Apple’s role revealed as lossy SiTime files for IPO
SiTime, which was acquired by MegaChips Corp. in 2014, is looking to raise up to $100 million in return for a minority stake in the company. The filing with the Securities and Exchange Commission states that MegaChips is expected to retain the majority of the shares of SiTime and will continue to control SiTime after completion of this offering.
“We currently anticipate that MegaChips will remain a long-term strategic stakeholder in us,” the filing states.
The number of shares and the price range for the offering have not yet been determined. SiTime has applied to list its common stock on Nasdaq under the ticker symbol SITM.
However, the filing also reveals that SiTime has been making losses. It reports that SiTime’s annual revenue went from $101.1 million in 2017 to $85.2 million in 2018, a drop of 15.7 percent. Sales in the first nine months of 2018 were $62.4 million but fell to $56.0 million in the same period this year. That is a fall of 10.2 percent.
For 2017 SiTime declared a net profit of $4.7 milion but that turned into a net loss of $9.3 million in 2018 and for the first nine months of 2019 the net loss is $7.2 million.
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The filing states that SiTime’s top customers include Apple, Fitbit, Garmin, Samsung, Google, Microsoft, Dell, HiKVision and Huami. Of these Apple is the largest and was responsible for more than half SiTime’s sales in 2017.
Sales attributable to Apple accounted for 61, 40, 33 and 35 percent of revenue in the full years 2017 and 2018 and the first nine months of 2018 and 2019, respectively, the IPO indicates.
The revenue decline and swing to loss in 2018 is attributed to a $26.9 million loss of revenue because Apple selected an alternative supplier for a next generation of product in 2018. The drop in 2019 is put down to a decrease in orders from “certain end customers” due to slower end markets.
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