SITM - Earnings call transcript Q4 2021

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Operator

Good afternoon, and welcome to SiTime's Fourth 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, February 2nd, 2022. to Group call Investor like Perry to now Shelton of Relations. would turn over the Brett I Brett, please go ahead.

Brett Perry

Rajesh On Thank you XXXX call and Call, Fourth-quarter Chief Financial to welcome Executive Officer. from Art today's Chadwick, guys. Good Financial afternoon Results and Vashist, Officer Chief SiTime's Conference

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

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

Rajesh Vashist

thank for revenue with for you, joining year-over-year you Good exceptional Thank Brett. XX% afternoon call. an SiTime, on year was XXXX and today's growth.

the billion SAM our XG laid we applications. comps growth communications a large in new In are QX for to are continue a introduction $X.X comps to factors see secular out to There especially believe in market. new SiTime. our We small strategy a radios product through these at results high trends 'XX, products sustained In revenue and by markets. in phase We enterprise cells. quadruple new our market a of driving to accelerated have target I served served in opportunities have of growth that and our acceleration market drive we'll XXXX XXXX, continue and referenced as and enterprise these per fundamental number for

products introduce to to track in in 'XX, as as which We X is many are twice come more in XXXX new on with XXXX.

Excalibur of Excalibur, a are development continues category ease market $X up solutions, which to use innovative months Unlike by sum of resonators. at is market, of the which or performance SiTime matching, with saves is in advantages products revenue year, first a we there do precision that opens million new least will qualifications XXXX. or products be launching category, new different market value. offers of need $XXX repeated active a portion start a Some for timing that for announced for customers SiTime. and This to a the circuit to time. the served Resonator actually specialized new billion testing, this frequencies, of our In that contributing leader its current mission customer no of creators. product of these Recently,

our $XXX XXXX, is to QX business Excalibur in also more over mentioned would few XX that automotive generate times a Additionally, I million existing resonators. In XX than reliable years.

for are more automotive, way trends, with our companies, on of on expected applications high would and helps clocks into and way, In double over build that, such automotive to a driven and 'XX, our we're grow more that XXXX. accelerates expanded in and radar, us ever rates. million. visibility products. resonators, compelling lidar, high-speed now, gives XXXX. our and are to our focus passive business Datacenter at also expected real-time replacing XX engaged Again, QX Precision additional here to $XXX leaders this double and We are we semiconductor XXXX oscillators required Datacenter transfer technologies mentioned with RF to also In us in revenues well well a than to data adoption, by are variety to revenues in automotive in we as it I

NIC engaged critical modules, increasing coming in company that our our that Again, than cloudification, high-performance public timing of to in six there embrace electrical active connectivity. computing, companies believe and with precision engagement reliability, semiconductor diverse semiconductor such have high-speed inside closely new market segments. solutions where also we that in cards applications this cable strength and believe the over diversity in. An activity the Design embedded seeing is with applications here more latency. across as is XX timing is decade. this high and cables, we are wins in electronics enterprises reducing high-performance is We enables XXX ramping SiTime leaders that the We're are go example the most in optical bandwidth and we're and and As high-performance in space. is expanding past

Looking the 'XX, opportunities in in number opportunities. industrial at new led segment incoming the of back

[Indiscernible] highest had the value, is annual dollar the more enterprise the segment which While than segment. double next

use in diversity Another that aspect application our a business about than less price depending the is from the hundreds of a on of volume, to in ranges dollar case. unit dollars

mainstream navigation, higher pipeline P&T, time into such the of in themes smart in consists and several future, again, precision smaller reliable tough in operations, are Each and applications. this diverse will the longer environmentally as monitoring, that health them of and requires as common There In applications Things clothing, high-volume next XXXX. are also there of or year, wins harsh production sizes, Our out year, as precision, term, far these called design go unique very Internet or conditions. IoT. all

All the programmability suppliers supply of natural of strategic supportive has to chain the alternatives solutions. SiTime to a combined these play that SiTime at model due to benefit expense SiTime with to dynamics, opportunity. strengths continued and product of growth as the view fabulous Specific our

meet in growth have further the partnered and test In XXXX even the we anticipated to closing, XXXX. year, with test demand resulting last tremendous capacity the The doubling is houses, for and there in when still of last our Over assembly have of in achieved truly the I the innings. timing story that enormous penetrate. numerous areas yet believe SiTime have world early we year, to are very we is and considering

will positioned is focused that, over we As is uniquely I SiTime the our believe years that Art many With for timing, only on it semiconductor to to turn now exclusively company outsized to growth Chadwick, which achieve CFO. come.

Art Chadwick

workforce, reconciliation XX% Rajesh, our non-GAAP gross in generated XXXX, GAAP increased points year XX% then in margins to results, significantly guidance you our in fourth to results, my today's detailed and and XXXX. for profit. focus quick press expanded on description million financial X% from the as a in provide first as some a provide XXXX results for and begin good expanded I'll in summary I'll of revenue increased $XXX of record Revenue XX% truly To We Thanks, discussion GAAP great to refer Today, afternoon, with, and technology, XXXX well portfolio, a release our from quarter us. everyone. a quarter. discuss XXXX from product worldwide financial results. for XX% XXXX non-GAAP to was advanced in of to a margins XXXX XXXX. $XXX operating Non-GAAP in million while full grew XX our

will non-phone. business. up XX.X%, Sales million unexpected XX% All XX% year fronts. our sales points consists $XX.X margins up sequentially, per due Stock-based up sales, expenses exceptional year. strong sales. or and from in XG, $XXX sales. aerospace million up $X.XX year. last was gross in sales. positive and than related year. more gross to cash and $X this sequentially million, military, IoT a grants addition, few million into was offerings. This and and which X% was QX, margins, stock taxes customer stock-based In million RND sales increased in including We were industrial, due or infrastructure, comp of higher expense quarter XX% the Non-GAAP a new netting of XX% accounted up expense our industrial, the increased $XX.X This sales share, XXX% two to I Datacenter, an $XX.X were X% mobile quarter gross consumer second from margins new and our we revenue X.X and devices, were on segment, QX quarter basis over to again all-time record of and SG&A. stock increased year-over-year. into of was networking and continued other November, margins completed XX% million or was experience in and mobile we last million In uptick and to million XXX consumer of wireless compensation last aerospace, offering sequentially, price. includes Non-GAAP record million hire fees. market same sequentially, $XX.X expect our $X.X great $XX.X growth, was last share. additional XX% into stock million year-over-year in a XX% around $XX.X million three shares was Revenue margins, operating which net segment, were $XX.X short-term, into business. inventory due were quarter income, and It to major up the in our $XX.X Sales segment, payroll operating sequentially QX $XX.X an higher over we XX%, of wearable dollars continued increase sequentially. primarily Enterprise increased the and Communications and consists income up comprised automotive, into strength end quarter, quarter at up net million $XXX products for million million year. were medical, days, This per largest non-GAAP and our million broad-based Gross We categories. during XX% some in In Receivables million from our or of which which XX were $XX.X with of operating phones, multiple was saw $XXX sold margins up Sales were over flow. $XX.X DSOs non-GAAP XX% grants. year. same This XX% the our up Sales after of quarter. raised automotive, of high-margin for and all were up million Revenue

In under positive addition, XX%. operations, generated to shares, stock invested to with the In quarter flow, and $XX.X a offering, equipment their Company Mega and reducing our we no cash ended in debt. provide flow to in just $XX.X in in $XXX some cash for and $XXX the XXXX. regards assets, cash now from like sold bank ownership Chips guidance million million million added I'd million from million

expect another will the Company. great year be XXXX We for

we in growth stronger customers XG, Our Medical, including that in markets Aerospace, are into book the well than continue other Automotive, precision us visibility to Networking, and year. Datacenters, giving require serve. advance, timing orders ever, trends excellent Market

market can and ramps, grow at in revenue trends, our XXXX XX%. visibility, backlog new Given we least we by believe strong product

QX we we years, As than will than the year-ago in substantially quarter. QX. but less experienced higher past some see seasonality Revenue in be will

midpoint in at same approximately revenue last minus, quarter or that XX% expect the up plus will be We which year. QX $XX million over would be

we non-GAAP We would to more XX%, QX. minus, trend plus do a we since high-margin to short-term repeat had margins expect gross in business QX normalized expect not or the

last As other mentioned wafer manufacturing I year. increase our on costs call, and will this

to These few across new nodes margins. two like Since products beginning and QX. the XX% term, in we TSMC is costs increased products more or portion use. expand our prices gross board gross three higher margins larger become by Longer should additional For newer example, gross comments I'd on margins raising will higher the impact offer by sales. to a SP, our points gross margin. generally a performance, about overall higher of as are negatively

meantime, be higher, between the we margins XX% more drive aggressive and margins targeting but the there higher gross XX% pricing We could are range. be in top-line growth. However, margins in gross trade-offs to are to and on

while Our balance to top-line intention right growth. that margins low-to-mid is and maximizing find XXs, that gross keeps the

Taking of approximately Based increased payroll on $X.XX very be expect million between that, Thank approximately XX.X RSUs For $XX X.X between guidance, And expenses additional expect much. per shares. the taxes. due call EPS operating we back total non-GAAP turn you The share. employee quarter an count of the share share in dilutive million, we sequentially million effect and like million to non-GAAP the shares. be Basic Operator diluted to count XX.X QX, add up be Q&A. the $X.XX $XX QX for year to with will this and first million to will shares. and will will headcount beginning I'd

Operator

instructions]. [Operator

Our first from Barclays. Curtis Blayne question with comes

Thomas O'Malley

nice guys. the question is Curtis. outstanding results. really on QX, Blayne Really standout. of Tom the in you guess margins saw Good first This the afternoon, is, things for O'Malley out all I

walk to margin, the really sequentially? down impact, be beat and prices takes more you're there's but Do the bit start. why business some that that. higher You yourself a bit helpful XXX raising just them guiding a higher with down you margins the talked you would cushion versus through that about some in you're TSMC middle or XXX somewhere you some giving than more of in about puts shouldn't end on this could think talked short-term that was That a to up sustainability

Art Chadwick

Sure.

was So exceptional into short-term, mentioned, I continue QX. business QX as don't high-margin I that some to had We quarter. an expect very

of at So brings and be in the expecting of increased mid we think the year, other that would manufacturing somewhere costs, course kind XXs. what to that kind of If the wafer trade-off were we'd I looking the through not margins back be but being to We the in aggressive we growth the XXs. margins more in be I we growth higher here. as high mentioned, on mode. that's And continue want mode. high mid think by could not push pricing, right to We're in

maintain So, balance there. the we're going right to

increases, a So that cost think being that in right And points. it. with the drops the about margins to think by few mid way XX's, I the that's

Now, think be more very we higher what business as that. get we is than I will and year, could important, high-margin also the through I that possible and is margins And in script, walk my of of products pipeline. expect the a expansion. in term, lot introduced, longer we've do lot this got is got We've we new that that gross recently we've products a margin mentioned

gross products than products. higher higher performance, current these much higher our of ASP, and generally margins are All

a those larger year And as a our I our next sales I'm margins. that, year forward. of larger general the gross of after, become So products percentage the would expansion that, and year, after after new the talking expect year going

those as the puts takes. through and we'll we And So walk the year. folks are update the

Thomas O'Malley

capacity supply the benefiting talk chain check suppliers? you crystal the online efforts there about that success? helpful. traditional competition talk versus you're topping there struggle are talked of coming any there's soon? in, you Can the some to any at alternatives. there? if traditional expense Can have you effort Are You've capacity positioned or and That's guys anytime you where a any about seen there, think and then just quartz seeing you ram And tangible you're about the just

Rajesh Vashist

it, significantly I expansion anticipate, think component in of that -- that there I around China, of on. to those as I from products large But particularly I more know there'll -- don't differentiated matter. have think all me, if that I competition I the think capacity don't do data products be general are in anticipate also because are coming with any to they capacity expanding. Mainland but our be I I we will really think that

the Excalibur product, very in I fact distinct product, As it's as a product, active example, very, on category, an the Resonator is mentioned.

how slower. know us that that way don't impacts come directly. of impacts a to I much in It So general us the bit customers because have little Maybe gets us that shortages.

mentioned higher. the that hand, customer acquisition we're of other because I coming the with, On out products gets I the think of pace that new

a we're So in the think net, good place. I

Thomas O'Malley

Great. congrats, Thanks again and guys.

Art Chadwick

thanks. Great,

Operator

John Pitzer comes Credit with from Our Suisse. next question

John Pitzer

just letting being in for a pricing exhibited along. to We're players them in other the Thanks with costs along? lot increases across your you've pass But cost, question. guys. this of perhaps back that issue of of the comments curious gross this ask about hearing calendar margins, is pricing and able go pass vast just given board. hitting I raising sudden that those afternoon, of why can't the just mean, is all kind that a to you an why to kind their of cost me I of I'm June quarter. Good Yes. TSMC want power, stronger 'XX, the those increasing are majority year year chip starting many customers.

Art Chadwick

couple a So pieces there. I to think of answer there's the

the First at wafer began the of year. all, increases beginning these cost of price

can't prices we there, what not XXXX went of know they XXXX, and that the the up, to we happen so year. will wafer are to going have up beginning don't did about speak worry at year, I And last because in but

finished the QX. wafer goods in in as we from You in QX is were QX our that in coming essentially don't selling bought because see P&L

And it's that's but it impact cost it why QX, QX. it's real. solid, real in a that's increase, doesn't starts So impacting

So your why pricing. some is, pricing? increased increase We can't question have we

customers I find growth. pricing. trying two increase right As predictors we to increasing that pricing that to between And trade-off mentioned, incorporates can And increased our the there. some more, to we're the even pricing three-point and decrease balance

plus up at and wafer look manufacturing going our than two XX percent, costs just you costs points. If three more other or that's

two is all will increases three the kind of price that anticipating. of or accept And net So not we're points price increases. customers

just some how large say would of not that. If can our looked they imagine in you customers, we're really at interested you

answer that, that it. add So to flavor I don't to tries know if but that a to helps little

Rajesh Vashist

a that I don't Yes, all We've add is points history, this it's sudden. margins. between growth you sudden, spot nice, like think I'll of very that. this lower this, I solid gross of very than SiTime paramount and our At And right seeing sort very do is to think a also through and appropriate of gross margins. our a now, I been because growth sweet and a said in position of few that, margin is all a that all that trade-off the is to think we'd

we customers. a purely just We longer I a increase -- single-sourced term better And of are it are that and vast the to partnership-oriented for passing think than our remember that with customer. our off is price majority on

single-source Just because they're with us.

Art Chadwick

material if be that I'll six manufacturing to cost help costs, to of this all and margin. little cost add our go XX% of XX% and for margins, that would points revenue, for John, material If, example, across-the-board would our a was XX% did math up be just folks.

kind to halfway three is two of between. my in So points

what legacy said to we what is our products by much be that on So on, higher to think pass on, choice about our products. half I side. by choice than term, important, our able and margin on And not are of passing half our or cost I we're newer going increase, customer's repeat says side that either earlier, about I'll that are and longer

further three from we do So margin to longer I now. gross years expansion, year relevant now, strategy from long-term two years And that's now, here. term, quite a expect our from think

John Pitzer

on then qualitative detail could you wondering the full-year more That's growth. revenue helpful, little I'm bit if the around guys. appreciate color give And a us that. I

quarter, XX%. take guidance midpoint get to be I'm grow but look to expect of you Maybe to assuming guess three importantly, that segment things million the are. full-year give growth they you major going as $X fastest your full-year XX% to do a be you color slowest you linear, rate aren't within can if that And us of just categories, growth If maybe the and margin I growth? you that at some where there.

Art Chadwick

question. will year. development we're this this and that's for the comps be the is of comes address first lot in to world in is expect the case of I our growth last year, half that Fair market. the first this years year believe than into The market, a been Well, but products nothing of it case, totally we enterprise that the be -- higher few the clear putting of longer-term for all, linear, half from to that dollars back

we've As That market in of been Rajesh talking a $XXX the next couple growth in for that billion should years. us and following this going drive million of about year significant both mentioned, in years. SAM to $X.X

think where the I are to think those a of Obviously amount our I but lot lower So our of a growth. total we percentage, that's about think today, sales as expect way longer-term right segments that's growth.

Rajesh Vashist

I the And what the John. question, for pattern of asking growth. the thanks is for appreciate

one year. interested markets the of grow the automotive, significantly three I'm data second three the know, as these comps in is middle third you that arrow. the all in, that to going we say center. is and deeply to are happy is So enterprise are

enterprise mobile to if is which consumer. also probably be would and I think say percentage, consumer, three, I the are be going automotive, I other The and and the to was bottom grow, growth [Indiscernible] rank them consumer, industrial pure-play are comps at to as IoT order and a going would slowest but

John Pitzer

great will in the else get queue That's ask. let somebody back I color. Thanks. Yes. and

Art Chadwick

John. Thanks, right. All

Operator

Blair. Alex comes question from next Leszcz William with Our

Sabrina Baxamusa

this about Hi, split and ICS, product to mentioned Thanks In are we releases these end-markets? my targeting taking between oscillators? upcoming Sabrina And should resonators, calendar this year. products regard for clock Alex. question. on How the six specific is think you the new new for releases, product

Rajesh Vashist

markets enterprise by mobile point and back-end. the I Yeah, followed end is IoT, They're heavily focused on market the think coms market.

products So as before a and we industrial. that bit MIL I develop again little today Arrow, bit used are later the a talked automotive market we think coms the in later about little well for we're in enterprise as --

of words, enterprise market coms other the in markets. So for the as feeder other think these

On side, products automotive, developed the are feeders other also into into feeders the feeders industrial. IoT mobile consumer, into for

category second mobile bringing the So we're for that IoT. out is products

it As up investment clocking much bulk they and alternators, from comparison followed we anywhere by that far oscillators, point, as resonators which as our primarily $XX. product. said other the $X.XX, the are because price below to not in splitting on products to of are by a They're focusing, the products our I lowest price oscillator, are dollar are this At before, clocks. typically

So the way we that's go. think buck, bang to for the

Sabrina Baxamusa

Thank That's you. helpful.

Art Chadwick

Sabrina. Thanks, Great.

Operator

Our next Quinn from comes question Bolton with Needham.

Quinn Bolton

guys. Hey,

higher -- through quarter. statement not just usually, think hit to pricing year your the second you noted the the the the product second has of to half, the all ask beyond you gets you with as and March because QX third of the lift revenue. does income start additional in I margin gross that wanted you you're sort half captured it the I things margin equal in Just tend of mentioned, revenue I'm inventory absorption into QX wondering, doesn't really so question, all QX, realized of we gross guiding But until the follow-up wafer some as stronger dynamics the an better see on in in a see and second to do hit quarter? or pressure half and typically sort

and through as just and think the to gross look margin you into for QX takes So puts I'm trying QX.

Art Chadwick

full increases hit with cost a QX run about of of because in question. Fair the inventory. we brunt essentially The worth quarter's

finished go So months a the it all to shipment. takes to about way goods and wafer from three

brunt manufacturing on the valid full in specific be the give comment overhead. higher in year? But the happens that don't is yet, that only will What half your of revenue, February. beginning more the I the us in So that of expected QX. leverage want it's with to our back

So compared equal, of being for to least QX. back all the margins some in that would year, half argue else at improved the

leave got So worried our lot through we if some prices a I'll we've it as I line, not chosen in flexibility on guidance choose to march about think we're it specific and we let where the don't raise gross more me at to, be margins. too think many goes. we we've Bottom year, Again, to that, cases.

looking some growth I year. this think we're high rates at very

As higher than to least, emphasize be that we XX%. expect at at it I also gross mentioned, and means that And the could And I'll grow improve least, that margins. revenue that. would

So a couple of fair question. very different concepts in there, but

Quinn Bolton

perhaps Art. an Thanks to to on come in where you question, margin focus timing. Resonator your active could another Active you mentioned us on average? product Excalibur that give mentioned, ASP to that Excalibur and tend they be above answer sort resonators wondering and to to resonators, you I with you if you they Rajesh corporate tend think just could not importantly, And sense think When are line, are product revenue start your they more do Wondering some going line. this might to to the the meet lower. new because of characteristics fact I'm actually margin, contribute these

Rajesh Vashist

First we'll margin. R&D already higher just dollar we're did products. me oscillators clear. choosing priced put off, to are and time they clocks let be stand-alone higher one, as do Resonators shipping we into are high expenses much and one, because It's We our

and looks in as Resonators like oscillator, to Resonator, a it but it get an a way the them market I an go way, product that. a address the you active cunning as are mentioned, Now, it it a Excalibur gives pinout call The a Resonator, on so and category, for smart new it's of so designer active Resonator while to would, behaves if or kind Resonators. Resonators is so backup not feels to making

Now, value, that always corporate margin. fair CytomX a gives is for for that charge our which price, about us gross does value, value CytomX

say products to higher. not, product out break guidelines for don't us we introduce be margin it to or one margin corporate gross suffice that'd has meet don't So higher in but or that whether very difficult I'd

So that this this is said one extremely start will those to of I actually I we be well shipping think year. Excalibur products do will that year. going This been profitable that have building, is and we

going So I'm excited and be very very, in very, about I we're good this. shape think to

Quinn Bolton

Thanks, Rajesh.

Art Chadwick

Thanks, Quinn.

Operator

Our Svanberg Tore Stifel. next with from comes question

Tore Svanberg

and I Yes. or automotive. margins. is no My Thank Congratulations partnering results gross the to know about addressing topic XX% companies. working that you mentioned, talked when you XX% for first apologize on Rajesh, on with to you. that the about strong semiconductor question other need

think you datacenter players there in space. I about mentioned XX about then and ten the

contextually Just for been wondering to mean, past may reference means to new or address what of there business. I customers up those your able you a door is have it even not the for in open the sort more some that does engagements? platform that of

Rajesh Vashist

is easy that. exactly a The it's Yes, strategy. leveraged it's that answer

So as and according do who that. semi-conduct build various we to chips buy customers consume that that a for company know, people they markets, platforms reference

strategy of part So key obviously that. of is be to part the a

go do be that later products in products later only 'XX, on today, that a introduced now in upon a later just our 'XX. allows and taken to time get all going significant of years; later to decent amount that, 'XX, answer higher but force with being is needs to in we have in for spent to it in sales not have a that's upstream working We us it. size But level, resources further and are are

for products a important. with it semiconductor There's but as actually of ship for also our shipped So revenue. where not products category references, product, revenue becomes companies

that's shortage are. companies, that because helped customers timing these semiconductor very are Where, end category just is we're the companies, another devices, that's So valuable. again, of these experiencing shortages and like in, has playing

be So for companies, the being to they as there see course, solution, us which semiconductor non-semiconductor is over the helpful it's existing which very and is passive of of you value a product product. for a them know, semiconductor product, our

to able talk, So further able solve we time. go same their we're we're talked in the to and out and problems,

Tore Svanberg

been not your There's discussions a Thank supplier. that about of silicon supply. whole follow-up on a something on lot there supplier, but TSMC, of perspective. for you has lot is is My which to your MEMS talks

tight, from your things there So in capacity it very shape? there from how capacity good feel the like is just a you getting perspective, wondering you're is do stand partner

Art Chadwick

Sorry.

that. answer So I'll

rate So had the are issue wafers need of those we not been just as be the supply satisfy our expected we're attached our the Again, course, tight, and our but a we to knows, MEMS able in analog support TSMC, year. that expected and the need of they've to to get to wafers, are our And is our the that at getting manufactured to growth our MEMS wafers TSMC we year. that good process. believe And this resonators CMOS chips our have customer to. this we will that It's supply able need support is everybody any revenue or recap, wafer get Bosch. we revenue

that get that line, a bottom a we but out on we're tight have we're shape. remember, lot you large we So believe good in yeah, and it's there, not die TSMC, to The get of wafer. And also die. little bit get die on XXX,XXX something die die And XX,XXX wafers a get from our that like -- them. we on a the Bosch MEMS are the wafers like we we

not of wafers. So that get lot many a with products we

So we like good reasonably in bottom line, shape. we're feel

Tore Svanberg

Art. Really helpful. Thank you,

Art Chadwick

you, Tore. Thank

Operator

comes Our Suji next ROTH with question from Capital. Desilva

Suji Desilva

on Congrats 'XX. Rajesh. Hi, strong

mind. trying the there to you're having along? the any trying are if you are don't there. question just pass, just cost challenges the easier on to get segments to o understand, Just harder or increases color I'm that I'm margin relatively on some gross

Rajesh Vashist

Yes.

I high. words, solid which have them. customer want bulk or relationships to think, hike price is markets. customers the other go ability In really shortages quite by goes long-term the to are in It's we with, really it categories of generally by, which speaking, pricing the doesn't is

very and So that, And some in quite SiTime because of do to to times this understand cases a back premium well. really hold so I knows some they think on we more as tight, cases, that a customers this to that choose so on. we pricing how It's and company case-by-case basis aggressive in pricing. be market, choose pricing, understand are

a So to where growth gross on margin the of at that a I focus as and to would is while focus the I really understand think lowering, from. on be recommendation distraction little -- look bit coming the my

Suji Desilva

Rajesh. come across, just question Also, It sounds the definitely that it balance. point, you've on that taken a cash

funding you cash that cash and are your flow. in position balance And organic You -- just obviously that's strategy, the cash versus if strong investment? and now, very for can then remind it's or have a buybacks strategy little strong us acquisition cards early a

Rajesh Vashist

think just or stock. buybacks out too more I Yes, put we contemplate to some that, early

more with less. the stock can do think liquidity not I

technologies or we As we've our going for and are talked we it, clocking. far the about that at solutions always further possess line that either or that possess, of product clocks don't that area we off don't looking acquisitions, in as

you companies particularly but wherever it very dispersed to it's challenge call a one like among to, to we familiar and semiconductor area would those it able a neglected. that names or cash bit with I extent is That of focused it's makes do a we on are to them. think where not we're the acquisitions, It's they're whose either certainly well existing can.

Suji Desilva

Very Okay. guys. helpful. Thanks,

Art Chadwick

Thanks, Suji.

Operator

next with Melissa James. from Raymond comes question Our Fairbanks

Melissa Fairbanks

bit most, if also seasonally largest for be. in but wondering quarters, Hey, wondering the segment your consumer on would there. you might by be customer what's just is of to been I recent the little from if guidance probably quarter. taking could then question. the contribution the us you've give guys. March expectations Obviously, was us expectations just some And down us give Thanks you giving a for color my able

kind any color. of for looking Just

Art Chadwick

talked the is to primarily decrease consumer. Sure. QX the I line about is, briefly to Yes, going QX I from in be think and seasonality discussion, my bottom

largest and at seasonality. surprising, our think QX, not of QX. really our they customer, drives then it's is that's in percentage the going and that And of sales what XX% So stay in were I in constant terms relatively to

Melissa Fairbanks

as are to on? Okay, segment quick high-value you then revenue us in able December great. short-term, what that to the follow-up, that came capture the you able tell a were quarter, And in just

Art Chadwick

not to. prefer would I

Melissa Fairbanks

problem. Okay. No

Art Chadwick

little all segments. detail we into, It's across that's But a yes, more I go than need if think that's to okay. just

Melissa Fairbanks

much, all. No problem for all very at guys. That's me. Thanks

Art Chadwick

Melissa. Thanks,

Rajesh Vashist

Thank you.

Operator

for today's closing management turn concludes remarks. session. the like to I'd question-and-answer back call to That

Rajesh Vashist

those stellar very to XXXX, out we I our and consolidating in per bullish on that And gains see very, think we significantly in the year growing the looking closed I'm XXXX. I'm future. how Company absolutely guidance.

Art Chadwick

So it. on our Thank note, really call. I conclude that we'll you, time. guess everybody, for appreciate the spending We

Rajesh Vashist

Thank you all. Bye-bye.

Operator

today's for Thank concludes This participating. you conference call.

You may now disconnect.

SiTime (SITM) 3 Feb 222021 Q4 Earnings call transcript