SiTime Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showcasing significant revenue growth and ongoing challenges in profitability. The company achieved total revenue of $57.7 million for the third quarter, a 62% increase from $35.5 million in the same period of 2023. For the nine months, revenue reached $134.6 million, up 32% from $101.6 million year-over-year. This growth was primarily driven by increased sales volume and higher average selling prices of its precision timing products.

Despite the revenue increase, SiTime reported a net loss of $19.3 million for the third quarter, slightly higher than the $18.1 million loss in the same quarter of 2023. For the nine months, the net loss was $74.8 million, compared to $60.5 million in the prior year. The losses were attributed to rising operating expenses, which increased by 20% to $54.3 million in Q3 2024, and by 16% to $160.9 million for the nine-month period. Notably, research and development expenses rose due to higher stock-based compensation and increased engineering spending.

The company’s total assets decreased to $877.9 million as of September 30, 2024, down from $951.7 million at the end of 2023. Current assets also fell, with cash and cash equivalents declining to $8.5 million from $9.5 million. Short-term investments in held-to-maturity securities decreased significantly to $426.3 million from $518.7 million. However, total liabilities also decreased to $181.7 million from $243.6 million, leading to a slight reduction in stockholders' equity to $696.2 million.

SiTime's acquisition of Aura's timing business, completed in December 2023 for $259.2 million, has expanded its product portfolio but also contributed to increased amortization expenses. The company reported a gross profit of $29.5 million for Q3 2024, up from $19.9 million in Q3 2023, although gross margins declined due to higher amortization from acquired intangibles.

The company continues to rely heavily on a limited number of customers, with sales to its largest customer, Apple Inc., accounting for 23% of revenue in Q3 2024, down from 37% in the previous year. The concentration of revenue among a few key customers poses risks, particularly in light of geopolitical tensions and market fluctuations.

Overall, SiTime's performance reflects a mix of strong revenue growth and ongoing challenges in managing costs and profitability, alongside strategic developments from recent acquisitions.