SiTime Reports Second Quarter 2020 Financial Results

SiTime Corporation, (Nasdaq: SITM), a market leader in MEMS timing, today announced financial results for the second quarter ended June 30, 2020.

Net revenue in the second quarter of 2020 was $21.5 million, a 35.5% increase from the $15.8 million in the second quarter of 2019.

Generally Accepted Accounting Principles (GAAP) Results

In the second quarter of 2020 gross margins were $10.0 million, or 46.5% of revenue, operating expenses were $15.3 million, or 71.0% of revenue, GAAP loss from operations was $5.3 million, or 24.5% of revenue and net loss was $5.6 million, or $0.36 per diluted share.

Total cash and cash equivalents were $102.5 million on June 30, 2020.

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.

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.

The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

In the second quarter of 2020, non-GAAP gross margins were $10.1 million, or 46.8% of revenue, operating expenses were $11.9 million, or 55.6% of revenue, non-GAAP loss from operations was $1.9 million, or 8.7% of revenue and non-GAAP net loss was $2.2 million, or $0.14 per diluted share.

Conference Call

SiTime will broadcast its second quarter of 2020 financial results conference call today, August 5, 2020, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), which can be accessed by calling +1-844-467-7657 and using conference ID 7234049. The conference call will also be available via a live 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 for a limited period of time.

About SiTime

SiTime Corporation is a market leader in silicon MEMS timing. Our programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With over 1.5 billion devices shipped, SiTime is changing the timing industry. For more information, visit https://www.sitime.com/.

SiTime Corporation
Unaudited GAAP Condensed Consolidated Statements of Operations

	Three Months Ended
	June 30, 2020			March 31, 2020

	(in thousands, except per share data)
Revenue	$	21,473		$	21,742
Cost of revenue		11,490			11,766
Gross profit		9,983			9,976
Operating expenses:
Research and development		7,398			7,024
Sales, general and administrative		7,856			7,808
Total operating expenses		15,254			14,832
Loss from operations		(5,271	)		(4,856	)
Interest expense		(313	)		(303	)
Other income (expense), net		(20	)		68
Loss before income taxes		(5,604	)		(5,091	)
Income tax (expense) benefit		1			(2	)
Net loss	$	(5,603	)	$	(5,093	)
Net loss attributable to common stockholder and comprehensive income	$	(5,603	)	$	(5,093	)
Net loss per share attributable to common stockholder, basic	$	(0.36	)	$	(0.34	)
Weighted-average shares used to compute basic net loss per share		15,371			15,010
Net loss per share attributable to common stockholder, diluted	$	(0.36	)	$	(0.34	)
Weighted-average shares used to compute diluted net loss per share		15,371			15,010

SiTime Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
	Three Months Ended
	June 30, 2020			March 31, 2020

	(in thousands, except per share data)
Reconciliation of GAAP gross profit and margin to non-GAAP
Revenue	$	21,473		$	21,742
GAAP gross profit		9,983			9,976
GAAP gross margin		46.5	%		45.9	%
Stock-based compensation		70			56
Non-GAAP gross profit	$	10,053		$	10,032
Non-GAAP gross margin		46.8	%		46.1	%

Reconciliation of GAAP operating expenses to non-GAAP
GAAP research and development expenses		7,398			7,024
Stock-based compensation		(1,135	)		(1,061	)
Non-GAAP research and development expenses	$	6,263		$	5,963

GAAP sales, general and administrative expenses		7,856			7,808
Stock-based compensation		(2,190	)		(1,857	)
Non-GAAP sales, general and administrative expenses	$	5,666		$	5,951
Total Non-GAAP operating expenses	$	11,929		$	11,914

Reconciliation of GAAP loss from operations to non-GAAP loss from operations
GAAP loss from operations	$	(5,271	)	$	(4,856	)
Stock-based compensation		3,395			2,974
Non-GAAP loss from operations	$	(1,876	)	$	(1,882	)
Non-GAAP loss from operations as a percentage of revenue		-8.7	%		-8.7	%

Reconciliation of GAAP net loss to non-GAAP net loss
GAAP net loss	$	(5,603	)	$	(5,093	)
Stock-based compensation		3,395			2,974
Non-GAAP net loss	$	(2,208	)	$	(2,119	)
Weighted-average shares used to compute diluted net loss per share		15,371			15,010

GAAP net loss per share diluted	$	(0.36	)	$	(0.34	)
Non-GAAP adjustments detailed above		0.22			0.20
Non-GAAP net loss per share diluted	$	(0.14	)	$	(0.14	)

SiTime Corporation
Unaudited GAAP Condensed Consolidated Balance Sheets
	As of
	June 30, 2020			March 31, 2020

	(in thousands)
Assets:
Current assets:
Cash and cash equivalents	$	102,486		$	71,248
Accounts receivable, net		13,001			15,820
Related party accounts receivable		581			565
Inventories		14,781			14,159
Prepaid expenses and other current assets		1,581			3,179
Total current assets		132,430			104,971
Property and equipment, net		10,415			9,627
Intangible assets, net		3,002			3,663
Right-of-use assets, net		9,467			9,780
Other assets		162			173
Total assets	$	155,476		$	128,214
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable	$	5,004		$	4,315
Accrued expenses and other current liabilities		8,333			8,020
Loan obligations		35,000			50,000
Total current liabilities		48,337			62,335
Lease liabilities		7,570			7,865
Total liabilities		55,907			70,200
Commitments and contingencies
Stockholders’ equity:
Common stock		2			2
Additional paid-in capital		164,287			117,129
Accumulated deficit		(64,720	)		(59,117	)
Total stockholders’ equity		99,569			58,014
Total liabilities and stockholders’ equity	$	155,476		$	128,214