SiTime Reports First Quarter 2023 Financial Results
May 03 2023 - 4:05PM
SiTime Corporation, (Nasdaq: SITM), the precision timing company,
today announced financial results for the first quarter ended
March 31, 2023.
Net revenue in the first quarter of 2023 was
$38.3 million, a 37.0% decrease from the $60.8 million in the
fourth quarter of 2022.
Generally Accepted Accounting Principles
(GAAP) Results
In the first quarter of 2023, GAAP gross margins
were $23.0 million, or 60.1% of revenue, GAAP operating expenses
were $45.2 million, GAAP loss from operations was $22.1 million,
and GAAP net loss was $16.5 million, or $(0.76) per basic
share.
Total cash and cash equivalents were $38.3
million and short-term investments were $537.8 million on
March 31, 2023.
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 first quarter of 2023, non-GAAP gross
margins were $23.7 million, or 61.8% of revenue, non-GAAP operating
expenses were $27.3 million, or 71.2% of revenue, non-GAAP loss
from operations was $3.6 million, or 9.4% of revenue, and non-GAAP
net income was $2.0 million, or $0.09 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 financial measures
exclude stock-based compensation, however prior to the first
quarter of 2023, the Company also excluded stock-based compensation
related payroll taxes from its Non-GAAP financial measures as well.
No changes have been made to non-GAAP financial measures from
periods prior to the first quarter of 2023, which continue to
exclude the effect of stock-based compensation and related payroll
taxes.
Inducement Plan Grants
SiTime granted restricted stock unit awards
(“RSUs”) on May 2, 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 7 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 10,705 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 first quarter of 2023
financial results conference call today, May 3, 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 the precision timing
company. 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 3 billion devices shipped, SiTime is changing the timing
industry. For more information, visit www.sitime.com.
|
|
SiTime Corporation |
|
Unaudited GAAP Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, 2023 |
|
|
December 31,2022 |
|
|
(in thousands, except per share data) |
|
Revenue |
$ |
38,343 |
|
|
$ |
60,840 |
|
Cost of revenue |
|
15,302 |
|
|
|
23,080 |
|
Gross profit |
|
23,041 |
|
|
|
37,760 |
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
24,457 |
|
|
|
23,798 |
|
Selling, general and administrative |
|
20,733 |
|
|
|
19,693 |
|
Total operating expenses |
|
45,190 |
|
|
|
43,491 |
|
Loss from operations |
|
(22,149 |
) |
|
|
(5,731 |
) |
Interest income |
|
5,629 |
|
|
|
3,996 |
|
Other income, net |
|
100 |
|
|
|
167 |
|
Loss before income taxes |
|
(16,420 |
) |
|
|
(1,568 |
) |
Income tax expense
(benefit) |
|
(70 |
) |
|
|
41 |
|
Net loss |
$ |
(16,490 |
) |
|
$ |
(1,527 |
) |
Net loss attributable to
common stockholders and comprehensive loss |
$ |
(16,490 |
) |
|
$ |
(1,527 |
) |
Net loss per share
attributable to common stockholders, basic |
$ |
(0.76 |
) |
|
$ |
(0.07 |
) |
Net loss per share
attributable to common stockholders, diluted |
$ |
(0.76 |
) |
|
$ |
(0.07 |
) |
Weighted-average shares used
to compute basic net loss per share |
|
21,794 |
|
|
|
21,544 |
|
Weighted-average shares used
to compute diluted net loss per share |
|
21,794 |
|
|
|
21,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SiTime CorporationUnaudited Reconciliation
of Non-GAAP Adjustments |
|
|
|
|
Three Months Ended |
|
|
March 31,2023 |
|
|
December 31,2022 |
|
|
(in thousands, except per share data) |
|
Reconciliation of GAAP
gross profit and margin to non-GAAP |
|
|
|
|
|
Revenue |
$ |
38,343 |
|
|
$ |
60,840 |
|
GAAP gross profit |
|
23,041 |
|
|
|
37,760 |
|
GAAP gross margin |
|
60.1 |
% |
|
|
62.1 |
% |
Stock-based compensation and related taxes (1) |
|
639 |
|
|
|
633 |
|
Non-GAAP gross profit |
$ |
23,680 |
|
|
$ |
38,393 |
|
Non-GAAP gross margin |
|
61.8 |
% |
|
|
63.1 |
% |
|
|
|
|
|
|
Reconciliation of GAAP
operating expenses to non-GAAP |
|
|
|
|
|
GAAP research and development
expenses |
|
24,457 |
|
|
|
23,798 |
|
Stock-based compensation and related taxes(1) |
|
(8,031 |
) |
|
|
(7,201 |
) |
Non-GAAP research and
development expenses |
$ |
16,426 |
|
|
$ |
16,597 |
|
|
|
|
|
|
|
GAAP sales, general and
administrative expenses |
|
20,733 |
|
|
|
19,693 |
|
Stock-based compensation and related taxes(1) |
|
(9,866 |
) |
|
|
(8,106 |
) |
Non-GAAP sales, general and
administrative expenses |
$ |
10,867 |
|
|
$ |
11,587 |
|
Total Non-GAAP operating
expenses |
$ |
27,293 |
|
|
$ |
28,184 |
|
|
|
|
|
|
|
Reconciliation of GAAP
income (loss) from operations to non-GAAP income
(loss) from operations |
|
|
|
|
|
GAAP loss from operations |
$ |
(22,149 |
) |
|
$ |
(5,731 |
) |
Stock-based compensation and related taxes(1) |
|
18,536 |
|
|
|
15,940 |
|
Non-GAAP income (loss) from
operations |
$ |
(3,613 |
) |
|
$ |
10,209 |
|
Non-GAAP income (loss) from
operations as a percentage of revenue |
|
(9.4 |
%) |
|
|
16.8 |
% |
|
|
|
|
|
|
Reconciliation of GAAP
net income (loss) to non-GAAP net income |
|
|
|
|
|
GAAP net loss |
$ |
(16,490 |
) |
|
$ |
(1,527 |
) |
Stock-based compensation and related taxes(1) |
|
18,536 |
|
|
|
15,940 |
|
Non-GAAP net income |
$ |
2,046 |
|
|
$ |
14,413 |
|
Weighted-average shares used
to compute diluted net income per share |
|
21,794 |
|
|
|
22,524 |
|
|
|
|
|
|
|
Stock-based
compensation and related taxes |
|
|
|
|
|
Stock-based compensation |
$ |
18,536 |
|
|
$ |
15,623 |
|
Stock-based compensation related taxes(1) |
|
- |
|
|
|
317 |
|
Stock-based compensation and
related taxes |
$ |
18,536 |
|
|
$ |
15,940 |
|
|
|
|
|
|
|
GAAP net loss per share
diluted |
$ |
(0.76 |
) |
|
$ |
(0.07 |
) |
Non-GAAP adjustments detailed
above |
|
0.85 |
|
|
|
0.71 |
|
Non-GAAP net income per share
diluted |
$ |
0.09 |
|
|
$ |
0.64 |
|
1 Beginning the first quarter of 2023, the Company does not exclude
stock-based compensation related payroll taxes from its Non-GAAP
financial measures. No changes have been made to non-GAAP financial
measures from periods prior to the first quarter of 2023. |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
SiTime CorporationUnaudited GAAP Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
As of |
|
|
March 31,2023 |
|
|
December 31,2022 |
|
|
(in thousands) |
|
Assets: |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
38,265 |
|
|
$ |
34,603 |
|
Short-term investments in held-to-maturity securities |
|
537,818 |
|
|
|
529,494 |
|
Accounts receivable, net |
|
21,464 |
|
|
|
41,229 |
|
Inventories |
|
60,011 |
|
|
|
57,650 |
|
Prepaid expenses and other current assets |
|
8,986 |
|
|
|
6,091 |
|
Total current assets |
|
666,544 |
|
|
|
669,067 |
|
Property and equipment,
net |
|
57,487 |
|
|
|
58,772 |
|
Intangible assets, net |
|
4,800 |
|
|
|
5,205 |
|
Right-of-use assets, net |
|
10,227 |
|
|
|
10,848 |
|
Other assets |
|
7,370 |
|
|
|
6,724 |
|
Total assets |
$ |
746,428 |
|
|
$ |
750,616 |
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
8,186 |
|
|
$ |
14,881 |
|
Accrued expenses and other current liabilities |
|
17,020 |
|
|
|
18,913 |
|
Total current liabilities |
|
25,206 |
|
|
|
33,794 |
|
Lease liabilities |
|
7,471 |
|
|
|
8,149 |
|
Other non-current
liabilities |
|
91 |
|
|
|
193 |
|
Total liabilities |
|
32,768 |
|
|
|
42,136 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
738,013 |
|
|
|
716,343 |
|
Accumulated deficit |
|
(24,355 |
) |
|
|
(7,865 |
) |
Total stockholders’ equity |
|
713,660 |
|
|
|
708,480 |
|
Total liabilities and stockholders’ equity |
$ |
746,428 |
|
|
$ |
750,616 |
|
|
|
|
|
|
|
|
|
Investor Relations
Contacts:
Shelton GroupLeanne Sievers | Brett
Perry1-949-224-3874 | 1-214-272-0070sheltonir@sheltongroup.com
SiTime CorporationArt ChadwickChief Financial
Officerinvestor.relations@sitime.com
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