly installments on each November 20, February 20, May 20, and August 20 thereafter, subject to each such employee’s continued service on each vesting date. The inducement grants are subject to the terms and conditions of award agreements covering the grants and SiTime’s 2022 Inducement Award Plan.

Conference Call

SiTime will broadcast its third quarter of 2022 financial results conference call today, November 2, 2022, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To join the conference call via phone, participants are required to complete the following registration form to receive a dial-in number and dedicated PIN for accessing the conference call. The conference call will also be available via a live audio webcast on the investor relations section of the SiTime website at investor.sitime.com. Please access the website at least a few minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay of the call will be available on the website.

About SiTime

SiTime Corporation is a leading provider of precision timing solutions to the electronics industry. Our solutions are the heartbeat of our customers’ electronic systems, solve complex timing problems and enable industry-leading electronics products. We provide precision timing solutions that deliver extremely accurate, high performance timing that can withstand severe environmental conditions such as shock, vibration, rapid changes in temperature and other conditions. Our solutions have been designed into over 250 applications across our target markets, including communications and enterprise, automotive, industrial, aerospace, and mobile, IoT and consumer. For more information, visit https://www.sitime.com/.

SiTime Corporation 
Unaudited GAAP Condensed Consolidated Statements of Income 
       
  Three Months Ended 
  September 30, 2022  September 30, 2021 
  (in thousands, except per share data) 
Revenue $73,095  $63,029 
Cost of revenue  25,799   21,334 
Gross profit  47,296   41,695 
Operating expenses:      
Research and development  23,878   13,005 
Selling, general and administrative  19,886   14,616 
Total operating expenses  43,764   27,621 
Income from operations  3,532   14,074 
Interest income  2,492    
Other expense  (238)  (110)
Income before income taxes  5,786   13,964 
Income tax expense  (3)  (4)
Net income $5,783  $13,960 
Net income attributable to common stockholders and comprehensive income $5,783  $13,960 
Net income per share attributable to common stockholders, basic $0.27  $0.73 
Net income per share attributable to common stockholders, diluted $0.26  $0.66 
Weighted-average shares used to compute basic net income per share  21,353   19,149 
Weighted-average shares used to compute diluted net income per share  22,614   21,252 


SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
 
  
  Three Months Ended 
  September 30, 2022  September 30, 2021 
  (in thousands, except per share data) 
Reconciliation of GAAP gross profit and margin to non-GAAP      
Revenue $73,095  $63,029 
GAAP gross profit  47,296   41,695 
GAAP gross margin  64.7%  66.2%
Stock-based compensation and related taxes  365   443 
Non-GAAP gross profit $47,661  $42,138 
Non-GAAP gross margin  65.2%  66.9%
        
Reconciliation of GAAP operating expenses to non-GAAP      
GAAP research and development expenses  23,878   13,005 
Stock-based compensation and related taxes  (7,756)  (3,094)
Non-GAAP research and development expenses $16,122  $9,911 
        
GAAP sales, general and administrative expenses  19,886   14,616 
Stock-based compensation and related taxes  (7,947)  (4,414)
Non-GAAP sales, general and administrative expenses $11,939  $10,202 
Total Non-GAAP operating expenses $28,061  $20,113 
        
Reconciliation of GAAP income from operations to non-GAAP income
from operations
      
GAAP income from operations $3,532  $14,074 
Stock-based compensation and related taxes  16,068   7,951 
Non-GAAP income from operations $19,600  $22,025 
Non-GAAP income from operations as a percentage of revenue  26.8%  34.9%
        
Reconciliation of GAAP net income to non-GAAP net income      
GAAP net income $5,783  $13,960 
Stock-based compensation and related taxes  16,068   7,951 
Non-GAAP net income $21,851  $21,911 
Weighted-average shares used to compute diluted net income
per share
  22,614   21,252 
        
Stock-based compensation and related taxes      
Stock-based compensation $15,702  $7,388 
Stock-based compensation related taxes  366   563 
Stock-based compensation and related taxes $16,068  $7,951 
       
GAAP net income per share diluted $0.26  $0.66 
Non-GAAP adjustments detailed above  0.71   0.37 
Non-GAAP net income per share diluted $0.97  $1.03 


SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets
 
       
  As of 
  September 30, 2022  December 31, 2021 
  (in thousands) 
Assets:      
Current assets:      
Cash and cash equivalents $41,608  $559,461 
Short-term investments in held-to-maturity securities  522,178    
Accounts receivable, net  44,896   38,376 
Inventories  45,385   23,630 
Prepaid expenses and other current assets  8,141   4,476 
Total current assets  662,208   625,943 
Property and equipment, net  56,114   37,902 
Intangible assets, net  4,731   5,977 
Right-of-use assets, net  11,122   8,194 
Other assets  3,879   193 
Total assets $738,054  $678,209 
Liabilities and Stockholders' Equity:      
Current liabilities:      
Accounts payable $16,552  $13,103 
Accrued expenses and other current liabilities  18,452   24,282 
Total current liabilities  35,004   37,385 
Lease liabilities  8,535   6,398 
Other non-current liabilities  73   1,929 
Total liabilities  43,612   45,712 
Commitments and contingencies      
Stockholders’ equity:      
Common stock  2   2 
Additional paid-in capital  700,777   663,614 
Accumulated deficit  (6,337)  (31,119)
Total stockholders’ equity  694,442   632,497 
Total liabilities and stockholders’ equity $738,054  $678,209 
       

Investor Relations Contacts:

Shelton Group
Leanne Sievers | Brett Perry
1-949-224-3874 | 1-214-272-0070
sheltonir@sheltongroup.com

SiTime Corporation
Art Chadwick
Chief Financial Officer
investor.relations@sitime.com


Media Contact

pr@sitime.com
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