SiTime Corporation

Good afternoon, and welcome to SciTime's first quarter 2025 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, May 7, 2025. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, DeeDee. Good afternoon and welcome to Sidetime's first quarter 2025 financial results conference call. Joining us today on the call from Sidetime are Rajesh Vasisht, Chief Executive Officer, and Beth Howell, 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 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 forward-looking statements. The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of this 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 14, 2025, as well as the company's subsequent filings with the Securities and Exchange Commission. Also during the call, we'll refer to 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 US 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 financial results. With that, it's now my pleasure to turn the call over to Sidetime's CEO. Rajesh, please go ahead.

Thanks, Brett. Good afternoon. I'd like to welcome new as well as existing investors to SciTime's first quarter 2025 earnings call. SciTime's the leader in a dynamic new semiconductor category that we call precision timing, which is a heartbeat of modern electronics. Whether it is in AI data centers, networking infrastructure, automated vehicles, personal mobility, or IoT, SciTime's precision timing delivers better performance and reliability. Precision timing uses semiconductor technology to reimagine time and transform the $10 billion timing market. SciTime is uniquely focused on high-value timing markets and applications and serving them with highly differentiated products that deliver exceptional value. With this strategy, we're building a strong business that is diverse across industries, applications, and geographies. This has served us well. And even in this dynamic environment, it has enabled us to continue to grow rapidly. The numbers speak for themselves. Q1 2025 was a great quarter where we delivered financial results well above our target. Revenue was 83% higher than the year ago at $60.3 million. Gross margins were 57.4%, and EPS was $0.26 per share. This growth was driven by all of our segments. The comms enterprise data center or CED business tripled year over year. And both the mobile IoT consumer and the auto industrial defense customer segments grew double digit percentages. Revenue from our largest customer grew over 75%. We expect this strength to continue in Q2. Our CED business has shown significant sequential growth for four consecutive quarters now, driven by the strength of AI. Our OEM and cloud service provider customers continue to reaffirm their growth outlook, and we expect the data center business to continue to grow through 2025. We know that AI infrastructure needs higher network bandwidth to improve GPU utilization rates which directly impacts the consumption of Sitem's precision timing products. There are two trends that confirm this infrastructure upgrade. First, optical module and switch bandwidth is doubling, and we're shipping in high volume in 800G today. We're now seeing increased design activity for 1.6T modules, which we expect will become the mainstream in 26 and 27. Sitem has had success on 1.6T designs, and we have over 20 opportunities at customers worldwide. As a second trend, Active Electrical Cables, or AEC, continue to replace passive cables within the data center rack with 2 to 4x higher bandwidth. In both these applications, Sitem continues to be a highly differentiated solution where we deliver significant value and performance and resilient supply. Additionally, we are also very excited about our clocking business, which is central to the strategy of solving customers' needs across the timing subsystem. We continue to have a sustainable advantage because we uniquely have all the components required to make truly differentiated products. By integrating the oscillator with the clock and software, SITEM has created a new clock category that is a complete system solution which delivers increased performance and simplified designs for our customers. This strategy has the potential to create the highest clocking revenue in the industry in the coming years across all the customer segments. Sitem has already launched three clocking products with higher ASPs and longer revenue streams, a trend that will continue for products in the future. Some examples are In CED, our Cascade family offers the benefit of more resilient performance and has been designed into diverse applications from switches and NIC cards, network interface cards, in data centers to 5G equipment and fixed wireless access or FWA. In automotive, our Corus family has over a dozen high-value designs in ADAS or automated driving applications where it offers the benefit of integration and higher reliability. For the mobile IoT consumer market, we have recently introduced Symphonic, the industry's first integrated clock generator for 5G millimeter wave consumed products, as well as asset trackers and GNSS or GPS receivers. Symphonic customers get high performance with environmental resilience, small size, system power efficiency, and also find homes in industrial applications. In these dynamic times, our product differentiation is key to continued success. I'm confident in Sitem's ability to adapt to the rapid changes in the world today while continuing to grow revenue, profitability, and market share. With that, I'll turn the call over to Beth, our CFO, to discuss financial results in more detail.