SiTime Q2: Blowout Growth from Timing; Rising Density

The I/O Fund’s positions appear to be competing over which stock will have the biggest blowout quarter, with SiTime being a strong contender in Q2. This evening the company reported revenue of $157.4 million for YoY growth of 126.5% compared to estimates for $146.4 million. Gross margin also expanded nearly 9 points to 67.1% and operating margin was 34% compared to a 10% operating margin a year ago. For next quarter, the company guided to revenue of $285M to $295M, including approximately $85 million from the newly acquired Timing Products Division (TPD). Excluding the acquisition, SiTime revenue is expected to reach $200M to $210M, representing 30% sequential growth at the midpoint. Driving this beat is SiTime’s precision timing solutions moving from being a discrete component located around the system to a technology in the “heart of the system” through chiplets, advanced substrates and modules.