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Press Release

SiTime Reports Second Quarter 2022 Financial Results

SANTA CLARA, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), a market leader in precision timing, today announced financial results for the second quarter ended June 30, 2022.

Net revenue in the second quarter of 2022 was $79.4 million, a 78.5% increase from the $44.5 million in the second quarter of 2021 and a 13.0% increase from the $70.3 million in the first quarter of 2022.

Generally Accepted Accounting Principles (GAAP) Results

In the second quarter of 2022 gross margins were $52.7 million, or 66.3% of revenue, operating expenses were $40.4 million, or 50.9% of revenue, GAAP income from operations was $12.3 million, or 15.5% of revenue and net income was $12.9 million, or $0.57 per diluted share.

Total cash and cash equivalents were $580.3 million on June 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 second quarter of 2022, non-GAAP gross margins were $53.0 million, or 66.7% of revenue, non-GAAP operating expenses were $28.3 million, or 35.6% of revenue, non-GAAP income from operations was $24.7 million, or 31.1% of revenue and non-GAAP net income was $25.3 million, or $1.11 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 August 3, 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 34 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 79,040 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 second quarter of 2022 financial results conference call today, August 3, 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 Operations 
       
  Three Months Ended 
  June 30, 2022  June 30, 2021 
  (in thousands, except per share data) 
Revenue $79,418  $44,496 
Cost of revenue  26,744   17,669 
Gross profit  52,674   26,827 
Operating expenses:      
Research and development  22,017   12,067 
Selling, general and administrative  18,376   12,686 
Total operating expenses  40,393   24,753 
Income from operations  12,281   2,074 
Interest income  803    
Other expense  (173)  (28)
Income before income taxes  12,911   2,046 
Income tax expense  (52)  (23)
Net income $12,859  $2,023 
Net income attributable to common stockholders and comprehensive income $12,859  $2,023 
Net income per share attributable to common stockholders, basic $0.61  $0.11 
Net income per share attributable to common stockholders, diluted $0.57  $0.10 
Weighted-average shares used to compute basic net income per share  21,148   18,942 
Weighted-average shares used to compute diluted net income per share  22,721   20,893 


SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
 
  
  Three Months Ended 
  June 30, 2022  June 30, 2021 
  (in thousands, except per share data) 
Reconciliation of GAAP gross profit and margin to non-GAAP      
Revenue $79,418  $44,496 
GAAP gross profit  52,674   26,827 
GAAP gross margin  66.3%  60.3%
Stock-based compensation and related taxes  328   461 
Non-GAAP gross profit $53,002  $27,288 
Non-GAAP gross margin  66.7%  61.3%
       
Reconciliation of GAAP operating expenses to non-GAAP      
GAAP research and development expenses  22,017   12,067 
Stock-based compensation and related taxes  (5,282)  (2,967)
Non-GAAP research and development expenses $16,735  $9,100 
       
GAAP sales, general and administrative expenses  18,376   12,686 
Stock-based compensation and related taxes  (6,844)  (4,173)
Non-GAAP sales, general and administrative expenses $11,532  $8,513 
Total Non-GAAP operating expenses $28,267  $17,613 
       
Reconciliation of GAAP income from operations to non-GAAP income from operations      
GAAP income from operations $12,281  $2,074 
Stock-based compensation and related taxes  12,454   7,601 
Non-GAAP income from operations $24,735  $9,675 
Non-GAAP income from operations as a percentage of revenue  31.1%  21.7%
       
Reconciliation of GAAP net income to non-GAAP net income      
GAAP net income $12,859  $2,023 
Stock-based compensation and related taxes  12,454   7,601 
Non-GAAP net income $25,313  $9,624 
Weighted-average shares used to compute diluted net income per share  22,721   20,893 
       
Stock-based compensation and related taxes      
Stock-based compensation $11,811  $7,489 
Stock-based compensation related taxes  643   112 
Stock-based compensation and related taxes $12,454  $7,601 
       
GAAP net income per share diluted $0.57  $0.10 
Non-GAAP adjustments detailed above  0.54   0.36 
Non-GAAP net income per share diluted $1.11  $0.46 


SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets
 
       
  As of 
  June 30, 2022  December 31, 2021 
  (in thousands) 
Assets:      
Current assets:      
Cash and cash equivalents $580,291  $559,461 
Accounts receivable, net  38,724   38,376 
Inventories  34,383   23,630 
Prepaid expenses and other current assets  7,381   4,476 
Total current assets  660,779   625,943 
Property and equipment, net  51,920   37,902 
Intangible assets, net  4,303   5,977 
Right-of-use assets, net  11,486   8,194 
Other assets  5,475   193 
Total assets $733,963  $678,209 
Liabilities and Stockholders' Equity:      
Current liabilities:      
Accounts payable $21,619  $13,103 
Accrued expenses and other current liabilities  21,998   24,282 
Total current liabilities  43,617   37,385 
Lease liabilities  8,997   6,398 
Other non-current liabilities  1,065   1,929 
Total liabilities  53,679   45,712 
Commitments and contingencies      
Stockholders’ equity:      
Common stock  2   2 
Additional paid-in capital  692,402   663,614 
Accumulated deficit  (12,120)  (31,119)
Total stockholders’ equity  680,284   632,497 
Total liabilities and stockholders’ equity $733,963  $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