SITM - Earnings call transcript Q4 2019

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Operator

Good afternoon, and welcome to SiTime's Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. At this time, all participants are in a listen only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. [Operator Instructions]

As a reminder, this conference call is being recorded today, Wednesday, February 5, 2020. to Group call Investor like Sievers to now Shelton of Relations. would turn over the Leanne I Leanne, please go ahead.

Leanne Sievers

as Good afternoon, on public call today joining for company. a and thank our you first all us conference

are SiTime Chadwick, Art Financial from call Chief the Rajesh our Officer; our Chief Vashist, Officer. and Executive On

the to during plans, including may market, all Before to actual contained differ materially its statements make not management timing that business, company's point of any can regarding in we future financial this the of on impact of expected is to results to like any course begin, extent results, position, the combination forward-looking predict and cause which strategy the the company call, may those assess or operations, I'd future factors from factor areas nor It other out statement. the the and company all forward-looking of discussion. for possible or risks, factors

assumptions, discussed those no other anticipated completeness date these to any changes forward-looking The and to responsibility Neither obligation or results, to actual the statements, statements actual materially assumes from risks, this adversely statements. In not the call accuracy conform company nor and the forward-looking results in could forward-looking for and during to expectations. call reason the company uncertainties the update of or undertakes light occur, publicly may person this the differ of of for and after to company's these any events implied.

XXXX. factors associated the filing describing you detailed we the on SEC risk refer with risks more business, F-X our information For in November with our to

But and company's to consider measure be GAAP non-GAAP to please in an or today financial which detailed to, financial results performance release provided not press stock refer during GAAP. measures, of expense. call, non-GAAP non-GAAP as issued accordance between a Also results. The for non-GAAP to certain superior measure and for with These is and difference are our based financial between substitute addition we financial to measures GAAP refer in important compensation the U.S. prepared a of, this will performance. only we reconciliation

And now, turn to ahead. Please over like Rajesh. go to call the I'd

Rajesh Vashist

I thank call. our Leanne. Since for want company, is with call description public all first of you like conference what a Thanks, do. to to as joining we a our this I'd brief start

we're advanced We the solutions we and and SiTime, timing in silicon name. we devices, make every stands are what heartbeat solutions. is for to do timing in our the timing leader system, and of SI electronic silicon,

higher faster and film, of drives, replaced a benefits and of is worldwide around. robustness, reliability, Our complex Uniquely, Traditionally, This timing replaced and performance, solutions replaced electronics. we're problems drives that cameras and We on adding solve which are trend hard been on. timing we're that silicon, the timing. enable all the with it focused bringing is siliconizing disruptive have used aspects quartz, company market, and devices digital industry-leading silicon, or unique better know solid-state timing electronics. so the disk that only features innovation, bulbs, LEDs enable that's

with history when as shows always so we're technology. right side the believe silicon non-silicon, against goes replace And of wins. And silicon we that we when on quartz MEMS unique up history silicon our

because innovating leadership integration each microelectronic achieved we level system different by we do mechanical which we our are ways. is and also but of in the an two. systems, company, some is these do three in areas semiconductor unique of analog different SiTime expertise. SiTime MEMS, of We're has advanced

simulation and have MEMS we in example, tools. invested decades For processes design

have work benchmarks with that such and performance. and set MEMS, Our many our circuits, we analog new sensors circuits specialized as to are co-developed temperature

industry thermal to and mechanical integration On our our systems the success. science and semiconductor is side, is important to material the know-how unique

$X areas go market to added we after designed of these which infrastructure; are the over markets, IoT, next most few sold years. With XXX the our grow customers. that better solutions three and over value and applications we to us we segments aerospace XXXX, across mobile, can into provide industrial, defense; allow our that timing $XX in been the automotive, consumer. billion SiTime expertise, finally, solutions in to have to inception billion of target telecommunications products and XX,XXX Since and enterprise expect have

into products of different of programmed millions We numbers. can that have part tens over XX be

customers power. small the buy the it Some buy performance, others and and while our products for of SiTime's low size reliability, of because high environmental resilience,

right We newer don't about our ones. this would the but like I variants, time product on talk all of some call have now describe to to

applications. heartbeat of expect frequency in spite in our of temperature is stands high oscillator, network products. XXXX, of XXX Elites a products Elite networking. Elite which and telecommunications to of Such conditions. and family. are high design in soft a and our those family XXXX, Elite TCXO, compensated XG of with provides One performance is new shipment production particularly sales sales In over in very the 'XX, other centers in won drive that telecommunications for stable TCXOs ambient and data began wins performance product this SiTime We growth changes

Emerald provides controlled is for platform, product is performance which OCXO, oscillators. than oven our an which stands An newer Elite. even higher Emerald

the of provide are frequency the edge and we SiTime better order telecommunications equipment in won and networking, at that over I'm is TCXO. of in report is Emerald use stability an a core to magnitude that XX than and that XXXX. happy OCXOs Here, designs

in was as by future potential SiTime's XX% a win track design high and over due XXXX. in dollars. reliability. in This design up get to design dollars value more order we proposition performance In growth XXXX adoption our greater dollars into than customers win of Total were of embrace revenue to growth, view products,

came Elite Emerald and newer and design growth Additionally, from products. our

that on I'd SiTime's business. of short impacts make coronavirus a Finally, also to potential on and the like comment the

has we all vendors of to Mainland to have been From supply supply So our seen far, any side, including impacted. vendors, China. in talked and None they've not major vendors, us that we and the assembly are of major chain disruption not the located wafer have told the our all business.

customer impact potential the into distributors ship major China. any and of we've On updates information the plan customers the we our to any on be customers Lunar of to and vendors date, to business clarity many end side, We there monitor customers, provide. mid-February, our do the more after believe shipments Year of will to will New To holiday. extended facilities. asked provide of closely of any and situation, none in Many product delays end whom to in our talked have for their

I'd that, turn to call CFO. With over to like the our Art Chadwick,

Art Chadwick

everyone. Rajesh, good Thanks, Great. afternoon, and

as We are a first company. very financial conference public results our pleased to call be holding

So XXXX results on and non-GAAP will today's to financial to today, reconciliation press you our of well non-GAAP discussion of results. financial results, guidance I'll our QX financial QX. for for and my as description focus GAAP as a results, provide refer I GAAP detailed release to discuss plan our

for $XX.X have of an quarter on over the markets, to groupings, I'll in all, market $XX.X sales was we was defined and into the some quarter breakdown sequentially, year $XX.X of three was provide million compared up by report ago. revenue QX year major To million, color XXXX. end each. XX% First excellent same million, Revenue the and for a Revenue up XX% us.

sales of into products. $XX.X QX. is phones, market and devices, consists in The QX and this which mobile, $XX.X first of end group sales IoT, sales mobile sales, or wearable XX% were primarily XX% million from or consumer, of into consumer million up

military this grouping applications, QX were of second and we The which end $X.X million, numerous sales million to is sales industrial to or industrial, to refer also in aerospace, and smaller includes or what are into QX. XX% customers, not into shipments in easy broad group sales where to it's sales, compared as goes of as automotive, $X.X automotive, and based track markets. aerospace, applications, which XX%

The third were of communications from as Sales sales, QX as sales center grouping and of $X.X infrastructure, or enterprise, in XX% and million networking. XG, in million up data $X.X XX% which or well including QX. wireless consists is of

We of expenses margins were $XX.X one were Non-GAAP operating XX%, XX% that where in XX% QX comprised and and sales had XXXX. customer sales of Non-GAAP XX.X%. gross all of for just exceeded customer million Net interest revenue. or $X.X R&D in Non-GAAP and expense SG&A. in of million million other comprised million XX% $X.X X.X% $X.X operating of sales, income and million. sales expense or of was was $X.X

income up slightly was So of fully were net $XX.X million, $XX.X in this on provided XX DSOs non-GAAP $XX.X million QX, million diluted Inventory million, million, at share $XX.X per down with Accounts in $X.XX from QX. basis. a days. from $X.X receivable or

net generated million $XX.X shares event during proceeds IPO. the expenses We our and per quarter financial fees stock was, share. major of million. at common This $XX of X.XXX Our after of course, issued

fourth on on million Our the XX, $X $X.X and we the down symbol we November XXXX in In from and Exchange stock under started from the cash paid investments, assets generated ticker million dollars generated quarter, used in operations. We trading million $XX.X for the $X.X IPO, Stock NASDAQ SITF. million debt.

the ended with $XX.X million million. we debt cash a result, and balance $XX.X quarter a As in of

quarter I'd now for some the first like XXXX. of guidance provide to

be we all, a growth XXXX year. of will strong expect First revenue

and year. We sales win believe strong we have the design a of a that new through ramp will products number funnel

similar mobile, IoT, XXXX. seasonality business primarily we did in in seasonality we and However, our have in XXXX, expect consumer in and

related guidance, full EPS be but decrease between midpoint Non-GAAP between million, debt FICA and gross QX, expected be are be IPO of XX% QX expenses of of this We same $XX between an a expense level. the down new and interest from a $X.XX quarter last quarter the and proceeds. expect the only lower $XXX,XXX, year our and first due at QX, Non-GAAP share. to and lower operating increase interest XX%, million the Net is be Based between year. revenue a costs are will $XX QX quarter on non-GAAP million of higher expected would in from quarter which to is taxes, expect to be which XX% approximately expected than QX, public per and in to the from beginning hires. the earned to being due primarily million, loss balance which to to full $X.XX a a due we sales be to from $XX.X company, margins to $XX.X is

to seen guidance impact not have we any not be QX and mentioned, impacted this just assumes due we on business will coronavirus, our the we As our quarter.

is worsens, contagion there always the could a us. impact it if chance However,

provide of be million to stock restricted and approximately count will the time the These expense of stock QX, comp, based QX, four a taxes, for I would years. RSUs approximately issued in resulting comments generally three million QX. year. $X we stock next each to like will the expense, purposes for to in RSUs, the based $X.X million approximately based few at or In regards comp and share stock and over now additional million units, employees IPO. $X.X in vest modeling anticipated QX The comp

For income tax taxes, means company federal we tax in or expense income XXXX. no have the loss carryforwards, significant which had will state

expense it nominal foreign $XX,XXX some have a less will be subsidiaries, we income However, than should tax related but to quarter.

share account, new had million five the outstanding XX the We going shares Per IPO. million into IPO. under shares we on just issued

we of IPO shares. was just diluted the QX XX the So, QX quarter, finished mid of with was short XX.X shares million. average in Because number million

Both as QX will RSUs. shares. increase of share million the million QX. and shares diluted million share and the count during associated in by and XXXX, increase approximately In XX.X approximately employee the will to with diluted share addition to count count to with increase QX, shares RSUs basic the basic for shares XX.X XX.X accounting continue vest, unvested will Our

regarding the this shares diluted count kick to RSUs rules million or QX XX.X shares, QX, This share take an QX the shares. count share would and to count XX.X the X.X diluted unvested increase approximately will and in will million However, by accounting million in, additional so. the diluted share likely

in we to and like for a the robust back turn questions So summary, are to operator the I'd call to answers. looking XXXX, and forward

Operator

Barclays. line the of Instructions] you. Curtis question of Our [Operator Blayne first from Thank comes

please. question, Your

Blayne Curtis

great quarter. Thanks congrats then, for taking on my first a question and

Wondering products, that, the as new ramps the could mentioned quarters. and look products into you types see on two comm your color you are Emerald, XXXX, up what up if the strongly. It's of You driving actually about that any business you the Elite and there? and talk been was strongly last

Rajesh Vashist

basically, are over. products Yes, the all

and networking the mentioned I in the As before, it's telecommunications.

So, for and we ROUs wins have designed XG.

base wins stations. We have design in

We have in some products. design the wins satellite of

high up servers, We to includes Elite, data design have for wider which in data transmission true equipment. It includes line the some range. wins performance particular, wanting are servers. It some financial

telecommunications We not trend since most the as we flatten we years that out time, as what is enterprise expect center will forward. wearables over expect mobile, to go as Blayne, business, we IoT, and this subsequent of that in seasonality seasonal the business expect, that continue, data also is the

Blayne Curtis

Great, of curious. new and for then just Obviously, people. kind company many

QX. kind of normal of Kind just should curious company your patterns normal for of your You seasonal talked seasonal into about perspective like. what look overall

Art Chadwick

take So that. Blayne, I'll

most Sales half wearables mobile, We IoT, and the wearables, for versus lot at our in of are the seasonality. go see year. back of first into Sales of look revenue XXXX, is, the the lower higher in you'll part, first that the example. you driven business. our for half If the by year a in quarter by half half. consumer the seasonality the much of year, back And that in of increase

of from our you'll mentioned seasonality go see into seen to But as we've guidance and mobile, I think our expect types as years. enterprise, entirely seasonality over QX, do of sales that. in markets, consumer almost we and less is and prior comments, for for the I the to in time, that. aerospace with my communications on example, in QX seasonality, more see the IoT, XXXX, coming which business, the auto, And our reflects associated I think again, decrease, based year,

Blayne Curtis

Art. Thanks,

Art Chadwick

Thanks, Blayne.

Operator

Thank you.

comes Samberg Stifel. Our from question next Tori of

Your line is open.

Tori Samberg

and questions IPO first Art, out could. on Rajesh this and of you, I congratulations thank Yes, and gate. the A the few if quarter

higher year? revenue, know gross how sometimes the margin? margin about the First the progressing throughout function continue of revenue we year as gross become as throughout non-mobile your should how margin should so a mix, is think a we percentage to we obviously, I move and of think about of all, segments gross

Art Chadwick

No, excellent question.

our with guidance. start QX I'll So

the QX, sales that So but for gross volume. is margins lower only reason QX I of from to guiding am down the because

about go the manufacturing overhead, of and One that runs items component gross of margin is that our into a fixed points. XX

volume as would I next impacts is couple that years. relatively remain upside QX goes that expect dollar of over QX, from the with our fixed to down gross The blended margins. to flat associated that So the expense overhead the to

for were to double up example, would years, the sales points. So for our margin if in next we example, five few pick

So ways. and both works that works, it

next our Elite news -- and products. products, The products, you gross year other of margins to components do improving the the with products, gross products. than mentioned have drive margin the newer this, will margins our segments higher have and Emerald good some ASPs is that traditional higher of The substantially and substantially

those a So improve will gross percentage of our that if become margins. time, products larger sales over

out customers, already essentially gross those margins. cuts middleman the sales but sales -- larger our thing that Right other on will those But of larger have sales we that with is of direct want all improves our directly, those sales start that with to we XXXX, improve going through We our go we're The the direct customers. side. to in a start do margins fulfilling want taking distribution. and some relationship now, and

So able gross margins. over be to time, expect to expand our we

market look selling our sales segments again, and as are our such our And it market longer-term distribution margins changing on growth get Our summarize, products, margin higher fixed if into, market to fastest leverage segments to comes our quickly newer is to target aerospace. communications, that and XX% And to gross it from overhead, XX%. the manufacturing you comes between on direct. engineering, just go the segments, the at from more automotive, comes that on margins we're just higher

gross expect some next nice very the expansion. years, we of see So margin do to over couple

Tori Samberg

that your your have the relationships just you going profile of in larger some consider with gone products you color. of wondering, the second Obviously, has public, customers. and some substantial was ones I a question My that great kind company's changed the profile since fairly customers, a disruptive probably you may ever talked is lifting especially the how and IPO, of know the market, I little company. directly? about with on That's bit

Rajesh Vashist

is was Tori, than I expected. a better it question. I great good I a actually to that's think I expecting list observation Yes, but list, My it's that a think, be

we not timing. I you are think products, own companies their is are timing that we that different. as United two without a have that doing we on One aren't have that timing much gone are things play category SiTime. There many pure -- are know, in the just of too States

and are there in on, couple overseas fact, Japan but There about a that's In are it. none. so

credibility, say customers company tremendous our deliver our and So I who networking higher source. -- company, particularly for are of value -- course, that us we customers, this consumer [indiscernible] customers, matter, in differently public think and to which being in actually, by looking a pure to giving would telecommunications brings our have products, timing fact, being play more customers this I of now ability our customers, commit single at large very consumer us, our and

you I which and get single If of our in world timing. at the whole from conference, the to process, revenue during source a about Needham of is the that mentioned IPO we recall, XX% unusual very products, XX% thing

the they the now company, think people increasing they the all the can transparency board, the So see see of company, can we see they the strength that the of believe technology that's they company, because can the down. everyone have management, from

opportunities existing thought think mentioned, single And of the new of it's more I at more also than in been terms but opportunities source better just I it's I customers, opportunity. a customers. been fantastic as So getting what much

Tori Samberg

Very helpful.

question. one last Just

concentration, geographic that'd that, the assume design I obviously, but could You any I of in mix you mean a wins. there wins. they talked global on elaborate you Thanks. if hoping on be nature, are I bit great. pretty little was tracking elaborate if just design is about, could the

Rajesh Vashist

Yes. a Emerald, ago, United than couple like we products States highest anywhere A trend happening were in more years the that OCXOs, the spotted the Elite, TCXOs the performance else.

So for that was a us. trend new

look regard would you the the the out at conservative. satellite, of more a you look oil at networking been generally is say the if After of a you course course, and business, is telecommunications, exploration, that, for more look place a is of of happening. China Japan happening innovation I most transmission GNFS for us if So if preeminent where the U.S. probably ball. equipment, has Europe. at of in at that out recently, Korea lot not see bit end jump little this We of and of very high significant it's

example, I places how down so States, followed Europe, equal For Fujitsu, path. on, and like more going contender, would A about little strong Japan. this a conservative Korea and rank it. bit by and then one that's number between But United in

Tori Samberg

Very helpful. again. Congratulations

Art Chadwick

Tori. Thanks, Great.

Rajesh Vashist

Thank you.

Operator

you. Thank

next Our from & comes Quinn Bolton question Needham of Company.

Your question, please.

Quinn Bolton

to on more got back the grow related come us expectations quarter, Congratulations in the which nice rank the may able post obviously, results the this Wondering And of for fastest three and Wanted if sort order you slowly. which a might your question. kind -- grow IPO. segments. year of first be give segments you've on to then

wins? Elite XXXX? in Elite to XXX Is little a a they and with Emerald wins more those You've bit of for Those XX on Emerald, for shift about and do talked half second loaded design backend lot it the call. this start

Rajesh Vashist

we've design one. had for are, then starting Yes, [indiscernible] Elite since 'XX, I-Launcher, wins so one, mid-ish The the 'XX. in and they been has that first around on

are are that, as definitely QX So But with as the the growing In significant QX. But we that definitely Elite higher 'XX the will big would, is be see there the half volume between to don't anywhere Emerald, to as because -- on the they talked then we Elite. be we half. it's small. past, have from event, to that. ESPs that started small of really generally On say significantly second any we in have in definitely QX. slowly they shipments and as shipments could wait as $XX early and be are, start so Emerald wins actually about going in But price. a if design loaded $XX, shipping to backend to obviously couple still But hit in pretty are going the relatively first

Art Chadwick

there's terms in market important three wireless then infrastructure QX. of But probably terms $X.X particular our newer most of because and we enterprise, provide the which partly especially in of for mentioned, And growth rates, the Great. all as these segment of that through add. today, into is growth that we're This million go are segments, first is communications rates just that's XG, including value these where data and that includes all, smallest we markets. highest center probably market these to different groupings market today, networking, products growth dollars and addressing us. The in and I talked

-- automotive, put our highest don't IoT, They're say followed same kind mobile, market, followed I important communications probably is markets. enterprise reasons, market would any aerospace I market, and and want industrial, But to to these by the the us. So and then by consumer of the markets is down growth and market. all the for of

Quinn Bolton

then maybe a second related. of And sort Great. question,

happen first up about that be throughout any talked about in you as we direct to your OpEx some this step convert of of the layer through it it from You in the Does distis? is year. Thanks. half the sort does year? second that should there and either larger some of tend to model the in direct process it is How lumps, of Is And in? customers customers taking sales thinking half?

Art Chadwick

of This great customers on fulfillment. this. throughout just as no, an increase sales this into a really basis in is And OpEx I don't different program. as Yes, it'll happen the phase questions. expect we ongoing result an year No,

to major we'll it just words, customer, directly then our customer. distributor just shipping who other of in to our to instead ship ships a So major

work we direct them. We relationships major our customers, For with them design with already wins. have closely on

good that not is really out then OpEx, with sales for require in us middle margins help in fulfillment, us. and get really difference. just going to gross that my do you because news any it we will all the our does margins, of which So and with when cut gross direct But discussion increase has guy,

Quinn Bolton

Thanks, Great. Art.

Operator

Thank you.

Our comes Suji Capital. go ahead. Desilva of question next Please from ROTH

Suji Desilva

Hi, gate the Rajesh. good the on here. Hi, Art. of quarter Congratulations out

In your be what talked portion on year, about side of terms moved broad-based can the the of direct think grow of can percent potential? the revenues of to of to here, about What about can moving you just business the talk the revenues direct, gross understand both margin to And then flip you business, to exiting that, it's I that XX% now. sides of this? understand

Art Chadwick

So direct, our will mean, in what terms starting revenue we're of percentage of go zero. I at

expect it'll it and go on course XXXX, put XXXX, the there. really So more from of up time, material a to But do continue I beyond. into don't over become percentage it. and I certainly will And want that through

effectively to I go to of number nice actually with because think the the a rather exciting think I I this here some in we're implementing important broad-base -- sales. pretty is broad-base number we're got that sales growth not know of So if percentage area sales, marketing, terms and what's I'd And direct a and direct in very our trend, don't we've of Rajesh is on programs put a it. that a expecting these customers

Rajesh Vashist

I add Yes, that. and Exactly I'll just to just add will that. Art. right, to

know large companies and microcontroller microcontrollers, that for customers have worldwide, XXX,XXX said there's that that, some that have to because the is very we XXX,XXX vision customers way that that products microcontrollers, The timing worldwide. is I XXX I at need devices. our of come use those who they know Our

customers at broadly, is So fact that pretty that we have to date looking number. a XX,XXX the small

pretty it's While number. it's impressive, pretty small a

our be be a years customers, we a out our four, just amount have getting sell, goal at a our We few would self-service to our not a customer. we a on -- program, years from information of to website; us XX,XXX a allow example, come them channel we'd to is for five would So And to three, sites directing the resellers, that good devices about being out, for self-service selling reach. them it timing of be partners. partners, which will would significant kind

of from feed also a is and also, care have care office, these the our that And of support of customer Ukraine significant people. we amount taking

We there have group of an are excellent who that. doing people

the We'll but of is by And be this So a us. which very important the the learning think think along we all it's proceed we'll digital through campaign, very, new I way, followed I two, new is marketing think relatively the for combination initiative. us, for year.

Suji Desilva

great. And Okay, for my now follow-up question.

soon are the quarter, that Just other going part comms quarter, consumer auto, looking and will segments at know the up or in it be the of seasonal. to two they impacted first be first by the as there then growth inflection seasonality? an Are on then be industrial, customer as will steady pattern that And wireless infrastructure, a programs longer start will term the quarter be XG or to ramp? I

Art Chadwick

Yes.

right expect QX to QX, be the the mobile, the them slightly to terms QX consumer of to other we market IoT, real impact The from QX and both QX. is groupings now up So to just from seasonality in in QX space.

Suji Desilva

Art? The XG, linearity then And of the that?

Rajesh Vashist

Yes.

GPS, networking, but GPS, so think industrial So XG we influences and shorthand, on. as use a I satellite, this

as expect one I by see. event -- yearlong So five or a growing big be But over There This that be another. big rollout a points a four years. may it'll a steady. the or several we is inflection next think broad generally, there's we rollout

Suji Desilva

the on Congratulations a color. start. again Appreciate good

Art Chadwick

Thanks, Suji. Great.

Operator

Chris Our comes of James. Raymond next Caso from question

Your line is open.

Chris Caso

much. very thanks Yes,

average, a of margin to various much? segments segments us corporate as as and could quantify Just bit which calibrate to are first -- the goes the Art, about, the the also if above help year And impact help you if below margins. question, changes, to the us mix or by related how on, and

Art Chadwick

Yes.

the with of level the again, correlated gross highly So margins performance. are

on higher performance margins. our ASPs, gross So higher products, higher are newer

and going don't market aerospace, markets, go what So higher ASP, of point. gross this grouping But automotive, military. clearly more at performance, higher to enterprise to are communications gross I margins. and into by Again, higher that's margins into want our really go

I But than little bit to just more that share point. that's think this message think is detailed I clear. very want we a the basic at

products will become nicely of over are higher time, percentage time. performance, Our drive, larger and gross newer and margins sales larger higher margins. our a They I think, over gross higher that'll

on As the XX% call, we've got earlier a I target to mentioned gross XX%. margin of

direct. And new then up there are feel segments, to that's comfortable higher I good points, over margin plus growth minus, in taking where a time, or So and get we've leverage these that based the that sales we on roadmap the mentioned, pretty XX today. overhead we got products, from

Chris Caso

That's helpful. Great. Thank you.

or general -- and and in getting the design have, exposure as growth much markets? wins new could Just on in company growth compared that, as to do on how a end of that, the downside, of understand speak we penetration, the that follow-on new you really just is to just you I track getting question, upside the automotive with the rollouts how station as And important design terms, and I guess new XG wins? profile the base to fact perhaps the is company maybe units, either dependent growth of

Rajesh Vashist

Yes.

that a -- watch connected, always is so. initiatives, little of are a on dependent definitely initiative think is new to initiative? but bit new a phone, define a connection new on depends Clearly, would agree the a smart new initiative. new everybody that a But is it's we you regardless initiative. is So how We XG

and We new for initiatives but initiatives. also for are also Those are smart water. think electricity, gas new meters that

because newer performance, smaller want the are dependent products are the high that ones etc. reliability, new greater size, So upon that in more sense, initiatives we

to XXX that applications. news we the something XXX So have to good like is XXX

in of strength roadshow And to slowdown the that in we applications we moving the that's market the strength time. company down there's had in some fine. our that, company of -- a let's come of say of is up, are XX% are applications mentioned that the XXX these that's that I the long and company. The probably to the the diverse think that into a that And to so, extent XXX investors applications, most small has in

we sell we products $XX in diverse applications, just diverse Emerald, diverse $X.XX for we're products, diverse our mix. our I mentioned our going We are are at well. and we our as price are in in customers, product in

to of the the that's five seven strength that's So companies the rather think legs of range, on like a of -- I because the couple in markets specific company six, we many stool, that us helpful. legs are than slowdowns of huge are. stool, a Hope stools and withstand or allows that's

Chris Caso

you. is. It Thank

Operator

Thank this turn to you. time, over remarks. Chadwick for to I'd back like closing At the Sir? call Art

Art Chadwick

just Well, are Thank to call. Great. to thanks our close all want of listening who by I you to you. saying

on March great a continued so streamed, very those the this Again, quarter. Conference March, today, We're excited look about we're business. conferences in. XX, be ROTH going for our next much. web attending and we excited Raymond on going to in of the you call. presenting the and listen both please we're year. We're reporting Capital two and very March are thanks our Orlando afternoon. at also Thank about everybody at going be In be later Have coming Conference conferences presenting James progress X, We forward will presentations to us to our earnings to be financial on joining and

Operator

call. today's for Thank you this gentlemen, and participating. concludes conference Ladies

now disconnect. may You

SiTime (SITM) 6 Feb 202019 Q4 Earnings call transcript