SiTime Corporation

Good afternoon and welcome to CTOM's fourth quarter 2024 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 February 5th, 2025. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, Lisa. Good afternoon and welcome to Sidetime's fourth quarter 2024 financial results conference call. Joining us on today's call from Sidetime are Rajesh Vasis, Chief Executive Officer, and Beth Howe, Chief Financial Officer. Before we begin, I'd like to point out that during the course of this call, the company may make forward-looking statements regarding expected future results, including financial positions, strategy and plans, future operations, the timing market, and other areas of discussions. 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 after the date of this conference call to conform statements to actual results or to changes in the company's expectations. For more detailed information on risks associated with the business, we refer you to the risk factors described in the 10-K filed on February 26, 2024, as well as the company's subsequent filings with the Securities and Exchange Commission. During the call, we'll refer to certain non-GAAP financial measures, which are considered to be an important measure of company performance. These non-GAAP financial measures are provided in addition to and not as a substitute for nor superior to measures of financial performance prepared in accordance with U.S. GAAP. The GAAP to non-GAAP reconciliation includes stock-based compensation expense, amortization of acquired intangibles, and acquisition-related expenses, which include transaction and certain other cash costs associated with business acquisition, as well as changes in the estimated fair value of contingent consideration and earn-out liabilities. Please refer to the company's press release issued earlier today for a detailed reconciliation between GAAP and non-GAAP results. With that, it's now my pleasure to turn the call over to Sitem's CEO. Rajesh, please go ahead.

Thanks, Brett. Good afternoon. I'd like to welcome you as well as existing investors to Sitem's fourth quarter 2024 earnings call. Sitem's the leader in a dynamic new semiconductor category that we call precision timing, which is the heartbeat of modern electronics. Whether it's in AI data centers, networking infrastructure, automated vehicles, personal mobility, or IoT, CyTimes Precision Timing delivers better performance and reliability. CyTimes Precision Timing products use semiconductor technology to reimagine time and transform the $10 billion timing market. Revenue for Q4 2024 grew 61% year-over-year with strong profitability. For all of 2024, we delivered 41% growth which is well above our target. Our strong fourth quarter results demonstrate the diversity of side times across customer segments and geographies. Each of our customer segments and regions delivered double digit percentage growth with comms enterprise data center, what we call CED, growing significantly. We exited the quarter with strong bookings for 2025, giving us a bright outlook for the year. Looking back, FY 2024 was a year of recovery and growth. As forecasted in the previous year, 2023, we started growing sequentially in Q2 24. Every customer segment delivered double digit percentage year over year growth in Q2, Q3, and Q4 of 2024, while CED delivered triple digit growth. We believe that this strength in all of our customer segments is a big positive. Our business model is structured to deliver profitable growth while serving different customer segments with different growth rates at different times. Product innovation plays a key role in fulfilling our strategy of producing high differentiation, high value timing products. Since Q2 2023, we have introduced 10 new platforms that deliver 40 products with ASPs, or average selling price, ranging from $1 to over $200. These will be critical for growth and revenue and gross margin for the next several years. As electronic devices incorporate intelligent features, they will need faster processing, connectivity, reliability, and Sitem is the leader in delivering these benefits. Our comms enterprise data center business demonstrates the value of our portfolio. We expect CED to continue to lead our growth in 2025 as newer generations of servers in AI and networking equipment are rolled out. Turning to recent news in AI, we forecast that the need for higher bandwidth and lower latency will continue to increase. This is true regardless of traditional or low-cost AI models. and regardless of general purpose or reasoning LLM models. Applications such as active cables, AECs, GPU switches, smart NIC cards are solving bandwidth and utilization problems through architectural innovations as well as moving to higher interconnect speeds. And these trends are driving the demand for more precision timing with higher dollar content per application. For example, Our oscillators have significant market share in 800G optical modules, and we have a compelling roadmap for future generations of 1.6 terabit and 3.2 terabit modules. In switches and NIC or NIC cards, SciTimes recently introduced 5977 SuperTCXO, solves GPU utilization and reliability problems by delivering up to 3x better synchronization 4X smaller size, and 20 times better reliability. But it's not all about data centers in our CED market. It's also about the breadth of other applications. We've seen increasing demand and communications where our EPOC product, our OCXO, solves timing problems in 5G base stations. We continue to expect success in this sub-segment starting in 2026. Now, let's talk about growth opportunities for SciTime Beyond CD. In the broader industrial market, new use cases and the adoption of new technologies is driving the need for more precision timing with higher dollar content. For example, autonomous technology that uses our timing products is being adopted in mining and construction equipment as well as precision agriculture. This is a $50 million market for SciTime and we expect to get the majority share because of a greater resilience. Similarly, the need for more precise and robust positioning is driving adoption of our products in drones, handheld military radios, and assured PNT, or precision navigation and timing systems. This is the $25 million market for SciTime, and we expect, again, to get a majority share because of a higher performance, smaller size, and lower power. To summarize, we expect our growth to continue in 2025. The breadth and diversity of our products, applications, and customers is delivering the growth that we have worked for. I'm confident of our success now and in the future, and now I'll turn the call over to Beth, our CFO, to discuss our financial results in more detail.