SiTime Reports Fourth Quarter and Fiscal Year 2019 Financial Results

SANTA CLARA, Calif., Feb. 05, 2020 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), a leader in MEMS-based silicon timing system solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2019.

Net revenue in the fourth quarter of 2019 was $28.1 million, a 22.9% increase from the $22.9 million in the fourth quarter of 2018. Net revenue for the year ended December 31, 2019 was $84.1 million, a 1.3% decrease from the $85.2 million in the year ended December 31, 2018.

Generally Accepted Accounting Principles (GAAP) Results

Net income for the fourth quarter of 2019 was $0.6 million, or $0.05 per diluted share.  Gross margins were 47.9%, operating expenses were 44.2% of revenue, and GAAP income from operations was 3.7% of revenue.

Total cash and cash equivalents were $63.4 million at December 31, 2019.

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.

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.

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

In the fourth quarter of 2019, non-GAAP net income was $2.0 million, or $0.16 per diluted share. Non-GAAP gross margins were 48.0%, operating expenses were 39.4% of revenue, and non-GAAP income from operations was 8.6% of revenue.

Conference Call

SiTime will broadcast its fourth quarter of 2019 financial results conference call today, February 5, 2020, at 2 p.m. Pacific Time (5 p.m. Eastern Time), which can be accessed by calling +1-844-467-7657 and using conference ID 2295684. The conference call will also be available via a live 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 for a limited period of time.

About SiTime

SiTime Corporation is a market leader in silicon MEMS timing. Our programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With over 1.5 billion devices shipped, SiTime is changing the timing industry.

SiTime CorporationUnaudited GAAP Condensed Consolidated Statement of Operations            Three Months
Ended  Year Ended       December 31, 2019   (in thousands, except per share data) Revenue $28,089  $84,074 Cost of revenue  14,641   44,516 Gross profit  13,448   39,558 Operating expenses:        Research and development  5,949   23,795 Sales, general and administrative  6,469   20,636 Total operating expenses  12,418   44,431 Income (loss) from operations  1,030   (4,873)Interest expense  (393)  (1,714)Other expense, net  (13)  (28)Income (loss) before income taxes  624   (6,615)Income tax benefit  9   8 Net income (loss) $633  $(6,607)Net income (loss) attributable to common stockholder and comprehensive income $633  $(6,607)Net income (loss) per share attributable to common stockholder, basic $0.05  $(0.63)Weighted-average shares used to compute basic net income (loss) per share  12,214   10,558 Net income (loss) per share attributable to common stockholder, diluted $0.05  $(0.63)Weighted-average shares used to compute diluted net income (loss) per share  12,685   10,558          

SiTime Corporation Unaudited Reconciliation of Non-GAAP Adjustments   Three Months Ended  Year Ended       December 31, 2019   (in thousands, except per share data) Reconciliation of GAAP gross profit and margin to non-GAAP        Revenue $28,089  $84,074 GAAP gross profit  13,448   39,558 GAAP gross margin  47.9%  47.1%Stock-based compensation  36   36 Non-GAAP gross profit $13,484  $39,594 Non-GAAP gross margin  48.0%  47.1%         Reconciliation of GAAP operating expenses to non-GAAP        GAAP research and development expenses  5,949   23,795 Stock-based compensation  (346)  (346)Non-GAAP research and development expenses $5,603  $23,449          GAAP sales, general and administrative expenses  6,469   20,636 Stock-based compensation  (997)  (997)Non-GAAP sales, general and administrative expenses $5,472  $19,639 Total Non-GAAP operating expenses $11,075  $43,088          Reconciliation of GAAP income (loss) from operations to non-GAAP income (loss) from operations        GAAP income (loss) from operations $1,030  $(4,873)Stock-based compensation  1,379   1,379 Non-GAAP income (loss) from operations $2,409  $(3,494)Non-GAAP income (loss) from operations as a percentage of revenue  8.6%  -4.2%         Reconciliation of GAAP net income (loss) to non-GAAP net income (loss)        GAAP net income (loss) $633  $(6,607)Stock-based compensation  1,379   1,379 Non-GAAP net income (loss) $2,012  $(5,228)Weighted-average shares used to compute diluted net income (loss) per share  12,685   10,558          GAAP net income (loss) per share diluted $0.05  $(0.63)Non-GAAP adjustments detailed above  0.11   - Non-GAAP net income (loss) per share diluted $0.16  $(0.63)         

SiTime Corporation Unaudited GAAP Condensed Consolidated Balance Sheet

    As of   December 31, 2019   (in thousands, except share and per share data) Assets:    Current assets:    Cash and cash equivalents $63,418 Accounts receivable, net  17,659 Related party accounts receivable  1,073 Inventories  11,911 Prepaid expenses and other current assets  5,601 Total current assets  99,662 Property and equipment, net  9,288 Intangible assets, net  4,489 Right-of-use assets, net  9,790 Other assets  162 Total assets $123,391 Liabilities and Stockholders' Equity:    Current liabilities:    Accounts payable $3,869 Accrued expenses and other current liabilities  8,442 Loan obligations  41,000 Total current liabilities  53,311 Lease liabilities  7,940 Total liabilities  61,251 Commitments and contingencies    Stockholders’ equity:    Common stock  2 Additional paid-in capital  116,162 Accumulated deficit  (54,024) Total stockholders’ equity  62,140 Total liabilities and stockholders’ equity $123,391      

Investor Relations Contacts:

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

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