SiTime Reports Fourth Quarter 2022 Financial Results

SANTA CLARA, Calif., Feb. 01, 2023 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.

Net revenue in the fourth quarter of 2022 was $60.8 million, a 19.7% decrease from the $75.7 million in the fourth quarter of 2021.

Net revenue for the year ended December 31, 2022 was $283.6 million, a 29.6% increase from the $218.8 million in the year ended December 31, 2021.

Generally Accepted Accounting Principles (GAAP) Results

In the fourth quarter of 2022, GAAP gross margins were $37.8 million, or 62.1% of revenue, GAAP operating expenses were $43.5 million, or 71.5% of revenue, GAAP loss from operations was $5.7 million, or 9.4% of revenue and GAAP net loss was $1.5 million, or $0.07 per diluted share. 

For the year ended 2022, gross margins were $183.0 million, or 64.5% of revenue, operating expenses were $166.8 million or 58.8% of revenue, GAAP income from operations was $16.1 million, or 5.7% of revenue and net income was $23.3 million, or $1.03 per diluted share.

Total cash and cash equivalents were $34.6 million and short-term investments were $529.5 million on December 31, 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 fourth quarter of 2022, non-GAAP gross margins were $38.4 million, or 63.1% of revenue, non-GAAP operating expenses were $28.2 million, or 46.3% of revenue, non-GAAP income from operations was $10.2 million, or 16.8% of revenue and non-GAAP net income was $14.4 million, or $0.64 per diluted share.

For the fiscal year 2022, non-GAAP gross margins were $184.9 million, or 65.2% of revenue, non-GAAP operating expenses were $109.1 million, or 38.5% of revenue, non-GAAP income from operations was $75.8 million, or 26.7% of revenue and non-GAAP net income was $82.9 million, or $3.66 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 January 31, 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 9 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 24,555 RSUs. For 10,741 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 13,814 of the RSUs 1/3rd of the RSUs will vest February 20, 2024 and then 1/12th of the RSUs will vest in equal quarterly installments on each May 20, August 20, November 20, and February 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 fourth quarter and fiscal year 2022 financial results conference call today, February 1, 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 a leading provider of precision timing solutions to the global electronics industry. Our precision timing solutions are the heartbeat of our customers’ electronic systems. They 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 300 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 (Loss)                     Three Months Ended     Year Ended       December 31,
2022     December 31,
2022       (in thousands, except per share data)   Revenue   $ 60,840     $ 283,605   Cost of revenue     23,080       100,643   Gross profit     37,760       182,962   Operating expenses:             Research and development     23,798       90,288   Selling, general and administrative     19,693       76,532   Total operating expenses     43,491       166,820   Income (loss) from operations     (5,731 )     16,142   Interest income     3,996       7,291   Other income (expense)     167       (97 ) Income (loss) before income taxes     (1,568 )     23,336   Income tax benefit (expense)     41       (82 ) Net income (loss)   $ (1,527 )   $ 23,254   Net income (loss) attributable to common stockholders and comprehensive income   $ (1,527 )   $ 23,254   Net income (loss) per share attributable to common stockholders, basic   $ (0.07 )   $ 1.09   Net income (loss) per share attributable to common stockholders, diluted   $ (0.07 )   $ 1.03   Weighted-average shares used to compute basic net income (loss) per share     21,544       21,245   Weighted-average shares used to compute diluted net income (loss) per share     21,544       22,664  

 

SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments           Three Months Ended     Year Ended       December 31,
2022     December 31,
2022       (in thousands, except per share data)   Reconciliation of GAAP gross profit and margin to non-GAAP             Revenue   $ 60,840     $ 283,605   GAAP gross profit     37,760       182,962   GAAP gross margin     62.1 %     64.5 % Stock-based compensation and related taxes     633       1,982   Non-GAAP gross profit   $ 38,393     $ 184,944   Non-GAAP gross margin     63.1 %     65.2 %               Reconciliation of GAAP operating expenses to non-GAAP             GAAP research and development expenses     23,798       90,288   Stock-based compensation and related taxes     (7,201 )     (26,383 ) Non-GAAP research and development expenses   $ 16,597     $ 63,905                 GAAP sales, general and administrative expenses     19,693       76,532   Stock-based compensation and related taxes     (8,106 )     (31,301 ) Non-GAAP sales, general and administrative expenses   $ 11,587     $ 45,231   Total Non-GAAP operating expenses   $ 28,184     $ 109,136                 Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations             GAAP income (loss) from operations   $ (5,731 )   $ 16,142   Stock-based compensation and related taxes     15,940       59,666   Non-GAAP income from operations   $ 10,209     $ 75,808   Non-GAAP income from operations as a percentage of revenue     16.8 %     26.7 %               Reconciliation of GAAP net income (loss) to non-GAAP net income             GAAP net income (loss)   $ (1,527 )   $ 23,254   Stock-based compensation and related taxes     15,940       59,666   Non-GAAP net income   $ 14,413     $ 82,920   Weighted-average shares used to compute diluted net income per share     22,524       22,664                 Stock-based compensation and related taxes             Stock-based compensation   $ 15,623     $ 57,416   Stock-based compensation related taxes     317       2,250   Stock-based compensation and related taxes   $ 15,940     $ 59,666                 GAAP net income (loss) per share diluted   $ (0.07 )   $ 1.03   Non-GAAP adjustments detailed above     0.71       2.63   Non-GAAP net income per share diluted   $ 0.64     $ 3.66  

 

SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets                     As of       December 31,
2022     December 31,
2021       (in thousands)   Assets:             Current assets:             Cash and cash equivalents   $ 34,603     $ 559,461   Short-term investments in held-to-maturity securities     529,494       —   Accounts receivable, net     41,229       38,376   Inventories     57,650       23,630   Prepaid expenses and other current assets     6,091       4,476   Total current assets     669,067       625,943   Property and equipment, net     58,772       37,902   Intangible assets, net     5,205       5,977   Right-of-use assets, net     10,848       8,194   Other assets     6,724       193   Total assets   $ 750,616     $ 678,209   Liabilities and Stockholders' Equity:             Current liabilities:             Accounts payable   $ 14,881     $ 13,103   Accrued expenses and other current liabilities     18,913       24,282   Total current liabilities     33,794       37,385   Lease liabilities     8,149       6,398   Other non-current liabilities     193       1,929   Total liabilities     42,136       45,712   Commitments and contingencies             Stockholders’ equity:             Common stock     2       2   Additional paid-in capital     716,343       663,614   Accumulated deficit     (7,865 )     (31,119 ) Total stockholders’ equity     708,480       632,497   Total liabilities and stockholders’ equity   $ 750,616     $ 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