SiTime Corp (SITM) 2022 Q2 法說會逐字稿

Good afternoon, and welcome to SiTime's Second Quarter 2022 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Wednesday, August 3, 2022.

下午好，歡迎參加 SiTime 2022 年第二季財務業績電話會議。 (操作員指示) 提醒一下，本次電話會議將於今天（2022 年 8 月 3 日，星期三）錄製。

I would like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

我想把電話轉給謝爾頓集團投資者關係部門的布雷特·佩里。布雷特，請講。

Good afternoon, and welcome to SiTime's second quarter 2022 financial results conference call. On today's call from SiTime are Rajesh Vashist, Chief Executive Officer; and Art Chadwick, Chief Financial Officer.

下午好，歡迎參加 SiTime 2022 年第二季財務業績電話會議。 SiTime 今天的電話會議嘉賓包括執行長 Rajesh Vashist 和財務長 Art Chadwick。

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.

在開始之前，我想指出，在本次電話會議中，公司可能會就預期的未來業績做出前瞻性陳述，包括財務狀況、策略和計劃、未來營運、時機市場以及其他討論領域。公司管理階層不可能預測所有風險，也無法評估所有因素對其業務的影響，也無法評估任何因素或因素組合可能導致實際結果與任何前瞻性陳述中所述結果產生重大差異的程度。

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 the forward-looking statements.

鑑於這些風險、不確定性和假設，本次電話會議中討論的前瞻性事件可能不會發生，實際結果可能與預期或暗示的結果有重大不利差異。本公司或任何個人均不對前瞻性陳述的準確性和完整性承擔責任。

The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of this call to conform the statements to actual results or to changes in the company's expectations. For more detailed information on risk associated business, we refer you to the risk factors described in the 10-K filed on February 25, 2022, as well as the company's subsequent filings with the SEC.

本公司不承擔在本次電話會議召開日後因任何原因公開更新前瞻性陳述的義務，以使這些陳述與實際結果或公司預期的變化相符。有關風險相關業務的更多詳細信息，請參閱公司於2022年2月25日提交的10-K文件中所述的風險因素，以及公司隨後向美國證券交易委員會（SEC）提交的文件。

Also during this call, we'll refer to certain non-GAAP financial measures, which we consider to be an important measure of company performance. These non-GAAP financial measures are provided in addition to, and not as a substitute nor superior to, measures of financial performance prepared in accordance with U.S. GAAP. The only difference between GAAP and non-GAAP results is stock-based compensation expense and related payroll taxes. Please refer to the company's press release issued today for a detailed reconciliation between GAAP and non-GAAP financial results.

此外，在本次電話會議中，我們將提及一些非公認會計準則 (non-GAAP) 財務指標，我們認為這些指標是衡量公司績效的重要指標。這些非公認會計準則 (non-GAAP) 財務指標是根據美國公認會計準則 (US GAAP) 編制的財務績效指標的補充，並非替代或優於後者。公認會計準則 (GAAP) 和非公認會計準則 (Non-GAAP) 財務表現之間的唯一區別在於股票薪資費用和相關薪資稅。有關公認會計準則 (GAAP) 和非公認會計準則 (Non-GAAP) 財務表現的詳細對賬，請參閱本公司今天發布的新聞稿。

With that, it's now my pleasure to turn the call over to Rajesh. Please go ahead.

好了，現在我很樂意把電話交給 Rajesh。請講。

Good afternoon, and thank you for joining us on today's SiTime call. While the focus of today's discussion is on Q2 results and Q3 forecast, I want to begin with the transformation of SiTime as a result of the acceleration in electronic macro trends, such as high bandwidth communications, cloud, EV and IoT.

下午好，感謝您參加今天的 SiTime 電話會議。雖然今天的討論重點是第二季業績和第三季預測，但我想先談談 SiTime 在高頻寬通訊、雲端、電動車和物聯網等電子宏觀趨勢加速發展下所經歷的轉型。

Here, precision timing products are defined as high-performance, small size and power efficient under demanding environmental conditions such as vibration, shock and temperature, are becoming the solution of choice. While precision timing is used significantly in comms enterprise, their use is growing in automotive and certain mobile IoT consumer applications.

在這裡，精密授時產品被定義為在振動、衝擊和溫度等嚴苛環境條件下仍具有高性能、小尺寸和高能源效率的產品，正成為首選解決方案。精密授時在通訊企業中應用廣泛，但在汽車和某些行動物聯網消費應用中，其應用也日益增長。

As a creator of the category of precision timing, SiTime plays a central role in this transformation. As we transition from our legacy non-precision timing products and design wins into this transformation, SiTime will get significantly higher ASPs, more design win stickiness and a discussion of architecture with our customers.

作為精密定時產品的開創者，SiTime 在這項轉型中扮演核心角色。隨著我們從傳統的非精密定時產品和設計訂單轉向這一轉型，SiTime 將獲得顯著更高的平均售價、更強的設計訂單黏性，以及與客戶在架構方面的深入探討。

On Q2, SiTime had a banner Q2, we delivered record revenues of $79.4 million, non-GAAP gross margin of 66.7% and non-GAAP EPS of $1.11, all exceeding our previous guidance. This was our 11th consecutive quarter to do so. In Q2, we had the highest ASPs in the history of the company, 30% higher year-on-year and 10% higher quarter-on-quarter. This came from the role of greater precision timing products in our revenue.

SiTime 在第二季業績亮眼，營收達到創紀錄的 7,940 萬美元，非 GAAP 毛利率達到 66.7%，非 GAAP 每股收益達到 1.11 美元，均超出了我們之前的預期。這是我們連續第 11 個季度實現這一目標。第二季度，我們的平均售價創下公司歷史新高，年增 30%，季增 10%。這得歸功於更高精準度的計時產品在我們營收中所佔的比重。

While multiple segments contributed to this growth, our comms enterprise business was a standout. It grew 60% over Q1 and was the segment of the highest growth rate. Multiple customers in this application, such as network interface cards or NICS, data center servers and 5G wireless contributed to this growth, and we believe that the trend will continue in the second half. A common theme amongst these customers and applications was the use of our precision planning products to get a better system performance.

雖然多個細分市場促成了這一成長，但我們的通訊企業業務尤其突出。該業務較第一季成長了60%，是成長率最高的細分市場。該應用領域的眾多客戶，例如網路介面卡（NICS）、資料中心伺服器和5G無線，都為這一成長做出了貢獻，我們相信這一趨勢將在下半年持續下去。這些客戶和應用的共同點是使用我們的精準規劃產品來提升系統效能。

As an example, one of these products, Elite, doubled in unit shipment from Q1 to Q2. And additionally, our precision timing opportunities have now grown to be 70% of our funnel. Automotive was the segment with the second largest growth despite some customer pushouts due to industry-wide supply chain issues. SiTime's previous success in ADAS computers, domain controllers and cameras continued, and we have begun to see volume ramping from newer applications as well, such as driver monitoring systems and LiDAR.

例如，其中一款產品 Elite 的出貨量從第一季到第二季翻了一番。此外，我們的精密計時業務機會現已成長至我們銷售漏斗的 70%。儘管由於全行業供應鏈問題導致一些客戶推遲交付，但汽車仍然是成長第二快的領域。 SiTime 先前在 ADAS 電腦、網域控制站和攝影機領域的成功仍在延續，我們也開始看到駕駛員監控系統和雷射雷達等新應用的出貨量成長。

As we know, the automobile is being transformed and new functionality in sensing, computing and communications are -- is continuously being added. Getting this functionality to work in the presence of vibration, shock,temperature extremes is a difficult challenge, but one that can be solved and is solved by precision timing products from SiTime. This is a natural place for SiTime to deliver value and grow, and we remain on track to deliver $100 million in annual automotive revenue in the next few years.

眾所周知，汽車正在經歷變革，感測、運算和通訊領域的新功能不斷湧現。讓這些功能在振動、衝擊和極端溫度下正常工作是一項艱鉅的挑戰，但SiTime的精密定時產品可以解決這個問題。 SiTime自然地利用這一點來創造價值並實現成長，我們有望在未來幾年內實現每年1億美元的汽車收入。

In May, when we increased our guidance from 35% to 50% annual growth, we did not anticipate the subsequent conditions financial downturn, supply chain disruptions and political turmoil, all of which made it difficult for our customers to see the magnitude and the speed of decline in their own business. This is evident in our mobile IoT consumer segment, that is those that place lower value on the benefits of precision timing.

今年5月，當我們將年增長率預期從35%上調至50%時，我們並未預見到隨後出現的金融衰退、供應鏈中斷和政治動盪。所有這些因素都使我們的客戶難以預見自身業務下滑的幅度和速度。這在我們的行動物聯網消費者細分市場中尤其明顯，這些細分市場對精準計時的益處重視程度較低。

Excluding our largest customer, the mobile IoT consumer segment is expected to be down by more than 30% in the second half of 2022. Considering our end customers' visibility, we are, therefore, now comfortable with our earlier guidance of 35% annual growth for 2022. In line with that, we will manage our expenses prudently in the second half of this year.

除我們最大的客戶外，預計行動物聯網消費者領域在 2022 年下半年將下降 30% 以上。考慮到我們最終客戶的可見性，因此，我們對先前對 2022 年 35% 年增長率的預測感到滿意。為此，我們將在今年下半年審慎管理我們的開支。

But our original thesis remains intact. We firmly believe that our longer-term top line growth will be 30% or more driven by the SAM expansion to $4 billion, the greater need for precision timing and fulfillment of those needs uniquely by SiTime. We also continue to see a long-term financial model of 65% gross margin and 30% net income as being intact.

但我們最初的論點保持不變。我們堅信，受 SAM 業務擴張至 40 億美元、市場對精準計時的需求不斷增長以及 SiTime 獨有的滿足這些需求的推動，我們的長期營收成長將達到 30% 或更高。我們也繼續認為，65% 的毛利率和 30% 的淨利潤的長期財務模型將保持不變。

We continue to invest significantly in the development of new precision timing products. In 2022 itself, we will sample 6 of these oscillators and clocks. These address the macro trends that I referred to that are transforming electronics, high-bandwidth communications, cloud, EV and IoT. With these, we are confident in our ability to transform the electronics industry driven by greater adoption of these products.

我們持續大力投入，開發新型精密計時產品。 2022年，我們將推出6款振盪器和時鐘樣品。這些產品正契合我之前提到的電子、高頻寬通訊、雲端運算、電動車和物聯網等領域的宏觀趨勢。憑藉這些產品，我們有信心透過這些產品的廣泛應用，推動電子產業的變革。

We expect that the stellar comms enterprise performance will continue into the second half with the volume ramping up of applications like 400G, 800G optical modules and data center switches. In our last call, we talked about a clock family with 200 customers by the end of '22, and that strength continues. 60% Of the Cascade, the clock family, revenue in '22 and '23 will now come from NIC cards, 5G, RRU, and backhaul. Our investment in this segment is working. In 2022, comms enterprise is expected to grow to over 25% of our revenue compared to 16% last year in 2021. For example, again, our Elite product is expected to grow 3x in revenue over 2021.

我們預計，隨著400G、800G光模組和資料中心交換器等應用程式的銷售成長，通訊企業業務的出色表現將延續到下半年。在上次電話會議中，我們談到了到2022年底將擁有200個客戶的時鐘系列，這種強勁勢頭將繼續延續。 Cascade時鐘系列在2022年和2023年的收入中，60%將來自網路卡、5G、RRU和回程。我們在這一領域的投資正在取得成效。預計到2022年，通訊企業業務將占我們收入的25%以上，而2021年這一比例為16%。例如，我們的Elite產品預計2021年的營收將成長3倍。

The value and uniqueness of SiTime products is also clearly on display at our largest customer, which is in the mobile IoT consumer segment. Our revenue here continues to grow strongly in the second half of 2022, and the design win funnel continues to grow strongly as well. In the previous call, we have spoken about the strength of Aero Defense business. We're now engaged with the top defense contractors worldwide and our funnel continues to grow as they discover the strength of our unique precision timing products.

SiTime 產品的價值和獨特性在我們最大的客戶——行動物聯網消費領域——也得到了清晰的展現。 2022 年下半年，我們在該領域的營收持續強勁成長，設計訂單漏斗也持續強勁成長。在之前的電話會議中，我們談到了航空防務業務的實力。我們目前正在與全球頂級國防承包商合作，隨著他們逐漸發現我們獨特的精密計時產品的優勢，我們的訂單漏斗也不斷擴大。

The uniqueness of these SiTime products comes from the uniqueness of SiTime technology. We've always maintained that our MEMS, analog circuits and the systems, putting it together to deliver a system solution is hard to do. In the past decade, we have not seen a credible competitor that is using similar technologies, and we don't see one on the horizon currently.

SiTime 產品的獨特性源自於 SiTime 技術的獨特性。我們始終認為，將我們的 MEMS、類比電路和系統整合在一起，形成系統解決方案並非易事。在過去十年中，我們尚未看到任何可靠的競爭對手使用類似的技術，目前也看不到任何競爭對手的身影。

A great advantage for SiTime during the turmoil of the past 2 years has been the flexibility and the solidity of our supply chain. We've made great inroads with customers because our supply chain has been proven to be superior to that of our existing -- to that of the existing suppliers in the market today.

在過去兩年的動盪時期，SiTime 的一大優勢在於其供應鏈的靈活性和穩固性。我們之所以能與客戶取得巨大進展，是因為我們的供應鏈已被證明優於我們現有的——甚至優於目前市場上其他供應商的——供應鏈。

That strength continues due to the support of TSMC, Bosch and our OSAT partners. Given that a majority of our customers are single sourced, our supply chain strength continues to be a competitive advantage for SiTime. In conclusion, as a category creator of precision timing, SiTime is uniquely positioned to transform this industry. We believe that our long-term growth and market share gains will continue unabated in the future.

得益於台積電、博世以及我們OSAT合作夥伴的支持，SiTime的實力得以持續提升。鑑於我們大多數客戶都採用單一來源，我們強大的供應鏈實力將繼續成為SiTime的競爭優勢。總而言之，作為精密計時領域的開創者，SiTime擁有獨特的優勢，能夠引領業界變革。我們相信，未來我們的長期成長和市場份額成長將持續強勁。

With that, I'll now turn it over to Art Chadwick, our CFO.

現在，我將把發言權交給我們的財務長 Art Chadwick。

Great. Thanks, Rajesh, and good afternoon, everyone. Today, I'll discuss second quarter results and provide some comments on Q3 and the year. I'll focus my discussion on non-GAAP financial results and refer you to today's press release for a detailed description of our GAAP results, as well as a reconciliation of GAAP to non-GAAP results.

太好了！謝謝，Rajesh，大家下午好。今天，我將討論第二季的業績，並對第三季和全年業績發表一些評論。我將重點討論非公認會計準則 (Non-GAAP) 的財務業績，並請大家參閱今天的新聞稿，其中詳細介紹了我們的公認會計準則 (GAAP) 業績，以及公認會計準則 (GAAP) 與非公認會計準則 (Non-GAAP) 業績的對帳。

So as Rajesh mentioned, Q2 was a record revenue quarter for us. Revenue was $79.4 million, up 13% sequentially and up 78% over the same quarter last year with exceptional strength in our higher-end, higher-performance products. Sales into our mobile IoT and consumer segment, which consists of sales into mobile phones, wearable devices and consumer products, were $27.0 million or 34% of sales, down 10% sequentially, but up 24% over the same quarter last year.

正如Rajesh所提到的，第二季是我們創紀錄的營收季。營收達到7,940萬美元，季增13%，年增78%，這得益於我們高端、高性能產品的強勁表現。我們行動物聯網和消費品部門（包括手機、穿戴式裝置和消費性產品）的銷售額為2,700萬美元，佔銷售額的34%，較上季下降10%，但較去年同期成長24%。

Sales to our largest end customer, which are included in this segment, accounted for 14% of total sales. Sales into our Industrial, Automotive and Aerospace segment, which includes sales into automotive, industrial, medical, aerospace, military and broad-based sales were $32.2 million or 41% of sales, up 17% sequentially and up 137% year-over-year.

對我們最大終端客戶的銷售額（包括在此部門內）佔總銷售額的14%。工業、汽車和航空航天部門（包括汽車、工業、醫療、航空航太、軍事和廣泛領域）的銷售額為3,220萬美元，佔銷售額的41%，較上季成長17%，較去年同期成長137%。

Sales into our Communications & Enterprise segment, which consists of wireless infrastructure, 5G, data center and networking were $20.2 million or 25% of sales, up 60% sequentially and up 120% over last year.

我們的通訊和企業部門（包括無線基礎設施、5G、資料中心和網路）的銷售額為 2,020 萬美元，佔銷售額的 25%，比上一季成長 60%，比去年增長 120%。

Non-GAAP gross margins were strong at 66.7%, up 140 basis points from Q1 and up more than 5 points over the same quarter last year. Non-GAAP operating expenses were $28.3 million, a 15% sequential increase over Q1 as we expanded our workforce and increased investment in new product development.

非公認會計準則 (Non-GAAP) 毛利率強勁，達 66.7%，較第一季上升 140 個基點，較去年同期上升逾 5 個百分點。非公認會計準則 (Non-GAAP) 營運費用為 2,830 萬美元，較第一季成長 15%，這得益於我們擴大了員工隊伍並加大了新產品開發投入。

Expenses were $16.7 million in R&D and $11.5 million in SG&A. Non-GAAP operating margins were 31.1%. Non-GAAP net income was $25.3 million or $1.11 per share. This is up from $21.3 million or $0.94 per share in Q1 and up from $9.6 million or just $0.46 per share in the same quarter last year.

研發費用為1670萬美元，銷售、一般及行政費用為1150萬美元。非公認會計準則營業利益率為31.1%。非公認會計準則淨利為2530萬美元，即每股1.11美元。高於第一季的2,130萬美元，即每股0.94美元，也高於去年同期的960萬美元，即每股0.46美元。

Stock-based compensation expense decreased from $15.2 million in Q1 to $12.5 million in Q2, as we adjusted stock comp expenses related to some internally granted performance RSUs. Receivables were $38.7 million with DSOs of 44 days, and inventory was $34.4 million, up from last quarter as we continued to increase wafer buffer stock.

股票薪酬支出從第一季的1,520萬美元下降至第二季的1,250萬美元，原因是我們調整了與部分內部授予的績效限制性股票單位（RSU）相關的股票薪酬支出。應收帳款為3870萬美元，應收帳款週轉天數為44天；庫存為3440萬美元，較上一季度有所增長，這得益於我們持續增加晶圓緩衝庫存。

In regard to cash flow, we generated $15.3 million in positive cash flow from operations, invested $9.6 million in equipment and assets and ended the quarter with $580 million in cash and no bank debt.

在現金流方面，我們從營運中產生了 1,530 萬美元的正現金流，投資了 960 萬美元的設備和資產，本季末我們擁有 5.8 億美元的現金，沒有銀行債務。

I'd now like to provide some comments on Q3 and the year. First of all, we believe our long-term strategy of developing and selling higher performance products into markets that require ever more precision timing is strongly intact. However, the current macroeconomic environment is impacting sale of some of our products and especially our lower-end products.

現在我想就第三季和全年業績發表一些評論。首先，我們相信，我們開發高性能產品並向對精準計時要求更高的市場銷售的長期策略仍然牢固。然而，目前的宏觀經濟環境正在影響我們部分產品，尤其是低階產品的銷售。

At the beginning of this year, we thought 2022 revenue would increase by at least 35%, which we discussed on our conference call in early February. Three months later, we were more optimistic. And in early May, we voiced our opinion that 2022 revenue could increase by at least 50%. That view is based on then current order rates and were supported by our internal forecast.

今年年初，我們預計2022年的營收將至少成長35%，並在2月初的電話會議上討論了這一點。三個月後，我們變得更樂觀。 5月初，我們表示，2022年的營收可能至少成長50%。這一觀點是基於當時的訂單率，並得到了我們內部預測的支持。

However, the current economic environment now appears somewhat less certain and order rates this summer have slowed, especially from our lower-end products. We have, therefore, modified our revenue expectations for the year and now believe 2020 -- excuse me, 2022 revenue growth will be closer to our previous 35% estimate.

然而，當前的經濟環境似乎不太確定，今年夏季的訂單量有所放緩，尤其是低端產品的訂單量。因此，我們調整了今年的營收預期，現在相信2020年——抱歉，2022年——的營收成長將更接近我們先前35%的預期。

As a result, sales in the second half of this year will be essentially flat with sales in the first half. However, product mix will improve significantly. We now expect sales in the second half of the year into consumer and IoT will be down 30% or more from the first half, not counting sales to our largest customer.

因此，今年下半年的銷售額將與上半年基本持平。不過，產品組合將顯著改善。我們目前預計，下半年消費和物聯網領域的銷售額將較上半年下降30%或更多，這還不包括對我們最大客戶的銷售額。

Sales in the broad-based industrial will also be down, but to a lesser extent. However, we expect those declines will be offset by increased sales to our largest customer, and a 30% or more increase in sales in the comms and enterprise.

廣泛工業領域的銷售額也將下降，但幅度較小。然而，我們預計這些下降將被我們最大客戶的銷售額成長以及通訊和企業領域銷售額30%或以上的成長所抵銷。

For Q3, we expect sales will decline between 6% and 10% sequentially due primarily to lower consumer sales. At the midpoint, this would be approximately $73 million or 16% higher than the same quarter last year. We expect Q3 gross margins will remain strong at about 65%, plus or minus 1 point.

我們預期第三季銷售額將季減6%至10%，主要原因是消費者銷售額下降。以中間值計算，預計第三季銷售額約為7,300萬美元，比去年同期成長16%。我們預計第三季毛利率將維持在65%左右的強勁水平，上下浮動1個百分點。

Q3 operating expenses would have increased due to the workforce additions in Q2. But we are aggressively managing discretionary costs to maintain Q3 OpEx at Q2 levels or approximately $28.3 million, plus or minus. Fully diluted share count will be approximately 23 million shares in Q3.

由於第二季新增員工，第三季的營運費用可能會增加。但我們正在積極管理可自由支配的成本，以確保第三季的營運支出與第二季持平，約 2,830 萬美元（上下浮動）。第三季完全稀釋後股份總數約 2,300 萬股。

So this guidance just provided should drive a non-GAAP EPS of between $0.80 and $0.90 per share in the third quarter.

因此，剛剛提供的指導應該會推動第三季非 GAAP 每股收益達到 0.80 美元至 0.90 美元之間。

And on that note, I'd like to turn the call over to the operator, so we can begin our Q&A. Thank you.

關於這一點，我想將電話轉給接線員，以便我們開始問答環節。謝謝。

(Operator Instructions)Okay, we have Tore Svanberg.

(操作員指示)好的，我們有 Tore Svanberg。

Yes. First question is on your comment about order rates slowing. I think there's no surprise that consumer and IoT is slowing. I'm a little bit surprised to hear the industrial and defense category seeing some lower orders.

是的。第一個問題是關於您關於訂單率放緩的評論。我認為消費和物聯網領域的訂單率放緩並不令人意外。聽到工業和國防領域的訂單率下降，我有點驚訝。

So can you just elaborate a little bit about what's going on there? Were there perhaps some inventories built in the first half of the year? So any color you can share that -- there would be great.

那麼，您能詳細講講那裡的情況嗎？今年上半年可能會有一些庫存增加嗎？如果您能分享一下具體情況就太好了。

Tore, thanks. Yes, I think, as you said, it's not a surprise that mobile IoT consumer were down. But in the industrial, I don't think automotive, or aerospace has much changed. Aerospace and automotive continues strong. There have been some pushouts in automotive, but they were more than offset by growth from other customers.

Tore，謝謝。是的，正如你所說，我認為行動物聯網消費者的下滑並不令人意外。但在工業領域，我認為汽車或航空航太領域並沒有太大變化。航空航太和汽車領域依然保持強勁。汽車領域出現了一些下滑，但這些下滑被其他客戶的成長所抵消。

The industrial is our sort of catch-all phrase. It's our largest group of customers. And the distinction that I want to make is that it has less to do with the end customer and has more to do with those that are using precision timing products for the purpose that they were intended or not.

工業領域是我們的一個包羅萬象的字。它是我們最大的客戶群。我想強調的是，它與最終客戶關係不大，而與使用精密計時產品的人（無論是否按照其預期用途）關係更大。

So as an example, in the consumer space, our largest customer is using precision timing products for their very high-end products, and those very high-end products continue unabated as opposed to some of their competitors, where we also sell, where they have seen significant downturn.

舉個例子，在消費領域，我們最大的客戶正在將精密計時產品用於他們的高端產品，而這些高端產品的銷量持續有增無減，而他們的一些競爭對手（我們也向他們銷售產品）的銷量卻出現了明顯的下滑。

So the similar thing happened in some industrial customers where they probably found either a pushout, which is more likely of their inventories because of higher inventories. We likely have not lost many design wins, but there have been pushouts and they have been a smaller impact because of not being able to source other components.

類似的事情也發生在一些工業客戶身上，他們可能遇到了延期交貨的情況，這種情況更有可能發生在庫存較高的情況下。我們可能沒有損失太多的設計訂單，但也遇到過延期交貨的情況，但由於無法採購其他零件，影響較小。

And that would typically be the case with industrials because they typically tend to be smaller customers, not larger customers. And they would not be in the priority list for getting other components as well.

工業企業通常都是這種情況，因為它們通常都是小客戶，而不是大客戶。而且它們也不會被列入採購其他零件的優先名單。

Fair enough. And I know you've been working on your sales strategy and certainly getting a wider reach with customers. And I know you announced the SiTime direct online store recently. Could you elaborate a little bit on that? And when should we start to expect a contribution from that particular business model?

不錯。我知道您一直在努力完善銷售策略，並且正在擴大客戶覆蓋範圍。我知道您最近宣布了 SiTime 直銷線上商店。能詳細闡述嗎？我們什麼時候可以期待這種商業模式帶來貢獻？

Yes. So we should be able to start expecting that starting this year. I think you'll see greater and greater traction for that for 2023 and onwards. We've just really begun this e-commerce strategy right now. It's very much in its nascent stages.

是的。所以我們應該可以從今年開始期待這一點。我認為從2023年及以後，你會看到它越來越強勁的勢頭。我們現在才剛開始實施這項電子商務策略，它還處於起步階段。

And we think that part of the task of SiTime is to grow from 14,000, 15,000 customers to about 30,000, 40,000, 50,000 customers in the coming years. And the e-commerce strategy has a lot to do with it. It's part of our broad-based strategy. It is part of expanding our customer base.

我們認為，SiTime 的部分任務是在未來幾年內將客戶數量從 14,000、15,000 個增長到 30,000、40,000、50,000 個左右。電子商務策略與此息息相關。它是我們廣泛策略的一部分，也是擴大客戶群的一部分。

One of the things we find, Tore, is that the more we dig, the more we find. We find that some of these customers have an extreme need for these precision timing products. And typically, they are smaller customers that don't -- they have enough help in designing these. Our products make it easier for them to get the job done.

托爾，我們發現，挖掘得越多，發現越多。我們發現，其中一些客戶對這些精密計時產品有著極度的需求。通常情況下，這些客戶規模較小，在設計這些產品時無法獲得足夠的幫助。我們的產品讓他們更輕鬆地完成工作。

And as you know, we sell at a premium, but they're willing to pay that premium. So I fully expect that, that strategy will lead to higher than corporate gross margins and much greater stickiness because we solved a significant problem for the customer. So stay tuned for more on that as we go forward.

如你所知，我們以溢價出售，但他們願意支付溢價。因此，我完全相信，這項策略將帶來高於企業級的毛利率和更高的客戶黏性，因為我們為客戶解決了一個重大問題。請關注我們後續的更多進展。

Great. Just one last one for Art. Gross margin, 65%, why wouldn't it be higher given the favorable mix for the second half of the year, especially with the mobile consumer being a much lower percentage of the business?

太好了。關於Art，還有最後一個問題。毛利率是65%，考慮到下半年的良好組合，尤其是行動消費者在業務中所佔比例要低得多，為什麼這個數字不會更高呢？

Yes, excellent question. So there is potential upside to that. But you also have to remember with the lower top line revenue, our manufacturing overhead becomes a larger percentage of sales. So that kind of counteracts that to a certain extent. And sales to our largest customer will increase in the second half over the first half, including Q3. And I don't want to go into specific margins, but that also can have some impact on our gross margins.

是的，這個問題問得很好。所以這確實有潛在的好處。但你也要記住，由於營收下降，我們的製造費用佔銷售額的比例更高。所以這在一定程度上抵消了營收下降的影響。我們最大客戶的銷售額在下半年（包括第三季）將比上半年有所成長。我不想透露具體的利潤率，但這也會對我們的毛利率產生一些影響。

Next, we have Alessandra Vecchi from William Blair.

接下來我們有請 William Blair 的 Alessandra Vecchi。

Just a follow-up on Tore's question, maybe taking it from a slightly different angle. Again, I think we all understand the weakness in mobile consumer. But can you help clarify at what point you really start -- you start to see that sort of nosedive off? Was it later in the month of June that it really started to deteriorate?

我只是順便問一下Tore的問題，也許從稍微不同的角度來看。再說一次，我想我們都了解行動消費市場的疲軟。但您能否解釋一下，您真正​​開始看到這種急劇下滑是在什麼時候？是在6月底才真正開始惡化的嗎？

And then similarly, if my math is correct, it looks like that the Q3 consumer number is the lowest number since the first half of 2020. So how much of that is not precision timing kind of a code word for some of the supply chain wins you might have won during the COVID time frame and how we should think about the levels recovering in 2023 from here?

同樣，如果我的計算正確的話，第三季的消費者數量似乎是 2020 年上半年以來的最低水準。那麼，這其中有多少不是精確計時的暗語，象徵著你可能在新冠疫情期間贏得的一些供應鏈勝利？我們該如何看待從現在開始到 2023 年的恢復水準？

Yes. So in terms of the time frame, is really this summer, where we've seen order rates drop rather surprisingly and substantially, kind of very end of Q2, certainly in the month of July. And I think it surprised a lot of folks, including us. But again, it's really our lower-end consumer products, and it does not impact our largest customer in that segment.

是的。就時間範圍而言，實際上是今年夏天，我們看到訂單率出現了相當令人驚訝的大幅下降，大概是在第二季末，也就是7月份。我認為這讓很多人感到意外，包括我們自己。但需要再次強調的是，這主要是針對我們的低端消費產品，因此不會影響我們在該領域的最大客戶。

Sales to our largest customer in that segment and of course, our largest customer as a company, we expect will increase actually nicely from the first half to the second half of the year.

我們預計，從上半年到下半年，我們在該領域的最大客戶以及我們公司的最大客戶的銷售額將會大幅成長。

And then to add to that, I would say that what was also surprising was that while we were in touch very close communications with our top customers all across the world, many of them were not able to -- to understand the magnitude of some of this buildup, not just in the consumer, but in some of the other markets as well.

除此之外，我想說，同樣令人驚訝的是，儘管我們與世界各地的頂級客戶保持著非常密切的溝通，但他們中的許多人卻無法理解這種增長的規模，不僅是在消費者市場，而且在其他一些市場也是如此。

And I think that we are early in our ability to foresee that the downturn has some particular influence on Q3. So I think that, that's an important piece here to note, that we were kind of surprised by the surprise that the customers had and their inability to lead.

我認為，我們目前還無法預見經濟低迷會對第三季產生一些特殊影響。所以，我認為，這裡需要注意的一點是，我們對客戶的意外以及他們無力領導感到有些意外。

Okay. And then as an extension of that, on the inventory dollar creep up, again makes sense given some of the maneuvers you've done in securing capacity. But given the slowdown to revenue growth in the back half, how should we think about inventory levels from here? Are you going to work them down? Are they still below target levels?

好的。接下來，關於庫存金額的攀升，考慮到你們在確保產能方面採取的一些措施，這也很合理。但考慮到下半年營收成長放緩，我們該如何看待未來的庫存水準？你們會降低庫存嗎？庫存水準仍然低於目標水準嗎？

Yes. So I did mention that our inventory went up about $4 million in Q1 to Q2. That is a very conscious decision. I think most folks realize that the entire semiconductor industry was in very tight supply, including us. We always have enough to ship the demand that we had, but we've made a conscious and strategic decision to build some buffer stock, especially with wafers.

是的。我確實提到過，我們的庫存在第一季到第二季增加了約400萬美元。這是一個非常明智的決定。我想大多數人都意識到，包括我們在內的整個半導體產業都面臨供應非常緊張的局面。我們一直都有足夠的庫存來滿足需求，但我們做出了一個有意識的策略性決定，要建立一些緩衝庫存，尤其是晶圓庫存。

In case there are any disruptions in the supply chain, a lot of things can happen in the world that could impact the supply of wafers, we want to make sure we've got sufficient supply to handle any intermittent disruption. So I expect that inventory will go up more, not substantially, but it will go up more. We will increase our buffer stock between now and the end of the year.

萬一供應鏈出現任何中斷，世界上可能發生的許多事情都可能影響晶圓的供應，我們希望確保有足夠的供應來應對任何間歇性的中斷。因此，我預計庫存會進一步增加，雖然不會大幅增加，但會更多。從現在到年底，我們將增加緩衝庫存。

And I think that's the right prudent thing to do. We have a lot of cash in the bank. We earn a little bit of money on it. Wafers do not go bad. So building a little more inventory, I think, is actually a very smart business move on our part because we have the ability to do that both on a cash basis and because of the relationship we have with our wafer fabs.

我認為這是明智之舉。我們在銀行有很多現金，還能從中賺取一些利潤。晶圓不會變質。所以，我認為增加庫存對我們來說是一個非常明智的商業舉措，因為我們有能力做到這一點，這既基於現金，也因為我們與晶圓廠的關係。

Alex, it goes back to the single source given that's such a large portion of the business, single source, it's prudent for us to secure particularly wafers and build wafer inventory, because remember that our product is programmable. So that programmability gives us a significant amount of flexibility in our supply chain.

Alex，這又回到了單一來源的問題，因為單一來源佔據了我們業務的很大一部分。對我們來說，確保晶圓供應並建立晶圓庫存是明智之舉，因為我們的產品是可編程的。這種可程式性賦予了我們供應鏈相當大的靈活性。

Our next question comes from Suji Desilva from ROTH Capital.

我們的下一個問題來自 ROTH Capital 的 Suji Desilva。

(technical difficulty)

（技術難度）

So it's harder to tell. There's everything in there. There's some medical in there, which is clearly precision timing. There's some high-end industrial in there, which is clearly precision timing. Aerospace, yes auto, yes, so all of those, it's just that, I think, that there are myriad of customers may be perhaps more based in China which had some impact in that market.

所以很難說。這裡面什麼都有。有一些醫療應用，顯然是精密計時的。還有一些高端工業應用，顯然也是精密計時的。航空航太、汽車等等，所有這些，只是我認為，可能有大量的客戶可能更多地位於中國，這對中國市場產生了一定的影響。

And again, we haven't lost anything because of design win losses or because for that matter of ASP losses either, even though the competitive solution is much more easily available right now than it was 3, 4 months ago. But still, we haven't lost anything there.

再說一次，我們並沒有因為設計訂單的損失或平均售價的損失而遭受任何損失，儘管現在競爭解決方案比三到四個月前更容易獲得。但無論如何，我們並沒有因此而遭受任何損失。

I guess that was going to be my next question, Rajesh, as you've seen, sort of, customers at the lower end, slowing orders to adjust inventories, can you give us a sense how many of those sockets are truly sole sourced by SiTime?

我想這將是我的下一個問題，Rajesh，如您所見，低端客戶正在放慢訂單以調整庫存，您能否告訴我們有多少插座真正是由 SiTime 獨家採購的？

And you're sort of confident that when that inventory purge is complete, you'll see the orders rebound versus sockets, which may be dual sourced. And so there might be a risk that after the inventory purge, they could come back at just an overall lower level of demand given increased supply from competitors where the mix might move back to more of a dual sourcing strategy. Is there any way to try to quantify that?

您確信庫存清理完成後，訂單量會反彈，而插座類產品可能會採取雙重採購。因此，庫存清理完成後，由於競爭對手的供應增加，整體需求可能會回落到較低水平，而產品組合可能會重新轉向雙重採購策略。有什麼方法可以量化這一點嗎？

Yes. Well, let me take a stab at some of it anyway. And that is that even when a customer has a second source, when we did, we sometimes find that that's "more of a theoretical thing". It's really -- it takes them still 3 months to 6 months to do a qualification. Typically, that incentive is low.

是的。好吧，無論如何，讓我來嘗試一下。那就是，即使客戶有第二個供應商，我們有時也會發現這「更像是一種理論」。實際上，他們仍然需要3到6個月的時間來完成資格認證。通常情況下，這種激勵機制很低。

What happens more is as it happened at one customer where we were on a particular design win, and it was an older design win. And they just decided that you know what, with the slowdown that they were facing, why don't we end-of-life this product? And so they just end of life it and they moved customers over to a different product that they had.

更常見的情況是，就像我們之前在一個客戶那裡遇到的情況一樣，當時我們剛拿到一個設計訂單，而且是舊設計訂單。他們突然決定，既然面臨業務放緩，為什麼不直接停產這個產品呢？結果他們乾脆停產了，把客戶轉移到了他們現有的其他產品上。

So I think when the supply chain has been hyper tight like it has been, and then when it opens up, like it is mostly opening up, customers start to look at that and say, wait a minute, what should else should I do different? As far as the socket itself, I think our single source sockets are generally pretty solid. I don't see them getting away from us based on, "Oh, I'm just going to stop somebody else for a few cents."

所以我認為，當供應鏈像以前一樣高度緊張時，當它開始開放，比如說基本上已經開放了，客戶就會開始思考，『等等，我還能做些什麼不同的事情嗎？ ’至於插座本身，我認為我們的單一來源插座通常非常可靠。我不認為他們會因為『哦，我只是為了幾美分而阻止別人』而放棄我們。

We don't see -- we haven't seen too much of that or in fact, I haven't personally seen any of that. I've seen more around pushouts, and I've seen certainly some in automotive and in the very high-end industrial where people have not been able to get other products to build out. And so they just -- they're just sort of sitting there and saying, "we'll just wait".

我們沒有看到──我們沒看到太多這樣的情況，或者說，我個人沒看過任何這樣的情況。我看到的更多是圍繞著「推出式」的，當然也看到一些在汽車和高端工業領域，人們無法生產其他產品。所以他們只是——他們只是坐在那裡說，“我們再等等。”

This has happened in, for example, in batteries, in electric motors. Many of these customers are relatively smaller customers in size. They're not the big multibillion-dollar companies. And so they're almost always the last ones to get all the other components as well. I don't know if that's helpful.

例如，電池和電動馬達領域就發生過這種情況。這些客戶很多規模相對較小，不是那些價值數十億美元的大公司。所以他們幾乎總是最後拿到所有其他零件。我不知道這是否有幫助。

No, that's very helpful. And maybe if I could summarize just hopefully, I have the right picture. If I think about precision timing, it sounds like that's at least 60%, maybe as high as [70%] -- kind of the less demand there has been pretty solid for the lower end. You're seeing what you think is mostly just sort of inventory adjustments leading to lower order rates, but you haven't seen significant moves perceiving at the low end, it's just a traditional inventory purge and maybe it takes a quarter, maybe it takes 2, but you're pretty confident of keeping even those low-end sockets as demand comes back post the inventory clearing.

不，這很有幫助。或許我可以總結一下，希望我的理解是正確的。如果考慮到精準時機，聽起來至少有60%，甚至可能高達70%——低階產品的需求一直比較穩定。您認為主要只是庫存調整導致的訂單率下降，但您並沒有看到低端產品出現顯著的變化，這只是傳統的庫存清理，可能需要一個季度，也可能需要兩個季度，但您非常有信心，隨著庫存清理後需求回升，即使是那些低端插座也能保住。

Yes. And the other side of that is it gives an acceleration to our precision timing products because now they're starting to become greater and greater portion of our revenue and certainly a much greater portion of our funnel, which is exactly what we talked about a couple of years ago that this is the direction we want to go in. We're just sort of accelerating into that with the current -- with the current trend.

是的。另一方面，這也加速了我們精密計時產品的發展，因為它們現在在我們收入中所佔的比重越來越大，當然也在我們的銷售漏斗中佔據了越來越大的比重，這正是我們幾年前談到的，這是我們想要發展的方向。我們只是順應當前的趨勢，加速朝這個方向發展。

Thanks, Quinn. Tore, did you have another question?

謝謝，Quinn。 Tore，你還有其他問題嗎？

Operator, are there any other questions? Operator?

接線員，還有其他問題嗎？接線生？

No, there are no additional questions at this time.

不，目前沒有其他問題。

Okay.

好的。

So at this time, I'm going to turn it over to the speakers for any closing remarks.

因此現在，我將把時間交給發言者來做結束語。

All right. Well, we want to thank everybody for joining us today. We apologize for the interruption in the call. We're not sure exactly what happened, but we'll go figure that out. I hope everybody has a great day. Thank you so much.

好的。好的，感謝大家今天的參與。對於通話中斷，我們深表歉意。我們不確定具體發生了什麼，但我們會去找出原因。祝大家今天愉快。非常感謝。

Thank you for participating in today's conference. This does conclude the program. You may disconnect now.

感謝您參加今天的會議。今天的節目到此結束。您可以斷開連線了。