SITM - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to SiTime’s Third Quarter 2021 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, November 3, 2021. to Group call Investor like Perry to now Shelton of Relations. would turn over the Brett I Brett, please go ahead.

Brett Perry

Rajesh call Good afternoon, Results SiTime and today’s Financial Chief Financial Quarter Third Executive Officer. are Art from Chadwick, and welcome Conference to Call. SiTime’s Vashist, Officer, Chief XXXX On

of forward-looking and In any events light statements. the the for from obligation and materially occur, date may statements could other timing forward-looking the financial all during completeness changes possible the future make impact Before statements. for and regarding forward-looking materially I’d those during accuracy risks, from expected the actual point market actual or to position, to differ risks actual update its to company’s call nor in results factors this undertakes implied. plans, for any company’s combination no to this conform of future contained all those out to assumes and begin, of factors areas person the of uncertainties in this company or Neither the the It’s including management strategy business other statements forward-looking the the cause operations, not to adversely responsibility call assumptions, of and assess events we anticipated not call any to the may that these results, extent nor company discussed to of predict which any results The company like differ of course and reason company on may or can the of expectations. discussion. the or forward-looking publicly factors after these statements

measures of on company detailed this provided to with release between stock-based financial consider substitute measures financial the not accordance subsequent XX, be we difference the with reconciliation non-GAAP performance. more issued to company’s a filings or non-GAAP measure today are turn during financial measures, the now detailed as will February on financial results you over to results. GAAP only These GAAP with filed between refer XXXX, that, in superior performance expense. in for Rajesh and non-GAAP remarks. in call to described the GAAP. press U.S. of Also, opening an and Please a SEC. we refer The to for business, like is our well With which a important as the non-GAAP the his associated go XX-K ahead. call information as Please prepared For Risk Factors I’d compensation we refer addition risk to certain and to for to

Rajesh Vashist

growth today's afternoon and on SiTime Thank sequentially QX tremendous you you, say XX% thank up Brett. and with call. to for Good XX% achieve us I'm pleased that continues up revenue year-over-year. to joining

Additionally, of quarters, revenue that high our and market consistently of It's have in communications, in are availability medical. such year-over-year. in we new early enterprise, adoption driven the timing, choice, sustained quarter every for clear SiTime growing we growth, me in and the that to past of is and a now phase six multiple as by markets industrial across the game. applications This performance, long of high a end is automotive, innings high new margins

by high new We're opportunity the on an initiative through accelerating a unique of development value continuing As solutions customers that advantage this seize are customer result, focused to we of strategy. aggressive need. taking acquisition

We is never not credible competitive competition, will visible. timing high as for rate now to threat While we of come. growth continue SiTime believe driving a years underestimate

a Highlighting business changes data now dynamics. we as We Vehicles were of I that trigger datacenter, products, see change market to be the the in and a over in this few crisis long have one EV, by of challenged continues a in use as crisis. High customer the automotive A eight for each our at customers the markets, we our the few of our The Electrical become adoption started business markets is value We datacenter Server number in a ago cards this performance for precision SiTime recently now a back $XXX the as the we design fast value growing Datacenter average us. won last end Tier to center Storage market to customers. million need Mix examples is Looking on disruptions Acceleration and applications months, trend our at electronic Particularly XX could higher rapid over that then with the automotive market COVID timing. term largest which in technologies driving Servers, overall new end that are years years. Smart designs driven Speed increased the market Since high winning like enterprise see XX In next is we Interconnect, XXXX. in they for to this emerge popularity two this fact Cards. automotive car. great proposition that than and more latched and believe customer of expected due strength has

content market, the where we unit one I is of to each X-times to in have Additionally, a newer, using seven gained the then using design and we are example, already of companion are of in win expected this $XX revenue, companionships additional together for had believe oscillator sell we higher and that datacenter networking we of the two example revenue launched that SiTime products this Today the to we four is Previously This product up customers exceeding we customers and referenced are Super-TCXO such that clocks, now datacenter, final a datacenters wins with year increasing. market in these of penetration, Elite far million to we in optical XX our had so products, announced of and our dollar have The system the customers. density opportunities. get initially differential a as SiTXXXX worth have combination an approach anchor ago million better with as an Xx. we approach, annualized to our on. a annualized have from up unit the our in or makes traction we SiTime Super-TCXO. product value this. With sometimes gets With XX Super-TCXO, increase XX customer accelerating an and additional and by design per We SiTime devices the design that when the system product. number that Where SiTime wins, approach. course solution wins differential oscillators expectations design is in opportunity $XX excellent this such

this markets. grown of from X of forecast in XXXX Our continue to we pipeline has times Xx, XXXX the opportunity or as these grow product beginning the

see one technologies developed us. others, for products where up additional are opens opportunities which also emerging trend adopted for and being We market in an of course

the Based architecture adoption being incremental precision cars, infrastructure, For or which And in increasing used in in product and rate example, Distributed company, DUs CU incremental creates generates customer a another or and rate are is with previously Access introduction this the In of high product with we will and introduced Units three Open structure. for XXXX application. double demand the innovation innovations in SiTime major datacenter for XXXX Centralized clocks. of This is again new Ethernet used traction. to our major now were Connectivity Network Radio which products. in demand ORAN in our Connectivity is Units we or a automotive-grade oscillators Ethernet turn these accelerate In the introduction, not the differential oscillators six example products. the new we

drive a segments continue and and higher customer this to subsequent will Our rate applications. to multiple adoption in innovation will years, grow across

the navigating has our constraints fabs expect chain source we Regarding partnerships SiTime supply with our this with wafer situation XXXX. successful through current been close chain. continue supply tight at and multi very environment, to supply

a has The and which customers need higher supply helped this favorably has the will quartz in. timing negotiate to enormous. In to with pieces secure supply value for to our course benefited of the is of that over to technology compete our provide SiTime for alternative world environment compared SiTime to While term the offered product many time, summary, are increase contracts. chain, or our using product There by customer favorable longer touch increased has margins. gross today continued advantages yet sustain these prices, doesn't has along costs,

Art to advantage timing this of look our portfolio that, Given to we acquisition aggressive our will This and at the includes CFO. many take it further expansion turn mode of I unique of With growth now strong strongly of our forward now opportunity. strategy. I years investing competitive to acting in over are customer product SiTime. precession an solutions, Chadwick,

Art Chadwick

gross XX% were business and and this XXXX. third infrastructure up and segment, This points SG&A. results, in share. XX% in XXX strong and XX% up Great! GAAP up earnings aerospace guidance and our were this This more net invested We payroll million million, results, Sales $XX.X comprised year-over-year. million, and or to million of were of the for largest in all, last $XX.X income inventory and or increases into points of of financial Rajesh, XX consists and of Sales Well industrial, consumer We operating for and quarter, XX% excludes related of manufacturing net per a sales increase refer from X,XXX end on consists to increased in focus $XX.X million $XX.X segment, non-GAAP $XX.X were in compensation which $X.XX million gross I'll our Sales sales. were into military our $X.X you and and provide quarter. leverage everyone. some results were same and was CapEx. cash income customer industrial, income million growth for Thanks XX.X%, million, results, taxes phones, margin medical, This quarter. detailed of were double our high sales. due up of $XX first XX% last up release had sequentially, up sales was XX% margins of sequentially, non-GAAP had QX in Stock EPS and flow. wireless IoT turns with was of $XX.X taxes. than $XX.X which quarter generated quarter slightly non-GAAP afternoon $X.XX than $XX.X financial a $X Today year. as expenses million XX% operating basis million. mobile up XX% good aerospace, our to accounted or press a including positive more Receivables discuss $X.X and days were with of Gross of segment, environment margins well flow our and description from my business, and XX up GAAP and XXXX quarter up non-phone. XG, I’ll year-over-year. wearable compensation last Non-GAAP was some $XX.X discussion up today's and to sequentially $XX sales for quarter that year-over-year. the from margins million of and sales XX% with sales on our datacenter Non-GAAP Communications reconciliation which sequentially based Sales step down expense based fronts. Non-GAAP into and a quarter DSOs was mobile or revenue year. XX% which of overhead. another had up automotive up the on significant Enterprise We products, consumer R&D multiple related basis million over last pricing into gross devices million net and of we another cash margin, days share. as stock of Revenue payroll million, broad-based and was million function networking, operations of strong and sales. and includes quarter, XX% automotive, XX% was great XX% over sequentially XXX% into This fourth margin, $XX.X

quarter the like growth in result, to our XX% cash we increasing have guidance $XX.X cash I’d quarter we ended be now XXXX. $XX customer XX% million, of XX% sales between it'll for As by provide trends positive At balance in approximately a and will $XXX mid-point The of the and debt. million and million with some expect to will no the drive sales. further sales bank our fourth we largest increased been about with QX, be sequentially. experiencing and

invest as down will in We customer workforce expect increase margins higher be between gross we due and Operating expenses QX to new QX will consumer XX% product sales. slightly our XX%, acquisition expand and development. seasonally from and

expect formal I continue. XX% to we would Though quarter add customer year, the comments. increase QX effect guidance our invest million million and share which be EPS RSUs taking non-GAAP approximately basic shares, X.X XX.X of expect $X.XX we're will aggressively $X.XX the trends acquisition, strong this in be in giving count per fourth and approximately guidance, million. the We market. this operating few and would employee share like at year The dilutive shares. innovation approximately will diluted approximately XX% shares. QX $XX.X $XX.X share. believe not be mid-point would We total we to sequentially, offer expanding are next product count expected The between a for will non-GAAP expenses million on between to We Based plan experiencing will

significant year for we XX%. least growth believe at positioned well revenue are by and can next grow We

gross to cost will Wafer going are will end be headwinds. material execute We but continue and on manufacturing some up. margins, back there costs expanding

For stated by are example raising TSMC prices or has more. XX% they publicly

We depress also by all equal. gross These else and margins three costs. expect likely will to to increasing being higher two points, up manufacturing assembly costs test

rate growth Over the last margins. half we've managed helped which expand of operating years top line at growth, the our two about OpEx

comment Now make our our maintaining will I’d manage will top that target margins OpEx to growth CapEx. range, are invest still closer to This allow operating aggressively, like a at growth. to while closer us healthy rate line we margins. also a to about likely

approximately have has of is the subcontractors. and limited of that some costs. to to we capacity at add we plan locate to purchasing $XX year, of increasing approximately test our the and lower capacity year our equipment capacity manufacturing year. next budget additional some which add at our it million pandemic response, assembly impacts subcontractors this to our manufacturing been of own million see In from to dedicated CapEx We $XX One next

having are we summary, great a year. in So

recognizing our Our customers clearly are value proposition.

to Our large with continues portfolio product that address products markets. growing differentiated expand and

of Thank sheet, turn balance We enviable back operator you. further strong And to and a list with have and like I'd for an that, customers, QX to in the Q&A. the expect Tier beyond. call X growth

Operator

[Operator Instructions].

of first Tore question line Your comes from Stifel. Svanberg from the

is line Your open. now

Tore Svanberg

thank Yes, congratulations on results. you very the stellar and

year; you important to too. know Rajesh, for answer, it those The are two for being growing a market about a and first those question is XXXX. relatively you like talk you sounds but very I this auto obviously ones question two, between datacenter next faster do Between that in difficult for then which you think

Rajesh Vashist

Tore. Yeah, thanks

people, clear, a it’s it I and the surge think safe indicated the of answer. also surge surge for last so didn't certainly quite easy market datacenter specifically vehicles bit like and in happened. in I electric It’s well that choice. the time because lot but market, of that enterprise and and obvious datacenter was answer. – electric time solutions timing vehicles when We understood, this Automotive The an as appreciate is cautious surprise a a us. the of the relatively somewhat

On on, and we automotive to will the goes transition, I long conversations short so of a than other it's vehicles transition continue else. more as to time expect that term, as perhaps electric term know, rather anything hand,

Tore Svanberg

could gross Very good. follow little bit up, you And as the a margin. just on a elaborate

be mix. by improved markets. The and think consumer the would is from the obviously the know, the of and XXXX? about business or being of you when you within next then And you that with got away your margin points gross current up. basis some more that IoT to sort level from that two, from mix So pressure, in about number would average it’s driven even mobile an went clarify, incredible year, its margin I talked it’s that talk just obviously gross that But

Art Chadwick

increase XXXX Well being from margin a still certainly company I equal. that all the initiatives in gross the average of to we mentioned else margins. in that’s gross have number and Again

higher higher products newer higher gross performance, higher our know ASP, you generally gross As higher margin. are ASP, margins,

our become commentary. of We as the our headwind So line the as leverage in overhead margins. sales increasing mentioned my but we manufacturing will on with still time, increases, percentage do that have gross get material costs a as those over top larger improve I

Tore Svanberg

Great! growth already year, I one talk good When one visibility towards about least you I Just last if very either at you XX% could. assume number, for you. have next of that one

Art Chadwick

Yeah, out. orders calls didn't our we customers many call, so talked about this talk that placing past on about the quarters but fact in are we

So the that us we had. given best have visibility is ever

we So visibility year. into excellent believe next got we've

what we think well good that with putting next are higher, year we works believe now at but floor grow it is. we be comfortable we things So could growth If least our saying can rate we on a visibility. are XX% right

Tore Svanberg

Sounds good to team. and whole congratulations the again

Art Chadwick

Thank you.

Rajesh Vashist

Thanks Tore.

Operator

from of Blair. next comes Vecchi from the line Your William Alessandra question

Your line open. is now

Alessandra Vecchi

I I one large echo sizes seeing to $X.X market just the $X again for referenced and automotive. believe how now in oscillators? question MEMS you're guys! SAMs Hey the for us the update datacenter the you on past you billion. congratulations. billion in Can Maybe given it the

trying as think overall or about timing could the look share to percentage like total MEMS share and what look the like. opportunity Just could there of market a the of what

Rajesh Vashist

public, visibility going we than at resonator see we maybe $X $X in the market billion. saw also the clocking time, my we revise I we the a the which billion, market the is closing market also more that's the But thought. future; to bit the of oscillator million see in then said as Right, little now future. same and going that the we MEMS up would timing then, resonator, excludes we be when which number Since went what $XXX to excludes

Alessandra Vecchi

I'm out if in I you you revenue of versus fastest, the of what little a the terms you know would end break bit color global expect? not seasonality market. IoT on Art, but can next relative growing slowest quarter. that's sure Okay, provide fastest the just for And maybe growing helpful. then, is assume to

Rajesh Vashist

Yeah, these the be history increasing market segments. provide every with will and we will I didn't it Certainly is segment, a is granular get say quarter, want each once that. and in it generally I all that to increasing I’ll but fourth detailed QX. in in finished consumer too stronger

Alessandra Vecchi

queue. I’ll Perfect! that again. much Thank and back go in you With congratulations very

Rajesh Vashist

Ales. Thanks

Art Chadwick

Thanks.

Operator

John Pitzer the Your of next line Suisse. question comes from Credit from

now is Your line open.

John Pitzer

Yeah, good know clearly solid the letting entire I lot notwithstanding the you mean have industry Congratulations are a the ask us what’s of Rajesh, here, on afternoon drivers is trying guys. I to the cyclical of a benefiting now, Thanks of for questions. results. the versus structural. on think me and secular differentiate cyclically driving the business right world this lot you side

So you us if I’m out. just could wondering help

quartz and these maybe that As how year-to-date, you adjusted, might quartz mix some supply expect that a that case Is benefited that the more some what supply of ASP versus opening think I about is the still days for increases XX secular ago. basis. of gains And quarter situation the has think to that opportunities been To this in which reverse? out you you. changes, bit pricing If much little about a were you extent there, think talked I sustainable would and constraints on be when were up like-for-like I question asked you? last

Rajesh Vashist

the and me question your and one not try first answer not let minute. Yeah, in try

prepared come acquisition. and in Let present, picture in and answer my one question directly – remarks, about my is the I’ll your of The then as in theme me customer themes see John. it, really give key remarks I our you the

me both supply to see the do I'm reasons in to is they or which year. significant give make there's the be that strongly extent will us and true. So for supply into than we expert I that it, side so the customers come to next quartz, point not us I need increase the for it I when the customers an a time well whether a new back. the in, in say are demand will it, want I our go on continues that to the when I in in maybe program what that is constrained said take added, see chain I capacity is performance themes view want ability, to would a availability, Having believe that demand, stay that There’s boom we do constraint market other come that, that need I believe, rather

the But before Instantly pricing it revenue. well before pricing remember the will piece, a us tightness, the absolutely think XX% will a in they definition advantage premium will and premium it because pricing we supply, Now performance, ability positively the gives therefore well because down. pay of the only time I about were Yes, sourced sourced the change? that gets the single need our need single already the that go by pricing anyway, COVID, somebody and need product. it's for quality

into I it. that's So think kind baked of

As of I question shall before, how that understood measure. and million company we’re market is well solution our are the fleeting $XXX say, how billion is it larger by are $X the of we we company, secular a to billion SiTime $X a market, because much case, will or in in tiny any we so much of not a it is tiny say because

really continue as solutions – go think where us. of and customers how now, not has bump, it. but shortage we're search that's evaporated think could we'll I that don't which need pretty coming, this happen I not this Sorry, to much as a bump see know secular so and That demand not of will our I be it. see you see cyclical lockstep are happened without of better, because they we're well, I and sort whoops! alternative a for too seamlessly how have don’t merge well. recognized our demand many I and our big So known to we by increased, Because that's definition the tightness this demand

John Pitzer

you that but that appreciate outlook pressures. ’XX, would. cost follow raising out than might I further least my bit you for you're any Is you have you a up them about to the calendar little Art, price concession That's about maybe you're normally able there that gross next pricing into year? helpful, then that we’re margin of Most talking as when are talking going and and the baking with that I’m year that the pass ability at you're don't up you're about cost along. cost, talking keep surprised companies pressures, Not to with, why not talk that

Rajesh Vashist

past that we do to for advantage do undue us that. not the customer, of of taken the say just have we Yeah, somewhat, don't all commit change, customers an not and We to and from things be in our pricing know them. actually. egregious when get to We want When customers a could shows was premium We premium. in egregious. are even that be examples away SiTime was we ability. up, the know wait those those to when competitor don't being companies We we that can't our premium, a a it that single semiconductor source shall power are I fair times, companies share. all want

We have have we premium for continue a premium and a to fair a product fair that. price,

in that Now tight some generally place in we be respect very more the the we before deserve, that and spots. onto us want from bit that our customers ourselves a costs. to tight we it, with treating without very we little to them are because aware that we putting modulate want are they pass a time to just pass and But of on time changes

gross are mentioned. a there drive I number I mentioned, know that initiatives had still for You us, margins as higher of that'll

Some and overhead, a with those of being the equal. things issue products because it gross issue, depress the real X the X new our it's that's by up positive cost all it's to margins leverage, else mix I are points, so said increasing just its all is to entering manufacturing will trends prices, I market, it mentioned

from I'm X margins they are X to would go had not X saying So are today, X have but down go are been down we any to that we increases. where going cost not gross points where from points to to going had they

John Pitzer

I would just on organically to quick going there expect one product just introductions can you it business sort bit of that is a I OpEx little you. go? of increase? have, the you're know Thank where growing rate now Any going than the reinvesting Rajesh be and really think acquisition guys more if one you be very color sneak to that in any in. helpful. customer to should specifically Is dollar we or new color faster

Rajesh Vashist

I about in products introduced as in, Yeah, said we new coming part major the products. new XXXX in

multiple six. of going to have analog, in to that going systems, up in another number We're products of in test, But operations, go products We're think it. But year these so We the come off each products again in going place ‘XX of of these. lot. a MEMs, we're number double for a for sampling after, in where to they that's sampling go. takes next Each derivatives a these is major initiative I we're get to and so the benefit one of that. year going to introduce in

base. acquisition goes, growing very customer I customer far have of strategy As ambitious think our I think a as we

we like in broad to we off infrastructure have the that where customers, know To have next few you five the all to have seven the of as that next support the the possible over we to to around significantly. over would years of the do go like if that. years. First base software, to double increase Ideally XX,XXX it I'd structure,

think continue to service, support, and OEMs, OEM fit the so marketing products say segment technical analysis and do customer or delivering place. I XXX side, let's exactly On that we the market

and up. that shows been the timing products some world when before and out dislodge with work, might done that span up it's So harder in because to products are this so coming therefore point competition are is so at by never show hard customer a we time needs

John Pitzer

you very much. Perfect! Thank

Rajesh Vashist

Alright, thank you John, yeah.

Operator

line question Bolton Quinn next from of from Needham. the comes Your

Your line open. is now

Quinn Bolton

Rajesh offer Art! well. my and I’ll Hi as congratulations

business which helped I quarter. some to in First turns your were wanted as that a question. longer to market a And sounds had like no expect do of continue script think sight, a be the $X or $X Art the with near business, look one-time seen do the so term to competition of margins XX you your end opportunity really that you nature? obviously revenue, high TAM. I and in term helped margin to oscillator high MEMS some Art, then any capture looking about that you in was you or that XX TAM able you not of to And or TAM? to it for I'm start perhaps MEMS Is billion and gross with perhaps you said capture by as able more only Rajesh, when you wondering well competition is expect to you billion December think talked in data get there or that as that but number? do turns timely margin

Art Chadwick

Yes, some hard so to mentioned, result product this through I of turns at for higher point, it, and of year. some of same a expect was and but price certainly expect it's maybe to the actually revenue needed as was willing of our customers premium and a Quinn good that question. pay our margin margin continue higher this to at Yes, in high XXXX; to same say the the same happen end the I I level, not QX. business, into

Quinn Bolton

roughly at the And side. the has midpoint, $XX or [cross talk] guidance revenue from that that been into factored million

Art Chadwick

has, upside it some be but of there can Some there.

Quinn Bolton

okay. it, Got

Rajesh Vashist

at are $X now. I billion the TAM that Quinn, we actually believe So

about can, at to XXX quickly ago by from little IPO from November XXX. years to get we I I we up we’re as to So said smart in you a two as we that? think think we the because it. can trying When be have know expanded what

the the the datacenter. observation mid-haul, the of the long-haul, is back-haul, the ORAN, that one telecommunications short-haul, know market, networking You in the the

together, $X If said you put that all there alone worth our in of number before, sites. are my years we as I would significant that that center view next billion the be have two and in and in front probably opportunities about

into more better to the are So that we market products get going be. can the we off

Quinn Bolton

Understood. Thank you.

Art Chadwick

Quinn. Thanks

Operator

line Suji ROTH Desilva from Your comes the next question Capital. of from

line Your now open. is

Suji Desilva

was think put and I strong, here. remarks. heard that. in about the continued they datacenter customer to the same were you're said some but if heard to Hi going time, want in Rajesh, largest an them the the second together I be quarters; comments grow try relatively I to that wrong, Art! customer prepared hi to auto Congrats few autos. Correct you At momentum going bullish next your I me to on

more just split in and dispersed two I those maybe to datacenter now, three, So more I more be across wanted a would understand, mix to customers six look be four relative versus to by to ahead quarters across even to the concentrated. auto a comments would it the as

Rajesh Vashist

just years ago would sub-segment automotive the the have industry said I grow. It’s fact did will globally much datacenter that segment our segment, be I to going a that many IPO. going The it when just continue was was you, dispersed. anything, to bigger I customer. players a and not surprised for more sooner. be to we saw Right, an probably two to the two I on number with customer what It comment wanted when be was big automotive size to is more will mature customer

running a more for for coming fast is, customers something with clearly and space. towards and these to and in can with what opportunities products, we're SiTime want it’s of as more doing as So we you learning this up support course we're more the learning, looking do

I datacenter both to but of think one automotive probably they thing, years very is gets kind and for this to come. of to strongly quicker, it's extend continue very watch-this-space there strongly, it, the So grow gets behind, it a time very, on those based slightly

Suji Desilva

Rajesh much that across the of end consumer now. more waited three the segments can by split an even we think have too to than is the XXXX it

Rajesh Vashist

diversified high are balance. but No, works one products in doing And they do products I I ASP customer for is we as it well, precision consumer, consumer have and low have companies, well SiTime their think of segment we well. companies, ASPs, dollar a ASP, companies, remember, really their diversification. us I the most sub consumer to really granted in think mean

legs to So you instead know just way. to a of gives I'd keep us like it few. It that stool multiple

Suji Desilva

to Yeah, help perhaps just of I valued down could investors just other reason one dig two kind three the it consumer. if And what and am me one would why there. in same question; you to certainly kind auto data or of your a of and traction gaining are and and know you content you center. in anything there’s gaining down just that’s you are quick understand If both, are one in

Rajesh Vashist

but for large Yeah, a I also in at mean get they modules, we is products one on datacenter what a designed us optical might business. in solve are may our it the happens anyway, and performance These at hyperscaler, to at board use all the high is switch. that adapter, higher in on are facing applications two system, customer. they they performance on get a looking problems whether make, it might designed comes might get down designed our to might one of we we a different have seem motherboard. They the we is and host in it that datacenter a combined a in have the Similarly, smart know,

of these and So, it’s the end Swiss customers saying small ‘wait, whether whether solutions are use XO, OCXO, whether it's want at it. differential, the I at it's to using don't they I knife we size why provide, and looking standard Super-TCXO, think Army this?’ they whether it's are that are high

the At we So we the the I in levels the for higher time need higher is these the you play where connectivity, that's more happening. and think really as same performance increasing, win. know that's what's performance,

Suji Desilva

color. Helpful thanks. Okay, Thanks.

Rajesh Vashist

Suji. Thanks

Operator

am back would at no management. this conference to to questions I the time. now like further I showing turn

Brett Perry

Well, on like that for today. us we'd to everybody note, joining thank

much a and Thank have conference call. that great very think our afternoon! I you concludes

Rajesh Vashist

all. you Thank

Operator

all Thank for This concludes participation. you call. your conference today’s

You disconnect. may now

SiTime (SITM) 4 Nov 212021 Q3 Earnings call transcript