SiTime Corporation

SiTime reported Q2 non-GAAP revenue of $157 million, up 127% year over year and 39% sequentially. Non-GAAP gross margin was 67.1%, up 8.9 percentage points year over year and 2.6 points sequentially, while operating margin was 34% versus 10% a year ago. Non-GAAP net income was $65.7 million, or $2.34 per diluted share. By segment, CED revenue was $101 million, up 181% year over year; Automotive, industrial and aerospace/defense revenue was $24.8 million, up 51%; and Mobile, IoT and consumer revenue was $31.4 million, up 85%. Cash flow from operations was $40 million, capital expenditures were $12.9 million, and free cash flow was $27.1 million. For Q3, management guided to revenue of $285 million to $295 million, gross margin of approximately 68% plus or minus a point, OpEx of $80 million to $85 million, interest income of about $4 million, and non-GAAP EPS of $3.50 to $3.65.

Rajesh Vashist framed the quarter as an inflection point and said SiTime has expanded from oscillators into resonators and clocks, making it the only company offering that portfolio. He emphasized that AI infrastructure, synchronization in data centers, automotive autonomy, defense PNT, and emerging personal AI devices are broadening the company’s opportunity set. He also said the Renesas timing acquisition accelerates the path to $1 billion in revenue and that the company is moving timing closer to the system through chiplets, advanced substrates, and modules.

Elizabeth Howe said Q2 strength came from broad-based demand and operating leverage, with revenue up 127% year over year and gross margin at 67.1% due to product mix and better manufacturing absorption. She noted OpEx of $52.1 million in Q2, including $25.6 million of R&D and $26.5 million of SG&A, and highlighted $12.2 million of other income from interest on convertible note proceeds before the acquisition closed. On the balance sheet, she said SiTime issued $1.35 billion of zero-coupon convertible senior notes due 2031 to fund the cash portion of the Renesas deal, ended the quarter with DSO of 51 days, inventory of $104 million, and more than doubled operating cash flow to $40 million. For Q3 she guided to $285 million to $295 million of revenue, roughly $85 million from TPD, gross margin near 68% plus or minus a point, and OpEx of $80 million to $85 million.

Analysts focused on how much of the upside in the Renesas timing deal was due to stronger-than-expected demand versus integration, and Howe said the business has shown continued strength, especially in CED, and that SiTime is now likely to exceed the original $300 million post-close revenue run-rate target, though it is still early. Questions also centered on segment growth, with management saying core CED should remain the fastest-growing piece, consumer should step up in the back half on the large customer design win, and TPD growth is currently constrained by TSA-related manufacturing and supply-chain dependencies that should improve over the next several quarters. Rajesh also reassured investors that the Bosch agreement is unaffected by the acquisition and should renew without issues.