SiTime Reports First Quarter 2021 Financial Results

Rhea-AI Summary

SiTime Corporation (Nasdaq: SITM) reported Q1 2021 financial results, with net revenue of $35.5 million, reflecting a 63.5% year-over-year increase but a 11.7% decline from Q4 2020. The gross margin was $18.8 million, or 52.9% of revenue, while operating expenses reached $22.3 million, resulting in a GAAP loss from operations of $3.5 million. Non-GAAP results showed net income of $3.8 million, or $0.19 per diluted share. The company ended the quarter with $257 million in cash and equivalents, indicating a solid financial position despite operating losses.

Positive

• Net revenue increased by 63.5% year-over-year to $35.5 million.
• Non-GAAP net income reached $3.8 million, or $0.19 per diluted share.
• Company's cash and cash equivalents totaled $257 million.

Negative

• GAAP loss from operations was $3.5 million, or 9.8% of revenue.
• Revenue decreased by 11.7% from Q4 2020, indicating potential market challenges.

SANTA CLARA, Calif., May 04, 2021 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), a market leader in MEMS timing, today announced financial results for the first quarter ended March 31, 2021.

Net revenue in the first quarter of 2021 was $35.5 million, a 63.5% increase from the $21.7 million in the first quarter of 2020 and a 11.7% decrease from the $40.3 million in the fourth quarter of 2020.

Generally Accepted Accounting Principles (GAAP) Results

In the first quarter of 2021 gross margins were $18.8 million, or 52.9% of revenue, operating expenses were $22.3 million, or 62.8% of revenue, GAAP loss from operations was $3.5 million, or 9.8% of revenue and net loss was $3.6 million, or $0.20 per diluted share.

Total cash and cash equivalents were $257.0 million on March 31, 2021.

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 first quarter of 2021, non-GAAP gross margins were $19.2 million, or 54.1% of revenue, non-GAAP operating expenses were $15.3 million, or 43.1% of revenue, non-GAAP income from operations was $3.9 million, or 11.0% of revenue and non-GAAP net income was $3.8 million, or $0.19 per diluted share.

Conference Call

SiTime will broadcast its first quarter of 2021 financial results conference call today, May 4, 2021, 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 5161786. 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 2 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
		March 31, 2021				December 31, 2020
		(in thousands, except per share data)
Revenue		$	35,542			$	40,274
Cost of revenue			16,725				19,203
Gross profit			18,817				21,071
Operating expenses:
Research and development			11,180				8,747
Sales, general and administrative			11,123				10,250
Total operating expenses			22,303				18,997
Loss (income) from operations			(3,486	)			2,074
Other expense, net			(39	)			(83	)
Loss (income) before income taxes			(3,525	)			1,991
Income tax expense			(40	)			-
Net (loss) income		$	(3,565	)		$	1,991
Net loss (income) attributable to common stockholder and comprehensive (loss) income		$	(3,565	)		$	1,991
Net (loss) income per share attributable to common stockholder, basic		$	(0.20	)		$	0.12
Weighted-average shares used to compute basic net (loss) income per share			17,868				17,036
Net (loss) income per share attributable to common stockholder, diluted		$	(0.20	)		$	0.10
Weighted-average shares used to compute diluted net (loss) income per share			17,868				19,263

SiTime Corporation Unaudited Reconciliation of Non-GAAP Adjustments
		Three Months Ended
		March 31, 2021				December 31, 2020
		(in thousands, except per share data)
Reconciliation of GAAP gross profit and margin to non-GAAP
Revenue		$	35,542			$	40,274
GAAP gross profit			18,817				21,071
GAAP gross margin			52.9	%			52.3	%
Stock-based compensation			402				494
Non-GAAP gross profit		$	19,219			$	21,565
Non-GAAP gross margin			54.1	%			53.5	%
Reconciliation of GAAP operating expenses to non-GAAP
GAAP research and development expenses			11,180				8,747
Stock-based compensation			(2,998	)			(2,142	)
Non-GAAP research and development expenses		$	8,182			$	6,605
GAAP sales, general and administrative expenses			11,123				10,250
Stock-based compensation			(4,000	)			(3,542	)
Non-GAAP sales, general and administrative expenses		$	7,123			$	6,708
Total Non-GAAP operating expenses		$	15,305			$	13,313
Reconciliation of GAAP (loss) income from operations to non-GAAP income from operations
GAAP (loss) income from operations		$	(3,486	)		$	2,074
Stock-based compensation			7,400				6,178
Non-GAAP income from operations		$	3,914			$	8,252
Non-GAAP income from operations as a percentage of revenue			11.0	%			20.5	%
Reconciliation of GAAP net (loss) income to non-GAAP net income
GAAP net (loss) income		$	(3,565	)		$	1,991
Stock-based compensation			7,400				6,178
Non-GAAP net income		$	3,835			$	8,169
Weighted-average shares used to compute diluted net (loss) income per share			20,070				19,263
GAAP net (loss) income per share diluted		$	(0.20	)		$	0.10
Non-GAAP adjustments detailed above			0.39				0.32
Non-GAAP net income per share diluted		$	0.19			$	0.42

SiTime Corporation Unaudited GAAP Condensed Consolidated Balance Sheets
		As of
		March 31, 2021				December 31, 2020
		(in thousands)
Assets:
Current assets:
Cash and cash equivalents		$	256,952			$	73,525
Accounts receivable, net			22,214				23,920
Related party accounts receivable			976				736
Inventories			14,980				12,350
Prepaid expenses and other current assets			2,577				2,649
Total current assets			297,699				113,180
Property and equipment, net			14,927				11,708
Intangible assets, net			2,558				2,069
Right-of-use assets, net			8,730				8,892
Other assets			162				162
Total assets		$	324,076			$	136,011
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable		$	9,024			$	6,182
Accrued expenses and other current liabilities			12,716				12,963
Total current liabilities			21,740				19,145
Lease liabilities			7,067				6,986
Total liabilities			28,807				26,131
Commitments and contingencies
Stockholders’ equity:
Common stock			2				2
Additional paid-in capital			362,228				173,274
Accumulated deficit			(66,961	)			(63,396	)
Total stockholders’ equity			295,269				109,880
Total liabilities and stockholders’ equity		$	324,076			$	136,011

Investor Relations Contacts:

Shelton Group
Leanne Sievers | Brett Perry
949-224-3874 | 214-272-0070
sheltonir@sheltongroup.com

SiTime Corporation
Art Chadwick
Chief Financial Officer
investor.relations@sitime.com

FAQ

What were SiTime's Q1 2021 earnings results?

SiTime reported net revenue of $35.5 million in Q1 2021, a 63.5% increase year-over-year, but a decrease from $40.3 million in Q4 2020.

What was SiTime's net income in Q1 2021?

SiTime's non-GAAP net income for Q1 2021 was $3.8 million, or $0.19 per diluted share.

How much cash did SiTime have at the end of Q1 2021?

SiTime reported total cash and cash equivalents of $257 million as of March 31, 2021.

What were SiTime's gross margins in Q1 2021?

SiTime's gross margins in Q1 2021 were $18.8 million, or 52.9% of revenue.