SiTime Corporation

Good afternoon, and welcome to the SciTimes fourth quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. We ask that you limit yourself to one question and one follow-up. As a reminder, this conference call is being recorded today, February 4th, 2026. I would now like to turn the conference over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, Tawanda. Good afternoon, and welcome to today's conference call to discuss Sidetime's fourth quarter and full year 2025 financial results, as well as Sidetime's proposed acquisition of Renace's timing business. Joining us on today's call from Sidetime are Rajesh Vashist, Chief Executive Officer, and Beth Howe, Chief Financial Officer. Please note, in addition to the respective press releases issued this afternoon, supplemental slide deck related to the proposed acquisition is available in the investor relations section of the company's website at investors.sidetime.com. 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 the forward-looking statements. The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of today's 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 company's annual report on Form 10-K for the year ended December 31, 2024. as well as the company's subsequent filings with the SEC, including the company's quarterly report on Form 10-Q for the quarter ended September 30, 2025. During the call, management will 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 U.S. GAAP. The gaps to non-GAAP reconciliation 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 earn-out liabilities and accretion of acquisition consideration payable. 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 Sitem's CEO, Rajesh. Please go ahead.

Thank you, Brett. Good afternoon, everyone. Thank you for joining us today. We have a lot to talk about. We announced exceptional results for 2025, and we also announced a transformational acquisition. I'll begin with our business and our performance, and then I'll turn to the transaction. Q4 2025 was another exceptional quarter for Sitem. We delivered 113.3 million in Q4, up 66% year-over-year, and earnings per share tripled from 48 cents to $1.53. In Q4, every end customer segment grew year-on-year, as did every region. Gross margins in the quarter grew significantly up 61.2%. I'm particularly pleased about this achievement. In the beginning of 2025, we said we would exit the year at greater than 60% gross margins, and we achieved it. We predicted this expansion of gross margins because we anticipated mixed changes to higher value products, and we reduced new product costs as they moved into volume production. For all of 2025, we delivered $326.7 million in up 61% year over year. Every end customer segment and region showed growth. Earnings per share more than tripled from 93 cents to $3.20. Demand remained very strong exiting the year, which is an indication of significant future growth in 2026. While we don't usually discuss our book to bill, we wanted to give you a metric of the demand strength across a customer base as we go into a strong year. So our book to bill was over 1.5 at the end of Q4, and we have excellent visibility for the year. Channel health remained solid exiting 2025. Distributor and contract manufacturer inventory levels were in line with our target, reflecting strong sell-through and disciplined supply management. Design win momentum remained solid across all end customer segments and regions, another indication of growth in 2026 and beyond. Q4 growth was again led by QAM's Enterprise Data Center, CED, business, which grew 160% year-over-year. This marks the seventh consecutive quarter of over 100% year-over-year growth. Additionally, Our 2026 CED forecast has grown since our last earnings call, driven by increases in AI CapEx spending. The two to four X increase in computing power of the new XPUs, GPUs, CPUs is driving the need for faster networking infrastructure and accelerating the adoption of 1.6 terabit optical modules. Our customers have recently increased the 2026 forecast for our oscillators used in 1.6T optical modules by 50%, which is over and above the increase that we reported in November. This move to 1.6T drives the need for higher clocking frequencies from our oscillators for which we get higher ASPs or average selling prices. The increase in 1.6T modules notwithstanding Demand for oscillators used in 800G optical module continues to remain strong. In parallel to the increase in bandwidth of networking infrastructure, the hyperscalers are deploying more XPUs for training as well as getting ready for inference. Since November, this trend has driven a 50% increase in 2026 forecast of our super TCXOs, which are used in both computing infrastructure and the supporting smart NICs or network interface cards. SciTime's goal has always been to deliver predictable revenue growth. At IPO, CED was just 12% of our revenue, and then we created a strategic plan to expand it to 40% to 50%. Since then, our focused investments in product development, as well as customer acquisition, have paid off handsomely. CED today makes up 53% of our revenue, and that is exactly where we want to be. I'm also very pleased that a large portion of this revenue comes from high-value products, reflecting the sustained benefit that we bring to our customers. Our CED strategy laid the foundation of our success today, and we're using this as a blueprint for rapid growth in our other businesses. We continue to grow across all other end segments. aerospace defense, automotive, and industrial are all benefiting from increased adoption of autonomous systems and physical AI where systems perceive, reason, and interact in the physical world in real time. These systems need accurate positioning, sensor fusion, motor control, and precise synchronization where precision timing is essential. For example, In humanoid robots, we see up to $20 of a precision timing product, and robot axes in level four ADAS, or self-driving cars, require up to $15 of precision timing content. In defense, where worldwide spending is accelerating, our product resilience is driving adoption in a variety of applications. Variety of applications. In the next few years, we expect that each of our automotive defense and industrial businesses to exceed $100 million annually. Entering 2026, demand drivers remain firmly in place. Our strategy remains unchanged to lead in high-value precision timing applications, deliver differentiated system-level solutions, and scale our operating model to drive a long-term value creation. The combination of deep engagement in AI infrastructure and broad participation across diverse segments positions us exceptionally well for continued growth. I'm confident in our trajectory and excited about the opportunities ahead. With that, I'll now turn the call over to Beth, our CFO, to review the financial details, after which we'll be happy to take your questions.