SiTime Reports Third Quarter 2022 Financial Results

SANTA CLARA, Calif., Nov. 02, 2022 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the third quarter ended September 30, 2022.

Net revenue in the third quarter of 2022 was $73.1 million, a 16.0% increase from the $63.0 million in the third quarter of 2021 and an 8.0% decrease from the $79.4 million in the second quarter of 2022.

Generally Accepted Accounting Principles (GAAP) Results

In the third quarter of 2022, GAAP gross margins were $47.3 million, or 64.7% of revenue, GAAP operating expenses were $43.8 million, or 59.9% of revenue, GAAP income from operations was $3.5 million, or 4.8% of revenue and GAAP net income was $5.8 million, or $0.26 per diluted share.

Total cash and cash equivalents were $41.6 million and short-term investments were $522.2 million on September 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 third quarter of 2022, non-GAAP gross margins were $47.7 million, or 65.2% of revenue, non-GAAP operating expenses were $28.1 million, or 38.4% of revenue, non-GAAP income from operations was $19.6 million, or 26.8% of revenue and non-GAAP net income was $21.9 million, or $0.97 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 November 2, 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 31 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 64,083 RSUs. For 53,487 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 10,596 of the RSUs 1/16th of the RSUs vest in equal quarterly installments on each November 20, February 20, May 20, and August 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 third quarter of 2022 financial results conference call today, November 2, 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 Income
		Three Months Ended
		September 30, 2022				September 30, 2021
		(in thousands, except per share data)
Revenue		$	73,095			$	63,029
Cost of revenue			25,799				21,334
Gross profit			47,296				41,695
Operating expenses:
Research and development			23,878				13,005
Selling, general and administrative			19,886				14,616
Total operating expenses			43,764				27,621
Income from operations			3,532				14,074
Interest income			2,492				—
Other expense			(238	)			(110		)
Income before income taxes			5,786				13,964
Income tax expense			(3	)			(4		)
Net income		$	5,783			$	13,960
Net income attributable to common stockholders and comprehensive income		$	5,783			$	13,960
Net income per share attributable to common stockholders, basic		$	0.27			$	0.73
Net income per share attributable to common stockholders, diluted		$	0.26			$	0.66
Weighted-average shares used to compute basic net income per share			21,353				19,149
Weighted-average shares used to compute diluted net income per share			22,614				21,252

SiTime Corporation Unaudited Reconciliation of Non-GAAP Adjustments
		Three Months Ended
		September 30, 2022				September 30, 2021
		(in thousands, except per share data)
Reconciliation of GAAP gross profit and margin to non-GAAP
Revenue		$	73,095			$	63,029
GAAP gross profit			47,296				41,695
GAAP gross margin			64.7	%			66.2	%
Stock-based compensation and related taxes			365				443
Non-GAAP gross profit		$	47,661			$	42,138
Non-GAAP gross margin			65.2	%			66.9	%
Reconciliation of GAAP operating expenses to non-GAAP
GAAP research and development expenses			23,878				13,005
Stock-based compensation and related taxes			(7,756	)			(3,094	)
Non-GAAP research and development expenses		$	16,122			$	9,911
GAAP sales, general and administrative expenses			19,886				14,616
Stock-based compensation and related taxes			(7,947	)			(4,414	)
Non-GAAP sales, general and administrative expenses		$	11,939			$	10,202
Total Non-GAAP operating expenses		$	28,061			$	20,113
Reconciliation of GAAP income from operations to non-GAAP income from operations
GAAP income from operations		$	3,532			$	14,074
Stock-based compensation and related taxes			16,068				7,951
Non-GAAP income from operations		$	19,600			$	22,025
Non-GAAP income from operations as a percentage of revenue			26.8	%			34.9	%
Reconciliation of GAAP net income to non-GAAP net income
GAAP net income		$	5,783			$	13,960
Stock-based compensation and related taxes			16,068				7,951
Non-GAAP net income		$	21,851			$	21,911
Weighted-average shares used to compute diluted net income per share			22,614				21,252
Stock-based compensation and related taxes
Stock-based compensation		$	15,702			$	7,388
Stock-based compensation related taxes			366				563
Stock-based compensation and related taxes		$	16,068			$	7,951
GAAP net income per share diluted		$	0.26			$	0.66
Non-GAAP adjustments detailed above			0.71				0.37
Non-GAAP net income per share diluted		$	0.97			$	1.03

SiTime Corporation Unaudited GAAP Condensed Consolidated Balance Sheets
				As of
				September 30, 2022							December 31, 2021
				(in thousands)
Assets:
Current assets:
Cash and cash equivalents				$	41,608						$	559,461
Short-term investments in held-to-maturity securities					522,178							—
Accounts receivable, net					44,896							38,376
Inventories					45,385							23,630
Prepaid expenses and other current assets					8,141							4,476
Total current assets					662,208							625,943
Property and equipment, net					56,114							37,902
Intangible assets, net					4,731							5,977
Right-of-use assets, net					11,122							8,194
Other assets					3,879							193
Total assets				$	738,054						$	678,209
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable				$	16,552						$	13,103
Accrued expenses and other current liabilities					18,452							24,282
Total current liabilities					35,004							37,385
Lease liabilities					8,535							6,398
Other non-current liabilities					73							1,929
Total liabilities					43,612							45,712
Commitments and contingencies
Stockholders’ equity:
Common stock					2							2
Additional paid-in capital					700,777							663,614
Accumulated deficit					(6,337		)					(31,119		)
Total stockholders’ equity					694,442							632,497
Total liabilities and stockholders’ equity				$	738,054						$	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