Lattice Semiconductor Announces Additional $100 Million Stock Repurchase Program Authorization

Rhea-AI Summary

Lattice Semiconductor (Nasdaq: LSCC) has announced a new $100 million stock repurchase program authorized by its Board of Directors, extending through December 2025. The company has already demonstrated its commitment to shareholder value by repurchasing approximately 6 million shares since Q4 2020, reducing dilution by 4.3%.

The program, effective immediately, allows Lattice to purchase shares through open market and private transactions at management's discretion. The repurchase timing and volume will be influenced by market conditions, share price, and regulatory considerations, with transactions conducted in compliance with Rule 10b-18 of the Securities Exchange Act of 1934.

Positive

• Authorization of new $100 million stock repurchase program
• Previous successful reduction of share dilution by 4.3%
• Strong cash flow position indicated by management
• Commitment to returning capital while maintaining growth investments

Negative

• None.

Insights

Financial Analyst

This $100 million stock buyback authorization represents a significant capital return initiative for Lattice Semiconductor, building on their track record of 4.3% share count reduction since Q4 2020. With a market cap of about $8 billion, this program amounts to roughly 1.25% of the company's value. The continuation of buybacks signals management's confidence in their cash flow generation and business outlook. The extended timeline through 2025 provides flexibility in execution, allowing the company to opportunistically repurchase shares while maintaining investment in growth initiatives. The Rule 10b-18 compliance ensures systematic implementation without market disruption. Strong cash flow generation capability is particularly notable in the semiconductor sector, where capital intensity is typically high.

Market Research Analyst

The timing of this buyback announcement is strategic, coming during a period of broader semiconductor industry challenges. Lattice's focus on low-power programmable solutions positions them well in growth markets like AI and automation. The buyback program's structure, with its two-year window, provides a price support mechanism while maintaining operational flexibility. Historical buyback execution shows disciplined capital deployment, with 6 million shares already repurchased. This balanced approach to capital allocation, maintaining both growth investments and shareholder returns, should resonate well with institutional investors seeking companies with strong governance and shareholder-friendly policies.

HILLSBORO, Ore.--(BUSINESS WIRE)-- Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, today announced that its Board of Directors authorized the Company to repurchase up to an additional $100 million of its outstanding common stock through the end of December 2025. The Company has repurchased approximately 6 million shares since the fourth quarter of 2020 thereby reducing dilution by 4.3%.

Tonya Stevens, Interim Chief Financial Officer, said, "Our 2025 share repurchase program reflects our confidence in Lattice’s financial performance and continued strong cash flow. We remain committed to returning capital to shareholders while continuing to invest in the strategic initiatives that drive future growth, as we work to maximize long-term shareholder value.”

The 2025 repurchase program is effective immediately. Under the program, Lattice may purchase shares of its common stock through open market and privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under this program will depend on market conditions, share price, corporate and regulatory considerations, and other factors. The Company intends to conduct the program in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The repurchase program may be suspended or discontinued by the Company at any time without prior notice.

Forward-Looking Statements Notice:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are neither historical facts nor assurances of future performance and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to the amount of our outstanding capital stock we plan to or will purchase under the repurchase program and the timing and methods to execute such repurchases, the financial strength of the Company’s business, our strong cash flow, future growth, and the Company’s ability to deliver long-term value to stockholders. Other forward-looking statements may be indicated by words such as “will,” “could,” “should,” “would,” “may,” “expect,” “plan,” “project,” “anticipate,” “intend,” “forecast,” “future,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms or other comparable terminology.

Actual results may differ materially from our expectations and are subject to risks and uncertainties that relate more broadly to our overall business, including those described in our filings with the Securities and Exchange Commission, including Lattice’s most recent Annual Report on Form 10-K, especially those under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations”, all of which are expressly incorporated herein by reference.

About Lattice Semiconductor Corporation:

Lattice Semiconductor (Nasdaq: LSCC) is the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support let our customers quickly and easily unleash their innovation to create a smart, secure, and connected world.

For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, X, Facebook, YouTube, WeChat, or Weibo.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241209215699/en/

MEDIA:

Sophia Hong

Lattice Semiconductor Corporation

503-268-8786

Sophia.Hong@latticesemi.com

INVESTORS:

Rick Muscha

Lattice Semiconductor Corporation

408-826-6000

Rick.Muscha@latticesemi.com

Source: Lattice Semiconductor Corporation

FAQ

What is the size of Lattice Semiconductor's new stock repurchase program?

Lattice Semiconductor (LSCC) announced a $100 million stock repurchase program authorization.

When does Lattice Semiconductor's new stock repurchase program end?

The stock repurchase program extends through the end of December 2025.

How many shares has LSCC repurchased since Q4 2020?

Lattice Semiconductor has repurchased approximately 6 million shares since the fourth quarter of 2020, reducing dilution by 4.3%.

How will LSCC implement its 2025 stock repurchase program?

The program will be implemented through open market and privately negotiated transactions at management's discretion, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934.