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SiTime Reports Fourth Quarter 2022 Financial Results

SANTA CLARA, Calif., Feb. 01, 2023 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), the precision timing company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.

Net revenue in the fourth quarter of 2022 was $60.8 million, a 19.7% decrease from the $75.7 million in the fourth quarter of 2021.

Net revenue for the year ended December 31, 2022 was $283.6 million, a 29.6% increase from the $218.8 million in the year ended December 31, 2021.

Generally Accepted Accounting Principles (GAAP) Results

In the fourth quarter of 2022, GAAP gross margins were $37.8 million, or 62.1% of revenue, GAAP operating expenses were $43.5 million, or 71.5% of revenue, GAAP loss from operations was $5.7 million, or 9.4% of revenue and GAAP net loss was $1.5 million, or $0.07 per diluted share. 

For the year ended 2022, gross margins were $183.0 million, or 64.5% of revenue, operating expenses were $166.8 million or 58.8% of revenue, GAAP income from operations was $16.1 million, or 5.7% of revenue and net income was $23.3 million, or $1.03 per diluted share.

Total cash and cash equivalents were $34.6 million and short-term investments were $529.5 million on December 31, 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 fourth quarter of 2022, non-GAAP gross margins were $38.4 million, or 63.1% of revenue, non-GAAP operating expenses were $28.2 million, or 46.3% of revenue, non-GAAP income from operations was $10.2 million, or 16.8% of revenue and non-GAAP net income was $14.4 million, or $0.64 per diluted share.

For the fiscal year 2022, non-GAAP gross margins were $184.9 million, or 65.2% of revenue, non-GAAP operating expenses were $109.1 million, or 38.5% of revenue, non-GAAP income from operations was $75.8 million, or 26.7% of revenue and non-GAAP net income was $82.9 million, or $3.66 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 January 31, 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 9 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 24,555 RSUs. For 10,741 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 13,814 of the RSUs 1/3rd of the RSUs will vest February 20, 2024 and then 1/12th of the RSUs will vest in equal quarterly installments on each May 20, August 20, November 20, and February 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 fourth quarter and fiscal year 2022 financial results conference call today, February 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 a leading provider of precision timing solutions to the global electronics industry. Our precision timing solutions are the heartbeat of our customers’ electronic systems. They 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 300 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 (Loss) 
       
  Three Months Ended  Year Ended 
  December 31,
2022
  December 31,
2022
 
  (in thousands, except per share data) 
Revenue $60,840  $283,605 
Cost of revenue  23,080   100,643 
Gross profit  37,760   182,962 
Operating expenses:      
Research and development  23,798   90,288 
Selling, general and administrative  19,693   76,532 
Total operating expenses  43,491   166,820 
Income (loss) from operations  (5,731)  16,142 
Interest income  3,996   7,291 
Other income (expense)  167   (97)
Income (loss) before income taxes  (1,568)  23,336 
Income tax benefit (expense)  41   (82)
Net income (loss) $(1,527) $23,254 
Net income (loss) attributable to common stockholders and comprehensive income $(1,527) $23,254 
Net income (loss) per share attributable to common stockholders, basic $(0.07) $1.09 
Net income (loss) per share attributable to common stockholders, diluted $(0.07) $1.03 
Weighted-average shares used to compute basic net income (loss) per share  21,544   21,245 
Weighted-average shares used to compute diluted net income (loss) per share  21,544   22,664 


SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
 
  
  Three Months Ended  Year Ended 
  December 31,
2022
  December 31,
2022
 
  (in thousands, except per share data) 
Reconciliation of GAAP gross profit and margin to non-GAAP      
Revenue $60,840  $283,605 
GAAP gross profit  37,760   182,962 
GAAP gross margin  62.1%  64.5%
Stock-based compensation and related taxes  633   1,982 
Non-GAAP gross profit $38,393  $184,944 
Non-GAAP gross margin  63.1%  65.2%
       
Reconciliation of GAAP operating expenses to non-GAAP      
GAAP research and development expenses  23,798   90,288 
Stock-based compensation and related taxes  (7,201)  (26,383)
Non-GAAP research and development expenses $16,597  $63,905 
       
GAAP sales, general and administrative expenses  19,693   76,532 
Stock-based compensation and related taxes  (8,106)  (31,301)
Non-GAAP sales, general and administrative expenses $11,587  $45,231 
Total Non-GAAP operating expenses $28,184  $109,136 
       
Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations      
GAAP income (loss) from operations $(5,731) $16,142 
Stock-based compensation and related taxes  15,940   59,666 
Non-GAAP income from operations $10,209  $75,808 
Non-GAAP income from operations as a percentage of revenue  16.8%  26.7%
       
Reconciliation of GAAP net income (loss) to non-GAAP net income      
GAAP net income (loss) $(1,527) $23,254 
Stock-based compensation and related taxes  15,940   59,666 
Non-GAAP net income $14,413  $82,920 
Weighted-average shares used to compute diluted net income per share  22,524   22,664 
       
Stock-based compensation and related taxes      
Stock-based compensation $15,623  $57,416 
Stock-based compensation related taxes  317   2,250 
Stock-based compensation and related taxes $15,940  $59,666 
       
GAAP net income (loss) per share diluted $(0.07) $1.03 
Non-GAAP adjustments detailed above  0.71   2.63 
Non-GAAP net income per share diluted $0.64  $3.66 


SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets
 
       
  As of 
  December 31,
2022
  December 31,
2021
 
  (in thousands) 
Assets:      
Current assets:      
Cash and cash equivalents $34,603  $559,461 
Short-term investments in held-to-maturity securities  529,494    
Accounts receivable, net  41,229   38,376 
Inventories  57,650   23,630 
Prepaid expenses and other current assets  6,091   4,476 
Total current assets  669,067   625,943 
Property and equipment, net  58,772   37,902 
Intangible assets, net  5,205   5,977 
Right-of-use assets, net  10,848   8,194 
Other assets  6,724   193 
Total assets $750,616  $678,209 
Liabilities and Stockholders' Equity:      
Current liabilities:      
Accounts payable $14,881  $13,103 
Accrued expenses and other current liabilities  18,913   24,282 
Total current liabilities  33,794   37,385 
Lease liabilities  8,149   6,398 
Other non-current liabilities  193   1,929 
Total liabilities  42,136   45,712 
Commitments and contingencies      
Stockholders’ equity:      
Common stock  2   2 
Additional paid-in capital  716,343   663,614 
Accumulated deficit  (7,865)  (31,119)
Total stockholders’ equity  708,480   632,497 
Total liabilities and stockholders’ equity $750,616  $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


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