SiTime Reports Third Quarter 2023 Financial Results

SANTA CLARA, Calif., Nov. 01, 2023 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the third quarter ended September 30, 2023.

Net revenue in the third quarter of 2023 was $35.5 million, a 28.1% increase from the $27.7 million in the second quarter of 2023.

Generally Accepted Accounting Principles (GAAP) Results

In the third quarter of 2023, GAAP gross margins were $19.9 million, or 56.1% of revenue, GAAP operating expenses were $45.1 million, GAAP loss from operations was $25.2 million, and GAAP net loss was $18.1 million, or $0.81 per basic share.

Total cash and cash equivalents were $16.7 million and short-term investments were $551.4 million on September 30, 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 third quarter of 2023, non-GAAP gross margins were $20.7 million, or 58.2% of revenue, non-GAAP operating expenses were $26.3 million, non-GAAP loss from operations was $5.6 million and non-GAAP net income was $1.4 million, or $0.06 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.

Inducement Plan Grants

SiTime granted restricted stock unit awards (“RSUs”) on November 1, 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 14 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 18,057 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 the financial results for its third quarter of 2023 via conference call today, November 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 the precision timing company. Our semiconductor MEMS 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 more than 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   September 30, 2023   June 30, 2023   (in thousands, except per share data) Revenue $ 35,520     $ 27,728   Cost of revenue   15,603       12,290   Gross profit   19,917       15,438   Operating expenses:       Research and development   23,647       26,567   Selling, general and administrative   21,447       21,276   Total operating expenses   45,094       47,843   Loss from operations   (25,177 )     (32,405 ) Interest income   7,333       6,667   Other expense, net   (232 )     (161 ) Loss before income taxes   (18,076 )     (25,899 ) Income tax benefit   (49 )     (23 ) Net loss $ (18,125 )   $ (25,922 ) Net loss attributable to common stockholders and comprehensive loss $ (18,125 )   $ (25,922 ) Net loss per share attributable to common stockholders, basic $ (0.81 )   $ (1.17 ) Net loss per share attributable to common stockholders, diluted $ (0.81 )   $ (1.17 ) Weighted-average shares used to compute basic net loss per share   22,326       22,074   Weighted-average shares used to compute diluted net loss per share   22,326       22,074    

 

SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments     Three Months Ended   September 30, 2023   June 30, 2023   (in thousands, except per share data) Reconciliation of GAAP gross profit and margin to non-GAAP       Revenue $ 35,520     $ 27,728   GAAP gross profit   19,917       15,438   GAAP gross margin   56.1 %     55.7 % Stock-based compensation   748       713   Non-GAAP gross profit $ 20,665     $ 16,151   Non-GAAP gross margin   58.2 %     58.2 %         Reconciliation of GAAP operating expenses to non-GAAP       GAAP research and development expenses   23,647       26,567   Stock-based compensation   (7,856 )     (9,983 ) Non-GAAP research and development expenses $ 15,791     $ 16,584           GAAP sales, general and administrative expenses   21,447       21,276   Stock-based compensation   (10,925 )     (10,464 ) Non-GAAP sales, general and administrative expenses $ 10,522     $ 10,812   Total Non-GAAP operating expenses $ 26,313     $ 27,396           Reconciliation of GAAP loss from operations to non-GAAP loss from operations       GAAP loss from operations $ (25,177 )   $ (32,405 ) Stock-based compensation   19,529       21,160   Non-GAAP loss from operations $ (5,648 )   $ (11,245 ) Non-GAAP loss from operations as a percentage of revenue   (15.9 %)     (40.6 %)         Reconciliation of GAAP net loss to non-GAAP net income (loss)       GAAP net loss $ (18,125 )   $ (25,922 ) Stock-based compensation   19,529       21,160   Non-GAAP net income (loss) $ 1,404     $ (4,762 ) Weighted-average shares used to compute diluted net income (loss) per share   22,326       22,074           GAAP net loss per share diluted $ (0.81 )   $ (1.17 ) Non-GAAP adjustments detailed above   0.87       0.95   Non-GAAP net income (loss) per share diluted $ 0.06     $ (0.22 )                

 

SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets       As of   September 30, 2023   December 31, 2022   (in thousands) Assets:       Current assets:       Cash and cash equivalents $ 16,711     $ 34,603   Short-term investments in held-to-maturity securities   551,398       529,494   Accounts receivable, net   25,182       41,229   Inventories   64,539       57,650   Prepaid expenses and other current assets   9,071       6,091   Total current assets   666,901       669,067   Property and equipment, net   55,916       58,772   Intangible assets, net   5,665       5,205   Right-of-use assets, net   8,854       10,848   Other assets   10,351       6,724   Total assets $ 747,687     $ 750,616   Liabilities and Stockholders' Equity:       Current liabilities:       Accounts payable $ 12,320     $ 14,881   Accrued expenses and other current liabilities   18,960       18,913   Total current liabilities   31,280       33,794   Lease liabilities   6,065       8,149   Other non-current liabilities   —       193   Total liabilities   37,345       42,136   Commitments and contingencies       Stockholders’ equity:       Common stock   2       2   Additional paid-in capital   778,742       716,343   Accumulated deficit   (68,402 )     (7,865 ) Total stockholders’ equity   710,342       708,480   Total liabilities and stockholders’ equity $ 747,687     $ 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