SiTime Corporation Reports 41% Revenue Increase to $202.7 Million for Fiscal Year 2024

SiTime Corporation reported a significant increase in revenue for the fiscal year ending December 31, 2024, achieving $202.7 million, a 41% rise from $144.0 million in 2023. This growth was primarily driven by a 36% increase in sales volume and a favorable change in the average selling price (ASP) of its products. The company noted that the previous year's lower sales were impacted by excess inventory at customers and macroeconomic conditions. Despite the revenue growth, SiTime recorded a net loss of $93.6 million, compared to a loss of $80.5 million in the prior year, reflecting ongoing challenges in managing operating expenses, which rose to $219.7 million from $189.3 million.

In December 2023, SiTime expanded its product portfolio through the acquisition of certain assets and exclusive licenses from Aura Semiconductor, enhancing its offerings in the clocking market. This acquisition included various clock products such as network synchronizers and clock generators, which are expected to complement SiTime's existing MEMS oscillators and resonators. The integration of these new products aims to provide a more comprehensive solution for customers, enhancing design simplicity and performance.

Operationally, SiTime's customer base remains concentrated, with its top ten customers accounting for approximately 84% of total revenue in 2024. The company continues to rely heavily on international sales, which represented about 92% of its revenue. The filing also highlighted a material weakness in internal controls over financial reporting, specifically related to cash flow classifications, which management has since addressed through enhanced review procedures.

Looking ahead, SiTime anticipates continued growth in the Precision Timing market, which it estimates to be around $10 billion. The company plans to focus on expanding its presence in this market by leveraging its technological expertise and enhancing its product offerings. However, it also acknowledges the potential impact of macroeconomic conditions and inventory management on future performance, indicating that fluctuations in customer demand could affect sales and margins. SiTime's management believes that its existing cash and investments will be sufficient to meet operational needs for at least the next 12 months, although future capital requirements will depend on various factors, including growth rates and market acceptance of its solutions.