Thank you, Kelly, and good afternoon to those on the call. Welcome to SiTime's third quarter 2026 financial results conference call.

Joining us on today's call are SiTime's Chief Executive Officer, Rajesh Vashist, and Chief Financial Officer, Beth Howe. Before we begin, I'd like to remind everyone that during today's call management will make forward-looking statements regarding our business, financial performance, market opportunities, growth strategy, and future operations.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. For a discussion of these risks and uncertainties, please refer to today's earnings press release and the company's filings with the SEC, including our most recent Form 10-K and subsequent Form 10-Q filings.

SiTime undertakes no obligation to update any forward-looking statements, except as required by law. During this call, we will also discuss certain non-GAAP financial measures.

These measures should be considered as a supplement to, and not a substitute for, measures of financial performance prepared in accordance with U.S. GAAP.

Reconciliations between GAAP and non-GAAP financial measures are included in today's earnings press release, which is available in the Investor Relations section of SiTime's website at www.sitime.com. Lastly, unless otherwise noted, all financial comparisons discussed on today's call are on a year-over-year basis.

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

Thank you, Brett. Good afternoon, everyone, and thank you for joining us today.

I'm delighted to say that on July 1, we completed the acquisition of Renesas's Timing Products Division, or TPD. Q3 was our first full quarter of consolidated results.

I'll break out TPD results today to give greater visibility into the performance of both businesses. SiTime had an outstanding third quarter.

Combined revenue was $298.7 million, up 257% year-over-year. Gross margin was 70.7%, up 11.9 percentage points, and we expect it to remain in this range.

Operating margin was 43%, up 25 percentage points, and EPS was $4.01, up 360%. When we announced the acquisition, we said it would accelerate our path to $1 billion in annual revenue, and our Q3 results put us above that level on an annualized run-rate basis.

Our core SiTime business is strong and continues to deliver remarkable growth. Q3 revenue was $212.4 million, up 154% year-over-year.

Our core CED business, or communications, enterprise, and data center, again led our growth, with revenues up 202% year-over-year. Our other BUs also grew more than 75%, grew at least 55%, and two regions grew at triple-digit rates.

Demand is strong. Book-to-bill increased from Q2.

Average order size grew, and total distributor inventory remained below our target. Our visibility into 2027 and 2028 continues to improve, with significant growth in backlog, average design-win value, and the size of our funnel.

Our total funnel now stands at $10 billion and has quadrupled since 2025. TPD also delivered exceptional growth, exceeding expectations.

Revenue was $86.3 million, up 67% from Q3 2025, when the business was part of Renesas. The integration has gone exceptionally well across the teams, customers, and roadmap.

The TPD team is happy to be part of a company that shares their passion and focus on timing. We see positive responses in engagement and retention across TPD locations.

With the addition of TPD, we can provide more complete timing solutions, increasing our content in customer systems and making SiTime a more strategic partner. At our largest accounts, our 2027 revenue forecast has increased by 2 to 5 times.

Moreover, our greater focus is already creating new opportunities, and the pull-through that we envisioned is happening in both directions. In CED, rapidly changing data center architectures are creating new opportunities for SiTime.

Optics is moving closer to compute, stitching together tens of thousands of GPUs with the bandwidth and latency needed to operate as one system. For SiTime, this creates two growth vectors: more complex optical modules, and optics coming directly into the compute fabric.

First, the new optical module generations are ramping rapidly, and each one raises the bar with higher frequencies, lower jitter, and greater resilience, all areas where SiTime excels. Importantly, these generations overlap, shipping at the same time, and new module types create additional timing opportunities, with XPO, or extra-dense pluggable optics, adding clocks along oscillators, doubling our content.

Between data centers, coherent optics provides the bandwidth to connect large AI workloads. These modules require extremely low-jitter timing in the gigahertz range, where our ASP can increase by up to 5 times.

Second, when optics comes closer to the compute fabric, there is increasing bandwidth with lower power and latency. NPO, or near-packaged optics, drives up to 2x more oscillators content, and CPO, or co-packaged optics, drives up to 3 times more timing content with high-value clocks.

SiTime today has design wins with leading customers in XPO, coherent optics, NPO, and CPO. The trend is clear: more bandwidth requires more precision timing.

In our other businesses, Mobile, IoT, Consumer grew 133% year-over-year, driven by our largest consumer customer expanding its modem product across more platforms. At the same time, AI is moving from the cloud into personal devices.

That requires more sensing, connectivity, localization, and always-on processing. Together, these trends increase the need for precise, low-power timing, and we're seeing new designs in AI smart glasses and pendants that'll ramp in 2027 using both Titan resonators and our oscillators.

In our Aerospace, Defense, Automotive, and Industrial BU, our opportunities are expanding as systems become more autonomous, connected, and mission-critical. In Aerospace, Defense, our funnel has now reached $900 million, driven by radar, counter-drone systems, and resilient alternatives to GPS.

Automotive is approaching $1 billion, with increasing timing content in zonal architectures and autonomous commercial vehicles. Finally, Industrial has reached $1.4 billion, led by physical AI applications such as robotics and smart grid.

As these systems continue to become more intelligent and autonomous, real-time decision-making and synchronization become critical, significantly increasing SiTime's timing content per system. A few quarters ago, we talked about the significant opportunities that come with deepening our relationships with leading semiconductor companies.

We have now built a dedicated global sales team to engage customers when critical architecture and timing decisions are being made years ahead of production. This gives us early insight into future requirements and helps us develop differentiated solutions across AI training, inference, mobile, automotive, and other markets.

As a consequence, our semiconductor funnel has grown 8 times to more than $4 billion, creating a substantial future revenue opportunity. Our rapid organic growth and the TPD acquisition have structurally changed SiTime.

Here are three changes that define the new SiTime: First, our financial model is stronger, with higher gross margins, sustainable operating margins of 40%, and broad-based growth across every BU. Our seasonality is less pronounced as CED becomes a larger portion of our overall business.

Second, our relationships with customers are deeper and more strategic. Importantly, this early engagement allows us to influence decisions around new concepts like chiplets, synchronization, and trusted time, where better precision timing can improve performance and availability.

We expect that these applications will create a new SAM of $2.5 billion by 2030. Third, we now have the scale to innovate faster.

With the industry's largest team dedicated solely to timing, we can develop more products in parallel and extend our precision timing leadership. For all the progress we've made, we believe we're still in the early stages of what is possible.

Our ambition remains clear: we want SiTime to be the trusted timing advisor to our customers, and the default choice for precision timing in the world's most important electronic systems. I'll now turn the call over to Beth, our CFO, to review the financial details.

Beth?

Thanks, Rajesh. Today, I'll walk through our third quarter 2026 results and provide our outlook for the fourth quarter.

As a reminder, my remarks focus on non-GAAP financial results, which are reconciled to GAAP in our press release. This quarter marks an inflection point in SiTime's evolution.

As our business continues to scale, we now have a broader revenue base, a richer mix of higher-value products, and greater operating leverage. With the addition of TPD, we are further solidifying our leadership in precision timing.

This progress is reflected in our third quarter revenue growth, gross margin expansion, and meaningful improvement in net income. At the same time, we are continuing to invest in R&D and go-to-market to support the growth opportunities ahead.

With that context, total revenue for the quarter was $298.7 million, up 257% year-over-year and up 90% sequentially. The newly acquired TPD business delivered revenue of $86.3 million, an increase of 67% compared with a year ago when the business was part of Renesas.

Excluding TPD, revenue was $212.4 million, up 154% year-over-year, of which Communications, Enterprise, and Data Center delivered revenue of $127.3 million, up 202% year-over-year and up 26% sequentially. Automotive, Industrial, and Aerospace, Defense generated revenue of $35.5 million, up 76% year-over-year and up 43% sequentially.

Mobile, IoT, and Consumer revenue was $49.5 million, up 133% year-over-year and up 58% sequentially, reflecting strong sequential growth in our large consumer customer that contributed $42.7 million in the quarter. Third quarter gross margin was 70.7%, up 11.9 percentage points year-over-year and 3.6 percentage points sequentially.

The primary driver was favorable product mix, with a greater contribution from higher-value, higher-margin products in our core SiTime portfolio, as well as the addition of TPD. Importantly, this improvement reflects the products we are selling rather than price increases.

Better manufacturing absorption from higher revenue also contributed. Operating expenses were $81.6 million, consisting of $48.6 million in R&D and $33 million in SG&A.

Operating expenses increased $29.5 million sequentially, in line with the outlook I provided in August. We continue to invest in the engineering capacity, product development, and go-to-market needed to support our growth while maintaining discipline on our overall cost structure.

Operating income increased to $129.5 million, or 43% of revenue, compared with 34% of revenue in Q2 and 18% a year ago. Other income was $0.8 million.

As a result, non-GAAP net income increased over 5x to $130.3 million, and non-GAAP earnings per share were $4.01. These results reflect strong revenue growth, favorable product mix, and meaningful operating leverage, even as we continued to fund our product roadmap and invest for growth.

Turning to the balance sheet and cash flow, DSO was 61 days in Q3, up 10 days from Q2, primarily reflecting the timing of collections related to TPD, with those collections received in early Q4. Inventory increased to $112 million to support expected Q4 demand.

Together, these working capital movements contributed to the $6.6 million use of operating cash in Q3. We expect working capital and cash flow to improve in Q4 as collection timing normalizes and integration progresses.

Capital expenditures for the quarter were $11.2 million. We ended the quarter with $324 million in cash and short-term investments, providing significant liquidity and flexibility to continue investing in the business.

Now, looking ahead to Q4, the TPD integration is progressing extremely well, and going forward, we will provide our outlook and report our results on a combined basis. For Q4, we expect revenue of $331 to $341 million, with both the core SiTime and TPD growing sequentially Q3 to Q4.

We expect gross margin to remain around 70%, plus or minus a point, reflecting the expected mix of the business. Operating expenses are expected to remain roughly flat with Q3.

We expect interest income of $2 to $2.5 million and a diluted share count of approximately 32.8 million shares. At the midpoint of the range, we would expect Q4 non-GAAP EPS to be approximately $4.76 per share.

Finally, today we announced a 3-for-1 stock split of SiTime common stock to make our stock more accessible to a broader base of investors. The shareholders of record at the close of business on December 3rd, 2026 will receive two additional shares for every outstanding share held on the record date, and trading will begin on a split-adjusted basis on Monday, December 7th, 2026.

With that, I'll hand the call back to the operator to open the line for questions.

Yes, thank you, and congratulations on the very strong results. Rajesh, you gave us some great detail there on the exposure to AI data center, within the various networks, especially on optical.

I'm just curious, from where you sit, where do you expect the content to increase the most for your products, whether it's clocks or oscillators? It sounds like there's a step function in NPO.

Am I understanding there's a further step function, then, as we start to see CPO get deployed?

I think to answer your question, Tore, it's across the oscillators as well as the clocks. One of the easiest ways to say it is my example of the low-jitter gigahertz products.

They typically are going to be at a higher price, maybe 3, maybe 4x. A gigahertz oscillator may cost $6 to $8, whereas a megahertz oscillator might be around $1 to $2.

Right there, there's a up level in pricing. The other thing that happens is that in NPO, for example, the number of DSPs are much greater, and wherever there are more DSPs, there are more oscillators.

There certainly is more clock being used in the NPOs as well, whereas, as the electrical part of the switch is the optics are closer, and we have some design wins around that as well. Overall, this is a question that's been asked a few times about what is the impact when there is less copper, whenever that happens, and more optics, and we have always maintained that SiTime benefits to the upside in this trend, and so we're confirming that with some more detail here.

Very good. As my follow-up, I'm very intrigued with the work that you've been doing with semiconductor companies, and I think you mentioned the funnel growing 8 times to about $4 billion.

Could you maybe unpack a little bit how that works? Do you get paid by the semiconductor companies for using your chips?

Is this perhaps more of a reference design? When do we start to see that $4 billion funnel materializing into more revenues?

Thank you.

Yeah. As I've mentioned before, I've talked in previous quarters and said that that's one area where we wanted to invest more money, and my point that I was making was that we now have a fully funded team of several people that are calling on anywhere from the top 10 to top 20 semiconductor companies and going even beyond that.

The answer is all of the above to how do we make revenue. We make revenue directly with some of the customers.

In some of these cases, we're directly twinned with the product and sold to the semiconductor company itself, and then they sell it. The second part is in the reference design, of course.

We get to play in that. Third, there is this co-packaging piece going on, which is going on at a relatively low pace, which we expect to ramp up in 2028 and 2029 in particular.

Given the time deadlines here, none of this, or relatively smaller piece of this $4 billion funnel, happens in 2027. Most of it starts to ramp in 2028 and 2029.

We just wanted to say that there is another aspect, and that is when we engage with semiconductor companies, the conversation is extremely detailed and collaborative in changing architectures to recognize unique products from SiTime. This gets us embedded further, but it also makes us more consequential to our customers.

I think it's just an amazing win for us, and I'm really glad that we have the team up and running.

Thank you for that, and congratulations again.

I guess let me offer my congratulations on the strong outlook. I guess, Rajesh, wanted to start with the TPD business.

I know that segment's been fairly wafer constrained, and wondering if you could give us an update on how you see wafer availability for that business. Do you still expect constraints to last into, perhaps as far as middle of next year, or have you been successful with Renesas in increasing wafer support for the TPD business?

Yeah. I think, in general, constraints will continue through the coming year, through 2027.

It's the severity of the constraints that we've been very concerned about in this handoff, not wanting to constrain our customers, frankly, our mutual customers, because Renesas continues to sell to them, and wanting to make sure that there are no severe consequences, lines down and such. With that, we've been quite successful both with our team as well as the support from Renesas.

In general, as I said once before, we expect that we will get closer to the supply chain ourselves by Q1, and we'll start to resolve them, the more severe issues, exiting this quarter and getting into Q1, Q2. I think we should be in significantly better shape.

However, I've said that is that there is constraints in the supply chain, particularly around the wafers, because of the increased demand. Frankly, neither we nor TPD had expected this huge surge in demand, and we're seeing significant growth, all to the good, but really something for us to manage, which I'm pretty confident we will by early part of next year, 2027.

Excellent. Then a follow-up, maybe for Beth.

Just wondering, it sounds like that the book-to-bill continues to strengthen. Wondering if you could give us a sense how far out do you have visibility or backlog, and what are lead times doing on the products?

Are they increasing? Are they stable?

Just any sort of comments on lead times and visibility.

We have exceptional visibility heading into 2027. I think we've got a strong design-win funnel, and we've got a strong backlog going into the year.

We feel very well-positioned as we kind of finish up '26 and going into '27. When we think about lead times, we're managing the lead times, as Rajesh was just talking about, in the supply-constrained environment.

It's something that the ops team works really hard with our suppliers on in order to ensure that we can get products, and we're managing through it, I think, is the best way to frame it.

Thank you.

Hi, Rajesh. Hi, Beth.

Congratulations on the results here. I think I heard you say the Renesas product business, you gave a year-over-year number, even though I know it's included for the first time this quarter.

Did you say 67% year-over-year? If you did, what end markets are the key drivers there, and how is that exposure different from SiTime's core end market exposure, just to understand the sustainability of Renesas this quarter?

Thanks, Suji. You're correct.

The TPD business grew 67% year-over-year, comparable to when they were part of Renesas. The mix of that business is overwhelmingly probably 80-plus percent in what we would call our Comms, Enterprise, Data Center, and the other roughly 15% to 20% is in Industrial and Automotive for them.

That's the kind of mix of the businesses. Like our business over the last year-plus, it has moved a bit more They previously were more like 75/25, it's moved a bit more toward the CED, not unexpectedly, given the growth in the market.

That's helpful, Beth, color there. Then I know when you guys did the acquisition merger, you talked about Renesas's customer base as being exciting part of the opportunity here and cross-sell synergies, as they had established Fortune 100 customers.

Any near-term, kind of early updates there, Rajesh, on how those discussions are going, how the cross-sell opportunity looks to you? Is it going to take time, or is that moving along at a nice pace?

Yeah. No, that's what I sort of hinted at in my prepared remarks, Suji, that the focus has created new opportunities, and the pull-through or the drag-along, if you will, is happening in both directions.

I think it's only been a quarter, and I think we have already seen the benefit of selling into the TPD customers that some of them, they were very strong at. I think the reverse, where we have taken them in with the clocking products into customers that we were stronger at, I think is already happening.

I think clocking is clearly more architectural, more, quote-unquote, strategic to customers, so that probably helps us, the old SiTime, more. It's also true that we are able to take them significantly into some of the new architectures, which will pay off in the future.

It's really working exactly the way I thought, including with the integration.

Okay. Appreciate the color, Rajesh.

Thanks.

No worries. Hi, Rajesh.

Hi, Beth. Gaurav Saini from StoneX on behalf of Gary Mobley.

Congrats on the quarter, guys, and thanks for taking my question. Just wanted to ask specifically about the design-win pipeline.

We're starting to hear more customers shift towards precision timing and away from quartz. I'd love to get a sense at, A, how has your guys' opportunity pipeline changed over, call it the last 12 to 24 months?

B, how are you sort of handling that on the resource side, both your own sales team and then also your distribution network? Love to get some color on that.

Yeah. As I said, we've seen quite a surge in demand, especially when you widen the aperture from 12 to 24 months.

There's no doubt that the increase in demand has been amazing. We can now see not just into 20 And right, sitting in '26, not only do we see into '27, but we can see into '28 as well.

There are new architectures that I talked about, whether it's with semiconductor companies or hyperscalers, that we can see. That is also true, by the way, in the non-CED business.

I think we have opportunities in military, aerospace, defense, and industrial. We talked about robotics, we talked about the smart grid.

I think, as in automotive, it's a little bit of a longer cycle, and we're starting to see some of those longer cycles play out now in our favor. I think we have significant breadth coming in that.

Our funnel is larger. Our number of sales people and FAEs is significantly larger.

We probably have the largest sales force now calling on it worldwide, with special emphasis in China and in EMEA. That's helping us.

As far as distribution goes, as we are fulfilling through distribution. We're a design-win company that chooses to basically sell through.

We don't have a distribution business that's very large, that's selling into stocking and then selling out of stocking programs. It's very much a made-for-the-customer, programmed-to-the-customer, designed-for-the-customer thing.

Our distributor inventory is at very healthy levels, and we're very happy with that.

Got it. Thank you.

Then just my follow-up, I know you guys mentioned core CED grew over 200% year-over-year, which is great to see. Just wanted to double-click on that.

How is the mix shifted, call it again, over the past few years between CPUs, GPUs, custom XPUs, and I know you guys also mentioned optical modules, just trying to get a better understanding of whether this has moved away from being GPU-centric and become much more diversified. Thank you.

I don't think we see a big change in that. We still see the connectivity part, the networking part as a very strong piece, call it around a 50% of our business is around modules, ASICs, connectivity.

At the same time, on the rack side of the business, our business continues to grow with the switches, with the accelerator cards, with the level of inference where we get 2 to 3x more in the CPU, in the servers, and continued strong business in the GPU. It's kind of like a 50/50 thing, and both of those markets continue to grow solidly.

Sounds great. Thanks again, guys, and congrats on the quarter.

Hi. Thank you for taking my question, and congrats on the great results.

You said on your '27 revenue forecast that your largest customer accounts have increased 2 to 5 times. What does that compare against, and does that refer to TPD, does it for core SiTime, or is it the combined portfolio?

Can you give us a sense of the incremental dollars, and how much of this is already backed by firm customer orders? Thank you.

Thank you, Sajal. Welcome to SiTime.

Thank you.

We're basically seeing a significant increase in design wins. Most of that refers back to the design-win side of the business.

What we wanted to do was give our investors a flavor of how strong our pipeline for design wins is and how strong our funnel is. All of that refers to that, and it's all over, in all areas, really, across the business.

Maybe Beth wanted to add something to that.

In addition, it's also points to the complementary nature of our TPD plus SiTime. As we talked about when we did the deal, there were a number of customers where they had a large installation and maybe were less of a customer for SiTime, and some of SiTime's larger customers where TPD had less of a presence.

One of the things that we're talking about here is this combination of now having TPD and SiTime, you're seeing that complementary nature in that increase in our forecast. As we bring these two companies together and some of those customers where maybe SiTime hadn't had much of a presence previously, we now have a much larger presence.

Got it. As my follow-up, I guess at OCP, we heard architects discussing a move from basically microsecond of synchronization error towards tens of nanoseconds.

In the design wins for '27, where does that first translate into a SiTime socket? Is it on the NIC side?

Is it on the compute tray, or is that still on the switch? How much of that stuff is shipping in current design wins versus the next generation?

Thank you.

Very little of that will be shipping in the '26 or even in the '27 time frame, Sajal. I think that's all directional, and I was at some part of it, and it's a very kind of a thoughtful conversation on where the system is headed.

I think directionally, you're correct. When it gets to that level of precision, I think there's almost nobody else who can supply what we're talking about with the kinds of latencies that they're talking about.

Clearly, optics, the greater move into optics is going to drive more of that, and I think there are some innovative architectures that are happening now. I wouldn't expect much beyond NICs and PCXOs from SiTime connecting, right?

The NIC cards connect with high-precision PCXOs, and there's just more use case of them on the accelerator parts.

Okay. Thank you.

Operator, let's move on, and we can come back to Nicole.

Good afternoon. Thanks for taking my question.

As I know you don't want to guide more than one quarter in advance, but I was wondering if you could help us understand at least the specific design win in the smartphone segment at one of your large customers. What sort of seasonality will that have, if any, heading into the March quarter, or would we think that some of the model ramps that are happening at the beginning of the year would more than offset that typical seasonality?

Just wanted to make sure we're level set on that.

Hey, Jim, this is Beth. Thanks for the question.

As we ramp that design win, I do think it will modulate the typical Q4 to Q1 seasonality a bit, at least for this 2026 to 2027 year. Then I guess

as we think about the CED business over the course of '27 and start to model that, how would you encourage us to think about the linearity of that revenue? Because I know there's many moving parts between your own business ramping with the design wins, and also the Renesas business presumably a little bit less supply-constrained, and maybe you can address anything about the supply-constrained end of it, it would be great.

Thank you.

As we think about seasonality in CED, I think given all of the dynamics of that market and the way AI is evolving over the last many quarters, I think it's hard to necessarily talk about seasonality per se, but probably '27 looks a bit like '26. I think it's really hard to predict the seasonality because it can come in the form of, with these big customers, a little bit of revenue shifting from one quarter to another depending on when exactly we ship can move kind of the growth percentages there.

But '27 probably looks comparable to '26 from that perspective as we continue to see sequential growth in CED. That's kind of as we see it today.

Thank you.

To add to that, in terms of tightness of supply, I think that in the short term, in Q3 and Q4, we've struggled more with the supply chain from the acquisition of TPD because we've had to rely on TSAs from Renesas. As we have gotten closer to the business, trying to understand the specific needs has taken a little bit of time, given the supply chain that we have had to deal with.

As to the old core business, if you will, of SiTime, the old business of SiTime, sure, we have some supply constraints, but nothing that we can't manage. In general, we think we'll have managed all of this by the start of Q1, and certainly the more stark parts of the shortages for the TPD business will probably be handled through this quarter, and we'll be in positive space in Q1.

Operator, is there a next question?

Yes, thanks. Good evening.

A question is about the diversification of the CED business, and I know that your share and your content isn't equal across all the platforms, but I know you're making some efforts in order to do so. Can you comment on that and considering that some of the custom XPU solutions we're expecting to probably grow faster than some of the merchant solutions over the next year, what does that mean for the CED business as you go into '27?

Thanks, Chris. I think we expect that to have a pretty strong impact on growth, because we are seeing multiple design wins in that space.

We expect that to do very well in CED in general. What we wanted to give when we talked about the funnel was a sense of how big it is and how pervasive across all applications it is, whether it is in the GPU, the CPU part, whether it is in NICs and switches, but also in the connectivity pieces.

The 1 + 1 = 3 part of getting the oscillators and the clocking solutions together of old SiTime and TPD for the new SiTime, I think it makes our portfolio complete and allows us to win designs against people who've been in the clocking business and gives a significant conversation around architectures that we didn't have. It's really coming through for us the way we expected it to.

Got it. As a follow-up, Beth, I know you've spoken about the necessity now that you've brought the TPD business on to kind of fill in some of the things that didn't come along with TPD, such as sales.

What should we expect for OpEx as we go through the next year as you make some of those hires and you integrate that TPD business and fill in some of those blanks?

You're absolutely right, Chris. When we acquired TPD, we primarily acquired engineers, a few FAEs, and a few folks in operations, and we're building out the infrastructure to support that business, whether it be finance, HR, legal, even building up a sales team as well to support that.

Growing that infrastructure, combined with supporting the growth of our own business, I would expect that we continue to see kind of sequential increases in OpEx from Q4 to Q1, Q1 to Q2. In general, that's what I do expect is those sequential increases.

Now, from time to time, as we're seeing Q3 to Q4, the timing of program expenses or some of these items can be a little uneven quarter-to-quarter, but overall, I would expect sequential growth as we go through '27.

Thank you.

Hi, we figured this out. It's Joe Moore from Morgan Stanley.

Somehow I got registered under the wrong name. Thank you, guys.

I wonder if you could talk about the market share on 1.6 terabit. You've talked about being much higher market share than you were at 400 gigabit.

Where are you now from a mix standpoint, 400, 800, 1.6, and should we think about that as a growth driver for you as 1.6 becomes a bigger part of the mix?

Absolutely. We should, as it transitions from 800 to 1.6 and beyond that, for that matter, to 3.2.

We didn't have a very large portion of our business in the 400, while we are shipping in the 400 and we expect that to ship for a couple more years, we have a relatively small market share. In the 800, it grew over 4, and I would say that in the 1.6, it grows again.

There's a unit uplift, market share uplift, but there's also an ASP uplift going from 800 to 1.6 terabit. We have indicated that as being a significant value of growth in revenue because of performance and other attributes that we have.

Great. Thank you very much.

Thank you for that. We really see ourselves as the company that, after the acquisition, has really transformed itself into this place where there's fundamental changes between our scale, I think the scale of engineers, the scale of sales, the scale of the business itself is very high, and it helps us to grow.

The financial transition over to high gross margin, high net operating margin company, I think is already happening. Then the closer move to customers across the market, I think has really changed SiTime.

I think our customers recognize it, our partners recognize it, and I think we wanted to make sure that our investors get to see that we see ourselves as having fundamentally transformed from this $1 billion tipping point revenue, onwards to greater growth and greater impact in the market. With all that, we thank all our investors, and we invite them to join the ride for future and even better times.

Thank you very much.