Lattice Semiconductor Reports Second Quarter 2024 Results
Lattice Semiconductor (NASDAQ: LSCC) reported its Q2 2024 financial results, showing revenue of $124.1 million, a 34.7% decrease year-over-year. The company's GAAP gross margin was 68.3%, with a GAAP net income of $0.16 per diluted share. On a non-GAAP basis, gross margin was 69.0% with net income of $0.23 per diluted share.
Despite industry headwinds and inventory normalization, Lattice's management sees signs of improvement. The company continues to expand its product portfolio and maintain disciplined spending. For Q3 2024, Lattice expects revenue between $117 million and $137 million, with a non-GAAP gross margin of approximately 69.0%.
Lattice Semiconductor (NASDAQ: LSCC) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un fatturato di 124,1 milioni di dollari, con una diminuzione del 34,7% rispetto allo stesso periodo dell'anno precedente. Il margine lordo GAAP era del 68,3%, con un utile netto GAAP di 0,16 dollari per azione diluita. Su base non-GAAP, il margine lordo era del 69,0% con un utile netto di 0,23 dollari per azione diluita.
Nonostante le difficoltà del settore e la normalizzazione dell'inventario, la direzione di Lattice vede segni di miglioramento. L'azienda continua ad ampliare il proprio portafoglio di prodotti e a mantenere una spesa disciplinata. Per il terzo trimestre 2024, Lattice prevede un fatturato compreso tra 117 milioni e 137 milioni di dollari, con un margine lordo non-GAAP di circa il 69,0%.
Lattice Semiconductor (NASDAQ: LSCC) informó sus resultados financieros del segundo trimestre de 2024, mostrando un ingreso de 124,1 millones de dólares, lo que representa una disminución del 34,7% interanual. El margen bruto GAAP fue del 68,3%, con una utilidad neta GAAP de 0,16 dólares por acción diluida. En base a non-GAAP, el margen bruto fue del 69,0% con una utilidad neta de 0,23 dólares por acción diluida.
A pesar de los vientos en contra de la industria y la normalización de inventarios, la dirección de Lattice ve signos de mejora. La compañía continúa expandiendo su portafolio de productos y manteniendo un gasto disciplinado. Para el tercer trimestre de 2024, Lattice espera ingresos entre 117 millones y 137 millones de dólares, con un margen bruto non-GAAP de aproximadamente 69,0%.
Lattice Semiconductor (NASDAQ: LSCC)는 2024년 2분기 재무 결과를 발표하며 매출이 1억 2410만 달러로 전년 대비 34.7% 감소했다고 밝혔습니다. 회사의 GAAP 총 이익률은 68.3%였으며, 희석 주당 순이익은 0.16달러입니다. 비GAAP 기준으로는 총 이익률이 69.0%이고, 순이익은 0.23달러로 나타났습니다.
업계의 어려움과 재고 정상화에도 불구하고, Lattice의 경영진은 개선의 조짐을 보고 있습니다. 회사는 제품 포트폴리오를 계속 확장하고, 절제된 지출을 유지하고 있습니다. 2024년 3분기에도 Lattice는 1억 1700만 달러에서 1억 3700만 달러 사이의 매출을 예상하며, 비GAAP 총 이익률은 약 69.0%로 예상됩니다.
Lattice Semiconductor (NASDAQ: LSCC) a annoncé ses résultats financiers pour le deuxième trimestre 2024, affichant un chiffre d'affaires de 124,1 millions de dollars, ce qui représente une baisse de 34,7 % par rapport à l'année précédente. La marge brute GAAP était de 68,3 %, avec un revenu net GAAP de 0,16 dollar par action diluée. Sur une base non-GAAP, la marge brute était de 69,0 % avec un revenu net de 0,23 dollar par action diluée.
Malgré les défis du secteur et la normalisation des stocks, la direction de Lattice perçoit des signes d'amélioration. L'entreprise continue d'élargir son portefeuille de produits et de maintenir des dépenses disciplinées. Pour le troisième trimestre 2024, Lattice prévoit un chiffre d'affaires compris entre 117 millions et 137 millions de dollars, avec une marge brute non-GAAP d'environ 69,0 %.
Lattice Semiconductor (NASDAQ: LSCC) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und einen Umsatz von 124,1 Millionen Dollar gemeldet, was einem Rückgang von 34,7% im Jahresvergleich entspricht. Die GAAP-Bruttomarge betrug 68,3%, mit einem GAAP-Nettoeinkommen von 0,16 Dollar pro verwässerter Aktie. Basis non-GAAP betrug die Bruttomarge 69,0% bei einem Nettoeinkommen von 0,23 Dollar pro verwässerter Aktie.
Trotz der Herausforderungen in der Branche und der Normalisierung der Bestände sieht das Management von Lattice Anzeichen für Verbesserungen. Das Unternehmen setzt seine Produktpalette fort und hält disziplinierte Ausgaben aufrecht. Für das dritte Quartal 2024 erwartet Lattice einen Umsatz zwischen 117 Millionen und 137 Millionen Dollar, mit einer non-GAAP-Bruttomarge von etwa 69,0%.
- Maintained a stable gross margin of 68.3% (GAAP) and 69.0% (non-GAAP)
- Continued share repurchases for the 15th consecutive quarter
- Launched new products in the Small FPGA Portfolio and Security Solutions
- Received multiple industry awards for hardware and software security products
- Revenue decreased by 34.7% year-over-year to $124.1 million
- GAAP net income per diluted share decreased from $0.36 to $0.16 year-over-year
- Non-GAAP net income per diluted share decreased from $0.52 to $0.23 year-over-year
- Q3 2024 revenue guidance suggests potential further decline
Insights
Lattice Semiconductor's Q2 2024 results paint a picture of a company navigating through challenging industry headwinds. The revenue of
- The company maintained a robust GAAP gross margin of
68.3% (non-GAAP69.0% ), indicating strong pricing power and operational efficiency despite the revenue decline. - GAAP net income per diluted share was
$0.16 , while non-GAAP EPS came in at$0.23 , showcasing the company's ability to remain profitable in a challenging environment. - The management's focus on disciplined spending and prioritizing cash flow is evident in the
21.9% year-over-year reduction in GAAP operating expenses.
Looking ahead, the company's Q3 2024 outlook suggests continued caution, with revenue expected between
While the current results reflect industry-wide challenges, Lattice's ongoing product portfolio expansion and focus on low-power programmable solutions position it well for long-term growth once the market stabilizes. Investors should monitor the pace of inventory normalization and signs of demand recovery in the coming quarters.
Lattice Semiconductor's Q2 2024 results, while showing a revenue decline, highlight the company's strategic focus on expanding its product portfolio in key areas:
- The launch of Certus™-NX-28 and Certus™-NX-09 devices strengthens Lattice's position in the Small FPGA market, offering improved power efficiency and flexibility.
- The introduction of the MachXO5D™-NX family and updates to the Lattice Sentry™ solution stack demonstrate a commitment to security-focused hardware and software solutions.
- These product launches are important for Lattice to maintain its competitive edge in the low-power programmable solutions market.
The company's R&D expenses as a percentage of revenue increased to
The upcoming Developers Conference in December 2024 could be a platform for Lattice to showcase its latest innovations and strengthen its ecosystem. This event, along with the recent industry awards for its security products and sustainability efforts, may help in maintaining customer engagement and attracting new design wins during this challenging period.
As the industry moves towards more power-efficient and secure solutions, Lattice's focus on these areas could position it well for the eventual market recovery. However, the company will need to carefully balance its R&D investments with the current market realities to ensure long-term success.
Revenue for the second quarter of 2024 was
Esam Elashmawi, Interim Chief Executive Officer & Chief Strategy and Marketing Officer, said, "Second quarter 2024 results reflect the impact of cyclic industry headwinds. While the industry continues to go through a period of inventory normalization, we are starting to see signs of improvement. We continue to execute on our ongoing product portfolio expansion and remain well positioned for long-term growth."
Sherri Luther, Chief Financial Officer, said, "Our gross margin remained stable, highlighting the durability of our business model. We maintained disciplined spending, prioritized cash flow, and continued to return capital to shareholders by executing share repurchases for the fifteenth consecutive quarter."
Selected Second Quarter 2024 Financial Results and Comparisons (in thousands, except per share data) |
||||||||||||||||||||
|
|
GAAP Financial Results (unaudited) |
||||||||||||||||||
|
|
Q2 2024 |
|
Q1 2024 |
|
Q2 2023 |
|
Q/Q |
|
Y/Y |
||||||||||
Revenue |
|
$ |
124,076 |
|
|
$ |
140,815 |
|
|
$ |
190,079 |
|
|
|
(11.9 |
)% |
|
|
(34.7 |
)% |
Gross Margin % |
|
|
68.3 |
% |
|
|
68.3 |
% |
|
|
69.7 |
% |
|
|
— |
|
|
(140) bps |
||
R&D Expense % |
|
|
31.2 |
% |
|
|
28.8 |
% |
|
|
22.1 |
% |
|
240 bps |
|
910 bps |
||||
SG&A Expense % |
|
|
16.1 |
% |
|
|
25.9 |
% |
|
|
19.4 |
% |
|
(980) bps |
|
(330) bps |
||||
Operating Expenses |
|
$ |
62,186 |
|
|
$ |
79,634 |
|
|
$ |
79,491 |
|
|
|
(21.9 |
)% |
|
|
(21.8 |
)% |
Income from Operations |
|
$ |
22,565 |
|
|
$ |
16,574 |
|
|
$ |
53,070 |
|
|
|
36.1 |
% |
|
|
(57.5 |
)% |
Net Income |
|
$ |
22,631 |
|
|
$ |
14,796 |
|
|
$ |
50,644 |
|
|
|
53.0 |
% |
|
|
(55.3 |
)% |
Net Income per Share - Basic |
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
$ |
0.37 |
|
|
$ |
0.05 |
|
|
$ |
(0.21 |
) |
Net Income per Share - Diluted |
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
$ |
0.36 |
|
|
$ |
0.05 |
|
|
$ |
(0.20 |
) |
|
|
Non-GAAP* Financial Results (unaudited) |
||||||||||||||||||
|
|
Q2 2024 |
|
Q1 2024 |
|
Q2 2023 |
|
Q/Q |
|
Y/Y |
||||||||||
Revenue |
|
$ |
124,076 |
|
|
$ |
140,815 |
|
|
$ |
190,079 |
|
|
|
(11.9 |
)% |
|
|
(34.7 |
)% |
Gross Margin % |
|
|
69.0 |
% |
|
|
69.0 |
% |
|
|
70.5 |
% |
|
|
— |
|
|
(150) bps |
||
R&D Expense % |
|
|
26.7 |
% |
|
|
23.1 |
% |
|
|
18.0 |
% |
|
360 bps |
|
870 bps |
||||
SG&A Expense % |
|
|
17.9 |
% |
|
|
16.1 |
% |
|
|
12.5 |
% |
|
180 bps |
|
540 bps |
||||
Operating Expenses |
|
$ |
54,030 |
|
|
$ |
54,858 |
|
|
$ |
58,018 |
|
|
|
(1.5 |
)% |
|
|
(6.9 |
)% |
Income from Operations |
|
$ |
31,526 |
|
|
$ |
42,238 |
|
|
$ |
75,968 |
|
|
|
(25.4 |
)% |
|
|
(58.5 |
)% |
Net Income |
|
$ |
31,432 |
|
|
$ |
40,258 |
|
|
$ |
72,509 |
|
|
|
(21.9 |
)% |
|
|
(56.7 |
)% |
Net Income per Share - Basic |
|
$ |
0.23 |
|
|
$ |
0.29 |
|
|
$ |
0.53 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.30 |
) |
Net Income per Share - Diluted |
|
$ |
0.23 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.29 |
) |
GAAP represents
Second Quarter 2024 Highlights:
|
• |
Expanded Small FPGA Portfolio Leadership: Launched Certus™-NX-28 and Certus™-NX-09 devices, and multiple package options that offer class-leading power efficiency, small size, and reliability with flexible migration options. |
|
• |
New Nexus-based Security Solutions: Extended leadership in security-focused hardware and software with the launch of the Lattice MachXO5D™-NX family of advanced secure control FPGAs and the latest version of the Lattice Sentry™ solution stack. |
|
• |
Developers Conference: Lattice will hold its second annual Developers Conference on December 10-11, 2024, featuring a wide array of technical sessions, and keynote addresses from customers and ecosystem partners. Register here (advance registration required). |
|
• |
Received Multiple Industry Awards: Lattice won a variety of awards in recognition of its industry leading hardware and software security product portfolio, and corporate sustainability efforts. |
Business Outlook - Third Quarter of 2024:
|
• |
Revenue for the third quarter of 2024 is expected to be between |
|
• |
Gross margin percentage for the third quarter of 2024 is expected to be |
|
• |
Total operating expenses for the third quarter of 2024 are expected to be between |
Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the third quarter of 2024, certain items that affect GAAP measurement of financial measures for gross margin percentage and total operating expenses are not accessible on a forward-looking basis because such items cannot be reasonably predicted without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures, including certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for non-GAAP gross margin percentage or non-GAAP total operating expenses for quarterly guidance or a corresponding reconciliation to GAAP for the quarter. From a qualitative perspective, the differences between our GAAP measurement of financial measures for gross margin percentage and total operating expenses and our non-GAAP measure of those items will consist of items similar to those described in the financial tables later in this release for such items historically, including, for example and without limitation, certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included in this press release.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the fiscal second quarter 2024, and business outlook on Monday, July 29, at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-877-407-3982 or 1-201-493-6780 with conference identification number 13747663. A live webcast of the conference call will also be available on the investor relations section of 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.
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 our rapid product portfolio expansion; long-term position; near-term cyclical industry headwinds; accelerating customer momentum; market improvement; durability of our business model; and the statements under the heading “Business Outlook - Third Quarter of 2024.” 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.
Estimates of future revenue and other financial and operational outcomes are inherently uncertain due to factors such as global economic conditions which may affect customer demand, the cyclical nature of the semiconductor industry, pricing and inflationary pressures, competitive actions, international trade disputes and sanctions, the potential impact of global pandemics, and other significant risks and uncertainties that are beyond our ability to predict or control. 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, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. 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.
Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. New risk factors emerge from time to time and it is not possible for the Company to predict all risk factors. You should not rely on forward-looking statements because actual results could differ materially from those expressed in any forward-looking statements. In addition, any forward-looking statement applies only as of the date on which it is made. The Company does not intend to and undertakes no obligation 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.
Non-GAAP Financial Measures:
Included within this press release and the accompanying tables and notes are certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with
The Company's management believes that these non-GAAP financial measures provide an additional and useful way of viewing aspects of our performance that, when viewed in conjunction with our GAAP results, provide a more comprehensive understanding of the various factors and trends affecting our ongoing financial performance and operating results than GAAP measures alone. Management also uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting, and resource allocation processes and believes that investors should have access to similar data. The non-GAAP financial information used by the Company may differ from that used by other companies. These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP and should be considered together with the consolidated financial information located in the tables attached to this press release.
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, Twitter, Facebook, YouTube, WeChat, or Weibo.
Lattice Semiconductor Corporation Consolidated Statements of Operations (in thousands, except per share data) (unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
June 29, |
|
March 30, |
|
July 1, |
|
June 29, |
|
July 1, |
||||||||
|
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
$ |
124,076 |
|
$ |
140,815 |
|
|
$ |
190,079 |
|
|
$ |
264,891 |
|
$ |
374,389 |
|
Cost of sales |
|
|
39,325 |
|
|
44,607 |
|
|
|
57,518 |
|
|
|
83,932 |
|
|
113,227 |
|
Gross margin |
|
|
84,751 |
|
|
96,208 |
|
|
|
132,561 |
|
|
|
180,959 |
|
|
261,162 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Research and development |
|
|
38,733 |
|
|
40,591 |
|
|
|
41,946 |
|
|
|
79,324 |
|
|
77,935 |
|
Selling, general, and administrative |
|
|
20,005 |
|
|
36,469 |
|
|
|
36,788 |
|
|
|
56,474 |
|
|
69,366 |
|
Amortization of acquired intangible assets |
|
|
869 |
|
|
870 |
|
|
|
869 |
|
|
|
1,739 |
|
|
1,739 |
|
Restructuring |
|
|
2,579 |
|
|
1,704 |
|
|
|
(112 |
) |
|
|
4,283 |
|
|
(82 |
) |
Total operating expenses |
|
|
62,186 |
|
|
79,634 |
|
|
|
79,491 |
|
|
|
141,820 |
|
|
148,958 |
|
Income from operations |
|
|
22,565 |
|
|
16,574 |
|
|
|
53,070 |
|
|
|
39,139 |
|
|
112,204 |
|
Interest income (expense), net |
|
|
933 |
|
|
1,307 |
|
|
|
189 |
|
|
|
2,240 |
|
|
(366 |
) |
Other income (expense), net |
|
|
254 |
|
|
(46 |
) |
|
|
(176 |
) |
|
|
208 |
|
|
(271 |
) |
Income before income taxes |
|
|
23,752 |
|
|
17,835 |
|
|
|
53,083 |
|
|
|
41,587 |
|
|
111,567 |
|
Income tax expense |
|
|
1,121 |
|
|
3,039 |
|
|
|
2,439 |
|
|
|
4,160 |
|
|
5,000 |
|
Net income |
|
$ |
22,631 |
|
$ |
14,796 |
|
|
$ |
50,644 |
|
|
$ |
37,427 |
|
$ |
106,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.16 |
|
$ |
0.11 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
$ |
0.77 |
|
Diluted |
|
$ |
0.16 |
|
$ |
0.11 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
137,548 |
|
|
137,475 |
|
|
|
137,735 |
|
|
|
137,480 |
|
|
137,573 |
|
Diluted |
|
|
138,243 |
|
|
138,774 |
|
|
|
139,768 |
|
|
|
138,485 |
|
|
139,966 |
|
Lattice Semiconductor Corporation Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
||||||
|
|
June 29, |
|
December 30, |
||
|
|
2024 |
|
2023 |
||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
109,216 |
|
$ |
128,317 |
Accounts receivable, net |
|
|
103,442 |
|
|
104,373 |
Inventories, net |
|
|
101,556 |
|
|
98,826 |
Other current assets |
|
|
38,990 |
|
|
36,430 |
Total current assets |
|
|
353,204 |
|
|
367,946 |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
50,801 |
|
|
49,546 |
Operating lease right-of-use assets |
|
|
17,326 |
|
|
14,487 |
Intangible assets, net |
|
|
19,016 |
|
|
20,974 |
Goodwill |
|
|
315,358 |
|
|
315,358 |
Deferred income taxes |
|
|
57,329 |
|
|
57,762 |
Other long-term assets |
|
|
14,486 |
|
|
14,821 |
|
|
$ |
827,520 |
|
$ |
840,894 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
34,957 |
|
$ |
34,487 |
Accrued liabilities |
|
|
32,088 |
|
|
36,048 |
Accrued payroll obligations |
|
|
13,239 |
|
|
26,865 |
Total current liabilities |
|
|
80,284 |
|
|
97,400 |
|
|
|
|
|
|
|
Long-term operating lease liabilities, net of current portion |
|
|
11,975 |
|
|
10,739 |
Other long-term liabilities |
|
|
36,412 |
|
|
40,735 |
Total liabilities |
|
|
128,671 |
|
|
148,874 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
698,849 |
|
|
692,020 |
|
|
$ |
827,520 |
|
$ |
840,894 |
Lattice Semiconductor Corporation Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
June 29, |
|
July 1, |
||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
37,427 |
|
|
$ |
106,567 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Stock-based compensation expense |
|
|
21,713 |
|
|
|
35,744 |
|
Depreciation and amortization |
|
|
18,385 |
|
|
|
16,578 |
|
Change in deferred income tax provision |
|
|
(969 |
) |
|
|
(882 |
) |
Other non-cash adjustments |
|
|
4,329 |
|
|
|
3,427 |
|
Net changes in assets and liabilities |
|
|
(29,443 |
) |
|
|
(45,976 |
) |
Net cash provided by (used in) operating activities |
|
|
51,442 |
|
|
|
115,458 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(10,581 |
) |
|
|
(11,943 |
) |
Other investing activities |
|
|
(7,607 |
) |
|
|
(5,799 |
) |
Net cash provided by (used in) investing activities |
|
|
(18,188 |
) |
|
|
(17,742 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Repayment of long-term debt |
|
|
— |
|
|
|
(85,000 |
) |
Repurchase of common stock |
|
|
(29,999 |
) |
|
|
(20,006 |
) |
Net cash flows related to stock compensation exercises |
|
|
(21,734 |
) |
|
|
(34,439 |
) |
Net cash provided by (used in) financing activities |
|
|
(51,733 |
) |
|
|
(139,445 |
) |
Effect of exchange rate change on cash |
|
|
(622 |
) |
|
|
(220 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(19,101 |
) |
|
|
(41,949 |
) |
Beginning cash and cash equivalents |
|
|
128,317 |
|
|
|
145,722 |
|
Ending cash and cash equivalents |
|
$ |
109,216 |
|
|
$ |
103,773 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information and non-cash investing and financing activities: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
— |
|
|
$ |
2,962 |
|
Income taxes paid, net of refunds |
|
$ |
3,886 |
|
|
$ |
6,837 |
|
Operating lease payments |
|
$ |
4,564 |
|
|
$ |
4,082 |
|
Lattice Semiconductor Corporation Supplemental Historical Financial Information (unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 29, |
|
March 30, |
|
July 1, |
||||||
|
|
2024 |
|
2024 |
|
2023 |
||||||
Balance Sheet Information |
|
|
|
|
|
|
|
|
|
|
|
|
A/R Days Revenue Outstanding (DSO) |
|
|
76 |
|
|
|
64 |
|
|
|
46 |
|
Inventory Days (DIO) |
|
|
236 |
|
|
|
195 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by Geography) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67 |
% |
|
|
66 |
% |
|
|
63 |
% |
|
|
|
19 |
% |
|
|
22 |
% |
|
|
17 |
% |
|
|
|
14 |
% |
|
|
12 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by End Market) |
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing |
|
|
44 |
% |
|
|
39 |
% |
|
|
34 |
% |
Industrial and Automotive |
|
|
47 |
% |
|
|
53 |
% |
|
|
61 |
% |
Consumer |
|
|
9 |
% |
|
|
8 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue $M (by End Market) |
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing |
|
$ |
54.6 |
|
|
$ |
54.6 |
|
|
$ |
64.2 |
|
Industrial and Automotive |
|
$ |
58.2 |
|
|
$ |
75.3 |
|
|
$ |
115.5 |
|
Consumer |
|
$ |
11.3 |
|
|
$ |
10.9 |
|
|
$ |
10.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by Channel) |
|
|
|
|
|
|
|
|
|
|
|
|
Distribution |
|
|
91 |
% |
|
|
87 |
% |
|
|
89 |
% |
Direct |
|
|
9 |
% |
|
|
13 |
% |
|
|
11 |
% |
Lattice Semiconductor Corporation
Reconciliation of (in thousands, except per share data) (unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 29, |
|
March 30, |
|
July 1, |
||||||
|
|
2024 |
|
2024 |
|
2023 |
||||||
Gross Margin Reconciliation |
||||||||||||
GAAP Gross margin |
|
$ |
84,751 |
|
|
$ |
96,208 |
|
|
$ |
132,561 |
|
Stock-based compensation - gross margin (1) |
|
|
805 |
|
|
|
888 |
|
|
|
1,425 |
|
Non-GAAP Gross margin |
|
$ |
85,556 |
|
|
$ |
97,096 |
|
|
$ |
133,986 |
|
Gross Margin % Reconciliation |
||||||||||||
GAAP Gross margin % |
|
|
68.3 |
% |
|
|
68.3 |
% |
|
|
69.7 |
% |
Stock-based compensation - gross margin (1) |
|
|
0.7 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
Non-GAAP Gross margin % |
|
|
69.0 |
% |
|
|
69.0 |
% |
|
|
70.5 |
% |
Research and Development Expense % (R&D Expense %) Reconciliation |
||||||||||||
GAAP R&D Expense % |
|
|
31.2 |
% |
|
|
28.8 |
% |
|
|
22.1 |
% |
Stock-based compensation - R&D (1) |
|
|
(4.5 |
)% |
|
|
(5.7 |
)% |
|
|
(4.1 |
)% |
Non-GAAP R&D Expense % |
|
|
26.7 |
% |
|
|
23.1 |
% |
|
|
18.0 |
% |
Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation |
|
|
|
|
|
|||||||
GAAP SG&A Expense % |
|
|
16.1 |
% |
|
|
25.9 |
% |
|
|
19.4 |
% |
Stock-based compensation - SG&A (1) |
|
|
2.7 |
% |
|
|
(7.1 |
)% |
|
|
(6.7 |
)% |
Litigation expense (2) |
|
|
(0.9 |
)% |
|
|
(2.7 |
)% |
|
|
(0.2 |
)% |
Non-GAAP SG&A Expense % |
|
|
17.9 |
% |
|
|
16.1 |
% |
|
|
12.5 |
% |
Operating Expenses Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses |
|
$ |
62,186 |
|
|
$ |
79,634 |
|
|
$ |
79,491 |
|
Stock-based compensation - operations (1) |
|
|
(2,343 |
) |
|
|
(18,117 |
) |
|
|
(20,277 |
) |
Litigation expense (2) |
|
|
(1,065 |
) |
|
|
(3,832 |
) |
|
|
(439 |
) |
Amortization of acquired intangible assets |
|
|
(869 |
) |
|
|
(870 |
) |
|
|
(869 |
) |
Restructuring, transformation, and other (3) |
|
|
(3,879 |
) |
|
|
(1,957 |
) |
|
|
112 |
|
Non-GAAP Operating expenses |
|
$ |
54,030 |
|
|
$ |
54,858 |
|
|
$ |
58,018 |
|
Income from Operations Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from operations |
|
$ |
22,565 |
|
|
$ |
16,574 |
|
|
$ |
53,070 |
|
Stock-based compensation - gross margin (1) |
|
|
805 |
|
|
|
888 |
|
|
|
1,425 |
|
Stock-based compensation - operations (1) |
|
|
2,343 |
|
|
|
18,117 |
|
|
|
20,277 |
|
Litigation expense (2) |
|
|
1,065 |
|
|
|
3,832 |
|
|
|
439 |
|
Amortization of acquired intangible assets |
|
|
869 |
|
|
|
870 |
|
|
|
869 |
|
Restructuring, transformation, and other (3) |
|
|
3,879 |
|
|
|
1,957 |
|
|
|
(112 |
) |
Non-GAAP Income from operations |
|
$ |
31,526 |
|
|
$ |
42,238 |
|
|
$ |
75,968 |
|
Income from Operations % Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from operations % |
|
|
18.2 |
% |
|
|
11.8 |
% |
|
|
27.9 |
% |
Cumulative effect of non-GAAP Gross Margin and Operating adjustments |
|
|
7.2 |
% |
|
|
18.2 |
% |
|
|
12.1 |
% |
Non-GAAP Income from operations % |
|
|
25.4 |
% |
|
|
30.0 |
% |
|
|
40.0 |
% |
(1) |
|
The non-GAAP adjustments for Stock-based compensation include related payroll tax expenses. |
(2) |
|
Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde. |
(3) |
|
Restructuring, transformation, and other for Q2 and YTD 2024 includes business transformation charges of |
Lattice Semiconductor Corporation
Reconciliation of (in thousands, except per share data) (unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 29, |
|
March 30, |
|
July 1, |
||||||
|
|
2024 |
|
2024 |
|
2023 |
||||||
Income Tax (Benefit) Expense Reconciliation |
|
|
|
|
|
|
|
|
|
|||
GAAP Income tax (benefit) expense |
|
$ |
1,121 |
|
|
$ |
3,039 |
|
|
$ |
2,439 |
|
Estimated tax effect of non-GAAP adjustments |
|
|
5,649 |
|
|
|
4,337 |
|
|
|
1,372 |
|
Non-cash changes in net deferred income taxes (4) |
|
|
(1,090 |
) |
|
|
(2,754 |
) |
|
|
— |
|
Change in tax law (5) |
|
|
(4,399 |
) |
|
|
(1,381 |
) |
|
|
(339 |
) |
Non-GAAP Income tax expense |
|
$ |
1,281 |
|
|
$ |
3,241 |
|
|
$ |
3,472 |
|
Net Income Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income |
|
$ |
22,631 |
|
|
$ |
14,796 |
|
|
$ |
50,644 |
|
Stock-based compensation - gross margin (1) |
|
|
805 |
|
|
|
888 |
|
|
|
1,425 |
|
Stock-based compensation - operations (1) |
|
|
2,343 |
|
|
|
18,117 |
|
|
|
20,277 |
|
Litigation expense (2) |
|
|
1,065 |
|
|
|
3,832 |
|
|
|
439 |
|
Amortization of acquired intangible assets |
|
|
869 |
|
|
|
870 |
|
|
|
869 |
|
Restructuring, transformation, and other (3) |
|
|
3,879 |
|
|
|
1,957 |
|
|
|
(112 |
) |
Estimated tax effect of non-GAAP adjustments |
|
|
(5,649 |
) |
|
|
(4,337 |
) |
|
|
(1,372 |
) |
Non-cash changes in net deferred income taxes (4) |
|
|
1,090 |
|
|
|
2,754 |
|
|
|
— |
|
Change in tax law (5) |
|
|
4,399 |
|
|
|
1,381 |
|
|
|
339 |
|
Non-GAAP Net income |
|
$ |
31,432 |
|
|
$ |
40,258 |
|
|
$ |
72,509 |
|
Net Income Per Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income per share - basic |
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
$ |
0.37 |
|
Cumulative effect of Non-GAAP adjustments |
|
|
0.07 |
|
|
|
0.18 |
|
|
|
0.16 |
|
Non-GAAP Net income per share - basic |
|
$ |
0.23 |
|
|
$ |
0.29 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income per share - diluted |
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
$ |
0.36 |
|
Cumulative effect of Non-GAAP adjustments |
|
|
0.07 |
|
|
|
0.18 |
|
|
|
0.16 |
|
Non-GAAP Net income per share - diluted |
|
$ |
0.23 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
137,548 |
|
|
|
137,475 |
|
|
|
137,735 |
|
Diluted |
|
|
138,243 |
|
|
|
138,774 |
|
|
|
139,768 |
|
(1) |
|
The non-GAAP adjustments for Stock-based compensation include related payroll tax expenses. |
(2) |
|
Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde. |
(3) |
|
Restructuring, transformation, and other for Q2 and YTD 2024 includes business transformation charges of |
(4) |
|
Non-cash changes in net deferred income taxes associated with the release of the valuation allowance against |
(5) |
|
Adjustments for Change in tax law reflect an increase in our provision for |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729491684/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 was Lattice Semiconductor's revenue for Q2 2024?
How did Lattice Semiconductor's (LSCC) Q2 2024 revenue compare to the previous year?
What is Lattice Semiconductor's (LSCC) revenue guidance for Q3 2024?
What was Lattice Semiconductor's (LSCC) GAAP gross margin in Q2 2024?
Did Lattice Semiconductor (LSCC) continue its share repurchase program in Q2 2024?
