SITIME Corp 10-Q for FY2023 Q1

About this 10-Q

Headline figures

SITIME Corp (SITM)

10-Q 2023-05-04 For: 2023-03-31

Added on April 08, 2026

SITIME Corp filed this 10-Q on May 4, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $38.34M; down 45.4% from $70.25M a year earlier
Net loss: $16.49M; compared with net income of $6.14M a year earlier
Diluted EPS: -$0.76; compared with $0.27 a year earlier

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Delaware	02-0713868
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5451 Patrick Henry Drive Santa Clara, CA	95054
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	SITM	The Nasdaq Stock Market LLC


		Page
	Risk Factor Summary	1
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	22
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 5	Other Information	45
Item 6.	Exhibits	46
Signatures		47


	As of
	March 31, 2023			December 31, 2022
Assets:
Current assets:
Cash and cash equivalents	$	38,265		$	34,603
Short-term investments in held-to-maturity securities		537,818			529,494
Accounts receivable, net		21,464			41,229
Inventories		60,011			57,650
Prepaid expenses and other current assets		8,986			6,091
Total current assets		666,544			669,067
Property and equipment, net		57,487			58,772
Intangible assets, net		4,800			5,205
Right-of-use assets, net		10,227			10,848
Other assets		7,370			6,724
Total assets	$	746,428		$	750,616
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable	$	8,186		$	14,881
Accrued expenses and other current liabilities		17,020			18,913
Total current liabilities		25,206			33,794
Lease liabilities		7,471			8,149
Other non-current liabilities		91			193
Total liabilities		32,768			42,136
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock, $0.0001 par value - 200,000 shares authorized; 21,952 and 21,702 shares issued and outstanding at March 31, 2023 and December 31, 2022		2			2
Additional paid-in capital		738,013			716,343
Accumulated deficit		(24,355	)		(7,865	)
Total stockholders’ equity		713,660			708,480
Total liabilities and stockholders’ equity	$	746,428		$	750,616


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended March 31,
	2023			2022
Revenue	$	38,343		$	70,253
Cost of revenue		15,302			25,020
Gross profit		23,041			45,233
Operating expenses:
Research and development		24,457			20,595
Selling, general and administrative		20,733			18,578
Total operating expenses		45,190			39,173
Income (loss) from operations		(22,149	)		6,060
Interest income		5,629			—
Other income, net		100			148
Income (loss) before income taxes		(16,420	)		6,208
Income tax expense		(70	)		(68	)
Net income (loss)		(16,490	)	$	6,140
Net income (loss) attributable to common stockholders and comprehensive income (loss)	$	(16,490	)	$	6,140
Net income (loss) per share attributable to common stockholders, basic	$	(0.76	)	$	0.29
Net income (loss) per share attributable to common stockholders, diluted	$	(0.76	)	$	0.27
Weighted-average shares used to compute basic net income (loss) per share		21,794			20,921
Weighted-average shares used to compute diluted net income (loss) per share		21,794			22,703


					Additional						Total
	Common Stock				Paid-in			Accumulated			Stockholders'
	Shares		Amount		Capital			Deficit			Equity

Balances at December 31, 2022		21,702	$	2	$	716,343		$	(7,865	)	$	708,480
Stock-based compensation expense		—		—		19,136			—			19,136
Net loss		—		—		—			(16,490	)		(16,490	)
Issuance of common stock in connection with At-The-Market offering net of underwriting discounts and commissions and other offering costs		100		—		12,749			—			12,749
Issuance of shares upon vesting of restricted stock units, net of tax withholdings		150		—		(10,215	)		—			(10,215	)
Balances at March 31, 2023		21,952	$	2	$	738,013		$	(24,355	)	$	713,660

Balances at December 31, 2021		20,825	$	2	$	663,614		$	(31,119	)	$	632,497
Stock-based compensation expense		—		—		15,237			—			15,237
Net income		—		—		—			6,140			6,140
Issuance of shares upon vesting of restricted stock units, net of tax withholdings		217		—		—			—			—
Balances at March 31, 2022		21,042	$	2	$	678,851		$	(24,979	)	$	653,874


	(in thousands)
2023 (remainder)	$	1,803
2024		1,711
2025		708
2026		385
2027		193
	$	4,800


	(in thousands)
Remainder of 2023	$	2,197
2024		3,060
2025		2,702
2026		2,177
2027		629
2028 and beyond		190
Total minimum lease payments		10,955
Less: amount of lease payments representing interest		(910	)
Present value of future minimum lease payments		10,045
Less: current obligations under leases		(2,574	)
Long-term lease liabilities	$	7,471


	RSU			Grant Date		PRSU			Grant Date		MYPSU		Grant Date
	Number			Fair		Number			Fair		Number		Fair
	of			Value		of			Value		of		Value
	Shares			per share		Shares			per share		Shares		per share

Unvested at December 31, 2022		1,717,994		$	73.6		58,954		$	261.4		311,872	$	88.6
Granted		368,363			123.1		122,466			145.5		—		—
Vested		(234,633	)		56.6		—			—		—		—
Forfeited		(27,792	)		67.4		(58,954	)		261.4		—		—
Unvested at March 31, 2023		1,823,932		$	82.8		122,466		$	145.5		311,872	$	88.6


	As of
	March 31, 2023
	Unrecognized Compensation Costs (in millions)		Weighted Average Period of Recognition (in years)
RSUs	$	141.3		2.2
PRSUs	$	13.7		1.6
MYPSUs	$	16.9		1.5
Liability-based awards	$	2.0		0.6


	Three Months Ended March 31,				Change
	2023		2022		$			%
	(in thousands except percentage)
Revenue	$	38,343	$	70,253	$	(31,910	)		(45	%)


Exhibit Number		Description

3.1		Restated Certificate of Incorporation of SiTime Corporation (the “Company”) (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed November 26, 2019).

3.2		Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed June 29, 2021).

4.1		Form of Common Stock Certificate of the Company ((incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-1 (File No. 333-234305) (the “S-1”)).

4.2		Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to the Company’s Annual Report on Form 10-K filed February 16, 2021).

10.1		SiTime Corporation Amended and Restated 2022 Inducement Award Plan and Form of Restricted Stock Unit Agreement (incorporated by reference to the Company’s Annual Report on Form 10-K filed February 27, 2023).

10.2*		SiTime Corporation Independent Director Compensation Policy

31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*#		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*#		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


	As of
	March 31, 2023		December 31, 2022
	(in thousands)
Raw materials	$	26,111	$	17,518
Work in progress		26,037		33,687
Finished goods		7,863		6,445
Total inventories	$	60,011	$	57,650


	As of
	March 31, 2023			December 31, 2022
	(in thousands)
Lab and manufacturing equipment	$	75,652		$	73,220
Computer equipment		3,238			3,170
Furniture and fixtures		563			509
Construction in progress		5,115			5,967
Leasehold improvements		7,365			7,129
		91,933			89,995
Accumulated depreciation		(34,446	)		(31,223	)
Total property and equipment, net	$	57,487		$	58,772


	As of
	March 31, 2023							December 31, 2022
	(in thousands)
	Gross Assets		Accumulated Amortization			Net Assets		Gross Assets		Accumulated Amortization			Net Assets
Internal use software	$	9,434	$	(8,933	)	$	501	$	9,434	$	(8,833	)	$	601
Purchased software		12,772		(8,473	)		4,299		12,583		(7,978	)		4,604
Intangible assets	$	22,206	$	(17,406	)	$	4,800	$	22,017	$	(16,811	)	$	5,205



	As of
	March 31, 2023		December 31, 2022
	(in thousands)
Accrued payroll and related benefits	$	4,801	$	6,109
Revenue reserves		2,047		1,840
Deferred non-recurring engineering services		2,628		2,689
Short term lease liability		2,574		2,485
Other accrued expenses		4,970		5,790
Total accrued expenses and other current liabilities	$	17,020	$	18,913


	SiTime Corporation

Date: May 4, 2023	By:	/s/ Arthur D. Chadwick
		Arthur D. Chadwick
		Executive Vice President, Chief Financial Officer


1.	I have reviewed this Quarterly Report on Form 10-Q of SiTime Corporation.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.