Why SiTime Stock Fell in August
Semiconductor manufacturer SiTime (NASDAQ: SITM) finished the second quarter a lot less optimistic about the year than how it felt at the end of the first quarter, and the change spooked investors. Shares of SiTime lost 42.8% of their value in August, according to data provided by S&P Global Market Intelligence, as investors were forced to recalibrate expectations.
SiTime is a maker of specialized timing microchips that go into a range of products, including cellular towers, automobiles, and consumer electronics devices. The company's chips have an advantage over traditional quartz timing devices in that they are more rugged and use less power.
This has been a fast-growing business, and when SiTime released second-quarter results on Aug. 3, the numbers did little to change that perception. Revenue was up 78.5% year over year and up 13% from the prior three months, and SiTime delivered a gross margin that was 66.3% of revenue.
Source Fool.com
