Lattice Semiconductor Reports Third Quarter 2019 Results
- Gross Margin Expands Year-Over-Year to 59.4% on a GAAP Basis and 59.8% on a Non-GAAP Basis from 57.5% and 57.4%, respectively, in 3Q 2018
- Operating Margin Increases Year-Over-Year to 16.1% of revenue on a GAAP Basis and 25.1% on a Non-GAAP Basis from 12.8% and 19.6%, respectively, in 3Q 2018
-
Net Income Improves Year-Over-Year to
$0.10 /$0.17 Per Diluted Share on a GAAP / Non-GAAP Basis, from$0.05 /$0.11 , respectively, in 3Q 2018 -
$33.4 Million in Total Debt Payments in Q3 2019, Further Reducing the Leverage Ratio
* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."
Selected Third Quarter 2019 Financial Results and Comparisons (in thousands, except per share data) |
||||||||||||||||||||
|
|
GAAP Quarterly Financial Results |
||||||||||||||||||
|
|
Q3 2019 |
|
Q2 2019 |
|
Q3 2018 |
|
Q/Q |
|
Y/Y |
||||||||||
Revenue |
|
$ |
103,469 |
|
|
$ |
102,296 |
|
|
$ |
101,484 |
|
|
+ 1.1% |
|
+ 2.0% |
||||
Gross Margin % |
|
59.4 |
% |
|
58.7 |
% |
|
57.5 |
% |
|
+ 70 bps |
|
+ 190 bps |
|||||||
R&D Expense % |
|
19.4 |
% |
|
18.9 |
% |
|
18.9 |
% |
|
+ 50 bps |
|
+ 50 bps |
|||||||
SG&A Expense % |
|
20.4 |
% |
|
19.3 |
% |
|
21.5 |
% |
|
+ 110 bps |
|
(110) bps |
|||||||
Operating Expense |
|
$ |
44,751 |
|
|
$ |
45,652 |
|
|
$ |
45,405 |
|
|
(2.0%) |
|
(1.4%) |
||||
Operating Income |
|
$ |
16,688 |
|
|
$ |
14,386 |
|
|
$ |
12,959 |
|
|
+ 16.0% |
|
+ 28.8% |
||||
Net Income |
|
$ |
13,539 |
|
|
$ |
8,559 |
|
|
$ |
6,974 |
|
|
+ 58.2% |
|
+ 94.1% |
||||
Net Income per share - Basic |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
+ $0.04 |
|
+ $0.05 |
||||
Net Income per share - Diluted |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
+ $0.04 |
|
+ $0.05 |
||||
|
|
Non-GAAP* Quarterly Financial Results |
||||||||||||||||||
|
|
Q3 2019 |
|
Q2 2019 |
|
Q3 2018 |
|
Q/Q |
|
Y/Y |
||||||||||
Revenue |
|
$ |
103,469 |
|
|
$ |
102,296 |
|
|
$ |
101,484 |
|
|
+ 1.1% |
|
+ 2.0% |
||||
Gross Margin % |
|
59.8 |
% |
|
59.0 |
% |
|
57.4 |
% |
|
+ 80 bps |
|
+ 240 bps |
|||||||
R&D Expense % |
|
17.8 |
% |
|
17.7 |
% |
|
17.9 |
% |
|
+ 10 bps |
|
(10) bps |
|||||||
SG&A Expense % |
|
16.9 |
% |
|
17.0 |
% |
|
19.9 |
% |
|
(10) bps |
|
(300) bps |
|||||||
Operating Expense |
|
$ |
35,883 |
|
|
$ |
35,494 |
|
|
$ |
38,417 |
|
|
+ 1.1% |
|
(6.6%) |
||||
Operating Income |
|
$ |
26,009 |
|
|
$ |
24,871 |
|
|
$ |
19,878 |
|
|
+ 4.6% |
|
+ 30.8% |
||||
Net Income |
|
$ |
22,943 |
|
|
$ |
21,087 |
|
|
$ |
13,785 |
|
|
+ 8.8% |
|
+ 66.4% |
||||
Net Income per share - Basic |
|
$ |
0.17 |
|
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
+ $0.01 |
|
+ $0.06 |
||||
Net Income per share - Diluted |
|
$ |
0.17 |
|
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
+ $0.02 |
|
+ $0.06 |
* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."
Third Quarter 2019 Highlights
- Improved Profitability: Achieved a 100% increase in net income per diluted share on a GAAP basis in Q3 2019 compared to Q3 2018, and a 54.5% increase in net income per diluted share on a non-GAAP basis in Q3 2019 compared to Q3 2018.
-
Debt Refinance and De-lever: Total debt payments of
$33.4 million , including$29 million in discretionary debt payments, reduced leverage ratio below 1.5, as defined in the credit agreement. This further lowered the interest rate by another 25 basis points for a total reduction of 300 basis points in 2019. - Launched and Sampled New CrossLinkPlusTM FPGA Family: Lattice launched and sampled its new CrossLinkPlus family ahead of schedule. CrossLinkPlus FPGAs are innovative, small, low power FPGAs optimized with features including flash memory, a hardened MIPI D-PHY and high-speed I/O support for instant-on panel display performance, with flexible on-device programming capabilities.
- Next Generation FDSOI Platform to Sample Before Year End 2019: Development of Lattice's next generation 28nm FDSOI platform is executing well with sampling to customers now expected before year end 2019. The combination of the new product platform's low-power architecture and power-efficient process technology is expected to result in a significant power reduction for customers.
-
MachXO3D Received NIST Certification:
The National Institute of Standards and Technology ("NIST") independently certified that Lattice's MachXO3D is compliant with the U.S. government's standard for cryptographic software. The product was developed specifically for customers seeking a reliable hardware security solution. - Enhanced Award-Winning sensAITM Solutions Stack: Key performance enhancements and innovative new application reference designs are now available in Lattice's award-winning sensAI solutions stack, including key phrase detection for AI/ML-enabled human machine interface applications using microphones and human facial recognition for user identification.
Business Outlook - Fourth Quarter of 2019:
-
Revenue for the fourth quarter of 2019 is expected to be between
$97 million and $103 million . - Gross margin percentage for the fourth quarter of 2019 is expected to be 59.5% plus or minus 1% on a non-GAAP basis.
-
Total operating expenses for the fourth quarter of 2019 are expected to be between
$35.5 million and $36.5 million on a non-GAAP basis.
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 fourth quarter of 2019, certain items that affect GAAP measurement of financial measures are out of the Company’s control and/or cannot be reasonably predicted. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for guidance or a corresponding reconciliation to GAAP for the quarter. 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 below, following the GAAP financial information.
Investor Conference Call / Webcast Details:
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to: our prioritizing of our business strategy; our belief that we will unlock additional value for the Company and its shareholders; our belief that we achieve our financial model targets; and the statements under the heading “Business Outlook - Fourth Quarter of 2019.” 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 are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing pressures, competitive actions, and international trade disputes and sanctions. 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 risks more fully described in Lattice’s filings with the
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 U.S. GAAP. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation, restructuring plans and related charges, acquisition-related charges, amortization and impairment of acquired intangible assets, inventory adjustments related to restructured operations, and the estimated tax effect of these items. These charges and adjustments are a result of periodic or non-core operating activities of the Company. The Company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.
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.
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
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Lattice Semiconductor Corporation |
||||||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 28,
|
|
June 29,
|
|
September 29,
|
|
September 28,
|
|
September 29,
|
||||||||||
Revenue |
|
$ |
103,469 |
|
|
$ |
102,296 |
|
|
$ |
101,484 |
|
|
$ |
303,856 |
|
|
$ |
302,822 |
|
Cost of sales |
|
42,030 |
|
|
42,258 |
|
|
43,120 |
|
|
124,727 |
|
|
137,689 |
|
|||||
Gross margin |
|
61,439 |
|
|
60,038 |
|
|
58,364 |
|
|
179,129 |
|
|
165,133 |
|
|||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
20,032 |
|
|
19,377 |
|
|
19,131 |
|
|
59,074 |
|
|
63,153 |
|
|||||
Selling, general, and administrative |
|
21,078 |
|
|
19,759 |
|
|
21,775 |
|
|
61,618 |
|
|
69,886 |
|
|||||
Amortization of acquired intangible assets |
|
3,389 |
|
|
3,390 |
|
|
3,823 |
|
|
10,168 |
|
|
13,982 |
|
|||||
Restructuring |
|
252 |
|
|
3,126 |
|
|
90 |
|
|
4,719 |
|
|
5,495 |
|
|||||
Impairment of acquired intangible assets |
|
— |
|
|
— |
|
|
586 |
|
|
— |
|
|
12,486 |
|
|||||
Acquisition related charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,531 |
|
|||||
Total operating expenses |
|
44,751 |
|
|
45,652 |
|
|
45,405 |
|
|
135,579 |
|
|
166,533 |
|
|||||
Income (loss) from operations |
|
16,688 |
|
|
14,386 |
|
|
12,959 |
|
|
43,550 |
|
|
(1,400 |
) |
|||||
Interest expense |
|
(2,022 |
) |
|
(3,538 |
) |
|
(5,500 |
) |
|
(10,547 |
) |
|
(15,582 |
) |
|||||
Other expense, net |
|
(61 |
) |
|
(2,109 |
) |
|
(452 |
) |
|
(2,017 |
) |
|
(246 |
) |
|||||
Income (loss) before income taxes |
|
14,605 |
|
|
8,739 |
|
|
7,007 |
|
|
30,986 |
|
|
(17,228 |
) |
|||||
Income tax expense |
|
1,066 |
|
|
180 |
|
|
33 |
|
|
1,480 |
|
|
1,973 |
|
|||||
Net income (loss) |
|
$ |
13,539 |
|
|
$ |
8,559 |
|
|
$ |
6,974 |
|
|
$ |
29,506 |
|
|
$ |
(19,201 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.22 |
|
|
$ |
(0.15 |
) |
Diluted |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.21 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
132,997 |
|
|
132,206 |
|
|
127,816 |
|
|
132,065 |
|
|
125,578 |
|
|||||
Diluted |
|
138,894 |
|
|
137,221 |
|
|
129,474 |
|
|
137,679 |
|
|
125,578 |
|
Lattice Semiconductor Corporation |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
September 28,
|
|
December 29,
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
97,413 |
|
|
$ |
119,051 |
|
Short-term marketable securities |
|
— |
|
|
9,624 |
|
||
Accounts receivable, net |
|
47,433 |
|
|
60,890 |
|
||
Inventories |
|
59,672 |
|
|
67,096 |
|
||
Other current assets |
|
34,691 |
|
|
27,762 |
|
||
Total current assets |
|
239,209 |
|
|
284,423 |
|
||
|
|
|
|
|
||||
Property and equipment, net |
|
40,163 |
|
|
34,883 |
|
||
Operating lease right-of-use assets |
|
24,563 |
|
|
— |
|
||
Intangible assets, net |
|
10,381 |
|
|
21,325 |
|
||
Goodwill |
|
267,514 |
|
|
267,514 |
|
||
Deferred income taxes |
|
226 |
|
|
215 |
|
||
Other long-term assets |
|
11,349 |
|
|
15,327 |
|
||
|
|
$ |
593,405 |
|
|
$ |
623,687 |
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and other accrued liabilities |
|
$ |
59,609 |
|
|
$ |
61,128 |
|
Current portion of long-term debt |
|
17,196 |
|
|
8,290 |
|
||
Current portion of operating lease liabilities |
|
4,623 |
|
|
— |
|
||
Total current liabilities |
|
81,428 |
|
|
69,418 |
|
||
|
|
|
|
|
||||
Long-term debt, net of current portion |
|
139,230 |
|
|
251,357 |
|
||
Long-term operating lease liabilities, net of current portion |
|
22,484 |
|
|
— |
|
||
Other long-term liabilities |
|
40,618 |
|
|
44,455 |
|
||
Total liabilities |
|
283,760 |
|
|
365,230 |
|
||
|
|
|
|
|
||||
Stockholders' equity |
|
309,645 |
|
|
258,457 |
|
||
|
|
$ |
593,405 |
|
|
$ |
623,687 |
|
Lattice Semiconductor Corporation |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
September 28,
|
|
September 29,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
29,506 |
|
|
$ |
(19,201 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
24,682 |
|
|
30,740 |
|
||
Impairment of acquired intangible assets |
— |
|
|
12,486 |
|
||
Stock-based compensation expense |
13,335 |
|
|
9,908 |
|
||
Other non-cash adjustments |
9,060 |
|
|
1,855 |
|
||
Net changes in assets and liabilities |
8,234 |
|
|
(15,228 |
) |
||
Net cash provided by operating activities |
84,817 |
|
|
20,560 |
|
||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
(11,729 |
) |
|
(6,178 |
) |
||
Other investing activities |
3,910 |
|
|
(10,747 |
) |
||
Net cash used in investing activities |
(7,819 |
) |
|
(16,925 |
) |
||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
206,500 |
|
|
— |
|
||
Original issue discount and debt issuance costs |
(2,086 |
) |
|
— |
|
||
Repayment of long-term debt |
(311,408 |
) |
|
(27,884 |
) |
||
Net cash flows related to stock compensation exercises |
8,365 |
|
|
26,451 |
|
||
Net cash used in financing activities |
(98,629 |
) |
|
(1,433 |
) |
||
Effect of exchange rate change on cash |
(7 |
) |
|
(1,124 |
) |
||
Net increase (decrease) in cash and cash equivalents |
(21,638 |
) |
|
1,078 |
|
||
Beginning cash and cash equivalents |
119,051 |
|
|
106,815 |
|
||
Ending cash and cash equivalents |
$ |
97,413 |
|
|
$ |
107,893 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information and non-cash investing and financing activities: |
|||||||
Interest paid |
$ |
9,932 |
|
|
$ |
13,976 |
|
Income taxes paid, net of refunds |
$ |
1,922 |
|
|
$ |
2,716 |
|
Lattice Semiconductor Corporation | ||||||||
Supplemental Historical Financial Information |
||||||||
(unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
September 28,
|
|
June 29,
|
|
September 29,
|
|||
Balance Sheet Information |
|
|
|
|
|
|||
A/R Days Revenue Outstanding (DSO) |
42 |
|
|
34 |
|
|
68 |
|
Inventory Days (DIO) |
130 |
|
|
140 |
|
|
141 |
|
|
|
|
|
|
|
|||
Revenue% (by Geography) |
|
|
|
|
|
|||
Asia |
77 |
% |
|
75 |
% |
|
76 |
% |
Europe (incl. Africa) |
11 |
% |
|
12 |
% |
|
12 |
% |
Americas |
12 |
% |
|
13 |
% |
|
12 |
% |
|
|
|
|
|
|
|||
Revenue% (by End Market) |
|
|
|
|
|
|||
Communications and Computing |
40 |
% |
|
39 |
% |
|
32 |
% |
Industrial and Automotive |
36 |
% |
|
38 |
% |
|
37 |
% |
Consumer |
18 |
% |
|
19 |
% |
|
27 |
% |
Licensing and Services |
6 |
% |
|
4 |
% |
|
4 |
% |
|
|
|
|
|
|
|||
Revenue% (by Channel) |
|
|
|
|
|
|||
Distribution |
81 |
% |
|
85 |
% |
|
82 |
% |
Direct |
19 |
% |
|
15 |
% |
|
18 |
% |
Lattice Semiconductor Corporation |
||||||||||||
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
September 28,
|
|
June 29,
|
|
September 29,
|
||||||
|
|
|
|
|
|
|
||||||
Gross Margin Reconciliation |
||||||||||||
GAAP Gross margin |
|
$ |
61,439 |
|
|
$ |
60,038 |
|
|
$ |
58,364 |
|
Stock-based compensation - gross margin |
|
453 |
|
|
327 |
|
|
219 |
|
|||
Inventory adjustment related to restructured operations |
|
— |
|
|
— |
|
|
(288 |
) |
|||
Non-GAAP Gross margin |
|
$ |
61,892 |
|
|
$ |
60,365 |
|
|
$ |
58,295 |
|
|
||||||||||||
Gross Margin % Reconciliation |
||||||||||||
GAAP Gross margin % |
|
59.4 |
% |
|
58.7 |
% |
|
57.5 |
% |
|||
Cumulative effect of non-GAAP Gross Margin adjustments |
|
0.4 |
% |
|
0.3 |
% |
|
(0.1 |
)% |
|||
Non-GAAP Gross margin % |
|
59.8 |
% |
|
59.0 |
% |
|
57.4 |
% |
|||
|
||||||||||||
Research and Development Expense % (R&D Expense %) Reconciliation |
||||||||||||
GAAP R&D Expense % |
|
19.4 |
% |
|
18.9 |
% |
|
18.9 |
% |
|||
Stock-based compensation - R&D |
|
(1.6 |
)% |
|
(1.2 |
)% |
|
(1.0 |
)% |
|||
Non-GAAP R&D Expense % |
|
17.8 |
% |
|
17.7 |
% |
|
17.9 |
% |
|||
|
||||||||||||
Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation |
||||||||||||
GAAP SG&A Expense % |
|
20.4 |
% |
|
19.3 |
% |
|
21.5 |
% |
|||
Stock-based compensation - SG&A |
|
(3.5 |
)% |
|
(2.3 |
)% |
|
(1.6 |
)% |
|||
Non-GAAP SG&A Expense % |
|
16.9 |
% |
|
17.0 |
% |
|
19.9 |
% |
|||
|
||||||||||||
Operating Expenses Reconciliation |
||||||||||||
GAAP Operating expenses |
|
$ |
44,751 |
|
|
$ |
45,652 |
|
|
$ |
45,405 |
|
Stock-based compensation - operations |
|
(5,227 |
) |
|
(3,642 |
) |
|
(2,489 |
) |
|||
Amortization of acquired intangible assets |
|
(3,389 |
) |
|
(3,390 |
) |
|
(3,823 |
) |
|||
Restructuring charges |
|
(252 |
) |
|
(3,126 |
) |
|
(90 |
) |
|||
Impairment of acquired intangible assets |
|
— |
|
|
— |
|
|
(586 |
) |
|||
Non-GAAP Operating expenses |
|
$ |
35,883 |
|
|
$ |
35,494 |
|
|
$ |
38,417 |
|
|
||||||||||||
Income from Operations Reconciliation |
||||||||||||
GAAP Income from operations |
|
$ |
16,688 |
|
|
$ |
14,386 |
|
|
$ |
12,959 |
|
Stock-based compensation - gross margin |
|
453 |
|
|
327 |
|
|
219 |
|
|||
Inventory adjustment related to restructured operations |
|
— |
|
|
— |
|
|
(288 |
) |
|||
Stock-based compensation - operations |
|
5,227 |
|
|
3,642 |
|
|
2,489 |
|
|||
Amortization of acquired intangible assets |
|
3,389 |
|
|
3,390 |
|
|
3,823 |
|
|||
Restructuring charges |
|
252 |
|
|
3,126 |
|
|
90 |
|
|||
Impairment of acquired intangible assets |
|
— |
|
|
— |
|
|
586 |
|
|||
Non-GAAP Income from operations |
|
$ |
26,009 |
|
|
$ |
24,871 |
|
|
$ |
19,878 |
|
|
|
|
|
|
|
|
||||||
Income from Operations % Reconciliation |
||||||||||||
GAAP Income from operations % |
|
16.1 |
% |
|
14.1 |
% |
|
12.8 |
% |
|||
Cumulative effect of non-GAAP Gross Margin and Operating adjustments |
|
9.0 |
% |
|
10.2 |
% |
|
6.8 |
% |
|||
Non-GAAP Income from operations % |
|
25.1 |
% |
|
24.3 |
% |
|
19.6 |
% |
|||
|
|
|
|
|
|
|
||||||
|
||||||||||||
Lattice Semiconductor Corporation |
||||||||||||
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
September 28,
|
|
June 29,
|
|
September 29,
|
||||||
|
||||||||||||
Other (Expense) Income, Net Reconciliation |
||||||||||||
GAAP Other expense, net |
|
$ |
(61 |
) |
|
$ |
(2,109 |
) |
|
$ |
(452 |
) |
Loss on re-financing of long-term debt |
|
— |
|
|
2,235 |
|
|
— |
|
|||
Non-GAAP Other (expense) income, net |
|
$ |
(61 |
) |
|
$ |
126 |
|
|
$ |
(452 |
) |
|
||||||||||||
Income Tax Expense Reconciliation |
||||||||||||
GAAP Income tax expense |
|
$ |
1,066 |
|
|
$ |
180 |
|
|
$ |
33 |
|
Estimated tax effect of non-GAAP adjustments (1) |
|
(83 |
) |
|
192 |
|
|
108 |
|
|||
Non-GAAP Income tax expense |
|
$ |
983 |
|
|
$ |
372 |
|
|
$ |
141 |
|
|
||||||||||||
Net Income Reconciliation |
||||||||||||
GAAP Net income |
|
$ |
13,539 |
|
|
$ |
8,559 |
|
|
$ |
6,974 |
|
Stock-based compensation - gross margin |
|
453 |
|
|
327 |
|
|
219 |
|
|||
Inventory adjustment related to restructured operations |
|
— |
|
|
— |
|
|
(288 |
) |
|||
Stock-based compensation - operations |
|
5,227 |
|
|
3,642 |
|
|
2,489 |
|
|||
Amortization of acquired intangible assets |
|
3,389 |
|
|
3,390 |
|
|
3,823 |
|
|||
Restructuring charges |
|
252 |
|
|
3,126 |
|
|
90 |
|
|||
Impairment of acquired intangible assets |
|
— |
|
|
— |
|
|
586 |
|
|||
Loss on re-financing of long-term debt |
|
— |
|
|
2,235 |
|
|
— |
|
|||
Estimated tax effect of non-GAAP adjustments (1) |
|
83 |
|
|
(192 |
) |
|
(108 |
) |
|||
Non-GAAP Net income |
|
$ |
22,943 |
|
|
$ |
21,087 |
|
|
$ |
13,785 |
|
|
||||||||||||
Net Income Per Share Reconciliation |
||||||||||||
GAAP Net income per share - basic |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
Cumulative effect of Non-GAAP adjustments |
|
0.07 |
|
|
0.10 |
|
|
0.06 |
|
|||
Non-GAAP Net income per share - basic |
|
$ |
0.17 |
|
|
$ |
0.16 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
||||||
GAAP Net income per share - diluted |
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
Cumulative effect of Non-GAAP adjustments |
|
0.07 |
|
|
0.09 |
|
|
0.06 |
|
|||
Non-GAAP Net income per share - diluted |
|
$ |
0.17 |
|
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
||||||
Shares used in per share calculations: |
|
|
|
|
|
|
||||||
Basic |
|
132,997 |
|
|
132,206 |
|
|
127,816 |
|
|||
Diluted - GAAP (2) |
|
138,894 |
|
|
137,221 |
|
|
129,474 |
|
|||
Diluted - Non-GAAP (2) |
|
138,894 |
|
|
137,221 |
|
|
129,474 |
|
(1) |
We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as the “Estimated tax effect of non-GAAP adjustments.” |
(2) |
Diluted shares are calculated using the GAAP treasury stock method. In a loss position, diluted shares equal basic shares. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20191029006021/en/
Source:
MEDIA:
Bob Nelson
Lattice Semiconductor Corporation
408-826-6339
Bob.Nelson@latticesemi.com
INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com