Beth Howe: Thanks for the question. So as we look at it, we do take out orders over multiple quarters, and so we’re clearly building our backlog for the second half, even now as we move into the year. As I think we both talked about, we do expect that we continue to see improvement in the second half versus the first half, both in terms of the demand picture, but also as those inventories continue to get drawn down, and so we get to a more normalized back half. And so I think those are things that are contributing in terms of what we see in terms of our second half versus our first half.
Scott Sandlin: Great, thank you. And then just one more, if I can. So you mentioned that you thought auto would be mixed, looking out a bit. Could you just give us some of the puts and takes there?
Rajesh Vashist: Yes, I think the US companies are a little bit taking a breather, as you read from the headlines. I think the Chinese automakers are also taking a breather, but our share is growing. I think in the US and in the tier one OEMs, our shares are growing. So I think it’s a little bit of mixed outcome, but in general, our strength continues because of a superior product, our better supply chain, our quality, our reliability. We think, as we have said before, that automotive becomes a $100 million business for SiTime in the coming years.
Operator: Thank you. One moment for our next question, please. And our next question comes from the line of Douglas O’Laughlin with Fabricated Knowledge. Your line is now open.
DouglasO’Laughlin: Hey, Rajesh, did I hear correctly that the Q1 guide was $31 million to $33 million, right? Typical seasonality. Just wanted to hear from that?
Beth Howe: Correct, $31 million to $33 million in Q1.
Douglas O’Laughlin: Wait, so I have a question about the inventory aspect because you guys, once upon a time, you’re doing like $70 million a quarter, and it seems like the run rate revenue, even when you get back to the 30% revenue growth, you’re not going to see, it’s going to take some time to get back to, let’s say, previous cycle highs. My question is just kind of, once again, on sustainability, like what’s the run rate here X some amount of channel burn? It just seems very hard to believe that this business was doing $70 million a quarter, and now we’re back at $30 million, should grow sequentially, exit the year at 30% revenue growth. That seems like it’s going to take multiple years to get back quite to that level. Is that the right way to think about it, or is there just some continued drastic inventory problem there? Thank you.
Beth Howe: Hey, Doug, maybe I can start, and then I’m sure Rajesh has some comments as well. So, appreciate the question. Again, as we sit today and look at our business, I think the growth story is intact. We clearly had a tough 2023, no bones about that. But as we look forward, we look at the first half, continuing to clear out that excess inventory in the channel and get back to normalization. As we’ve talked about, we expect that as we get into the second half, we can reaccelerate the business more toward that target growth rate. Again, part of this is going to depend on the economic environment and where the overall demand is. If things are a little bit better, then we expect to be able to grow better. But we’re really going to be kind of candid about the way we see the business today.
As Rajesh also talked about, we do have opportunities to grow our share of wallet. And we’re seeing that not only in tier one and auto, but in other customers as well, where our unique solutions are well-positioned for those customers. So even in some of these markets that may be mixed overall, we do see more opportunities to grow our share and to have more design wins and revenue growth in them.
Douglas O’Laughlin: Yes. So I’m not quite sure exactly. I think if you do the math, you will find that at the implied run rate exiting Q4, it doesn’t take that long for us to get back to some pretty big numbers pretty quickly. As we’ve said before, we see one thing unique maybe that may be being missed is that we are indicating several years after this year of growth at 30%. That is kind of an astonishing number, considering that most people would be happy to guide to a 10%, 15%, 20% growth rate. And I think it comes back to the strength of our design wins and the product and the unique technology and relationship that we have built with the customer. So I’m actually feeling pretty good about it.
Operator: Thank you. One moment for our next question. And I have a follow-up from Tore Svanberg with Stifel. Your line is now open.
Tore Svanberg: Yes, thank you. I had the two quick follow-ups. First of all, so back to the previous question about the segments for Q1, Rajesh, I think you said consumer was doing okay, but obviously for Q1, we should expect that segment to be down sequentially, or are you saying that your largest customer would be down and then the X, the largest customer, it would be not down?
Rajesh Vashist: Yes, no, I think consumer is doing okay, but consumer is also lower as well, if that makes any sense. What I mean by that is there’s the largest customer, they’re down as expected, and maybe even a little bit more. And then some of the other consumer business that we have is also sort of still not fully recovered. On the other hand, for the year, I see consumer business continuing to grow. So that’s why it’s a little bit mixed. We feel pretty good about the way we are in the second half of the year. And it’s only as referenced by Beth earlier, that the inventory is taking probably a little bit longer than we thought previously in Q1 and Q2. But by the end of Q2, we should be in good shape. And that’s not that different, frankly, that much from what we’ve said in the past. And that’s why we’re generally, we think we’re in pretty good shape.
Beth Howe: But Tore, we’re not thinking that there’s, Q1 is typically seasonally down in consumer. So I think that’s a starting point in terms of the conversation.
Tore Svanberg: Understood, and as my follow up, and I know obviously you’re not going to pre-announce your largest customers roadmap and so on and so forth, but as we think about 2024 as the whole year, would there be any material changes to your content, or is this going to be sort of like a very normal year compared to what you had last year?
Rajesh Vashist: I think it’s going to be a pretty normal year.
Operator: Thank you. And I’m showing no further questions at this time. I’d like to hand the conference back over to management for closing remarks.
Rajesh Vashist: Well, thank you all so much for joining us. And thank you for taking the time to listen to all our questions and answers. And I welcome Beth on her first call as SiTime CFO. Very delighted to have her here. Thank you.
Beth Howe: Thanks, Rakesh.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.
