Welcome!

Agile Computing Authors: Janakiram MSV, Elizabeth White, PagerDuty Blog, Pat Romanski, Mike Raia

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.

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
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
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, will discuss 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 session will include a working demo and a technical d...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
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 back-end 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 –...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As cloud adoption continues to transform business, today’s global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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. Meanwhile, 94% of enterpri...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....