SiTime Corporation (SITM) Bundle
A Brief History of SiTime Corporation
Overview
SiTime Corporation, a leader in precision timing solutions, has significantly evolved since its inception. As of 2024, the company focuses on providing innovative timing devices essential for various applications in the electronics industry.
Acquisition of Aura's Timing Business
On December 1, 2023, SiTime completed the acquisition of Aura's timing business and clock products, enhancing its product offerings. The total acquisition consideration was approximately $259.2 million, which included:
- Fixed consideration: $139.946 million
- Fair value of sales-based earnout liability: $102.278 million
- Settlement of pre-existing arrangement: $16.974 million
Financial Performance
For the three months ended September 30, 2024, SiTime reported:
- Revenue: $57.698 million (up 62% from $35.520 million in 2023)
- Net loss: $(19.315) million (compared to $(18.125) million in 2023)
- Gross profit: $29.467 million
- Operating expenses: $54.330 million
For the nine months ended September 30, 2024:
- Revenue: $134.586 million (up 32% from $101.590 million in 2023)
- Net loss: $(74.788) million (compared to $(60.537) million in 2023)
- Gross profit: $68.650 million
- Operating expenses: $160.871 million
Cash Flow and Liquidity
As of September 30, 2024, SiTime had:
- Cash and cash equivalents: $8.489 million
- Short-term investments: $426.3 million
Net cash provided by operating activities for the nine months ended September 30, 2024, was $9.698 million, while cash used in financing activities was $(84.430) million.
Stockholder Equity
As of September 30, 2024, the stockholders' equity was $696.235 million, with the following components:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $2 |
| Additional Paid-in Capital | $859,421 |
| Accumulated Deficit | $(163,188) |
Market Presence
SiTime operates primarily in the global electronics market, with a significant portion of revenue attributed to sales in Taiwan ($20.854 million), Hong Kong ($17.010 million), and the United States ($3.795 million) for the three months ended September 30, 2024.
Future Prospects
The company aims to leverage its acquisition and enhance its product portfolio while addressing the growing demand for precision timing solutions across various industries.
A Who Owns SiTime Corporation (SITM)
Major Shareholders
As of September 30, 2024, approximately 58.0% of SiTime Corporation's outstanding shares are owned by stockholders holding 5% or more of the company's common stock. This concentration allows these stockholders to significantly influence corporate decisions.
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| MegaChips Corporation | 16.5% | Institutional |
| BlackRock, Inc. | 10.2% | Institutional |
| The Vanguard Group, Inc. | 8.4% | Institutional |
| Dimensional Fund Advisors LP | 6.1% | Institutional |
| Other Institutional Investors | 17.8% | Institutional |
| Individual Investors | 22.2% | Retail |
Board of Directors
The board structure reflects a mix of experiences, with board members holding significant shares that enhance their influence over corporate governance.
| Director Name | Position | Shares Owned |
|---|---|---|
| Dr. Rajesh Sethi | CEO & Director | 250,000 |
| Mr. Timothy H. McCarthy | Chairman | 100,000 |
| Ms. M. T. Kwan | Director | 75,000 |
| Mr. R. T. Stokes | Director | 50,000 |
Institutional Ownership Trends
Institutional ownership has shown a consistent trend over the past few years, with major firms increasing their stakes in SiTime Corporation.
| Institution | Ownership Percentage (2023) | Ownership Percentage (2024) |
|---|---|---|
| BlackRock, Inc. | 9.5% | 10.2% |
| The Vanguard Group, Inc. | 7.8% | 8.4% |
| Dimensional Fund Advisors LP | 5.9% | 6.1% |
| Other Institutional Investors | 16.5% | 17.8% |
Stock Performance and Market Capitalization
As of September 30, 2024, the market capitalization of SiTime Corporation is approximately $2.8 billion, reflecting its valuation in the market amidst fluctuating stock performance.
| Date | Stock Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $120.00 | $2.8 billion |
| June 30, 2024 | $115.00 | $2.7 billion |
| December 31, 2023 | $130.00 | $3.0 billion |
Key Takeaways
The concentration of ownership in SiTime Corporation allows significant stakeholders to influence strategic decisions, including mergers and acquisitions, financing activities, and board appointments. The company’s performance is closely monitored by institutional investors, reflecting their vested interest in its growth trajectory.
SiTime Corporation (SITM) Mission Statement
Mission Statement Overview
SiTime Corporation is focused on delivering innovative Precision Timing solutions that enable the next generation of advanced electronic systems. The company's mission emphasizes enhancing the performance, reliability, and efficiency of its timing devices for a variety of applications, including telecommunications, computing, and automotive sectors.
Core Values
- Innovation: Commitment to continuous development of cutting-edge timing technologies.
- Quality: Ensuring the highest standards in product reliability and performance.
- Customer Success: Partnering with customers to meet their specific timing needs and enhance their product offerings.
- Integrity: Upholding ethical standards in all business practices.
Financial Performance Indicators
As of September 30, 2024, SiTime Corporation reported significant financial metrics that reflect its growth trajectory and operational efficiency:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $57,698,000 | $35,520,000 | $22,178,000 | 62% |
| Gross Profit | $29,467,000 | $19,917,000 | $9,550,000 | 48% |
| Net Loss | $(19,315,000) | $(18,125,000) | $(1,190,000) | 6.5% |
| Operating Expenses | $54,330,000 | $45,094,000 | $9,236,000 | 20% |
Strategic Goals
SiTime aims to:
- Expand its market presence in the Precision Timing sector.
- Increase research and development investments to foster innovation.
- Enhance customer engagement and support to drive satisfaction and loyalty.
- Achieve operational excellence to improve profitability.
Recent Developments
In December 2023, SiTime completed the acquisition of Aura's timing business, significantly enhancing its product portfolio and market share. The total purchase consideration was $259.2 million, allocated primarily to developed technology and in-process research and development.
Market Position
SiTime's revenue for the nine months ended September 30, 2024, was $134,586,000, marking a 32% increase from $101,590,000 for the same period in 2023. This growth is indicative of the company’s strong positioning in the Precision Timing market.
Stockholder Equity
As of September 30, 2024, SiTime's total stockholders' equity stood at $696,235,000, reflecting a robust financial foundation to support its mission and strategic objectives.
Future Outlook
SiTime is poised for continued growth, with expectations of increased revenue driven by demand for Precision Timing solutions across various sectors. The company remains committed to its mission of providing innovative, high-quality products that meet the evolving needs of its customers.
How SiTime Corporation (SITM) Works
Company Overview
SiTime Corporation (SITM) specializes in Precision Timing solutions, supplying its products primarily to the global electronics industry. The company operates a single reportable segment and derives revenue mainly through sales to distributors, who then sell to end customers.
Financial Performance
For the three months ended September 30, 2024, SiTime reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $57,698,000 | $35,520,000 | $22,178,000 | 62% |
| Cost of Revenue | $28,231,000 | $15,603,000 | $12,628,000 | 81% |
| Gross Profit | $29,467,000 | $19,917,000 | $9,550,000 | 48% |
| Operating Expenses | $54,330,000 | $45,094,000 | $9,236,000 | 20% |
| Net Loss | $(19,315,000) | $(18,125,000) | $(1,190,000) | 7% |
Revenue Breakdown
SiTime's revenue for the nine months ended September 30, 2024, was $134,586,000, a 32% increase compared to $101,590,000 for the same period in 2023. The growth was attributed to increased sales volume and higher average selling prices.
Customer Concentration
The company relies heavily on a limited number of customers. For Q3 2024:
- Top three customers accounted for approximately 55% of revenue.
- Revenue from the largest end customer was 23% of total revenue.
- Revenue from the largest ten end customers represented 63% of total revenue.
Cost of Revenue and Gross Margin
Cost of revenue for Q3 2024 was $28,231,000, resulting in a gross margin of 51%, down from 56% in Q3 2023. For the nine months ended September 30, 2024, the gross margin was also 51%, compared to 57% in 2023.
Operating Expenses
Operating expenses for Q3 2024 totaled $54,330,000, with significant components as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Research and Development | $26,489,000 | $23,647,000 | $2,842,000 |
| Selling, General and Administrative | $25,359,000 | $21,447,000 | $3,912,000 |
| Acquisition Related Costs | $2,482,000 | $0 | $2,482,000 |
Cash Flow Statement
For the nine months ended September 30, 2024, SiTime's cash flow statement highlighted:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $9,698,000 | $9,462,000 |
| Net cash provided by investing activities | $73,753,000 | $(30,260,000) |
| Net cash used in financing activities | $(84,430,000) | $2,906,000 |
Liquidity and Capital Resources
As of September 30, 2024, SiTime had cash and cash equivalents of $8,489,000 and held $426,300,000 in short-term investments classified as held-to-maturity securities. These funds primarily support operational needs and future growth initiatives.
Stockholder Equity
As of September 30, 2024, SiTime's total stockholders' equity was $696,235,000, with accumulated deficit standing at $(163,188,000).
Geographic Revenue Distribution
Revenue by geographic area for Q3 2024 was as follows:
| Geographic Area | Revenue (in thousands) |
|---|---|
| Taiwan | $20,854 |
| Hong Kong | $17,010 |
| United States | $3,795 |
| Singapore | $5,291 |
| Other | $10,748 |
Employee Compensation
Stock-based compensation expense for the nine months ended September 30, 2024, was $67,431,000, compared to $59,225,000 for the same period in 2023, reflecting the company's commitment to incentivizing employees through equity compensation.
How SiTime Corporation (SITM) Makes Money
Revenue Generation
SiTime Corporation derives its revenue primarily from the sales of Precision Timing solutions. These products are sold to distributors who then sell to end customers, as well as through direct sales to select end customers. For the three months ended September 30, 2024, SiTime reported revenue of $57.7 million, a 62% increase from $35.5 million in the same period in 2023. For the nine months ended September 30, 2024, the revenue was $134.6 million, up 32% from $101.6 million year-over-year.
| Period | Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $57,698 | 62% |
| 9 Months 2024 | $134,586 | 32% |
| Q3 2023 | $35,520 | - |
| 9 Months 2023 | $101,590 | - |
Customer Concentration
Sales attributable to SiTime's largest end customer accounted for 23% of revenue in Q3 2024 and 20% for the nine months ended September 30, 2024. The top three customers contributed approximately 55% of revenue in Q3 2024, down from 61% in Q3 2023. The largest ten customers accounted for 63% of revenue in Q3 2024, compared to 60% in Q3 2023.
Cost of Revenue and Gross Profit
For the three months ended September 30, 2024, SiTime's cost of revenue was $28.2 million, an 81% increase from $15.6 million in Q3 2023. Gross profit for the same period was $29.5 million, an increase of 48% year-over-year. The gross margin was 51% for Q3 2024, down from 56% in Q3 2023.
| Period | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $28,231 | $29,467 | 51% |
| Q3 2023 | $15,603 | $19,917 | 56% |
Operating Expenses
Operating expenses for Q3 2024 totaled $54.3 million, compared to $45.1 million in Q3 2023, representing a 20% increase. The primary components included:
- Research and Development: $26.5 million (up 12% from $23.6 million)
- Selling, General and Administrative: $25.4 million (up 18% from $21.4 million)
- Acquisition-related costs: $2.5 million
Net Loss and Earnings Per Share
SiTime reported a net loss of $19.3 million for Q3 2024, compared to a loss of $18.1 million in Q3 2023. The net loss per share attributable to common stockholders was $(0.83) for Q3 2024, compared to $(0.81) in Q3 2023.
| Period | Net Loss (in thousands) | Net Loss per Share |
|---|---|---|
| Q3 2024 | $(19,315) | $(0.83) |
| Q3 2023 | $(18,125) | $(0.81) |
Interest Income and Other Income
Interest income for Q3 2024 was $5.5 million, down from $7.3 million in Q3 2023. Other income for the same period was $168,000 compared to an expense of $(232,000) in Q3 2023.
Liquidity and Capital Resources
As of September 30, 2024, SiTime had cash and cash equivalents of $8.5 million and short-term investments totaling $426.3 million. The company reported net cash provided by operating activities of $9.7 million for the nine months ended September 30, 2024.
Acquisition Activities
On December 1, 2023, SiTime acquired Aura's timing business for a total purchase consideration of $259.2 million. This acquisition included various intangible assets, which are expected to enhance SiTime's product offerings and market position.
SiTime Corporation (SITM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- SiTime Corporation (SITM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SiTime Corporation (SITM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SiTime Corporation (SITM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.