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DATE

Wednesday, Aug. 5, 2026 at 5:00 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Rajesh Vashist
• Chief Financial Officer - Elizabeth A. Howe
• Investor Relations - Brett Perry

TAKEAWAYS

• Total Revenue -- $157.4 million, representing a 127% increase year over year driven by strength across all end markets led by the communications and data center segments.
• Non-GAAP Diluted EPS -- $2.34 per share, compared with $0.47 per share in the year-ago period.
• CED Revenue -- $101.0 million, reflecting 181% year-over-year growth due to demand for precision timing in AI infrastructure, optical modules, and switches.
• AIED Revenue -- $24.8 million, up 51% year over year as adoption increased across automotive, industrial automation, and defense applications.
• MIC Revenue -- $31.4 million, representing 85% year-over-year growth driven by strong pull-through from a large consumer customer.
• Non-GAAP Gross Margin -- 67.1%, up from 58.2% in the prior year reflecting favorable product mix and improved manufacturing absorption.
• Q3 2026 Revenue Guidance -- $285 million to $295 million, which includes a sequential step-up in core business revenue to a range of $200 million to $210 million.
• TPD Revenue Contribution -- $85 million, representing the expected third-quarter contribution from the newly acquired Renesas timing business.
• Q3 2026 Non-GAAP EPS Guidance -- $3.50 to $3.65 per share, based on a projected share count of approximately 32.8 million shares.
• Cash and Short-term Investments -- $1.92 billion as of June 30, 2026, including proceeds from a convertible notes offering used to fund the July 1 acquisition.
• Convertible Senior Notes -- $1.35 billion, issued as zero-coupon notes due 2031 to finance the Renesas timing acquisition.
• MIC Business Unit Funnel -- Over $1.2 billion, supported by new design opportunities in personal AI devices, smart glasses, and wearables.
• Operating Cash Flow -- $40 million, more than doubling from $15.3 million in the year-ago quarter.
• Free Cash Flow -- $27.1 million, calculated as operating cash flow minus $12.9 million in capital expenditures.
• Large Consumer Customer Revenue -- $22.8 million, showing strong sequential growth as the customer rolls out products into next-generation platforms.
• 1.6T Optical Module SAM -- $450 million combined with 800G modules by 2027, with management expecting 100% revenue growth for 1.6T products in that fiscal year.
• Combined Operating Expense Guidance -- $80 million to $85 million for the third quarter, reflecting continued investment in product road maps and integration.

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RISKS

• Howe stated, "While carve outs of this scale are complex, we have an active partnership with Renesas to execute the transition plan," noting dependencies on manufacturing and testing during the transition services period.
• Howe warned that "there is a lot of constraint in the business in the supply chain," specifically regarding the newly acquired Timing Products Division business.

SUMMARY

**SiTime Corporation** (SITM +2.01%) completed the acquisition of the Renesas timing business, designated as the Timing Products Division (TPD), on July 1, 2026. Management reported that the integration process is underway with a focus on enhancing customer experience and migrating the business to the company's operating platform. The company is transitioning its product strategy from discrete components toward integrated timing solutions including chiplets and advanced modules to support higher compute density. Growth is currently centered in the data center market, specifically driven by the shift to 1.6T optical modules and the adoption of synchronization technologies in AI infrastructure. Management noted that visibility into 2027 is improving as customers place orders 12 to 18 months in advance.

• CEO Vashist stated that the integration of timing into chiplets and modules could expand the company's serviceable addressable market by $2.5 billion by 2030.
• Management noted that the acquired TPD business generates approximately 70% of its revenue from the communications and enterprise data center segment.
• Vashist expects revenue from 1.6T optical modules to grow by 100% in 2027 while 800G modules also continue to grow significantly.
• The company's mobile, IoT, and consumer funnel reached a value exceeding $1.2 billion as of the second quarter.
• Vashist noted that positional accuracy in autonomous driving, a $400 million market, depends on precision timing that delivers "up to 10x better positional accuracy."
• Management reported that the large consumer customer contributed $22.8 million to revenue during the quarter.

INDUSTRY GLOSSARY

• CED: Communications, Enterprise, and Data Center business unit.
• AIED: Automotive, Industrial, and Aerospace and Defense business unit.
• MIC: Mobile, IoT, and Consumer business unit.
• TPD: Timing Products Division, the business acquired from Renesas Electronics Corporation.
• SAM: Serviceable Addressable Market, the portion of the total market that a company can actually reach.
• TCXO: Temperature Compensated Crystal Oscillator, a high-precision timing device.
• PNT: Position, Navigation, and Timing, critical for defense and autonomous systems.
• 800G and 1.6T: High-speed data transfer standards for optical modules used in data centers.
• TSA: Transition Services Agreement, a contract where a seller provides services to the buyer to assist in business integration.

Full Conference Call Transcript

Operator: Good afternoon, and welcome to SiTime's Second Quarter 26 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. 08/05/2026. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Brett Perry: Thank you, Olivia. Good afternoon, and welcome to today's conference call to discuss SiTime's second quarter 26 Financial Results. Joining us on today's call from SiTime are Rajesh Vashist, chief executive officer and Elizabeth A. Howe, chief financial officer.

Before we begin, I would 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 is 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 conference 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 company's annual report on Form 10 k for the year ended 12/31/2025.

As well as the company's subsequent filings with the SEC, including the company's quarterly reports On Form 10 Q. During the call, management will 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.

This GAAP to non GAAP reconciliation includes stock-based compensation expense, amortization of acquired intangibles, amortization of financing related transaction costs, 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 earn out and accretion of acquisition consideration payable. Please refer to the company's press release issued earlier today for a detailed reconciliation between GAAP and non GAAP financial results. Unless otherwise specifically noted, all comparisons made during today's conference call are year over year comparisons with the corresponding year ago period. With that, it is now my pleasure to turn the call over to SiTime's CEO, Rajesh. Please go ahead.

Rajesh Vashist: Thanks, Brett. Good afternoon, and thank you for joining us today. Today, I am happy to introduce you to an expanded SiTime. We started with a simple vision, High performance systems need high performance resilient timing, or precision timing. We have delivered on that vision with the most compelling differentiated portfolio in the industry. That is oscillators, resonators, and clocks. And we are the only company that is doing so. The outstanding financial results that we are reporting reflect SiTime's success. The second quarter was truly exceptional. Revenue was $157 million up 127% year over year Gross margins were 67.1%, up 8.9% points. Operating margin was 34%, up from 10% a year ago.

And net income was 65.7 million or $2.34 per diluted share up 400%. This strength is evidenced across all our end markets, Every BU or business unit grew more than 50% year over year. And every region grew more than 50%. Somewhere over 100%. Other markers of strength, book to bill, order size, ASPs, all grew on a higher value product mix. Channel inventory held on to a tight target levels reflecting strong pull through. Now that many customers are placing orders 12 to 18 months in advance, our visibility into 2027 keeps improving. Other indicators that point to future demand such as average design in value, and funnel size grew significantly.

Our communications enterprise and data center business or CED is again the engine of our growth but not the only 1. CED grew 181% year over year and crossed $100 million in quarterly revenue our 9th consecutive quarter of triple digit growth. We expect CED's rapid growth to continue with several drivers behind it. The first driver is increasing bandwidth. The move to 1.6 t terabit in optical modules is driven by the need for more networking in the data center. In 2027, we expect our 1.6 t revenue to grow by 100% while 800G also grows significantly. In both these applications, which we expect will be a combined $450 million of SAM in 2027, SiTime has significant market share.

These modules need higher frequencies and performance, which fits closely with SiTime's value propositions. Second driver is the further adoption of synchronization by hyperscalers, across both compute and networking nodes in the data center. This has increased demand for our elite family of super TCXOs adding several hundred dollars of content with data center rack. The 3rd driver is the expansion of AI data centers spending beyond traditional hyperscalers. SiTime products are now being used by new OEMs and ODMs bringing demand that did not exist before this.

We have talked several times about the diverse nature of SiTime's business, and a strong example is AI beyond data center and into cars, humanoid robots, drones, and personal AI devices each of which opens a new opportunity for our precision timing. In all types of vehicles, including agricultural and heavy equipment, our content increases significantly as more AI based autonomous driving is built into the system. Positional accuracy is key to autonomous driving, a $400 million SAM and it depends upon precision timing. Customers choose SiTime devices for resilience that delivers up to 10x better positional accuracy.

In defense, we see a significant opportunity in Assured PNT which is position, navigation, and timing, a $400 million market, where timing keeps working when GPS does not. As jamming and spoofing become prevalent, GPS dependent platforms need a local timing backup. That can be trusted. This is exactly where a precision timing shines. Our devices enable systems to be immune to spoofing, and extend PNT validity. This opens a retrofit opportunity across the installed base as defense spending increases worldwide. In mobile, IoT and consumer or MIC, personal AI devices, smart glasses, wearables, hairables, health devices, are an emerging growth area. Since January, we have added significant oscillator opportunities to our funnel in these applications.

And our Titan resonators continue gaining traction with partners and OEMs. Mobile demand continues to grow, with visibility through 2027, and our MICBU funnel is now over $1.2 billion. On July 1st, we closed the acquisition of Renesas' timing business, well ahead of our year end goal. We call this business our timing products division, or TPD. To the TPD team worldwide, we say to you that you are in the right place for your talents and ambition so welcome home. This 20 year clocking franchise is a highly respected provider of clocking products, Over its evolution from ICS to IDT to Renesas, this business has consistently delivered architectures and the engineers are known for their technical prowess.

Take 2 examples, femto clock and VersaClock. 2 proven clock families with many generations of products that are now part of our portfolio. FemtoClock, has led the industry in jitter performance and features for over 20 years. VersaClock, used across CED and industrial applications, has offered the best balance of power, jitter, size, and programmable flexibility for 25 years. Buffers which are usually considered less differentiated, are over $100 million in revenue for TPD, with a broad customer base. TPD's formula for success is to consistently lead the industry by 12 to 18 months in new architectures and performance. This business serves 10 thousand customers with 70% gross margins and nearly 70% of the revenue coming from CED.

The same factors that are driving the growth in SiTime CED business also help TBD. Our previous guidance of $300 million in revenue in the 12 months post close indicated a growth of 40% over the 2025 revenue. And while it is still early times, we expect that TPD could grow at higher rate. This acquisition accelerates SiTime's path to $1 billion in revenue, It moves us closer to a goal to be the timing in every important system in the world. I would like to leave you with where our innovation is heading in the future.

We are moving timing from a discrete component to something that is integrated into the heart of the system through chiplets, advanced substrates, and modules that enable higher performance and compute density. In CED, we think that it is this expands our SAM by $2.5 billion by 2030 in opportunities that do not exist today. As AI moves outward from the center into physical, edge, and personal systems, we expect this integration of timing, will build similar higher value opportunities as well. The opportunity in front of us has never been clearer. Modern electronics run on precision timing, a category we created.

We lead it today with the strongest portfolio the best customers, and the balance sheet to invest through cycles. And intend to lead it in the foreseeable future. Thank you. Rajesh.

Elizabeth A. Howe: Today, I will walk through our second quarter 26 results and then I will provide our outlook for the third quarter. As a reminder, my remarks focus on non GAAP financial results which are reconciled to GAAP in our press release unless otherwise noted. Q2 was another strong quarter and demonstrates the power of our model as revenue scales. Revenue was $157 million up 127% year over year and 39% sequentially. This performance was driven by broad strength across the businesses led by communications enterprise and data center or CED. CED revenue was $101 million up 181% year over year and up 34% sequentially.

Growth in this segment continues to reflect expanding demand for precision timing across AI infrastructure including optical modules, switches, accelerators, and related high performance systems. Automotive, industrial and aerospace defense revenue was $24.8 million up 51% year over year and 18% sequentially. With continued adoption of precision timing across automotive industrial automation and defense applications. Mobile IoT and consumer revenue was $31.4 million up 85% year over year and 89% sequentially. Reflecting strong sequential growth from our large consumer customer which delivered revenue of $22.8 million in the quarter. Second quarter gross margin was 67.1%, up 8.9 percentage points year over year and 2.6 percentage points sequentially.

The year over year improvement was driven by product mix as well as better manufacturing absorption. Sequentially, the improvement was primarily driven by better manufacturing absorption. Importantly, the quarter reinforces the margin scalability of the model as we grow in high value applications where precision timing is increasingly critical to system performance. Operating expenses in the quarter were $52.1 million consisting of $25.6 million in R&D and $26.5 million in SG&A. The increase of $18.8 million year over year reflects continued investment in growth. Including personnel, product road map investments, revenue linked go to market expenses and acquisition readiness. We are being deliberate in these investments to scale capabilities to support a substantially larger business while maintaining strong operating discipline.

Operating income was $53.5 million or 34% of revenue compared with 10% of revenue a year ago and 28% in Q1. Other income totaled $12.2 million The increase was driven by interest income earned on the proceeds from our May convertible notes offering prior to the July 1 close of the acquisition. Going forward, this benefit will not recur at these levels, as those proceeds were used to fund the cash consideration for the acquisition. Non GAAP net income was $65.7 million and non GAAP earnings per share were $2.34 These results reflect strong revenue growth expanded gross margin and continued operating leverage. Looking at the balance sheet and capital structure.

During the quarter, we completed our first convertible notes offering, issuing $1.35 billion of zero coupon convertible senior notes due 2031. This financing helped fund the cash portion of the Renesas Timing acquisition while preserving significant financial flexibility. Turning to working capital. DSO was 51 days compared with 44 days in Q1. Primarily due to the timing of shipments in the quarter. Inventory increased to $104 million to support Q3 demand. During the quarter, cash flow from operations more than doubled to $40 million up from $15.3 million a year ago.

Capital expenditures totaled $12.9 million and free cash flow was $27.1 million Overall, we exited the quarter with the acquisition funded continued positive cash generation and the financial flexibility to support the next phase of growth. On July 1st, we closed the acquisition of the Renesas Timing business, or TPD. As we integrate this business, our priorities are clear. Enhance the customer experience, expand supply, and move the business onto SciTime's operating platform. This is a transformational acquisition for us, and we are encouraged by the progress we have made in the months since we closed.

Our transition services agreement with Renesas provides continuity while we transfer customer relationships, manage the supply chain transition, and expand our infrastructure to run this business as part of SiTime. While carve outs of this scale are complex, we have an active partnership with Renesas to execute the transition plan, including manufacturing and test dependencies during the TSA period. Our commercial teams are already working with customers and partners to transition customer backlog, support existing programs and position the combined portfolio for the long term. I am confident in our ability to execute and the integration and realize the value of this acquisition. Now looking ahead to the outlook for the third quarter.

Since we closed the acquisition of TPD on July 1, the September outlook reflects our expectations for the performance of the combined business. For the third quarter, we expect revenue of $285 million to $295 million Within this, I expect the SiTime revenue excluding TPD to increase to 200 million to $210 million or increased 30% sequentially at the midpoint. This is a step change in growth that reflects both the strength of our backlog and the confidence customers are signaling in their own demand forecast particularly in CED. That confidence is translating into improved visibility further reinforcing our expectation for sustained momentum throughout the year.

For the newly acquired TPD business, we expect revenue of approximately $85 million In addition, for the combined SiTime business, including TPD, we expect gross margin to be approximately 68% plus or minus a point. Operating expenses in the range of $80 million to $85 million as we continue to invest in growth Interest income of approximately $4 million and a share count of approximately 32.8 million shares which includes approximately 3.6 million shares issued in conjunction with the TPD acquisition. As a result, we expect Q3 non GAAP EPS to be in the range of $3.50 to $3.65 per share. In closing, Q2 reflects the continued strength of our core business and the scalability of our financial model.

We delivered significant revenue growth expanded gross margins and increased operating profitability while continuing to invest for the future. With the Renesas Timing acquisition now closed, we are entering the next phase of SiTime growth with a broader portfolio expanded customer reach, and a stronger financial platform. We remain focused on disciplined execution, clear integration milestones, and building SiTime's leadership as the premier pure play precision timing company. With that, I will hand the call back to the operator to open the line for questions.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star, 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Quinn Bolton of Needham and Company. Quinn, your line is now open.

Quinn Bolton: Hi, Rajesh and Beth. Congratulations on the very strong outlook and especially on a run rate basis. Looking like you will get to about a $1.2 billion annualized run rate very, very soon. I guess, Beth, just a quick clarification before my 2 questions. Could you repeat the OpEx guidance? Maybe just by line, but it cut out there. And so I just wanna make sure I had the right OpEx guide for Q3 on a combined basis.

Elizabeth A. Howe: Absolutely. We expect OpEx of $80 million to $85 million for the combined company.

Quinn Bolton: Perfect. I wanted then to come back to the TPD acquisition when you announced the deal. At the beginning of the year, you thought in the 12 months post close, you would hit a $300 million annualized run rate. With 85 million in Q1, you are already tracking probably $40 million above that. And my guess is you expect growth going forward. So can you say what is changed over the last 6 or so months that makes that acquisition even stronger from a revenue contribution perspective?

Elizabeth A. Howe: Sure. This In terms of the TPD, what we have seen is continued strength in their business Recall that about 75% of their revenue comes from what we call CED. And, actually, as we were doing our diligence, we were, a little surprised, frankly, by the modest growth rate expectations and results that they had. And they have continued to see strong performance as we have gone through the year. In Q2 and into Q3. And so the outlook that we see for the second half reflects that. And I think you are right, we are well on our way to exceeding that $300 million, but it is early days as well.

And we are still working through the integration, and so we get to know this business better, I think we will have more to say about the outlook for the business.

Quinn Bolton: And then the last question is as we look to integrate PPD into our models, how do you expect to sort of report revenue going forward? Will TPD be included in your comp you know, the CED bucket, the auto industrial Milero, and then IoT consumer Will you break it out separately? And to the extent that you just included into the 3 existing buckets, you give us a sense it sounds like about 75% of TPD comes into CED. How does the other 25% split Is mostly in the industrial auto, or is there some consumer IoT in the TPD revenue stream?

Elizabeth A. Howe: Sure, Quinn. So the business is the remaining business is the auto, aero, industrial. They do not have a consumer business. So it will split roughly 70 5-25 between CED and auto, aero, industrial, industrial. We wanted to give you visibility as we are just now assuming the business in terms of the TPD. But going forward, we will expect to integrate it into the overall SiTime business.

Quinn Bolton: Excellent. Congratulations again.

Elizabeth A. Howe: Thank you.

Operator: Our next question comes from the line of Tore Svanberg of Stifel. Tore, your line is now open.

Tore Svanberg: Yes. Thank you, Rajesh. Congrats on the strong results and the closure of the Renesas acquisition. So how should we think about the growth by segment into Q3? Mean, know you are obviously leading the new acquisition and also core SiTime. But with the sort of traditional site time segment, how should we think about you know, growth in each 1 for the September quarter?

Elizabeth A. Howe: Sure. Well, let me focus on the SiTime xTPD first, because we have got the most visibility to that. As you can imagine, we are just now beginning the integration, the backlog, getting to understand their customers. But if I think about the Sidetime business excluding TPD, it is rolling out similar to what we discussed expected. We expect the CED business to continue to show strong growth And again, triple digit growth again in Q3. We also expect strong growth from all the businesses AID continuing to show similar growth.

And then consumer, as we have talked about, we expect to pick significantly in the third quarter, given that, that is typically as we are getting ready for holiday, back half tends to be much stronger for our consumer business versus the front half. And so we would expect really strong growth in that. Also, we expect our large consumer customer to continue to roll out the new products or our products into their next generation, and so that will drive growth as well. that is very helpful.

Tore Svanberg: And as my follow-up, for you, Rajesh, you said something at the end of your prepared remarks that really caught my attention. You talked about moving from discrete to, you know, more integrated solutions chips chip less modules and so on. I assume these are significantly higher ASP products. So just curious, when should we start to see material revenue of some of those newer products?

Rajesh Vashist: So, Tore, you are always, the 1 to get to get all the messages. Uh-huh. So congratulations on doing that. Yeah. There are 2 things that are going to happen. That what that is happening was a meta issue is that performance is going up, throughput's going up, latency is going down, and delivering timing to the exact place that is needed is without signal degradation and timing. And we see this coming. Whether it happens to companies that do it on the wafer level itself, or think of it as some version of vertical timing delivery This is coming. And Cytom is pioneering some of it.

And the ASPs may go up, but more importantly, the density of use goes up. They are just more used. And perhaps as you write, ASP will also go up. But we think that it adds, as I said, a significant amount of money in the billions by 2030. Very good.

Tore Svanberg: Congrats again.

Rajesh Vashist: Thank you.

Elizabeth A. Howe: Thank you.

Operator: Our next question comes from the line of Timothy Arcuri of UBS. Timothy, your line is now open.

Timothy Arcuri: Thanks a lot. Beth, can you just give us some sense of sort of how the segments are going to grow? I know I am not asking for the guidance in that is being, you know, looked at for Q3, but more like the core SiTime business versus TPD. Are they going to grow at similar rates, would you say, looking at the next few quarters, or is there anything you would point out that would cause, you know, TPD, say, to grow faster than the core business?

Elizabeth A. Howe: Well, as we look at it, I think both from a segment perspective, as I said earlier, I expect that the CED business the core SiTime CED business to be the fastest growing as we continue to see the growth opportunities across AI, not only in data center, but as we think about inference computing and all the different areas, as well as you know, some growth in telecom and the rest of CED. With respect to the consumer business, talked about that the biggest growth there will be the design win that we have as that proliferates across that customer's platform, and that will drive really significant growth in second half of 26, but also into 2027.

When it comes to the TPD business, we are in very early stages of integrating that business. And at this point, as I talked about in my prepared remarks, we do have significant TSAs with Renesas. As we begin that process, including the manufacturing supply chain test we are relying on them for the next several quarters. For the production. And so we are working really closely with them We have seen from customers there is a lot of constraint in the business in the supply chain. And so we are working with them to improve that over the coming quarters. And as that improves, we should be able to see more growth with that business.

But that is what we have got to work through here in the coming quarter. Thanks a lot.

Timothy Arcuri: And then, Rajesh, I know that the Bosch agreement expires, I think, next March. I want to say. So I know you plan to renew it, but does the acquisition of TPD, does it change anything? And sort of how to just, any updates you might have there. Thanks.

Rajesh Vashist: Yeah, Timothy. There is no impact. The clocks, fundamentally, typical clocks, do not use, any resonators. MEMS or otherwise, Now TPD does have a small quartz based oscillator business, which we are happy to continue to have grow or flourish as need be. But our agreement with them is, as you point out, up for renewal. I think you will find that we should have zero problems in doing that Bosch is a close partner. And we expect no issues on that. And it should be done relatively soon here. Okay. Thank you.

Elizabeth A. Howe: Thank you.

Operator: Our next question comes from the line of Christopher Caso of Wolfe Research. Christopher, your line is now open.

Chris Caso: Hi. This is Nicholas-Rocco, also known as Nick, on for Christopher. You mentioned that customers are placing orders 12 to 18 months in advance and that you have improved visibility. I was wondering if you would be able to make any early comments on the rate and pace of growth in the next year, particularly in CED? Give us any early thoughts, on how the trajectory looks next year for the core CED SiTime business.

Rajesh Vashist: I think in general, we have always maintained that our investors should think about a multiyear growth of SiTime at 30% growth rate, give or take. Now when an AI comes in or a phone business comes in, I think those get accelerated like we are seeing. So I think it is pretty safe to say that a 30% maybe a little bit higher, is our multiyear I think, 5, 6, 7, 8-year growth rate. In 2027, we see no signs of slowdown. So we see the impact of AI not just in CD, but also for TPD because 70% of the business is with data center. And other AI, as I said, for our other 2 businesses to continue.

So I think safe to say we see 2027 as a year of also of significant growth. Thanks so much.

Chris Caso: And maybe for my follow-up, could you speak briefly about the gross margin puts and takes heading into the third quarter and maybe over the next few quarters? Kind of help us understand what were the biggest drivers of gross margin, the gross margin performance in Q2 and then into Q3? Thanks.

Elizabeth A. Howe: So, as I talked about in my prepared remarks, the gross margins—we expect those to stay kind of above the 65% threshold in the next in the coming quarters. Probably in the range of the 67, 68 that we were talking about for Q2 and Q3. The drivers of that are really the increased manufacturing operating leverage manufacturing absorption combined with product mix, and we get product mix benefits not only from our CED business, but also the addition of the TPD business. And that, frankly, more than offsets the headwinds that we have with the bigger higher mix of consumer business in the second half. And those combined to give us those kinds of gross margins.

And I expect the gross margins to kind of be in that range in the coming quarters as well. Thanks so much.

Operator: Thank you. As a reminder, to ask a question, you will need to press star 1 on your telephone and wait for your name to be announced. To withdraw your question, please press 11. Again. Our next question comes from the line of Jim Schneider with Goldman Sachs. Jim, Your line is now open.

Jim Schneider: Good afternoon. Thanks for taking my question. I was wondering if you can maybe talk a little bit about the data center design win pipeline, Rajesh. If you think about what has driven your growth both in terms of new server design wins and also market share gains, Would you expect to be able to deliver you know, further sort of new platform design wins and further market share gains? And maybe talk about how much is market share gain for you versus your competitors and how much is growth of precision timing within the overall TAM for AI server specifically?

Rajesh Vashist: So, I am going to include the optical module business as part of it. And, basically, there is definitely market share gain in optical modules as we go from 800G to 1.6T, our market share is significantly higher with those with higher ASPs. So that is helpful. At the same time, when 800G is also growing, quite significantly. In the in the actual racks itself, we talked about the need for synchronization. And synchronization, among other things, requires much higher precision SiTime oscillators, TCXOs, the highest ones that we have, and the ASP of that and the numbers used because they are used more in density as well to enable synchronization.

Which means you are synchronizing multiple places in the system. That gives us the several hundred dollars of content per data center rack that we talked about. And in general, I think there is also a broadening of the data center market beyond the traditional hyperscalers. Whether it is a growth in, enterprise data centers, or a growth in captive data centers or the neo-cloud or indeed sovereign data centers. I think all of those are contributing to significant growth overall in the business and the market. Thank you.

Jim Schneider: And then maybe 1 for Beth. Given the change in mix and your very strong outlook for the September quarter, can you maybe give us a little bit of help on how you would expect each of the end markets to track in terms of either sequential or year over growth? Thank you.

Elizabeth A. Howe: So as we think about the markets, and for now, I will talk about the SiTime markets excluding TPD. Just as I said earlier, we are just a month into that integration. So when you think about the traditional SiTime CED I would expect that again to be, you know, more than doubling or triple digit growth in Q3 again and be a very strong quarter for the CED business. Like I said, I expect strong growth to continue for our aero, auto, industrial, similar to what we have been seeing on a year over year basis. In the first half of the year. I expect that kind of growth rate to continue.

And then I expect the year over year growth rate for the consumer business to actually accelerate in the second half. And be significantly faster growth in Q3 than we have seen in the earlier part of the year. Driven primarily by the proliferation of the design win we have with our large consumer customer I think there is a lot of information in the marketplace about the speed with which they are rolling out that design, and we would expect that to be reflected in our Q3 results as well. Thank you.

Rajesh Vashist: Thank you.

Operator: Our next call comes from the line of Suji Desilva Suji, your line is now open.

Suji Desilva: Hi, Rajesh. Hi, Beth. Congratulations on the results. For the Renesas product line acquired, any thoughts on when you might have combined company products in the road map? Is that something that we should look for? Or is that really kind of done through system integration type? Efforts?

Rajesh Vashist: Yes. I mean, it really is just 30 days. So but we already have some ideas. We think that SiTime already has unique products which are integrated clocks. With oscillators or clocks with resonators that makes it unique And we think that is an easy level of integration that is likely to happen in the future. Coming quarters. Easy in the sense, conceptually easy. it is not easy to do. it is a new product and so on. But it is conceptually easy.

I think that there is collaboration of a different nature which is probably even more valuable, and that is that some of the people at TPD have been in the clocking business since the old days of ICS, We are going back 26 years. 25 years. And so they have a very deep understanding of system architecture, clock architecture, clock trees, some of the issues with signals, that I think is going to change the way we develop our products, at least some of our products, and be very, very beneficial. So I think we are definitely expecting. Right? For now, we have we are not integrating the TPD group into SiTime.

We are having them run independently as it were reporting to our 1 of our very senior executives. But in a relatively short time, in some quarters, we expect that integration after we have understood better with their strengths and our strengths, how we can combine them organizationally But in any case, we already are deeply connected I think that the sense of welcome that they have got from SiTime and the sense of hanging out with their brethren as it were who were into timing and timing only, is a good is a good thing all around. Very happy with the way the integration has gone so far.

Suji Desilva: Brett. No. It sounds very promising. My other question, Rajesh, a couple of times in the Q&A, you have you have you have noted the term density. Terms of your deployment. So I am just curious, you know, as you get what is driving the need for that. If you double click down, is it that there are larger GPU clusters and you need to sync more GPUs with each other? And if so, is your content growing simply on a numerical basis with higher GPU cluster counts, or is there more of a factor there than just that?

Rajesh Vashist: Well, on the density issue, you are absolutely right. It is in fact based the way you said. Additionally, it is not just more oscillators in GPUs and TPUs and CPUs. But also all around the subsystem all around the racks, In the switches, there is more of it. In the accelerator cards, there is more of it. In other words, if the signal cannot afford to be out of sync, anywhere as it makes its way through the rack, It needs to be in sync, and therefore, get very accurate clock along the way, very accurate frequencies along way.

There is also, of course, the use case in which the level of you know, we have TCXOs, super TCXOs, We have emerging clock products. That are some kind of a combination of them with even higher ASPs. So I think we are able to bring products that customers have not seen before because of our broad technology portfolio. And I expect that density ASP, and greater usage are all going to contribute to our growth. in that business. Okay. Thanks, Rajesh. Thanks. Congrats, guys, on the results.

Elizabeth A. Howe: Thank you.

Operator: Thank you. I am showing no further questions at this time, and I would like to now turn it back to Rajesh for closing remarks.

Rajesh Vashist: Well, thank you all very much. I think the results speak for themselves. it is a seminal time for SiTime. it is clearly an inflection point. We are hitting greater run rates of revenue. We are doing it highly profitably. We are doing it with diverse technologies in diverse markets with diverse products. As a leader, as a creator of a of a category, I think we are super well positioned. So thank you for being part of this journey.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.