Earnings call transcript: Sitime beats Q1 2025 forecasts, stock rises

Sitime Corporation (SITM), a $3.92 billion market cap precision timing semiconductor company, reported its first-quarter 2025 earnings, showcasing a strong performance that surpassed Wall Street expectations. The company posted an earnings per share (EPS) of $0.26, significantly above the anticipated $0.11. Revenue for the quarter reached $60.3 million, exceeding the $53.45 million forecast. According to InvestingPro analysis, the stock currently appears overvalued compared to its Fair Value, despite maintaining strong financial metrics including a healthy current ratio of 5.02. Following the earnings announcement, Sitime’s stock rose by 2.89% in after-hours trading, reflecting investor confidence in the company’s robust financial health and growth prospects.

Key Takeaways

• Sitime’s EPS of $0.26 beat the forecast by 136%.
• Revenue surged 83% year-over-year to $60.3 million.
• Stock price increased by 2.89% in after-hours trading.
• Strong performance attributed to growth in key segments, particularly communications and data centers.
• Q2 2025 revenue guidance set at $64.7 million, indicating continued growth.

Company Performance

Sitime Corporation demonstrated remarkable growth in the first quarter of 2025, with revenue increasing by 83% year-over-year, building on its impressive 40.77% revenue growth over the last twelve months. The company’s diverse product offerings and expansion in strategic markets like AI and data centers have bolstered its competitive position. InvestingPro subscribers can access 13 additional key insights about SITM, including detailed analysis of its growth trajectory and market positioning. Compared to previous quarters, Sitime has consistently outperformed its financial targets, driven by innovation and a strong customer base.

Financial Highlights

• Revenue: $60.3 million, up 83% YoY
• Gross Margins: 57.4%
• Non-GAAP EPS: $0.26 per share
• Cash from Operations: $15 million
• Cash and Short-Term Investments: $398.9 million

Earnings vs. Forecast

Sitime’s actual EPS of $0.26 surpassed the forecasted $0.11 by 136%, marking a significant earnings surprise. Revenue also exceeded expectations, coming in at $60.3 million against a projected $53.45 million. This performance underscores the company’s ability to capitalize on market opportunities and manage operational efficiencies effectively.

Market Reaction

Following the earnings release, Sitime’s stock price rose by 2.89% in after-hours trading, closing at $171. This increase reflects positive investor sentiment and confidence in the company’s growth trajectory. InvestingPro data shows SITM has demonstrated significant price volatility with a beta of 2.24, making it more than twice as volatile as the broader market. The stock has delivered an impressive 71.34% return over the past year, despite experiencing a 26.3% decline in the last six months. The stock’s movement is notable given its range over the past year, with a 52-week high of $268.18 and a low of $94.82.

Outlook & Guidance

Looking ahead, Sitime has provided a revenue guidance of $64.7 million for the second quarter of 2025, representing a 45-50% year-over-year growth. With a price-to-book ratio of 5.62 and analysts forecasting profitability this year, the company’s growth story continues to evolve. Discover comprehensive analysis and real-time updates on SITM through the detailed Pro Research Report, available exclusively to InvestingPro subscribers. The company aims to achieve 60% gross margins by the end of the year and maintain a full-year growth target of 25-30%. Sitime continues to focus on expanding its presence in data centers and AI markets, with expectations for growth across all customer segments.

Executive Commentary

Rajesh Vasjist, CEO of Sitime, emphasized the company’s leadership in precision timing semiconductor technology. "Precision Timing uses semiconductor technology to reimagine time and transform the $10 billion timing market," he stated. Vasjist also highlighted Sitime’s strategic positioning, noting, "We are managing our own destiny with the cards that we’ve been dealt."

Risks and Challenges

• Supply chain disruptions could impact production and delivery schedules.
• Market saturation in key segments may limit growth potential.
• Macroeconomic pressures, such as inflation, could affect cost structures.
• Increased competition in the semiconductor industry poses a threat.
• Regulatory changes and potential tariffs could impact international operations.

Q&A

During the earnings call, analysts inquired about the potential impact of tariffs on Sitime’s operations. The company assured stakeholders that no significant pull-in activity is expected. Additionally, analysts were interested in the company’s plans for product differentiation and capacity expansion, to which Sitime responded with a commitment to investing in new product capabilities and manufacturing improvements.

Full transcript - Sitime Corporation (SITM) Q1 2025:

Dee Dee, Conference Call Operator: Good afternoon, and welcome to Cytimes First Quarter twenty twenty five 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, 05/07/2025. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations.

Brett, please go ahead.

Brett Perry, Investor Relations, Shelton Group, Shelton Group: Thank you, Dee Dee. Good afternoon, and welcome to CyTime’s first quarter twenty twenty five financial results conference call. Joining us today on the call from CyTime are Rajesh Vasjist, Chief Executive Officer and Beth Howe, 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 position, 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 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 10 ks filed on 02/14/2025, as well as the company’s subsequent filings with the Securities and Exchange Commission. Also during the call, we’ll 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 GAAP to non GAAP reconciliation includes 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 CEO. Rajesh, please go ahead.

Rajesh Vasjist, Chief Executive Officer, SiTime: Thanks, Brett. Good afternoon. I’d like to welcome new as well as existing investors to Cytimes’ first quarter twenty twenty five earnings call. Cytimes is the leader in a dynamic new semiconductor category that we call precision timing, which is a heartbeat of modern electronics. Whether

Tore Svanberg, Analyst, Stifel: it

Rajesh Vasjist, Chief Executive Officer, SiTime: is in AI data centers, networking infrastructure, automated vehicles, personal mobility or IoT, SiTime’s Precision Timing delivers better performance and reliability. Precision Timing uses semiconductor technology to reimagine time and transform the $10,000,000,000 timing market. SiTime is uniquely focused on high value timing markets and applications and serving them with highly differentiated products that deliver exceptional value. With this strategy, we’re building a strong business that is diverse across industries, applications and geographies. This has served us well.

And even in this dynamic environment, it has enabled us to continue to grow rapidly. The numbers speak for themselves. Q1 twenty twenty five was a great quarter, where we delivered financial results well above our target. Revenue was 83% higher than the year ago at $60,300,000 gross margins were 57.4% and EPS was $0.26 per share. This growth was driven by all of our segments.

The comms enterprise data center, or CED, business tripled year over year, and both the mobile IoT consumer and the auto industrial defense customer segments grew double digit percentages. Revenue from our largest customer grew over 75%. We expect this strength to continue in Q2. Our CED business has shown significant sequential growth for four consecutive quarters now, driven by the strength of AI. Our OEM and cloud service provider customers continue to reaffirm their growth outlook, and we expect the data center business to continue to grow through 2025.

We know that AI infrastructure needs higher network bandwidth to improve GPU utilization rates, which directly impacts the consumption of SiTime’s precision timing products. There are two trends that confirm this infrastructure upgrade. First, optical module and switch bandwidth is doubling, and we’re shipping in high volume in 800 gs today. We’re now seeing increased design activity for 1.6T modules, which we expect will become the mainstream in ’twenty six and ’twenty seven. Citam has had success on 1.6T designs, and we have over 20 opportunities at customers worldwide.

As a second trend, active electrical cables, or AEC, continue to replace passive cables within the data center rack with two to 4x higher bandwidth. In both these applications, SiTime continues to be a highly differentiated solution where we deliver significant value in performance and resilient supply. Additionally, we are also very excited about our clocking business, which is central to the strategy of solving customers’ needs across the timing subsystem. We continue to have a sustainable advantage because we uniquely have all the components required to make truly differentiated products. By integrating the oscillator with the clock and software, Citam has created a new clock category that is a complete system solution, which delivers increased performance and simplified designs for our customers.

This strategy has the potential to create the highest clocking revenue in the industry in the coming years across all the customer segments. SiTime has already launched three clocking products with higher ASPs and longer revenue streams, a trend that will continue for products in the future. Some examples are in CED, our Cascade family offers the benefit of more resilient performance and has been designed into diverse applications from switches and MYC cards, network interface cards in data centers to five gs equipment and fixed wireless access or FWA. In automotive, our Corus family has over a dozen high value designs in ADAS or automated driving applications, where it offers the benefit of integration and higher reliability. For the mobile IoT consumer market, we have recently introduced Symphonic, the industry’s first integrated clock generator for five gs millimeter wave consumer products as well as asset trackers and GNSS or GPS receivers.

Symphonic customers get high performance with environmental resilience, small size, system power efficiency and also find homes in industrial applications. In these dynamic times, our product differentiation is key to continued success. I’m confident in SiTime’s ability to adapt to the rapid changes in the world today, while continuing to grow revenue, profitability and market share. With that, I’ll turn the call over to Beth, our CFO, to discuss financial results in more detail. Beth?

Beth Howe, Chief Financial Officer, SiTime: Thanks, Rajesh. Good afternoon, everyone. Today, I’ll discuss first quarter twenty twenty five results, and then I’ll provide our outlook for the second quarter of fiscal twenty twenty five. As a reminder, I’ll focus my discussion on non GAAP financial results, which are reconciled to GAAP in our press release. Our Q1 results highlight the momentum of our business.

First quarter revenue increased 83% year on year to $60,300,000 driven by ongoing strength in our data center business as well as growth in our mobile business. Sales to the Communications, Enterprise and Data Center customer segment were $29,300,000 up 198% year on year. Sales into the Automotive, Industrial and Defense customer segment were $14,100,000 up 10% year on year. And sales into the mobile, IoT and consumer customer segment were $16,900,000 up 64% year on year, with sales to our largest end customer increasing 76% to $11,100,000 In terms of the mix of revenue, Communications Enterprise Data Center represented 49% of revenue, Automotive, Industrial and Defense made up 23% of revenue, and the MobileIoT consumer represented 28% of total revenue. Gross margins for the quarter were 57.4%, with gross margin dollars increasing 81% year on year.

Total non GAAP operating expenses were $32,500,000 flat sequentially and in line with expectations. For the quarter, R and D expense was $19,300,000 and SG and A expense was $13,200,000 Q1 non GAAP operating income was $2,100,000 an improvement of $10,300,000 or 16 percentage points versus the same quarter a year ago. Q1 non GAAP net income was $6,300,000 or $0.26 per share. Turning to the balance sheet. Accounts receivable were $28,100,000 with DSO improving to forty two days versus fifty days in Q4.

Inventory ended the quarter at $82,600,000 compared with $76,700,000 in Q4 as we ramped production for key new products and continue to maintain strong wafer balances for assurance of supply. During the quarter, we generated $15,000,000 in cash from operations, up $1,500,000 sequentially and up $13,300,000 year over year. CapEx was $16,400,000 in the quarter, driven largely by the purchases of production equipment, and we paid $5,000,000 to Org Semiconductor. Our balance sheet remains strong, and we ended the quarter with $398,900,000 in cash and short term investments and no debt. Now I’d like to provide our outlook for the June.

For Q2, we expect revenue growth of 45 to 50% year on year, which is $64,700,000 at the midpoint gross margins to be approximately flat compared with Q1 operating expenses to be in the range of 33,000,000 to $33,500,000 and interest income of approximately $3,000,000 to $3,400,000 As a result, we expect second quarter non GAAP EPS to be in the range of $0.25 to $0.31 per share. With that, I’ll open it up for questions.

Dee Dee, Conference Call Operator: Thank you. And our first question comes from Quinn Bolton of Needham and Company. Your line is open.

Quinn Bolton, Analyst, Needham and Company: Hey, guys. Congratulations on the nice results and outlook. I guess, first question, Rajesh, you mentioned a significant design win back in March at the Morgan Stanley Investor Conference with your largest customer. That customer is up, I think, 76% year on year. Can you give us a sense, do you expect that kind of growth to continue throughout the year?

Just what should we be expecting as that customer launches phones with the internal modem where you have two timing sockets paired with that internal modem?

Rajesh Vasjist, Chief Executive Officer, SiTime: Yes. I think we should expect to have continued growth. I don’t know if it will be in the same percentage. Clearly, there is strength. You mentioned those two design wins.

I think those design wins are in good shape. What remains to be seen, however, as always is, first of all, as you know, it’s a consumer product, so it typically cycles up and down a little bit more than others. The second is, it’s the first one of its kind in the phone paired to their own certain chips that they have. So I think we’ve got to see where that goes. And finally, we do live in a very dynamic environment where you we don’t know what the impact of tariffs or not tariffs or lesser tariffs or more tariffs are going to have.

So all that being said, we continue to expect growth. Yeah.

Quinn Bolton, Analyst, Needham and Company: And maybe a follow-up for Beth. Beth, I think as revenue grows into the second half of the year, I think you were expecting margin expansion. Can you give us a sense, do you still expect margins to expand in the second half? And I guess as part of that, to the extent your largest customer, which is in the consumer space, continues to grow at a pretty healthy clip, would that potentially represent some drag on margins that we should be thinking about? Thank you.

Beth Howe, Chief Financial Officer, SiTime: Thanks for the question. So as we look at our gross margins, you indicated So we do remain committed to the gross margin target for our core business of 60% that we’ve been working towards. As we’ve discussed, we’re making improvements in our costs and yields for our new products as they ramp. In addition, as you mentioned, we do have this new consumer business, which does come at lower gross margins.

And so while it does contribute incremental revenue and gross profit dollars and also provide significant value to us over the long term, it does put some pressure on our gross margin rate. And so overall, we’re working to offset and mitigate that pressure to deliver the 60% by the end of the year. And that’s what we’re working towards.

Quinn Bolton, Analyst, Needham and Company: So 60% is still the target?

Beth Howe, Chief Financial Officer, SiTime: That’s still our target. Clearly, we’re working on it. We’ve got a little more work to do now with the new products.

Quinn Bolton, Analyst, Needham and Company: Understood. Thank you very much. I’ll get back in the queue.

Dee Dee, Conference Call Operator: Thank you. Our next question comes from Tore Svanberg of Stifel. Your line is open.

Tore Svanberg, Analyst, Stifel: Yes. Thank you and congratulations on the strong results. So I know there’s a lot of focus on your largest customer, but I mean the data center segment continues to be very robust Rajesh. So I was just hoping you could elaborate a little bit more on your growth profile there. You definitely talked about 800 gig upgrade cycle moving to 1.6.

You talked about the AUCs, but my understanding is that you participate in a lot of different parts of the AI data center. So how should we think about the continuous momentum here throughout the year?

Rajesh Vasjist, Chief Executive Officer, SiTime: Well, the continuous momentum is strong. So you rightly point out that while I have given examples in the optical module and the connectivity, there are other opportunities in switches in server racks, in the GPU, the CPU, accelerator cards and so on. And we are in fact in every one of those. We are also looking at new opportunities that are coming directly from GPUs that are being made by non semiconductor companies. And we see that as a tremendous opportunity as well.

So we stand pretty strongly behind continued growth, frankly, for years to come in the overall AI data center market, because we see no slowdown in it.

Tore Svanberg, Analyst, Stifel: Very good. Thank you for that. And as my follow-up, could you talk a little bit about which segments you expect to drive the sequential growth into the June? And have you seen any sort of pull in activity at all as related to potential tariffs?

Rajesh Vasjist, Chief Executive Officer, SiTime: Yeah. It’s always hard to tell whether there is pull in activity. But at this point, I would say it is minimal, if any. We haven’t detected any pull in activity. Our bookings natively just continue to be very strong, and customers are looking well beyond the ninety day tariff mark for Q3, Q4 and onwards.

So our outlook continues very bright and very solid. The growth will, as we said, just like we look back on Q1 and see that the growth came from every one of those, every one of those, whether it’s CD or data center I’m sorry, or mobile, IoT consumer or auto industrial defense, it will continue to come from all aspects. Might be a little bit lighter from the auto side, but I think it’s quite a uniform growth. And the reason for that, as always, is because of our differentiated products. Our premium products tend to be premium, and they get sold in our customers’ premium products, which are generally less impacted by weaknesses of any kind in the market.

So that’s why we think we’re in a strong position.

Tore Svanberg, Analyst, Stifel: Great. Congratulations again.

Rajesh Vasjist, Chief Executive Officer, SiTime: Thank you.

Dee Dee, Conference Call Operator: Thank you. And our next question comes from Chris Caso of Wolfe Research. Your line is open.

Chris Caso, Analyst, Wolfe Research: Yes, thank you. Good afternoon. I guess the first question is your outlook for the full year and you had talked about, I think 25% to 30% growth for the year. Given the differing landscape, both take into account, perhaps some of the design wins you spoke about, but also some of the uncertainty in the market. Is that still a valid goal for the year?

Or is that too low of a goal, too high of a goal? And what do you expect to be the drivers for the year? Has that changed as compared to what you thought a quarter ago?

Rajesh Vasjist, Chief Executive Officer, SiTime: Yeah, so we are, of course, monitoring like everybody else to the extent we can, the dynamic environment, and what we see going on in the world at large. But having said that, we would still reaffirm growth prospects at that number we talked about 25% to 30% for the base business and additional growth based on the new design win that we have had. We see we again go back to the differentiation of our products, and the breadth of our products. We go back to the fact that we are now in the system timing selling business with the clocking products, as I indicated in my prepared remarks. And finally, to the fact that our design win funnel continues very strongly, which matches the product funnel.

As far as where they come from, I’ll reiterate the same thing I said earlier, which is it’ll happen in all segments. It’s highly likely that CED led by data center will grow significantly strongly, just as it did the last quarter, but all the others will also join in. So it’s all boats will be going up, perhaps one or two higher than others.

Chris Caso, Analyst, Wolfe Research: Got it. And then a question for Beth, and just to follow-up with some of your comments on gross margins. So what are the levers that you can pull to get to that 60% target at the end of the year while factoring in some of the lower margin revenue? Is that a fraction of cost reduction on some of the products? Or is that a function of mix with regard to

Tore Svanberg, Analyst, Stifel: the rest of the business?

Beth Howe, Chief Financial Officer, SiTime: Sure, Chris. So as we look at it, it’s a function of a couple of things. So one is that we are making progress in terms of the new product introductions and the ramp there, improving the cost of those new products and improving the yields as those ramp. And that’s the work we’ve been doing, we’ve been talking about. We also expect revenue growth as we go through the year.

And so that expect to see some operating leverage or manufacturing kind of leverage as we have more revenue. And as I said in earlier, the new business does provide incremental gross profit dollars, but is a bit of a pressure on the rate. And so we’ll be looking to take additional actions to improve the cost structure in order to overcome some of those headwinds.

Chris Caso, Analyst, Wolfe Research: Got it. And if I could ask one more, Rajesh, with regard to the data center business, mentioned a couple of different trends within that business. Perhaps you could separate out your content going forward and things like, you know, 1.6 terabyte modules, active cables and that, you know, how does your content grow as, you know, some of these new technologies go in as compared to your penetration, just side time getting a bigger market share of some of these markets? Yeah, so I think

Rajesh Vasjist, Chief Executive Officer, SiTime: the dollar content doesn’t increase. Let’s look at our ASP doesn’t increase as a going from 800 to 1.6 in any significant way. So that’s one. That’s not happening. Our dollar content remains steady in each of the design wins.

The number of design wins increases for sure, because the need for precision timing gets continued to be spread out more and more. As an example, it was only a year ago that we started to see our first AEC or active electrical cables being used. And some of the accelerator cards didn’t use any of our Precision products two years ago, and now some of them are using some of our most valuable, highly differentiated products. The third way is a greater penetration into customers, because we while we have done a reasonably good job at penetrating some of our customers in the OEM semiconductor module space, there’s still more penetration to be had there. So the expand inside after landing strategy.

And then there are new customers, particularly as CSPs, that are still not directly meaningful customers of Citan. So we really have a lot of levers to pull here. And there’s also the change in architecture that happens in many cases. So one of them is, for example, going after a significantly denser architecture with significantly higher use case of SiTime’s precision timing products per unit or increase in the density of usage. So all in all, we think that this is a big updraft for Cytimes for some significant time to come.

Brett Perry, Investor Relations, Shelton Group, Shelton Group: Got it. Thank you.

Rajesh Vasjist, Chief Executive Officer, SiTime: Yeah.

Dee Dee, Conference Call Operator: Thank you. Our next question comes from Suji Desilva of Roth Capital. Your line is open.

Suji Desilva, Analyst, Roth Capital: Hi, Rajesh. Hi, Beth. Congrats on the progress here. Can you talk about the platforms you called out naming them Rajesh, Cascade, Chorus, Symphonic and just how you’re trying to portray the product portfolio and roadmap here? I it’s first time I’ve heard those called out together as sort of your platform.

Rajesh Vasjist, Chief Executive Officer, SiTime: Right, right. Thank you for that. Our Cascade family of products is much more on the CED side. It’s being used in communications, in enterprise, in data center. It’s our most complex chip in the clocking business.

It’s probably our first chip that we did in clocking. There are versions of it that are integrated with oscillators. There are versions of it that are not integrated. So there’s a whole price performance level of it, and it’s in the higher end of the range. The second one is relatively new, Chorus family of products, for some reason not what for some reason, but for reason of integration and higher reliability, is more attuned for the automotive market and the self driving market, primarily because of its significantly smaller size and significantly higher performance in terms of jitter and phase noise.

And the final one is the latest one. I think we just got the press release out on that a day or two ago, the Symphonic, which is a SiTime generated all of these are SiTime generated, except Cascade, by the way, which comes from the Aura acquisition. But the Symphonic product is a multi output clock generator, more for the five gs millimeter wave, which we think other than consumer products is also getting used significantly in industrial applications. And that’s based on the phase noise, the resilience, the small size, the low power. So these are multi year efforts at cracking the market.

And the point that I wanted to make was that with the launch of Symphonic in particular, we have increased our target revenue that we expect to get over the coming years. I’ve always said about $100,000,000 in a few years from our clocking business, and I can say comfortably that we are highly likely to increase it significantly in the coming years because of the launch of some of these products. So very, very pleased with that and very pleased with the traction that we’ve been getting.

Suji Desilva, Analyst, Roth Capital: Okay. And just to clarify the strong growth you’re having in data center and optical, should I think of that as being majority cascade or is that the oscillator products and shifting to more

Rajesh Vasjist, Chief Executive Officer, SiTime: optical the oscillators. Yeah, all the oscillators, the EPYC product, the Elite RF, the Elite itself, the Elite TCXOs, the clocking products, even some of the buffers from Aura, which are relatively undifferentiated, but higher number in use case. I think we are this is the CED business is the classic case we’ve always maintained, is the one which is the highest growth, the greatest value proposition that Citam can bring, the highest ASPs with the highest volumes that balance, and of course, sticky or very long lived business. So it’s very much a business that we are very focused on.

Suji Desilva, Analyst, Roth Capital: Okay, great. Very helpful, Rajesh. Thanks.

Rajesh Vasjist, Chief Executive Officer, SiTime: Thank you.

Dee Dee, Conference Call Operator: Thank you. And we have a follow-up from Tore Svanberg of Stifel. Your line is open.

Tore Svanberg, Analyst, Stifel: Yes, thank you. Yeah, Rajesh, I know you’ve got a lot of momentum I also know you have a lot of design wins in the telecom five gs communications market. Just wondering if that’s starting to move? Or is that market still quite slow?

Rajesh Vasjist, Chief Executive Officer, SiTime: Yes, it’s thank you for that question, Tore. Yes, it is starting to move and it isn’t particularly large right now, but we expect to keep on growing in that. There are some initiatives going on in fixed wireless In overseas, there are others in the enterprise space that are looking quite good. So we think we’ll acquire new customers in this. So very, very enthused about it.

And I briefly mentioned software and CyTime has for the last year or so been using IEEE fifteen eighty eight or synchronization software to add greater value to our customers. And that has allowed us to, frankly, charge more for our oscillator and clocking products, because customers need that full solution of oscillator clocks and the synchronized software altogether. It’s another example of our system cell.

Tore Svanberg, Analyst, Stifel: Very good. As my last question, a question for Beth. Beth, the CapEx has been around 15,000,000 to $16,000,000 the last three quarters. I assume that’s for maybe a combination of things. But could you give us any sense for how much longer it would be at this more elevated level?

Beth Howe, Chief Financial Officer, SiTime: Thanks, Tore. Yes, we’ve been investing to build capacity for some of these new products that we’ve been talking about, the ones we talked about today, for example. I would expect we’ve got a little more to go in terms of Q2 at these levels. And for the full year, probably roughly in line with the total for 2024. So I would expect the total CapEx for the year to be kind of mid- to high 30s for the year.

Tore Svanberg, Analyst, Stifel: Perfect, thank you.

Dee Dee, Conference Call Operator: Thank you. We have no further questions at this time. I’d like to turn it back to management for closing remarks.

Rajesh Vasjist, Chief Executive Officer, SiTime: Thank you, Didi. What I wanted to highlight here was that these are tough times, from macro conditions, there are uncertainties in the market, it’s highly dynamic, The news continues to change and evolve. And at Citam, we ask ourselves, what is our role in all this? And our role in all of this is to navigate this with to the best of our ability. And where we can do a great job is focus and stick to the things that we can control.

So what do we control? We control the cadence and value of our parts. We’re doing that with highly differentiated product. We continue we can control the acquisition of key customers and greater penetration. We continue to do that in many of our new customers.

We have acquired new customers, new applications. We are obviously able to control our spending. And as you can see, our spending continues to be flattish as we go, and we control increasing our gross margins. So we’re doing that as well. So in general, we are managing our own destiny with the cards that we’ve been dealt.

And I think that I feel very confident that by sticking to all of these valuable leverage, all of these valuable levers, we can come out on the other end of it very, very strong. And thank you for your attention to this and listening into our quarterly results.

Dee Dee, Conference Call Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.

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