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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

SiTime Reports Fourth Quarter and Fiscal Year 2019 Financial Results

February 5, 2020 GMT

SANTA CLARA, Calif., Feb. 05, 2020 (GLOBE NEWSWIRE) -- SiTime Corporation, (Nasdaq: SITM), a leader in MEMS-based silicon timing system solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2019.

Net revenue in the fourth quarter of 2019 was $28.1 million, a 22.9% increase from the $22.9 million in the fourth quarter of 2018. Net revenue for the year ended December 31, 2019 was $84.1 million, a 1.3% decrease from the $85.2 million in the year ended December 31, 2018.

Generally Accepted Accounting Principles (GAAP) Results

Net income for the fourth quarter of 2019 was $0.6 million, or $0.05 per diluted share. Gross margins were 47.9%, operating expenses were 44.2% of revenue, and GAAP income from operations was 3.7% of revenue.

Total cash and cash equivalents were $63.4 million at December 31, 2019.

Non-GAAP Results

This press release and its attachments include certain non-GAAP supplemental performance measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

SiTime believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to SiTime’s financial condition and results of operations. SiTime believes that these non-GAAP financial measures provide additional insight into SiTime’s ongoing performance and core operational activities and has chosen to provide these measures for more consistent and meaningful comparison between periods. These measures should only be used to evaluate SiTime’s results of operations in conjunction with the corresponding GAAP measures. The non-GAAP results exclude the effect of stock-based compensation and related payroll taxes.

The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

In the fourth quarter of 2019, non-GAAP net income was $2.0 million, or $0.16 per diluted share. Non-GAAP gross margins were 48.0%, operating expenses were 39.4% of revenue, and non-GAAP income from operations was 8.6% of revenue.

Conference Call

SiTime will broadcast its fourth quarter of 2019 financial results conference call today, February 5, 2020, at 2 p.m. Pacific Time (5 p.m. Eastern Time), which can be accessed by calling +1-844-467-7657 and using conference ID 2295684. The conference call will also be available via a live webcast on the investor relations section of the SiTime website at investor.sitime.com. Please access the website at least a few minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay of the call will be available on the website for a limited period of time.

About SiTime

SiTime Corporation is a market leader in silicon MEMS timing. Our programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With over 1.5 billion devices shipped, SiTime is changing the timing industry.

SiTime Corporation Unaudited GAAP Condensed Consolidated Statement of Operations Three Year Months Ended Ended -------- -------- December 31, 2019 -------------------- (in thousands, except per share data) Revenue $ 28,089 $ 84,074 Cost of revenue 14,641 44,516 - ------ - ------ Gross profit 13,448 39,558 Operating expenses: Research and development 5,949 23,795 Sales, general and administrative 6,469 20,636 - ------ - ------ Total operating expenses 12,418 44,431 - ------ - ------ Income (loss) from operations 1,030 (4,873 ) Interest expense (393 ) (1,714 ) Other expense, net (13 ) (28 ) - ------ - ------ Income (loss) before income taxes 624 (6,615 ) Income tax benefit 9 8 - ------ - ------ Net income (loss) $ 633 $ (6,607 ) - ------ - ------ Net income (loss) attributable to common stockholder and comprehensive income $ 633 $ (6,607 ) - ------ - ------ Net income (loss) per share attributable to common stockholder, basic $ 0.05 $ (0.63 ) - ------ - ------ Weighted-average shares used to compute basic net income (loss) per share 12,214 10,558 - ------ - ------ Net income (loss) per share attributable to common stockholder, diluted $ 0.05 $ (0.63 ) - ------ - ------ Weighted-average shares used to compute diluted net income (loss) per share 12,685 10,558 - ------ - ------

SiTime Corporation Unaudited Reconciliation of Non-GAAP Adjustments Three Year Months Ended Ended -------- -------- December 31, 2019 -------------------- (in thousands, except per share data) Reconciliation of GAAP gross profit and margin to non-GAAP Revenue $ 28,089 $ 84,074 GAAP gross profit 13,448 39,558 GAAP gross margin 47.9 % 47.1 % Stock-based compensation 36 36 - ------ - ------ Non-GAAP gross profit $ 13,484 $ 39,594 - ------ - ------ Non-GAAP gross margin 48.0 % 47.1 % - ------ - ------ Reconciliation of GAAP operating expenses to non-GAAP GAAP research and development expenses 5,949 23,795 Stock-based compensation (346 ) (346 ) - ------ - ------ Non-GAAP research and development expenses $ 5,603 $ 23,449 - ------ - ------ GAAP sales, general and administrative expenses 6,469 20,636 Stock-based compensation (997 ) (997 ) - ------ - ------ Non-GAAP sales, general and administrative expenses $ 5,472 $ 19,639 - ------ - ------ Total Non-GAAP operating expenses $ 11,075 $ 43,088 - ------ - ------ Reconciliation of GAAP income (loss) from operations to non-GAAP income (loss) from operations GAAP income (loss) from operations $ 1,030 $ (4,873 ) Stock-based compensation 1,379 1,379 - ------ - ------ Non-GAAP income (loss) from operations $ 2,409 $ (3,494 ) - ------ - ------ Non-GAAP income (loss) from operations as a percentage of revenue 8.6 % -4.2 % Reconciliation of GAAP net income (loss) to non-GAAP net income (loss) GAAP net income (loss) $ 633 $ (6,607 ) Stock-based compensation 1,379 1,379 - ------ - ------ Non-GAAP net income (loss) $ 2,012 $ (5,228 ) - ------ - ------ Weighted-average shares used to compute diluted net income (loss) per share 12,685 10,558 - ------ - ------ GAAP net income (loss) per share diluted $ 0.05 $ (0.63 ) Non-GAAP adjustments detailed above 0.11 - Non-GAAP net income (loss) per share diluted $ 0.16 $ (0.63 )

SiTime Corporation Unaudited GAAP Condensed Consolidated Balance Sheet As of --------- December 31, 2019 --------- (in thousands, except share and per share data) Assets: Current assets: Cash and cash equivalents $ 63,418 Accounts receivable, net 17,659 Related party accounts receivable 1,073 Inventories 11,911 Prepaid expenses and other current assets 5,601 - ------- Total current assets 99,662 Property and equipment, net 9,288 Intangible assets, net 4,489 Right-of-use assets, net 9,790 Other assets 162 - ------- Total assets $ 123,391 - ------- Liabilities and Stockholders’ Equity: Current liabilities: Accounts payable $ 3,869 Accrued expenses and other current liabilities 8,442 Loan obligations 41,000 - ------- Total current liabilities 53,311 Lease liabilities 7,940 - ------- Total liabilities 61,251 - ------- Commitments and contingencies Stockholders’ equity: Common stock 2 Additional paid-in capital 116,162 Accumulated deficit (54,024 ) - ------- Total stockholders’ equity 62,140 - ------- Total liabilities and stockholders’ equity $ 123,391 - -------

Investor Relations Contacts:

Shelton GroupLeanne Sievers | Brett Perry949-224-3874 | 214-272-0070 sheltonir@sheltongroup.com

SiTime CorporationArt ChadwickChief Financial Officer investor.relations@sitime.com