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. As a reminder, this conference call is being recorded today, Wednesday, February 2nd, 2022. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, everyone. Good afternoon and welcome to SiTime's Fourth Quarter 2021 Financial Results Conference Call. On today's call from Rajesh Vashist, Chief Executive Officer, and Art Chadwick, Chief Financial Officer. Before we begin, I would like to point out that during the course of this call, the Company may make forward-looking statements regarding expected future results, including financial position, strategy and plans, future operations, timing in the market, and other areas of discussion. It's not possible for the Company's management to predict all risks. No one in the Company assessed the impact of all factors on its business or the extent to which any factor or a combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed during this call may not occur and actual results could differ materially and adversely from those anticipated or implied. Neither the Company nor any person assumes responsibility for the accuracy and completeness of the forward-looking statements. The Company undertakes no obligation to publicly update forward-looking statements for any reason at the date of this call to conform these statements to actual results or to changes in the Company's expectations. For more detailed information on risks associated with our business, we refer you to the risk factors described in the 10-K filed on February 16th, 2021, as well as the Company's subsequent filings with the SEC. Also, during this call, we refer to certain non-GAAP financial measures which we consider to be an important measure of company performance. These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to measures of financial performance prepared in accordance with U.S. GAAP. The only difference between GAAP and non-GAAP results is stock-based compensation expense and related payroll taxes. Please refer to the Company's press release issued today for detailed reconciliation between GAAP and non-GAAP financial results. With that, I'd now like to turn the call over to Rajesh. Please go ahead.

Thank you, Brett. Good afternoon and thank you for joining today's call. 2021 was an exceptional year for SiTime, with an 88% year-over-year revenue growth. We continue to believe these results indicate a new phase of sustained high growth and fundamental acceleration at SiTime. There are a number of secular trends that have served as driving factors and that will continue to drive revenue in our target markets. In Q1 2021, I referenced our large opportunities in communications, especially in 5G radios and small cells. We see growth in our competence enterprise market and have accelerated new product introductions for these applications. In 2021, we laid out a strategy to quadruple our served available market by 2024 to $1.3 billion through new products for the competence enterprise market. We are on track to introduce six new products in 2022, which is twice as many as in 2020, with more to come in 2023. Some of these new products will actually start contributing to revenue this year, 2022. SiTime continues its mission to be a leader in precision timing by launching innovative new products that are category creators. Recently, we announced Excalibur, which is our first product for a new category, that of active resonators. This opens up a market with a served market of at least $200 million for SiTime. In a portion of the $4 billion resonator market, Excalibur offers advantages of performance and ease of use that customers value. Unlike the current solutions, there is no need to do circuit matching, specialized testing, or repeated qualifications for different frequencies, which saves the customer months of development time. Additionally, Excalibur is also 10 to 20 times more reliable than existing resonators. In Q2 2021, I mentioned that our automotive business would generate over $100 million in a few years. We are well on our way to that, with automotive revenues expected to double in 2022 over 2021. Precision oscillators and clocks are replacing passive resonators, driven by technologies such as radar, lidar, and high-speed RF required to transfer data in real-time at high rates. In 2021, we also expanded our focus to automotive semiconductor companies, and here we are engaged with our top leaders for a variety of applications in automotive, which gives us additional visibility into trends, accelerates adoption, and helps us build even more compelling products. In Q3, I mentioned that our data center business would grow to $100 million. Again, we're well on our way, and data center revenues are also expected to more than double in 2022. As enterprises embrace cloudification, our high reliability, high-performance timing solutions are critical in increasing bandwidth and reducing latency. Design activity in this market is ramping and the wins in high-performance computing, optical modules, and NIC cards are coming in. We're also seeing new applications such as active electrical cables, where high-performance electronics and precision timing are embedded inside the cable to enable high-speed connectivity. Again, here we're expanding our engagement with semiconductor leaders and closely working with over 15 companies in this space. We believe that in diversity there is strength, and we believe SiTime is the most diverse semiconductor company to go public in the past decade. An example of that is that we have more than 300 applications across six segments. Looking back at incoming opportunities in 2021, the industrial segment led in the number of new opportunities, while the competence enterprise segment had the highest annual dollar value, which is more than double the next segment. Another aspect of the diversity of our business is that a unit price ranges from less than a dollar to hundreds of dollars in volume, depending on the application and use case. Our diverse pipeline consists of design wins that will go into production this year, next year, and as far out as 2024. In the longer term, there are several unique high-volume mainstream applications in the future, such as smart clothing, health monitoring, precision timing and navigation, also called P&T, and Internet of Things, or IoT. There are common themes in all these applications. Each of them requires higher precision, smaller sizes, and reliable operations, again, in very tough or environmentally harsh conditions. All of these play to the natural strengths of SiTime solutions. Specific to supply chain dynamics, SiTime has continued to benefit at the expense of alternatives due to our fabless model and product programmability combined with the supportive suppliers that view SiTime as a strategic growth opportunity. Over the last year, we have further partnered with assembly and test houses, resulting in the doubling of our test capacity to meet anticipated demand for 2022 and 2023. In closing, even when considering the tremendous growth we have achieved in the last year, I believe that SiTime's story is still in the very early innings. The world of timing is truly enormous, and there are numerous areas we have yet to penetrate. As the only semiconductor company that is focused exclusively on timing, we believe that SiTime is uniquely positioned to achieve outsized growth for many years to come. With that, I will now turn it over to Art Chadwick, our CFO.

Thanks, Rajesh, and good afternoon, everyone. Today, I'll provide a quick financial summary of 2021, then discuss fourth quarter results, and provide some guidance for the first quarter. I'll focus my discussion on non-GAAP financial results and refer you to today's press release for a detailed description of our GAAP results, as well as a reconciliation of GAAP to non-GAAP results. To begin with, 2021 was a truly great year for us. We significantly advanced our technology, expanded our product portfolio, increased our worldwide workforce, and generated record revenue and profit. Revenue grew 88% from $116 million in 2020 to $219 million in 2021. Non-GAAP gross margins increased a full 14 points from 51% in 2020 to 65% in 2021, while operating margins expanded from 8% in 2020 to 30% in 2021. In addition, we raised $460 million during the year from our two stock offerings. All around, it was a great year. In Q4, we continued to experience exceptional strength in our business. It was an all-time record quarter on multiple fronts. We saw continued strong revenue growth, increased gross margins, increased operating margins, record net income, and positive cash flow. Revenue for the quarter was $75.7 million, up 20% sequentially and up 88% over the same quarter last year. Revenue increased sequentially and year-over-year in all three of our major market categories. Sales into our mobile IoT and consumer segment, which consists of sales into mobile phones, wearable devices, and consumer products were $41.9 million, or 55% of sales. This was up 31% sequentially and up 53% over the same quarter last year. Sales into our industrial, automotive, and aerospace segment, which includes sales into automotive, industrial, medical, aerospace, military, and broad-based sales were $22.9 million, or 30% of sales. This was up 9% sequentially, and up 232% year-over-year. Sales into our communications and enterprise segment, which consists of wireless infrastructure, including 5G, data center, and networking were $11.0 million, or 15% of sales. This was up 7% sequentially and up 80% over last year. Sales to our largest end customer accounted for 18% of sales, with more than 90% being non-phone. Gross margins increased again this quarter; non-GAAP gross margins were 69.4%, up 250 basis points sequentially. This uptick in gross margins was due primarily to some unexpected short-term, high-margin business. Non-GAAP operating expenses were $23.1 million, comprised of $12.1 million in R&D and $11.0 million in SG&A. Non-GAAP operating margins were 39%, and non-GAAP net income was $29.2 million or $1.32 per share. Stock-based compensation expense and related payroll taxes were $9.4 million, up from $8 million in Q3 due to new higher grants and a higher stock price. I expect stock-based compensation expense will increase an additional few million dollars a quarter in Q1 due to new hires and other grants. Receivables were $38.4 million with DSOs of 46 days, and inventory was $23.6 million, up from $19.6 million last quarter. In November, we completed our second stock offering of the year. We sold 1.3 million shares at $225 per share, netting $279 million after fees. In addition, Mega Chips sold a million shares, reducing their ownership in the Company to just under 25%. In regards to cash flow, we generated $24.7 million in positive cash flow from operations, invested $11.3 million in equipment and assets, added $279 million from our stock offering, and ended the quarter with $559 million in cash and no bank debt. I'd now like to provide some guidance for 2022. We expect 2022 will be another great year for the Company. Our customers continue to book orders well in advance, giving us excellent visibility into the year. Market trends that require precision timing are stronger than ever, including growth in 5G, data centers, networking, automotive, medical, aerospace, and other markets we serve. Given our backlog visibility, strong market trends, and new product ramps, we believe we can grow revenue in 2022 by at least 35%. As we experienced in past years, we will see some seasonality in Q1. Revenue will be less than Q4 but substantially higher than the year-ago quarter. We expect revenue in Q1 will be approximately $65 million, plus or minus, which at that midpoint would be up 83% over the same quarter last year. We expect Q1 non-GAAP gross margins to trend to a more normalized 65%, plus or minus, since we do not expect to repeat the short-term high-margin business we had in Q4. As I mentioned on our last call, wafer and other manufacturing costs will increase this year. For example, TSMC is raising prices by 20% or more across the board on the nodes we use. These increased costs will negatively impact gross margins by two to three points beginning in Q2. I'd like to offer a few additional comments about gross margins. Longer term, gross margins should expand as new products become a larger portion of our overall sales since our newer products are generally higher performance, higher ASP, and higher gross margin. However, in the meantime, we are targeting gross margins to be in the 60% to 65% range. We could be more aggressive on pricing and drive margins higher, but there are trade-offs between higher gross margins and top-line growth. Our intention is to find that right balance that keeps gross margins in the low-to-mid 60s while maximizing top-line growth. For Q1, we expect non-GAAP operating expenses will be between $24 million and $25 million, up sequentially due to increased headcount and beginning of the year payroll taxes. Basic share count in Q1 will be approximately 21.0 million shares. The dilutive effect of employee RSUs will add an additional 2.0 million shares, taking the total diluted share count to approximately 23.0 million shares. Based on this guidance, we expect first quarter non-GAAP EPS will be between $0.65 and $0.85 per share. And with that, I'd like to turn the call back to the Operator for Q&A. Thank you very much.

Our first question comes from Blayne Curtis with Barclays.

Good afternoon, everyone. This is Tom O'Malley on for Blayne Curtis. Really nice results. I guess the first question is, out of all the outstanding things you saw in Q4, the margins really stand out. You talked about some short-term business that was higher margin, and you mentioned TSMC raising prices, which has a 2- to 3-point impact, but you're guiding them down a bit more than that. Do you think that there's some sustainability in the higher margins that you're giving yourself some cushion on, or could you just walk through the puts and takes of why this shouldn't end up somewhere in the middle versus down a bit more sequentially? That would be really helpful to start.

Sure. So as I mentioned, Q4 was an exceptional quarter. We had some short-term, very high-margin business that I don't expect to continue into Q1. So that kind of brings the margins back to the mid 60s. If we were not expecting increases in wafer and other manufacturing costs, I think that would be what we'd be looking at throughout the year, somewhere in the mid 60s. And as I mentioned, we could push margins higher by being more aggressive on pricing, but we think that's not the right trade-off right now. We're in high-growth mode. We want to continue to be in high-growth mode. So, maintaining the right balance there means being in the mid 60s, and with the cost increases dropping margins by a few points is the right way to think about it. Now, as we walk through the year, it’s very possible that we will get more high-margin business and margins could be higher than that. What I also think is important, as I mentioned in my script, is that we do expect gross margin expansion over the long term. We've got a lot of new products that we've recently introduced, and we have a lot of products in the pipeline. All of these new products are much higher performance, generally higher ASP, and higher gross margins than our current products. As those new products become a larger percentage of our sales going forward, I would expect a general expansion of our gross margins. So those are the puts and takes, and we'll update folks as we walk through the year.

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

I do think there will be, I anticipate—I don't have any data around it—but I anticipate that there will be more capacity coming on. I particularly think that in general with the large expansion of all component capacity in Mainland China, I think they will also be expanding. But I don't know if I consider that direct competition because our products are significantly differentiated from those products. For example, the Excalibur product, the active resonator product, is a very distinct product, in fact, it's a new category, as I mentioned. So, I don't know how much that impacts us directly. It impacts us in the general way that customers have come to us because of shortages. Maybe that gets a little bit slower. On the other hand, I think because of the products that I mentioned that we're coming out with, the pace of new customer acquisition gets higher. So, net-net, I think we're in a good position.

Great. Thanks again, and congrats, guys.

Great, thanks.

Our next question comes from John Pitzer with Credit Suisse.

Yes. Good afternoon, everyone. Thanks for taking my question. I just want to go back to your comments about increasing costs hitting gross margins starting in the June quarter. I mean, TSMC is raising pricing across the board. We're hearing that from many customers. But the vast majority of them are just able to pass those costs along. I'm kind of curious, given that you've exhibited stronger pricing power than a lot of other chip players in calendar year '21, why all of a sudden this is an issue this year and why you just can't pass those cost increases along?

So I think there's a couple of pieces to the answer there. First of all, these wafer cost price increases began at the beginning of the year. We did not have to worry about that last year. I can't speak to 2023 because we don't know what will happen there, but in 2022, wafer prices are going up, and they went up at the beginning of the year. You don't see it in our P&L in Q1 because essentially the finished goods that are selling in Q1 come from wafers that we bought in Q4. So that's why it doesn't impact Q1 but it starts impacting in Q2. And that's a real cost increase, it's solid and real. So your question is, why can't we increase pricing? We have increased some pricing. As I mentioned, we can increase pricing even more, but there's a trade-off between increasing pricing to our customers and growth. We're trying to find the right balance there. The two to three-point decrease incorporates some increased pricing. If you look at our wafer costs and other manufacturing costs going up by 20% plus, that's more than just two or three points. So the two or three points is kind of net of price increases that we're anticipating. And not all customers will accept price increases. If you just looked at some of our large customers, you can imagine how they would respond to that. So I don't know if that helps to answer that, but that's my answer.

Yes, and also I'll add that you said all of a sudden; I don't think this is all of a sudden. We've been seeing this all through, as the sweet spot of our gross margin is a few points lower than this because I think it's a very appropriate trade-off between growth and margins. At the position that SiTime is right now, in our history, I think growth is paramount along with very nice, very solid gross margins. And we'd like to keep it that way. Remember that we are single-sourced with the vast majority of our customers. And I think that a partnership-oriented price increase is better for the longer term than just purely passing it on to our customers, given that they're single-sourced with us.

John, I'll just add a little math to help folks. If, for example, our material cost was 30% of revenue, that would imply 70% material and margins. If our costs went up 20% across the board for all manufacturing costs, that would be a six-point margin hit. So my two to three points is kind of halfway in between. So that indicates that about half of that cost increase we are able to pass on, and about half we're not passing on, either by choice on our side or by choice on our customers' side. I think longer-term, what is important, and I'll repeat, our newer products are going to have much higher margins than our legacy products. So longer-term, we do expect further gross margin expansion in a year from now, two years from now, three years from now. I think that's quite relevant to our long-term strategy.

That's helpful, guys. I appreciate the color on the full-year revenue growth. I'm wondering if you could give us a little more qualitative detail around that. If you take the midpoint of your margin guidance and grow $7 million a quarter, you reach that full-year growth rate of 35%. I'm assuming things aren't going to be that linear, but maybe they are. Can you provide some color there? And I guess importantly, as you look at the three major segment categories, where do you expect growth to be fastest to slowest within that 35% full-year growth?

Fair question. Well, first of all, nothing in the world is totally linear, but it is clear that the back half of this year we expect to be higher than the first half of this year; that's been the case for the last few years and will be the case, I believe for this year. The longer-term growth comes from our competence enterprise market; we're putting a lot of development dollars into products to address that market. As Rajesh mentioned, we've been talking about a SAM in that market of $500 million going to $1.3 billion in the next couple of years. That should drive significant growth for us both this year and in following years. So as a percentage, that's where we expect a lot of our growth. Obviously, those segments are lower in terms of our total sales today, but that's the right way to think about longer-term growth.

Thanks for the question, John. I appreciate you asking about the growth pattern. So as you know, the three markets that we are deeply interested in—one is the competence enterprise data center, the second is automotive, and the third is the industrial market. I'm happy to say that all of these three are going to grow significantly in the year. The other three, which are mobile IoT and consumer, as well as industrial, are also going to grow. Probably the slowest growth is going to be pure-play consumer, but if I were to rank order them as a percentage, I would say competence enterprise, then automotive, and at the bottom would be consumer.

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

All right. Thanks, John.

Our next question comes from Alex Leszcz with William Blair.

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

Yeah, I think the end markets point is backend. They're heavily focused on competence enterprise market followed by the IoT and mobile market. The products we develop for the competence enterprise market are used a little bit later in automotive and later again in the industrial market. These competence enterprise products serve as feeders for these other markets. On the other side, the products developed for mobile IoT are also feeders into automotive, consumer, and industrial. In terms of splitting it up by clocking and oscillators, the bulk of the products are our oscillators, followed by clock ICs. At this point, we are not focusing much investment on resonators primarily because they are the lowest price product, typically priced below $0.20 in comparison to our other products, which range from a dollar to $20. So we believe that’s the best use of our resources.

Thank you. That's helpful.

Great. Thanks, Sabrina.

Our next question comes from Quinn Bolton with Needham.

Hey, guys. Just wanted to follow up on the gross margin question. I realized you're not guiding beyond the March quarter. But as we think through some of the dynamics where higher wafer pricing gets captured in inventory and Q1 doesn't really start to hit the income statement until Q2, as you mentioned, I'm wondering, does it all hit Q2 or do you see additional pressure into the third quarter? I ask because typically in the second half, you noted stronger revenue and better absorption, so all else equal, your gross margin usually gets a lift in the second half of the year due to revenue. So I'm just trying to think through the puts and takes for gross margin as you look into Q2 and Q3.

Fair question. The full brunt of the cost increases hits in Q2 because we typically run with about a quarter's worth of inventory. So it takes about three months to go from wafer to finished goods and shipment. So the full brunt will be in Q2. What happens in the back half of the year? I don't want to be that specific yet, it’s only the beginning of February. But your comment is valid that with the higher expected revenue, that will give us more leverage on our manufacturing overhead. So all else being equal, that would argue for some improved margins in the back half of the year, at least compared to Q2. Let me leave it at that, as we march through the year, I'll be a lot more specific on our guidance and where we think it goes. Bottom line, I don't think we're too worried about gross margins. Again, we've got some flexibility to raise pricing if we choose to; we've chosen not to in many cases. I think we're looking at some very high growth rates this year. As I mentioned, we expect to grow revenue at least by 35%, and that means it could be higher than that. That also could improve gross margins. So a couple of different concepts in there, but a very fair question.

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

First off, let me be clear: it's high time we do resonators as standalone products. We've already shipped one and we're choosing to put our R&D expenses into oscillators and clocks because they are much higher priced and provide higher dollar margins. Now, active resonators are a smart way to address the resonator market while not making traditional resonators. The Excalibur product is a new category; it's an active resonator, so it behaves like an oscillator but looks like a resonator to the designer. So it provides them with an alternative to obtain resonators for that market. For that value, SiTime charges a fair price, which gives us our corporate gross margin. We don't break out whether one product has higher gross margin or not, but I would suffice it to say that it would be very difficult for us to introduce products that don't meet corporate guidelines in margin or are higher. So I think Excalibur will be extremely profitable, and we will begin shipping this year. This is one of those products that we have been building and will do well this year. So I think we're in good shape and I'm very, very excited about this.

Thanks, Rajesh.

Thanks, Quinn.

Our next question comes from Tore Svanberg with Stifel.

Yes. Thank you. Congratulations on the strong results, and no need to apologize for 60% to 65% gross margins. My first question is on the topic that you mentioned, Rajesh, about partnering or working with other semiconductor companies. I know you talked about that when addressing automotive. I think you mentioned about ten players there, and then about 15 in the data center space. Just wondering what that means contextually for your business. I mean, does it open up the door for more new customers that you may not have been able to address in the past or is there even a sort of reference platform to some of those engagements?

Yes, that's exactly right. The easy answer is that it's a leveraged strategy. The semiconductor companies develop chips for various markets and build reference platforms that customers use and buy. Obviously, a key part of the strategy is to be part of that. We've taken it to a higher level, and we now have a significant sales force working on this. All that allows us to answer product needs while also going further upstream and obtaining products that will be introduced later on; in late 2022, 2023, and 2024. There’s also a category where semiconductor companies actually ship products with our product—not just as references, but for revenue—which is another valuable opportunity. Given the shortages, these semiconductor companies have come to us out of necessity. Because we talk the same talk, we can solve their problems, and we're able to go further out in time.

Thank you for that perspective. My follow-up is on supply. There's a lot of talk about TSMC, your silicon supplier, but not much discussion regarding your MEMS supplier. So just wondering how things stand there from a capacity perspective—is it tight? Do you feel like the capacity you're getting from your partner is in good shape?

Certainly. To recap, our MEMS are manufactured at Bosch. We have not had any issues getting the MEMS wafers that we need to support our revenue or expected growth this year. TSMC, of course, handles the CMOS wafers that our resonators attach to. Again, there's tightness in wafer supply, but we're a good customer of TSMC, and they’ve satisfied our needs. We believe we'll have the supply to support our expected growth. Bottom line, while it's a bit tight out there, we feel like we're in reasonably good shape. Remember, we're not that large, and we get a lot of die on a wafer. The wafers we get from TSMC contain about 10,000 die, while the MEMS die from Bosch contain about 100,000 die. So, we get a lot of products with not that many wafers. We believe we’re in good shape.

Really helpful. Thank you, Art.

Thank you, Tore.

Our next question comes from Suji Desilva with ROTH Capital.

Hi, Rajesh. Congrats on a strong '21. Just a question on gross margin if you don't mind. I'm just trying to understand if there are any segments that are relatively harder or easier to pass the cost increases along. I'm trying to get some color on the challenges you may be having there.

Yes. Generally speaking, with pricing ability and shortages, the ability to hike prices is quite high. In other words, it doesn’t go by customer categories or markets; it really concerns which customers we wish to maintain long-term relationships with, and that's the bulk of them. Because of that, customers are aware that times are tight; they understand pricing and so on. In some cases, we choose to hold back that pricing; in other cases, we decide to be more aggressive. It’s truly a case-by-case basis, and SiTime, as a premium company in this market, knows how to manage this effectively. While I understand the focus on the gross margins, I suggest viewing that as a distraction, and instead, focus on where the growth is genuinely coming from.

That sounds good. The cash balance is very strong now, obviously a solid funding position and cash flow. Can you remind us of your cash strategy, acquisition strategy, and whether buybacks are in the cards or if it’s a little early for that versus organic investment?

Yes, I think it’s too early to contemplate buybacks; we just put out more stock. I believe our stock can benefit from more liquidity, not less. As for acquisitions, we're always searching for solutions that can further our product line, enhance our capabilities, or lead us to new technologies we don’t already possess, particularly in the clock domain. There is a lot of opportunity there; however, it’s still a challenge to navigate potential acquisitions from traditional semiconductor companies. To the extent that we can, we would like to pursue those opportunities.

Okay. Very helpful. Thanks, guys.

Thanks, Suji.

Our next question comes from Melissa Fairbanks with Raymond James.

Hey, guys. Thanks for taking my question. I was just wondering if you might be able to give us some color on expectations by segment for the March quarter. Obviously, consumer is probably seasonally down the most, but could you give us some guidance there? Also, in the recent quarters, you’ve been providing expectations on what the contribution from your largest customer would be. Just looking for any kind of color on that.

Sure. Yes, I talked about the seasonality briefly in my discussion, and bottom line, the decrease from Q4 to Q1 will primarily affect consumer. That's what drives the seasonality. In terms of our largest customer, they represented 18% of our sales in Q4, and I think that percentage will stay relatively constant in Q1.

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

I would prefer not to disclose that.

Okay. No problem.

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

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

Thanks, Melissa.

Thank you.

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

I think that we closed out an absolutely stellar year in 2021. I'm looking to consolidate those gains in 2022 and significantly grow the Company per our guidance. I’m very, very bullish on how we see the future.

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

Thank you all. Bye-bye.

This concludes today's conference call. Thank you for participating. You may now disconnect.