Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

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 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

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 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)

                         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
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
 administrative      17,269      17,720      17,121      72,317      68,838
 related charges
 (1)                    760         729         536       4,178         536
 (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
 (benefit) for
 income taxes        (6,727)       (259)      5,879      (8,861)     42,723
 (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
Basic               115,943     116,785     117,528     117,194     117,875
                 ==========  ==========  ==========  ==========  ==========
Diluted             115,943     116,785     120,473     117,194     121,139
                 ==========  ==========  ==========  ==========  ==========

(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

                      Lattice Semiconductor Corporation
                         Consolidated Balance Sheets
                               (in thousands)

                                                 December 29,  December 31,
                                                      2012          2011
                                                 ------------- -------------
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.

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
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
This week, the team assembled in NYC for @Cloud Expo 2015 and @ThingsExpo 2015. For the past four years, this has been a must-attend event for MetraTech. We were happy to once again join industry visionaries, colleagues, customers and even competitors to share and explore the ways in which the Internet of Things (IoT) will impact our industry. Over the course of the show, we discussed the types of challenges we will collectively need to solve to capitalize on the opportunity IoT presents.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
SYS-CON Events announced today that Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, will keynote at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in high-performance, high-efficiency server, storage technology and green computing, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and Embedded Systems worldwide. Supermi...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. 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 Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
The IoT is upon us, but today’s databases, built on 30-year-old math, require multiple platforms to create a single solution. Data demands of the IoT require Big Data systems that can handle ingest, transactions and analytics concurrently adapting to varied situations as they occur, with speed at scale. In his session at @ThingsExpo, Chad Jones, chief strategy officer at Deep Information Sciences, will look differently at IoT data so enterprises can fully leverage their IoT potential. He’ll share tips on how to speed up business initiatives, harness Big Data and remain one step ahead by apply...
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context w...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line loads.