SiTime Corporation

This conference is scheduled to begin shortly. Please continue to stand by. Thank you for your patience. Thank you. Thank you. Good afternoon, and welcome to SciTime'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. If anyone needs assistance at any time during the conference call, please press the star key followed by zero on your touchtone phone. As a reminder, this conference call is being recorded today, Wednesday, February 2, 2022. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, Liz. Good afternoon and welcome to SciTime's fourth quarter 2021 Financial Results Conference call. On today's call from SciTime are Rajesh Vichist, 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, the timing market, and other areas of discussion. It's not possible for the company's management to predict all risks, nor can the company assess the impact of all factors on its business or the extent to which any factor or 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 16, 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 on today's call. 2021 was an exceptional year for SciTime with 88% year-over-year revenue growth. We continue to believe these results are a new phase of sustained high growth and a fundamental acceleration at side time. There are a number of secular trends that have served as driving factors and 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 comms enterprise market and have accelerated new product introduction for these applications. In 21, we laid out our strategy to quadruple our SAM, or served market, by 2024 to $1.3 billion through new products for the comms enterprise market. We're on track to introduce six new products in 22, 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. SciTime 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 SERP market or SAM of at least 200 million, for side time. 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're 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 21, we also expanded our focus to automotive semiconductor companies, and here we are engaged with over 10 leaders for a variety of applications in automotive, and this gives us additional visibility into trends, it accelerates adoption, and helps us build ever more compelling products. In Q3 now, I mentioned that data center business would grow to 100 million. Again, we're well on our way, and data center revenues are expected also 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 is embedded inside the cable that enables high-speed connectivity. Again, here we're expanding our engagement with semiconductor leaders and closely engaged with over 15 companies in this space. We believe that in diversity, there is strength. And we believe SciTime 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 21, the industrial segment led in the number of new opportunities, while the comms enterprise segment had the highest annual dollar value, which is more than double the next segment. Another aspect about the diversity of our business is that our 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 time and navigation, also called P and T, and Internet of Things or IoT. There are common themes in all these applications. Each of them requires higher precision, smaller sizes, reliable operations, again, in very tough or environmentally harsh conditions. All of these play to the natural strength of SciTime solutions. Specific to supply chain dynamics, SciTime has continued to benefit at the expense of alternatives, due to our fabulous model and product programmability combined with our supportive suppliers that view SciTime as a strategic growth opportunity. Over the last year, we have further partnered with the 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 SciTime'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 which is focused exclusively on timing, we believe that SciTime 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.