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