SiTime Corporation

Good afternoon and welcome to Psi Time's second 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, August 6, 2025. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, Shannon. Good afternoon and welcome to Psi Time's second quarter 2025 Financial Results Conference call. Joining us on today's call from Psi Time are Rajesh Vichest, 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 positions, 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 conference call to conform statements to actual results or to changes in the company's expectations. For more detailed information on the risks associated with the business, we refer you to the risk factors described in the 10K filed on February 14, 2025, as well as the company's subsequent filings with the Securities and Exchange Commission. During the call, management will 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 or nor superior to measures of financial performance prepared in accordance with U.S. GAAP. GAAP and non-GAAP reconciliations include 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 Sightime CEO Rajesh. Please go ahead.

Thank you, Brett. Good afternoon, everyone. Thank you for joining us today. We appreciate the continued support from our long-time investors and warmly welcome new Sightime investors. Sightime is pioneering a new category in semiconductors, precision timing, part of the broader $11 billion timing market. To drive growth, we've focused on high-value applications in AI data centers, automated driving, defense, and industrial, and successfully delivered differentiated products with exceptional performance and reliability. This focus continues to pay off as we build a high-growth, diverse business across markets, applications, and geographies. Q2 2025 was another exceptional quarter for Sightime. We delivered revenue of $69.5 million, which was a 58% increase year over year. Gross margin increased to 58.2%. And as new products contribute to a higher percentage of revenue, we expect to see gross margin expansion with revenue growth. EPS increased to 47 cents, up from 12 cents a year ago, and every customer segment grew in Q2 2025. Exiting the quarter, we have robust bookings and a healthy funnel. In today's world of significant AI growth, it's no surprise that our data center customer segment continues to lead our growth significantly. In fact, it grew 137% year over year. Here, our elite family of oscillator products, Elite, Elite RF, Elite X, continue to shine along with our cascade clocking family. These products' performance drove strong design win momentum across the market, including switches, NIC cards, optical modules, and AEC or active electrical cables. Sightime continues to be the only company that offers a full suite of precision timing solutions that includes oscillators, clocks, and software, giving us architectural advantages. As we expand our offerings with newer products, our dollar content in the application will grow. For example, in a cloud service provider's 102 terabit switch design, Sightime's dollar content increased by 125% with the addition of a customized clock. Similarly, the silicon provider's network switch design, Sightime's dollar content increased by 100% with the addition of multiple clock chips. Already in 2025 in AI, we have added design wins worth several hundred millions of dollars. For Sightime, winning the AI data center market is important, and we will accelerate product development and customer acquisition to expand further in these markets. In this age of accelerated innovation and fast deployment of AI hardware, Sightime is very well qualified to meet the rapid growth in customers' demands. Our programmable product architecture works very well here, and our team and our suppliers have done a phenomenal job of keeping up with demand. One of Sightime's strengths lies in the diversity of our business. This was again evident in Q2 2025, where all markets and geographies demonstrated continued growth. Our revenue grew double-digit percentages year over year in both mobile IoT consumer and auto defense industrial, as well as In the automotive, defense, and industrial markets, a growth theme is around fully autonomous operations playing directly to Sightime's strengths. Precision timing from Sightime is required for accurate positioning, sensing, motor control, and synchronization for fully autonomous operations in L3 plus and Robotaxis are gaining significant traction. In warehouses, millions of robots are automating tasks, and defense spending is accelerating, with NATO, for example, expected to spend at an 8x faster growth rate. We are designed in into the leading Robotaxi robot and defense equipment, and as these markets scale, so will our revenue. Sightime has significant experience with a decade of investments in these markets, and we have learned how to anticipate the needs and generate products and features that will drive revenue from these applications. Lastly, in the mobile IoT consumer market, our newly announced Symphonic Mobile Clock Generator chip provides significant power and accuracy advantages to GNSS and 5G applications. It has already started to contribute to our revenue, and we expect its contribution to grow significantly in 2026 and beyond. As we move into the second half of 2025, we anticipate sequential revenue growth in each of Q3 and Q4, supported by a strong demand in AI infrastructure and continued momentum across markets. This is the second consecutive year where we expect to grow revenue by at least 40%. We also see that as more customers experience the benefits of our precision timing, more opportunities come to us. To seize them, we will continue to invest in both R&D and customer acquisition while improving operating leverage. To summarize, our success is being driven by both the depth of our engagement in AI data centers and the breadth of our reach across diverse markets. This balance gives us resilience and positions us for sustainable growth. I'm confident in our trajectory and excited about what lies ahead. I'll now turn the call over to Beth Howe, our CFO, to discuss the financial results in more detail. Beth?