On August 7, 2024, SiTime Corp (SITM, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. SiTime Corp, a provider of silicon timing systems solutions, designs, develops, and sells silicon timing systems for various industries including automotive, infrastructure, aerospace-defense, consumer, internet of things, and industrials. The company generates the majority of its revenue from Taiwan.
Performance Overview
SiTime Corp (SITM, Financial) reported net revenue of $43.9 million for Q2 2024, a 33% increase from $33.0 million in the prior quarter and a 58% increase from the same period last year. This performance exceeded analyst estimates of $41.00 million in revenue. The company attributed this growth to increased demand across all market segments, particularly in communications, enterprise, and datacenters (CED).
Financial Achievements and Challenges
SiTime Corp (SITM, Financial) achieved a GAAP gross profit of $21.5 million, representing 49.1% of revenue. However, the company faced significant operating expenses amounting to $53.8 million, resulting in a GAAP loss from operations of $32.3 million and a GAAP net loss of $26.8 million, or $1.16 per diluted share. Despite these challenges, the non-GAAP financial measures showed a more favorable picture with a non-GAAP gross profit of $25.3 million (57.7% of revenue) and a non-GAAP net income of $2.8 million, or $0.12 per diluted share.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Revenue | $43.9 million | $33.0 million |
| GAAP Gross Profit | $21.5 million | $17.7 million |
| GAAP Net Loss | $(26.8) million | $(28.7) million |
| Non-GAAP Net Income | $2.8 million | $(1.9) million |
| Cash, Cash Equivalents, and Short-term Investments | $452.5 million | N/A |
Commentary and Analysis
“Q2 results exceeded our outlook,” said Rajesh Vashist, CEO and chairman of SiTime. “Demand grew across all market segments, fueled by the highest growth segment, communications, enterprise and datacenters (CED). Our investments over the past five years have given us a diversified product portfolio — one that meets the industry’s precision timing needs. This, coupled with our strong customer relationships, positions us well to continue capitalizing on the rising demand for AI.”
SiTime Corp's (SITM, Financial) strong performance in Q2 2024 highlights the company's ability to leverage its diversified product portfolio and strong customer relationships to meet the growing demand in the precision timing industry. The significant increase in revenue and the positive non-GAAP net income indicate a robust operational performance despite the challenges posed by high operating expenses.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from SiTime Corp for further details.
