Welcome!

Microsoft Cloud Authors: Pat Romanski, Janakiram MSV, Jnan Dash, Andreas Grabner, Lori MacVittie

News Feed Item

Lattice Semiconductor Reports Fourth Quarter 2012 Results

HILLSBORO, OR -- (Marketwire) -- 01/24/13 -- Lattice Semiconductor Corporation (NASDAQ: LSCC)

Financial Highlights:

  • Revenue of $65.9 million, a decrease of 7.1% from $70.9 million in 3Q12 and a decrease of 6.1% from $70.2 million in 4Q11.
  • Gross margin of 54.2%, compared to 54.4% in 3Q12 and 57.7% in 4Q11.
  • Net loss of $0.06 per basic and diluted share, compared to net loss of $0.02 per basic and diluted share in 3Q12 and net income of $0.34 per diluted share in 4Q11. 4Q12 financial results included a $0.4 million ($0.00 per basic and diluted share) income tax expense, $0.8 million of amortization expense from acquired intangibles and $5.4 million of restructuring related charges. 3Q12 financial results included a $1.9 million ($0.02 per basic and diluted share) tax expense, $0.7 million of amortization expense from acquired intangibles and no restructuring related charges.

Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the fiscal fourth quarter ended December 29, 2012.

For the fourth quarter, revenue was $65.9 million, a decrease of 7.1% from $70.9 million reported in the prior quarter, and a decrease of 6.1% from the $70.2 million reported in the same quarter a year ago. FPGA revenue for the fourth quarter was $20.9 million, a decrease from the $26.1 million reported in the prior quarter, and a slight decrease from the $22.1 million reported in the same quarter a year ago. PLD revenue for the fourth quarter was $45.0 million, essentially flat with the $44.8 million reported in the prior quarter, and a decrease from the $48.1 million reported in the same quarter a year ago.

Net loss for the fourth quarter was $7.2 million ($0.06 per basic and diluted share), which includes a tax expense of $0.4 million, amortization expense from acquired intangibles of $0.8 million and restructuring charges of $5.4 million, compared to prior quarter net loss of $2.2 million ($0.02 per basic and diluted share) and net income of $40.9 million ($0.34 per diluted share) reported in the same quarter a year ago. Third quarter of 2012 results included a tax provision of $1.9 million ($0.02 per basic and diluted share) and $0.7 million of amortization expense from acquired intangibles. Fourth quarter of 2011 results included a tax benefit of $35.1 million ($0.29 per diluted share), $0.5 million of acquisition related charges and $1.1 million ($0.01 per diluted share) of restructuring charges.

Darin G. Billerbeck, President and Chief Executive Officer, said, "Results for the fourth quarter of 2012 were in line with our revised guidance and reflect the continued challenging macro environment worldwide. Weakness was broad based across nearly all end markets and geographies except for the consumer market. Based on customer and market forecasts, we expect to see some improvement in the communications and other markets throughout 2013. We continue to gain traction in the consumer and mobile consumer markets led by our iCE products. We have shipped more than 15 million iCE40 devices, making this our fastest ramping product."

Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Gross Margin came in at 54.2%, which was at the high end of our original guidance. We continue to drive additional cost reductions in operations and materials purchases, which we believe will continue to deliver benefits as we move through 2013. Operating expenses were approximately $42.1 million, which included $5.4 million in restructuring charges. This is approximately $0.9 million below our original guidance. We expect to see the benefits of our restructuring actions in the first quarter of 2013 and beyond. Finally, during the quarter we repurchased approximately 1.3 million shares at a cost of approximately $5.2 million. During 2012, we repurchased approximately 4.1 million shares at a cost of approximately $17.5 million."

Fourth Quarter 2012 Business Highlights:

  • Shipped 15 Millionth iCE FPGA: Shipments of Lattice's iCE FPGA devices, including its flagship ultra-low density iCE40™ FPGA family, reached 15 million. This success reflects widespread adoption of the iCE40 devices for use in mobile consumer applications, which represent the overwhelming majority of device shipments.
  • Awarded "Digital Semiconductor Product of the Year": Lattice's ultra-low density iCE40™ FPGA family was named "Digital Semiconductor Product of the Year" as part of the 2012 Elektra European Electronics Industry Awards, which recognize the achievements of individuals and companies across Europe.
  • New Security & Surveillance Solutions Showcased: Lattice demonstrated several new FPGA-based camera designs at the China Security Expo in Beijing, China in the fourth quarter, including several camera solutions developed in conjunction with Lattice partner organizations.

Business Outlook - First Quarter 2013:

  • Revenue is expected to decline approximately 2% to 4% on a sequential basis.
  • Gross margin percentage is expected to be approximately 54% plus or minus 2%.
  • Total operating expenses are expected to be approximately $35.5 million, including approximately $0.5 million in restructuring charges.

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the fourth quarter of 2012 and business outlook for the first quarter of 2013 on Thursday, January 24, 2013 at 5:00 p.m. EST. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 85626515. A live webcast of the conference call will also be available on Lattice's website at www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.

A replay of the call will be available approximately two hours after the conclusion of the live call through 11:59 p.m. EST on January 31, 2013, by telephone at 1-404-537-3406. To access the replay, use conference identification number 85626515. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Such forward-looking statements include statements relating to: our business outlook, including those statements under the heading "Business Outlook - First Quarter 2013" relating to expected revenue, gross margin, total operating expenses, and projected restructuring charges, the expected improvement in the communications and other markets throughout 2013; our ability to gain traction in the communications and mobile consumer markets; our belief that additional cost reductions in operations and materials purchases will continue to deliver benefits as we move through 2013; our expectation that we will see the benefits of our restructuring actions in the first quarter of 2013 and beyond. Other forward-looking statements may be indicated by words such as "will," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue" or the negative of these terms or other comparable terminology. Lattice believes the factors identified below could cause actual results to differ materially from the forward-looking statements.

Estimates of future revenue are inherently uncertain due to, among other things, the high percentage of quarterly "turns" business. In addition, revenue is affected by such factors as global economic conditions, which may affect customer demand, pricing pressures, competitive actions, the demand for our Mature, Mainstream and New products, and in particular our MachXO™ and LatticeECP3™ devices, the ability to supply products to customers in a timely manner, changes in our distribution relationships, or the volatility of our consumer business. Actual gross margin percentage and operating expenses could vary from the estimates on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, including commodity costs, variations in manufacturing yields, the failure to sustain operational improvements, the actual amount of compensation charges due to stock price changes. Further, the impact of any restructuring, including the restructuring actions undertaken during the fourth quarter of 2012, will depend on, among other factors, the final actions taken, negotiation of related expenses with third parties, the timing of restructuring activities and the ability of the Company to successfully reallocate functions formerly addressed by the employees and other resources eliminated in the restructuring. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges could adversely affect our profitability.

In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements in this press release include global economic uncertainty, overall semiconductor market conditions, market acceptance and demand for our new products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, and the other risks that are described in this press release and that are otherwise described from time to time in our filings with the Securities and Exchange Commission. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About Lattice Semiconductor:

Lattice is a service-driven developer of innovative low cost, low power programmable design solutions. For more information about how our FPGA, CPLD and programmable power management devices help our customers unlock their innovation, visit www.latticesemi.com. You can also follow us via Twitter, Facebook, or RSS.

Lattice Semiconductor Corporation, Lattice (& design), L (& design), iCE40 and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.

GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.



                     Lattice Semiconductor Corporation
                   Consolidated Statements of Operations
                   (in thousands, except per share data)
                                (unaudited)

                         Three Months Ended                Year Ended
                 ----------------------------------  ----------------------
                  December   September    December    December    December
                  29, 2012    29, 2012    31, 2011    29, 2012    31, 2011
                 ----------  ----------  ----------  ----------  ----------
Revenue          $   65,875  $   70,889  $   70,170  $  279,256  $  318,366
Costs and
 expenses:
Cost of products
 sold                30,202      32,341      29,707     128,499     129,769
Research and
 development         18,655      20,446      16,085      77,610      71,855
Selling, general
 and
 administrative      17,269      17,720      17,121      72,317      68,838
Acquisition
 related charges
 (1)                    760         729         536       4,178         536
Restructuring
 (2)                  5,375          --       1,097       6,018       6,079
                 ----------  ----------  ----------  ----------  ----------
                     72,261      71,236      64,546     288,622     277,077
                 ----------  ----------  ----------  ----------  ----------
(Loss) income
 from operations     (6,386)       (347)      5,624      (9,366)     41,289
Other (expense)
 income, net           (341)         88         255         505       1,434
                 ----------  ----------  ----------  ----------  ----------
(Loss) income
 before
 provision
 (benefit) for
 income taxes        (6,727)       (259)      5,879      (8,861)     42,723
Provision
 (benefit) for
 income taxes
 (3)                    448       1,916     (35,066)     20,745     (35,509)
                 ----------  ----------  ----------  ----------  ----------
Net (loss)
 income          $   (7,175) $   (2,175) $   40,945  $  (29,606) $   78,232
                 ==========  ==========  ==========  ==========  ==========

Net (loss)
 income per
 share (4):
Basic            $    (0.06) $    (0.02) $     0.35  $    (0.25) $     0.66
                 ==========  ==========  ==========  ==========  ==========
Diluted          $    (0.06) $    (0.02) $     0.34  $    (0.25) $     0.65
                 ==========  ==========  ==========  ==========  ==========

Shares used in
 per share
 calculations
 (4):
Basic               115,943     116,785     117,528     117,194     117,875
                 ==========  ==========  ==========  ==========  ==========
Diluted             115,943     116,785     120,473     117,194     121,139
                 ==========  ==========  ==========  ==========  ==========


Notes:
(1) The Company recorded consulting, legal costs, severance related
    integration costs and amortization of intangible assets associated with
    the acquisition of SiliconBlue from the acquisition date, December 16,
    2011 through fiscal 2012.

(2) Represents costs and adjustments incurred related to the corporate
    restructuring plans announced on October 12, 2012 and April 21, 2011.

(3) The tax provision for the year ended December 29, 2012 reflects our new
    global tax structure and the resulting intercompany sale of inventory
    and fixed assets.

(4) For the three and twelve month periods in fiscal 2012, the computation
    of diluted earnings per share excludes the effects of stock options,
    restricted stock units and ESPP shares as they are antidilutive. For the
    three and twelve month periods in fiscal 2011, the computation of
    diluted earnings per share includes the effects of stock options and
    restricted stock units as they are dilutive. ESPP shares are included if
    dilutive.



                      Lattice Semiconductor Corporation
                         Consolidated Balance Sheets
                               (in thousands)
                                 (unaudited)

                                                 December 29,  December 31,
                                                      2012          2011
                                                 ------------- -------------
                     Assets
Current assets:
Cash, cash equivalents and short-term marketable
 securities                                      $     183,401 $     210,134
Accounts receivable, net                                46,947        36,993
Inventories                                             44,194        37,278
Other current assets                                    12,806        16,200
                                                 ------------- -------------
Total current assets                                   287,348       300,605

Property and equipment, net                             40,384        40,430
Long-term marketable securities                          4,717         6,946
Other long-term assets                                   6,854        11,628
Intangible assets, net of amortization                  15,430        18,377
Goodwill                                                44,808        44,808
Deferred income taxes                                   29,218        45,130
                                                 ------------- -------------
                                                 $     428,759 $     467,924
                                                 ============= =============

      Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities   $      42,540 $      41,215
Deferred income and allowances on sales to sell-
 through distributors                                   10,553        10,761
                                                 ------------- -------------
Total current liabilities                               53,093        51,976

Other long-term liabilities                             18,116        22,387
                                                 ------------- -------------
Total liabilities                                       71,209        74,363

Stockholders' equity                                   357,550       393,561
                                                 ------------- -------------
                                                 $     428,759 $     467,924
                                                 ============= =============



                     Lattice Semiconductor Corporation
             - Supplemental Historical Financial Information -

                                                    4Q12     3Q12     4Q11
                                                  -------  -------  -------
Operations Information
Percent of Revenue
Gross Margin                                         54.2%    54.4%    57.7%
R&D Expense                                          28.3%    28.8%    22.9%
SG&A Expense                                         26.2%    25.0%    24.4%

Depreciation and amortization (in thousands)        5,987    5,892    4,084
Capital expenditures (in thousands)                 2,363    3,156    4,309
Stock compensation expense (in thousands)           1,757    2,075    1,588
Restructuring and severance related charges (in
 thousands)                                         5,299    1,195    1,124
Taxes paid (cash, in thousands)                       172      333       99

Balance Sheet Information
Current Ratio                                         5.4      5.7      5.8
A/R Days Revenue Outstanding                           64       71     47.4
Inventory Months                                      4.4      3.5      3.2

Revenue% (by Product Family)
PLD                                                    68%      63%      69%
FPGA                                                   32%      37%      31%

Revenue% (by Product Classification)
New                                                    29%      26%      12%
Mainstream                                             53%      54%      58%
Mature                                                 18%      20%      30%

Revenue% (by Geography)
Asia                                                   69%      69%      64%
Europe (incl. Africa)                                  16%      18%      19%
Americas                                               15%      13%      17%

Revenue% (by End Market)
Communications                                         41%      47%      42%
Industrial & Other                                     28%      27%      30%
Consumer                                               20%      14%      13%
Computing                                              11%      12%      15%

Revenue% (by Channel)
Sell-through distribution                              55%      56%      65%
Direct                                                 45%      44%      35%

New: LatticeECP3, MachXO2, Power Manager II, and iCE40

Mainstream: ispMACH 4000ZE, ispMACH 4000/Z, LatticeSC, LatticeECP2/M, LatticeECP, LatticeXP2, LatticeXP, MachXO, ispClock A/D/S, Software and IP

Mature: ispXPLD, ispXPGA, FPSC, ORCA 2, ORCA 3, ORCA 4, ispPAC, isplsi 8000V, ispMACH 5000B, ispMACH 2LV, ispMACH 5LV, ispLSI 2000V, ispLSI 5000V, ispMACH 5000VG, all 5-volt CPLDs, ispGDX2, GDX/V, ispMACH 4/LV, iCE65, ispClock, Power Manager I, all SPLDs

* Product categories are modified as appropriate relative to our portfolio of products and the generation within each major product family. New products consist of our latest generation of products, while Mainstream and Mature are older or based on unique late stage customer-based production needs. Generally, product categories are adjusted every two to three years, at which time prior periods are reclassified to conform to the new categorization. In the first fiscal quarter 2012 we reclassified our New, Mainstream and Mature product categories to better reflect our current product portfolio.

For more information contact:
Joe Bedewi
Chief Financial Officer
Lattice Semiconductor Corporation
503-268-8000

David Pasquale
Global IR Partners
914-337-8801
lscc@globalirpartners.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often un...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...