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Associated Press
14-03-2025
- Business
- Associated Press
Ionic Digital Reaffirms Commitment to Maximizing Stockholder Value and Opposes Self-Serving Agenda of Figure Markets and GXD Labs
AUSTIN, Texas--(BUSINESS WIRE)--Mar 14, 2025-- The Ionic Digital Inc. ('Ionic' or the 'Company') Board of Directors (the 'Board'), today issued an open letter to stockholders reaffirming its unwavering commitment to maximizing stockholder value, optimizing its Bitcoin mining operations, and providing stockholder liquidity by taking the necessary steps toward listing Ionic shares on a national securities exchange or engaging in complementary or alternative transactions. The open letter also provides context on the recent decision in the Delaware Court of Chancery (the 'Court') regarding the sharing of the Company's confidential stockholder list. The open letter can be read below: Dear Ionic Stockholders: The Board remains fully aligned with stockholders in our mission to maximize value and provide a path toward stockholder liquidity. By contrast, non-stockholders Mike Cagney, his company Figure Markets and a founder of GXD Labs ('GXD') are driven solely by their own commercial interests—seeking to have Ionic's stock listed exclusively on Figure Markets' unproven Alternative Trading System ('ATS') (thus making it the first security to list on Figure Markets' ATS) and pushing for lucrative management contracts to be awarded to GXD. These self-serving objectives do not align with the best interests of Ionic stockholders. To advance their agenda, Figure Markets and GXD have resorted to leveraging three record stockholders, Brett Perry, Veton Vejseli, and Christopher Villinger, to file lawsuits in their name aimed at obtaining access to Ionic's confidential stockholder list. The intent of Figure Markets and GXD is to use this sensitive information—including stockholder names, addresses, emails, and phone numbers—for their own commercial gain, including engaging proxy solicitors to advance their purported highly conflicted nominees, Michael Abbate and Oliver Weiner, to the Board. Their goal is clear: to extract financial benefits for these non-stockholders at the expense of the Ionics's actual stockholders. Delaware Court of Chancery Limits Access to Confidential Stockholder Information Ionic Digital is pleased that the Delaware Court of Chancery has recognized the Company's valid concerns regarding stockholder privacy. The Court issued a ruling on March 13, 2025, limiting Figure Markets' and GXD's access to the Company's confidential stockholder list. Additionally, the Court ruled that the Company has the right to seek legal fees from GXD due to its improper attempt to block Ionic from obtaining discovery, and the Board notes that any recovery of these legal fees from non-stockholder GXD will directly benefit Ionic's stockholders. Further, the Court determined that the parties will negotiate and submit for the Court's approval a confidentiality agreement outlining the restricted extent to which Figure Markets and GXD may access stockholder information. This outcome reinforces Ionic's commitment to protecting stockholders' personal data and ensuring transparency in the election of a director at the upcoming Annual Meeting. Annual Meeting Adjourned to Ensure Fair Process for Stockholders To ensure that stockholders have a fully informed and fair opportunity to participate in the corporate governance process, the Company's Annual Meeting—originally scheduled for March 17, 2025—will be adjourned without conducting any business until approximately 30 days after the Court of Chancery rules following an early May 2025 trial on several outstanding issues, including: (1) Plaintiffs' claim that the size of the Board of Directors should be held by the Court to consist of six directors, rather than the current five directors; (2) Plaintiffs' claim that certain nominees for election as director(s) of the Company's at the Annual Meeting should be deemed by the Court as having complied with the Company's Advance Notice Bylaws Section 2.4; and (3) Plaintiffs' claim that the quorum requirements at the Annual Meeting should not be set according to Bylaws but instead should be set by order of the Court. The Board looks forward to engaging with stockholders and demonstrating why its nominee is best positioned to enhance stockholder value, while making clear that the purported nominees proposed and acting on behalf of Figure Markets and GXD serve only the commercial interests of these non-stockholders, who seek to extract financial gain through lucrative service contracts at the expense of Ionic's actual stockholders. Ionic Digital remains steadfast in its focus on maximizing stockholder value, growing its Bitcoin mining operations, and achieving a national stock exchange listing or engaging in complementary or alternative transactions to provide liquidity for all stockholders. The Board will continue to act in the best interests of its stockholders and unanimously recommends stockholders to vote FOR Elizabeth LaPuma by using the WHITE proxy card to protect the Company from opportunistic efforts that could undermine its long-term success. Sincerely, /s/ Thomas DiFiore Director /s/ Scott Duffy Director /s/ Scott Flanders Director /s/ Elizabeth LaPuma Chair About Ionic Digital Ionic Digital is a prominent Bitcoin miner and emerging innovator in energy monetization. With facilities across the United States and a total capacity of 394 megawatts, Ionic expects to drive the next generation of energy efficient, low-cost computing through sustainable Bitcoin mining. The Company's strategic initiatives focus on operational efficiency, transparency, and securing long-term financial growth for its investors. For more information, visit and follow us on X at @IonicDigital. SOURCE: Ionic Digital Inc. Copyright Business Wire 2025. PUB: 03/14/2025 11:56 AM/DISC: 03/14/2025 11:56 AM
Yahoo
06-02-2025
- Business
- Yahoo
Q4 2024 SiTime Corp Earnings Call
Brett Perry; Vice President; Shelton Group Rajesh Vashist; Chairman of the Board, President, Chief Executive Officer; SiTime Corp Elizabeth Howe; Chief Financial Officer, Executive Vice President; SiTime Corp Tore Egil Svanberg; Analyst; Stifel, Nicolaus & Company, Incorporated Quinn Bolton; Senior Analyst; Needham & Company LLC Suji Desilva; Managing Director, Senior Research Analyst; Roth Capital Partners LLC Chris Caso; Analyst; Wolfe Research Operator Good afternoon, and welcome to SiTime's Times fourth quarter 2024 financial results conference call. (operator instruction) As a reminder, this conference call is being recorded. February 5, 2025. 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 Lisa. Good afternoon, and welcome SiTime's to fourth quarter, 2024 financial results conference call. Joining us on today's call from SiTime are Rajesh Vashist, Chief Executive Officer; and Beth Howe, Chief Financial Officer. 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 different 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 the 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 10-K filed on February 26, 2024, as well as the company's subsequent filings with the Securities and Exchange Commission. During the call, We will refer to certain 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 US GAAP. The GAAP to non-GAAP reconciliation includes stock based compensation expense, amortization of acquired intangibles, 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 contingent consideration and earn-out liabilities. Please refer to the company's press release issued earlier today for a detailed reconciliation between GAAP and non-GAAP results. with that. It's now my pleasure to turn the call over to SiTime's CEO, Rajesh, please go ahead. Rajesh Vashist Thanks Brett. Good afternoon. I'd like to welcome you as well as existing investors to SiTime's fourth quarter, 2024. Earnings call C is the leader in a dynamic new semiconductor category that we call precision timing, which is the heartbeat of modern electronics, whether it's in A I data centers, networking infrastructure, automated vehicles, personal mobility or I os' precision timing delivers better performance and reliability. Psai precision timing products use semiconductor technology to reimagine time and transform the $10 billion timing market revenue for Q4 2024 grew 61% year over year with strong profitability for all of 2024 we delivered 41% growth which is well above our target. Our strong fourth quarter results demonstrate the diversity of site times across customer segments and geographies. Each of our customer segments and regions delivered double digit percentage growth with coms enterprise data center, what we call CE D growing significantly. We exited the quarter with strong bookings for 2025 giving us a bright outlook for the year. Looking back, fy 2024 was a year of recovery and growth as forecasted in the previous year. 2023 we started growing sequentially in Q224 every customer segment delivered double digit percentage year over year growth in Q2 Q3 and Q4 of 2024. While ce D delivered triple digit growth, we believe that this strength in all of our customer segments is a big positive. Our business model is structured to deliver profitable growth while serving different customer segments with different growth rates at different times. Product innovation plays a key role in fulfilling our strategy of producing high differentiation, high value timing products. Since Q2 2023 we have introduced 10 new platforms that deliver 40 products with ASPs or average selling price ranging from $1 to over $200. These will be critical for growth in revenue and gross margin for the next several years. As electronic devices incorporate intelligent features, they will need faster processing connectivity, reliability. And SAM is the leader in delivering these benefits. Our comms enterprise data center business demonstrates the value of our portfolio. We expect to continue to lead our growth in 2025 as newer generations of servers in A I and networking equipment are rolled out. Turning to recent news in A I, we forecast that the need for higher bandwidth and lower latency will continue to increase. This is true regardless of traditional or low cost A I models and regardless of general purpose or reasoning LLM models, applications such as active cables, AEC'S GPU switches, smart NIC cards are solving bandwidth and utilization problems through architectural innovations as well as moving to higher interconnect speeds. And these trends are driving the demand for more precision timing with higher dollar content per application. For example, our oscillators have significant market share in 800 G optical modules and we have a compelling road map for future generations of 1.6 terabit and 3.2 terabyte modules in switches and NIC or NIC cards side. Recently introduced 5,977 super tcxo solves GP utilization and reliability problems by delivering up to three X better synchronization, four X smaller size and 20 times better reliability. But it's not all about data centers in our CD market. It's also about the breadth of other applications. We've seen increasing demand and communications where our epoch product, our OCXO solves timing problems in five G base stations. We continue to expect success in this subsegment starting in 2026. Now let's talk about growth opportunities for time beyond CD in the broader industrial market, new use cases and the adoption of new technologies is driving the need for more precision timing with higher dollar content. For example, autonomous technology that uses our timing products is being adopted in mining and construction equipment as well as precision agriculture. This is a $50 million market for s time and we expect to get the majority share because of a greater resilience. Similarly, the need for more precise and robust positioning is driving adoption of our products in drones, handheld military radios and assured P&T of precision navigation and timing systems. This is the $25 million market for time and we expect again to get a majority share because of a higher performance, smaller size and lower power to summarize. We expect our growth to continue in 2025. The breadth and diversity of our products applications and customers is delivering the growth that we have worked for. I'm confident of our success now and in the future and now I'll turn the call over to Beth our CFO to discuss our financial results in more detail. Beth. Elizabeth Howe Thanks Rajesh and good afternoon everyone today, I'll discuss our fourth quarter and full year 2024 results and then I'll provide our outlook for the first quarter of 2025. As a reminder, I'll focus my discussion Non-GAAP Financial results which are reconciled to our GAAP Financials in our press release. We are pleased with our performance. As we continue to execute our financial model, we delivered remarkable results with strong revenue growth and even greater profit expansion, reflecting the scalability of the business. Importantly, this performance was driven by broad based strength across our customer segments. Our performance this quarter demonstrates our ability to successfully invest in our business while delivering strong financial results. For the full year, we delivered revenue of $202.7 million. Up 41% from the prior year. Nongaap gross margins were 58.2% and nongaap O&R expenses were $117.5 million for the fiscal year. We generated non-GAAP net income of $22.2 million. Nongaap earnings per share of $0.93 and cash flow from operations of $23.3 million. Looking at the details of the December quarter Q4 was a strong finish to the year with revenue increasing 61% year on year and 18%. Sequentially to $68.1 million revenue by customer segment was sales into communications, enterprise and data center market of $24.8 million or 37% of sales. Up 156% year on year sales into the automotive industrial and aerospace. As aerospace market were $20.5 million or 30% of sales increasing. 32% year on year and sales into the mobile iot and consumer market were $22.8 million or 33% of sales. Up 33% year on year with sales to our largest end customer totaling $16.4 million or 24% of sales. Nongaap gross margins were 58.8%. Up 70 basis points sequentially and a bit better than expected due to favorable product mix. Total Nongaap operating expenses for the quarter were $32.5 million with R&D expense of $19.4 million and SG and a expense of $13.1 million. As expected, the increase in R&D spend was due to investments in new products that we are bringing to market. Fourth quarter, Nongaap operating income was $7.6 million. An improvement of $3.6 million sequentially interest and other income was $4.5 million. Fourth quarter, Nongaap net income was $11.8 million or $0.48 per share compared with $0.40 per share in Q3. Turning to the balance sheet accounts receivable were $38.1 million with DSOS of 50 days. Up three days from Q3 due to revenue linearity inventory at the end of the quarter was $76.7 million compared with $71.9 million. In Q3. During the quarter, we generated $13.6 million in cash flow from operations, invested $16 million in capital purchases and paid $7 million to ora semiconductor. At the end of the fourth quarter, we had $419 million in cash, cash equivalents and short term investments. Now, I'd like to provide our outlook for the March quarter. We expect typical seasonality in Q1 with revenue of 53 to $55 million an increase of 64% year over year at the midpoint and gross margins of approximately 57%. We expect operating expenses to be roughly flat sequentially even as we absorb the higher beginning of the year payroll taxes and we expect interest income of roughly 4 to $4.5 million as a result. We expect Q1 non-GAAP EPS to be in the range of 9 to $0.13 per share in closing. We are pleased with our strong results and we believe we are well positioned for growth in 2025. Our product portfolio continues to expand with different traded products that address large and growing markets and our customers are clearly recognizing our value proposition all in all we are executing our strategy and our strategy is working with that. I'd like to hand the call back to the operator for questions and answers. Thank you. Operator As a reminder. If you would like to ask a question, please press star 11 on your telephone, you will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. We also ask that you wait for your name and outreach before you proceed with your question. One moment while we compile the Q&A roster. Operator Tore Egil Svanberg, Stifel. Tore Egil Svanberg Yes, thank you and congratulations on the strong results. So Rajesh, you talked about strong bookings momentum going into 2025. If you look at your three segments, can you just give us a little bit of a sense for, where, where those bookings are coming. And then, as we think about growth in 25 you know, where would the relative strength come from with, from the three segments? Rajesh Vashist Right? Thanks, thanks. Sorry. Yeah, so there is no surprise that most of the growth in 25 will also come from the ce D portion of the market, the communications enterprise and data center portion of the market. I think we'll see growth in consumer mobile IOT and we'll see growth in industrial, automotive and military aerospace, but perhaps not to the same extent for these two segments that we see for the first one that I mentioned. So we still expect to be on that one for a while. Tore Egil Svanberg Great. And if I can sort of zoom into the CE D segment, you've talked about, selling into four different applications for an A I based server. And, and I'm just wondering if we look at calendar 25 again, whether it's, switches or nick cards or, a ecs, where, where do you see the sort of biggest strength within those applications in 2025? Rajesh Vashist Yeah, in general, we sell more units into a CS N cards and smaller units into GP US and, and some of these other ones also in the more in the more quantity more units is also in the optical modules, as we have said before. The pricing for the products in the in the GP U is probably higher but the volumes are not as high. So I think it just depends on which one does better, but we expect all of these segments to grow. Tore Egil Svanberg That's helpful. I have a couple more, but I'll go back in line. Thank you. Operator Thank you one moment for the next question Quinn Bolton, Needham and Company. Quinn Bolton Hey guys, let me further by congratulations as well. I guess maybe just big picture. And Beth, you, you've talked about a target of 25% to 30% in 2,526 obviously very solid foundation in 24. But are you still feeling pretty good about your ability to hit that kind of longer term growth rate both this year and next? Rajesh Vashist Yeah, I think that's a good target for us, Quinn. I think that's we see that kind of growth coming from the breadth of the market that we address and the broad level of activity in these markets with our latest product. So, yeah, I would agree that we're probably, we're probably good for that as a target right now. Quinn Bolton Perfect. And then I guess Beth on the gross margin on the step down to 57% probably a little bit lower than at least I had modeled. Wondering if you could just sort of walk us through some of the puts and takes. I know revenue lower, revenue probably means absorption is an issue. But you guys spent, I think you said $16 million in CapEx in the quarter. I wonder if there's also some additional depreciation or costs for new products that, you guys may be absorbing in the near term before those have sort of fully ramped. And so how much of it is just revenue stepping down, how much of it is, perhaps the ramp of new products that aren't yet at mature yields or, or, sort of fully ramped up on the supply chain. Elizabeth Howe Sure, Quinn, thanks for the question. I think you hit the nail on the head. So when we've got the revenue seasonality and the manufacturing absorption is the most significant part of that and then we do have additional depreciation, we're ramping new products. And so we, kind of as expected, have a step down in the gross margin here as we've talked about. We're on the path that we've been on in terms of bringing these new products to market, working through the, yield improvements, the cost downs improving test times and other things as we mature these products. So over time, we do expect gross margins to improve. But the combination of the typical seasonality and lower revenue in Q1 combined with these ramps is driving the gross margins this quarter. Quinn Bolton If I could just take a quick follow up, you, you've talked about hoping to get back to a 60% gross margin, obviously, maybe starting a little bit lower because of the absorption issue in March. Do you think you can get to 60% sometime in the back half of 25? Or should we be thinking 60% might, might now be pushed out to calendar 26. We're still targeting that as a, as something we want and we can address. Brett Perry Great. Okay. I'll go back in queue. Thank you. Operator Suji Desilva, Roth Capital Suji Desilva Hi, Rajesh. Hi, best. Congrats on the progress here. Just a quick follow up on Tore's question about bookings. Are you seeing the improvement? Is that a customer preference or some of your newer products or have the lead times moved at all or customers just acknowledging long lead times, any color on why the bookings are improving would be helpful. Rajesh Vashist Yeah, I think bookings are just strong on the back of demand. We just see a pretty good demand coming from all sectors. Our lead times are pretty solid where they were. We just see a lot of, a lot of when we look at the end markets, whether it is the industrial, military, aerospace, automotive or it's the mobile IOT consumer. And of course, we've talked about CD, we just see demand coming through. I'm not saying that it's some kind of over the top demand. I'm just saying it looks solid. Suji Desilva Okay. That's helpful. And then separately on the timing products, the acquisition, maybe you can give us an update on where the road map product, road, road map and synergies are there and where some of the traction is as you kind of put the products together in the. Rajesh Vashist Yeah, so that we had taken that product mostly for the higher end of our market, mostly mostly for the CD market and some portions of the military aerospace and some portions of the industrial market and that, that is completely playing out. So ORA has done, of course, a fantastic job. I've said this several times in delivering the products that they were supposed to deliver. And we are really pleased with the level of support that they have given us and the integrity with which they've been dealing with us. So that's an absolute positive. But the second part is that those products combined, those clocking products, the jitter attenuators, the buffers, the clock generators combined with a higher and oscillator products have worked according to plan have been one plus one equals three as we go to some of these customers that I mentioned earlier. So it's coming exactly according to plan, as we mentioned, it'll it this kind of products take a longer time to design in. But we're still thinking that in the next few years that the revenue from clocking could be approaching $100 million. Suji Desilva Very helpful calling Rajesh. Thanks. Operator Yeah, thank you one moment for the next question. Chris Caso, Wolfe Research Chris Caso Thank you. Good evening. I guess the first question is on OpEx and you know, a a as you deliver on, hopefully deliver on some of the growth that you're expecting, this year and next year. You know, what should we expect with regard to OpEx and, and getting some leverage on that growth? You know, where, where, where is, where is your expense level relative to where you need to be, to, to, to get to the growth that you're targeting? Elizabeth Howe So we look at operating expenses, I think as we've been saying, I expect that we can grow revenue much faster than OpEx. You know, again, we were at $32.5 million in Q4. I think we'll be roughly in that, that same range for Q1 with some puts and takes, for example, in Q1, we've got to absorb the higher payroll taxes that we have at the beginning of the year. So there'll be some, some offsets in there sequentially. And as we look forward, we're going to continue to make strategic investments in R&D and go to market as we continue to grow the revenue. But again, I think you can think about it growing, certainly, probably not more than half as fast as revenue. Chris Caso That is helpful. I, if I can ask another question with regard to the auto business and you know, there, there's, there's, there's a trend that that's becoming clear where the center of gravity of auto is, is kind of moving a bit more to China. You know, certainly there's some share shift going on. Can you speak to side times your position in China auto as compared to you know, Western Auto? You know, it do you do you do you, is this the share similar the opportunity similar your ability to penetrate those customers, similar if you know, we continue to see this trend. Rajesh Vashist So it's always helpful to think of site and customers using us in their most innovative products. So that's kind of the heuristics times products are more innovative than other timing products and therefore they get used in our customers, more innovative products. In the case of automotive, it turns out that there while there are a few innovative American companies, Tesla comes to mind and some of the others, the more automotive innovative companies that have been changing. The world of auto, of cars is of course, coming from China, whether they're electric vehicles or around automation, I think that's coming from China. So necessarily there'll be a bigger use case coming out of China. Having said that as United States companies and European companies and for that matter, japanese companies start adopting some of the same technologies, we expect to get more and more of that penetration. So at this point about our in our automotive business, I'd say about 30% to 40% of our business is coming from China. Chris Caso Got it. That's helpful. Thank you. Operator Yeah, thank you. One moment, please. And we do have a follow up question coming from the line of Tory Salberg of Stifle your line is open. Tore Egil Svanberg Yeah, thank you. The first one is on your largest customer as we look at 2025. Is there something going on there that is unusual and whether it's new products from them that you might be in or whether you're expecting any new content growth and any other existing devices just to sort of better read on, what, what could potentially be going on with your largest customer? 25. Brett Perry Yeah, as you know, we haven't seen any press releases out there just like, I guess you haven't seen any press releases. So we'll we get our information in the same way on new products from them that the world does. So let's just wait and see what happens with all of that. Tore Egil Svanberg Yeah, that's, that's fair, Josh. And then my other follow up was on ora, so you talked about the, that $100 million business target. But I noticed you did pay them some money this, well, you had to pay out this quarter. So I'm just wondering, should we assume that those, those clocks are now already starting to generate revenue? And and I assume that the margin profile for that $100 million would be higher than, than the corporate average. Elizabeth Howe Thanks Tory. So yes, we are starting to see some revenue from the ora products as we've talked about. We got the assets that have been having to get the design wins and some have come through maybe a little faster and so are starting to see some revenue in 2024 expect that to continue to build in 25 and beyond. So that's good news in terms of, of our products and the trajectory for, for those clocks. And yes, the gross margins are, are generally accretive to the corporate average. And so as we continue to build that business, it's both good revenue as well as good margin. Tore Egil Svanberg Excellent. Thank you so much Operator Thank you. And there are no more questions in the queue. I would like to turn the call back over to management for close remarks. Please go ahead. Rajesh Vashist Well, thank you very much. It's we said goodbye to 2024. It was a wonderful year in growth and, and, and settling down the company. We look forward to a very good 2025 and hope to see you across all the earnings quarters. So thank you again. Thank you all for participating in today's conference call. You may now disconnect. Sign in to access your portfolio
