SiTime Corporation (NASDAQ:SITM) Q1 2024 Earnings Call Transcript

Rajesh Vashist: Yes. You’re right, Quinn. It does take a little bit long time, particularly one is the clocking portion, another is that it’s in the CED area. But we are being a little bit more opportunistic. There are some products in the portfolio that are more pin compatible with existing products, mostly in the buffer area. SiTime is picking up traction because the unique thing about SiTime is that unlike other clocking companies whose this clocking business is a 1%, 2% business for them, this is everything to do with SiTime, right? That’s a 100% SiTime business. So that level of focus, concentration, customer care, customer focus gets us a lot of traction even when we have call them, me too, products such as the buffers.

And even in that we are starting to get some traction. Possibly by late this year, early next year, we should be getting small single-digit millions from that kind of business. But I think it’s just an indicator of what focus can bring to a market. Yes, hope that helps.

Quinn Bolton: That’s perfect. Other question for you, Beth, just thinking about the gross margin ramp into the second half. Obviously, consumer I think is the lower margin segment. Just wondering as you think about the second half, do you expect normal seasonality in the consumer segment in September, maybe a little bit of a mix headwind in September? Or, do you think the CED and industrial auto markets off perhaps a depressed base can continue to grow faster than consumer straight through year end?

Beth Howe: Quinn, sure. As I look at the different markets, I think you summarized the different puts and takes. We do expect that you’ll see Q3 seasonally stronger in consumer, which is a bit of a headwind, though consumer, sorry, the commercial and enterprise data center is growing very fast. I do think overall, the net, net will be that gross margin should improve a little bit as we go into second half versus first half. I think we would expect to see an upward trend. But to your point, some of the enterprise data center strength will be mitigated with consumer. But overall, increasing gross margins in second half.

Operator: I’m not showing any further questions at this time. I’d like to turn the call back over to management for any closing remarks.

Rajesh Vashist: Thank you all for joining us. We are very happy to be at this point in SiTime’s life in the second quarter where we can look at growth all through the rest of the year and we’re delighted by how we are doing. Thank you all for joining us.

Operator: Ladies and gentlemen, this concludes today’s presentation. You may now disconnect, and have a wonderful day.