SiTime Reports First Quarter 2023 Financial Results

SANTA CLARA, Calif., May 03, 2023 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the first quarter ended March 31, 2023.

Net revenue in the first quarter of 2023 was $38.3 million, a 37.0% decrease from the $60.8 million in the fourth quarter of 2022.

Generally Accepted Accounting Principles (GAAP) Results

In the first quarter of 2023, GAAP gross margins were $23.0 million, or 60.1% of revenue, GAAP operating expenses were $45.2 million, GAAP loss from operations was $22.1 million, and GAAP net loss was $16.5 million, or $(0.76) per basic share.

Total cash and cash equivalents were $38.3 million and short-term investments were $537.8 million on March 31, 2023.

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 first quarter of 2023, non-GAAP gross margins were $23.7 million, or 61.8% of revenue, non-GAAP operating expenses were $27.3 million, or 71.2% of revenue, non-GAAP loss from operations was $3.6 million, or 9.4% of revenue, and non-GAAP net income was $2.0 million, or $0.09 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 financial measures exclude stock-based compensation, however prior to the first quarter of 2023, the Company also excluded stock-based compensation related payroll taxes from its Non-GAAP financial measures as well. No changes have been made to non-GAAP financial measures from periods prior to the first quarter of 2023, which continue to exclude the effect of stock-based compensation and related payroll taxes.

Inducement Plan Grants

SiTime granted restricted stock unit awards (“RSUs”) on May 2, 2023 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 7 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 10,705 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. 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 first quarter of 2023 financial results conference call today, May 3, 2023, 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 the precision timing company. 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 3 billion devices shipped, SiTime is changing the timing industry. For more information, visit www.sitime.com.

    SiTime Corporation   Unaudited GAAP Condensed Consolidated Statements of Operations                 Three Months Ended     March 31,
2023     December 31,
2022     (in thousands, except per share data)   Revenue $ 38,343     $ 60,840   Cost of revenue   15,302       23,080   Gross profit   23,041       37,760   Operating expenses:           Research and development   24,457       23,798   Selling, general and administrative   20,733       19,693   Total operating expenses   45,190       43,491   Loss from operations   (22,149 )     (5,731 ) Interest income   5,629       3,996   Other income, net   100       167   Loss before income taxes   (16,420 )     (1,568 ) Income tax expense (benefit)   (70 )     41   Net loss $ (16,490 )   $ (1,527 ) Net loss attributable to common stockholders and comprehensive loss $ (16,490 )   $ (1,527 ) Net loss per share attributable to common stockholders, basic $ (0.76 )   $ (0.07 ) Net loss per share attributable to common stockholders, diluted $ (0.76 )   $ (0.07 ) Weighted-average shares used to compute basic net loss per share   21,794       21,544   Weighted-average shares used to compute diluted net loss per share   21,794       21,544                                  

 

    SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments         Three Months Ended     March 31,
2023     December 31,
2022     (in thousands, except per share data)   Reconciliation of GAAP gross profit and margin to non-GAAP           Revenue $ 38,343     $ 60,840   GAAP gross profit   23,041       37,760   GAAP gross margin   60.1 %     62.1 % Stock-based compensation and related taxes (1)   639       633   Non-GAAP gross profit $ 23,680     $ 38,393   Non-GAAP gross margin   61.8 %     63.1 %              Reconciliation of GAAP operating expenses to non-GAAP           GAAP research and development expenses   24,457       23,798   Stock-based compensation and related taxes(1)   (8,031 )     (7,201 ) Non-GAAP research and development expenses $ 16,426     $ 16,597                GAAP sales, general and administrative expenses   20,733       19,693   Stock-based compensation and related taxes(1)   (9,866 )     (8,106 ) Non-GAAP sales, general and administrative expenses $ 10,867     $ 11,587   Total Non-GAAP operating expenses $ 27,293     $ 28,184                Reconciliation of GAAP income (loss) from operations to non-GAAP income (loss)
 from operations           GAAP loss from operations $ (22,149 )   $ (5,731 ) Stock-based compensation and related taxes(1)   18,536       15,940   Non-GAAP income (loss) from operations $ (3,613 )   $ 10,209   Non-GAAP income (loss) from operations as a percentage of revenue   (9.4 %)     16.8 %              Reconciliation of GAAP net income (loss) to non-GAAP net income           GAAP net loss $ (16,490 )   $ (1,527 ) Stock-based compensation and related taxes(1)   18,536       15,940   Non-GAAP net income $ 2,046     $ 14,413   Weighted-average shares used to compute diluted net income per share   21,794       22,524                Stock-based compensation and related taxes           Stock-based compensation $ 18,536     $ 15,623   Stock-based compensation related taxes(1)   -       317   Stock-based compensation and related taxes $ 18,536     $ 15,940               GAAP net loss per share diluted $ (0.76 )   $ (0.07 ) Non-GAAP adjustments detailed above   0.85       0.71   Non-GAAP net income per share diluted $ 0.09     $ 0.64   1 Beginning the first quarter of 2023, the Company does not exclude stock-based compensation related payroll taxes from its Non-GAAP financial measures. No changes have been made to non-GAAP financial measures from periods prior to the first quarter of 2023.                          

 

    SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets                 As of     March 31,
2023     December 31,
2022     (in thousands)   Assets:           Current assets:           Cash and cash equivalents $ 38,265     $ 34,603   Short-term investments in held-to-maturity securities   537,818       529,494   Accounts receivable, net   21,464       41,229   Inventories   60,011       57,650   Prepaid expenses and other current assets   8,986       6,091   Total current assets   666,544       669,067   Property and equipment, net   57,487       58,772   Intangible assets, net   4,800       5,205   Right-of-use assets, net   10,227       10,848   Other assets   7,370       6,724   Total assets $ 746,428     $ 750,616   Liabilities and Stockholders' Equity:           Current liabilities:           Accounts payable $ 8,186     $ 14,881   Accrued expenses and other current liabilities   17,020       18,913   Total current liabilities   25,206       33,794   Lease liabilities   7,471       8,149   Other non-current liabilities   91       193   Total liabilities   32,768       42,136   Commitments and contingencies           Stockholders’ equity:           Common stock   2       2   Additional paid-in capital   738,013       716,343   Accumulated deficit   (24,355 )     (7,865 ) Total stockholders’ equity   713,660       708,480   Total liabilities and stockholders’ equity $ 746,428     $ 750,616                  

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