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SiTime Reports Second Quarter 2022 Financial Results

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SiTime
SiTime

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