Third Quarter 2018 Highlights:
-
Net Income increases to $0.05 per share on a GAAP basis and Net
Income of $0.11 per share on a Non-GAAP Basis; highest level since the
third quarter of 2014
-
Gross Margin improves to 57.5% on a GAAP basis and 57.4% on a
non-GAAP basis
-
Company makes additional $15 million discretionary debt payment,
following $10 million discretionary payment in the second quarter of
2018
-
Company makes several key executive leadership appointments;
Appoints Jim Anderson, President and CEO; Esam Elashmawi, Chief
Marketing and Strategy Officer; and Steve Douglass, Corporate Vice
President, R&D
* 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."
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 25, 2018--
Lattice Semiconductor Corporation (NASDAQ:LSCC), a leading provider of
customizable smart connectivity solutions, announced financial results
today for the fiscal third quarter ended September 29, 2018.
|
|
|
Selected Q3 2018 Financial Results and Comparisons (in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
GAAP — Three Months Ended
|
|
Non-GAAP — Three Months Ended
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017 †
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017 †
|
|
Revenue
|
|
$
|
101,484
|
|
|
$
|
102,715
|
|
|
$
|
91,971
|
|
|
$
|
101,484
|
|
|
$
|
102,715
|
|
|
$
|
91,971
|
|
|
Gross Margin %
|
|
57.5
|
%
|
|
48.9
|
%
|
|
58.0
|
%
|
|
57.4
|
%
|
|
57.2
|
%
|
|
58.1
|
%
|
|
Operating Expense
|
|
$
|
45,405
|
|
|
$
|
63,812
|
|
|
$
|
90,790
|
|
|
$
|
38,417
|
|
|
$
|
39,945
|
|
|
$
|
44,578
|
|
|
Net Income (Loss)
|
|
$
|
6,974
|
|
|
$
|
(20,223
|
)
|
|
$
|
(43,052
|
)
|
|
$
|
13,785
|
|
|
$
|
12,375
|
|
|
$
|
5,328
|
|
|
Net Income (Loss) per share, basic and diluted
|
|
$
|
0.05
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
†
|
|
Results for periods in 2017 are presented in accordance with
ASC 605, which was in effect during that fiscal year.
|
|
|
|
|
Jim Anderson, President and Chief Executive Officer, said, "Since
joining Lattice as CEO in September, I have met with customers and team
members worldwide as part of a strategic review. Our near term focus
remains on driving profitable revenue growth, carefully managing OpEx,
and paying down corporate debt. Over the mid-and longer-term we will
work to expand our total addressable market with higher margin
opportunities in both existing and adjacent markets, as we build greater
value for the Company and shareholders. As part of our efforts, we
strengthened our team with the addition of two highly experienced
executives with nearly 70 years of combined FPGA, business and
engineering experience. Steve Douglass, who joined Lattice as Corporate
Vice President, R&D, and Esam Elashmawi, who joined Lattice as Chief
Marketing and Strategy Officer, will help our team increase the
alignment between our customers’ needs and our product roadmap and
ensure that our customers can count on us for a steady cadence of new
innovations over multiple product generations. This will allow us to
build deeper, multi-generational partnerships with our customers and is
central to our ability to drive steady revenue growth and sustained
profitability.
Max Downing, Chief Financial Officer, added, "Our revenue for the
quarter was $101.5 million, in line with our expectations, while our
non-GAAP gross margin improved to 57.4%, led by focus on our core
business and operating efficiency improvements. Our ongoing cost control
actions delivered non-GAAP operating expenses of $38.4 million, which
are down 4% from the second quarter and 14% from the third quarter of
2017. As a result, we achieved non-GAAP earnings of $0.11 per share -
the highest level since the third quarter of 2014. During the quarter we
generated $11 million in cash flow from operations, made a discretionary
debt payment of $15 million, and ended the quarter with $117.5 million
in cash and short-term investments.”
Business Outlook - Fourth Quarter of 2018:
-
Revenue for the fourth quarter of 2018 is expected to be between
approximately $93 million and $97 million.
-
Gross margin percentage for the fourth quarter of 2018 is expected to
be approximately 57% plus or minus 2% on both a GAAP and non-GAAP
basis.
-
Total operating expenses for the fourth quarter of 2018 are expected
to be between approximately $52 million and $55 million on a GAAP
basis and between approximately $37 million and $39 million on a
non-GAAP basis.
* For a reconciliation of GAAP to non-GAAP business outlook, see
accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures."
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for
the fiscal third quarter of 2018 and business outlook for the fourth
quarter of 2018 on Thursday, October 25 at 5:00 p.m. Eastern Time. The
conference call-in number is 1-888-684-5603 or 1-918-398-4852 with
conference identification number 6184766. An accompanying 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. Eastern Time on October
31, 2018, by telephone at 1-404-537-3406. To access the replay, use
conference identification number 6184766. A webcast replay will also be
available on the investor relations section of www.latticesemi.com.
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 statements
relating to: the Company's ability to drive profitable revenue growth,
carefully manage operating expenses and pay down its corporate debt; to
expand the Company's total addressable market with higher margin
opportunities; to build greater value for the Company and shareholders;
to increase the alignment between our customers’ needs and our product
roadmap and ensure that our customers can count on us for a steady
cadence of new innovations over multiple product generations; to build
deeper, multi-generational partnerships with our customers to drive
steady revenue growth and sustained profitability; and the statements
under the heading “Business Outlook - Fourth Quarter of 2018.” 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; and our expectation that we will
remain focused on maximizing the leverage of our operating model and
reduce our outstanding debt balance. 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 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 iCE40™ and MachXO3L™ 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.
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. In addition, actual results are subject to other risks and
uncertainties that relate more broadly to our overall business,
including those risks more fully described in Lattice’s filings with the
SEC including its annual report on Form 10-K for the fiscal year ended
December 30, 2017, and Lattice’s quarterly reports filed on Form 10-Q.
You should not unduly 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 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 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 charges,
acquisition-related charges, amortization of acquired intangible assets,
impairment of intangible assets, inventory adjustments from the
discontinuation of the Company's millimeter wave business, gain on sale
of building, loss on sale of business unit, and the estimated tax effect
of these items. These charges and adjustments may be nonrecurring in
nature but 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 when making their
investment decisions.
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 a leader in smart connectivity
solutions at the network edge, where the “things” of IoT live. Our low
power FPGA and video ASSP products deliver edge intelligence, edge
connectivity, and control solutions to the industrial, consumer,
communications, compute, and automotive markets. Our unwavering
commitment to our global customers enables them to accelerate their
innovation, creating an even better and more connected world.
For more information about Lattice, please visit www.latticesemi.com.
You can also follow us via LinkedIn, Twitter, Facebook, YouTube,
WeChat,
Weibo or Youku.
|
|
|
Lattice Semiconductor Corporation
|
|
Consolidated Statements of Operations
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017
|
|
September 29,
2018
|
|
September 30,
2017
|
|
Revenue
|
|
$
|
101,484
|
|
|
$
|
102,715
|
|
|
$
|
91,971
|
|
|
$
|
302,822
|
|
|
$
|
290,695
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
43,120
|
|
|
52,467
|
|
|
38,649
|
|
|
137,689
|
|
|
125,332
|
|
|
Research and development
|
|
19,131
|
|
|
21,081
|
|
|
25,648
|
|
|
63,153
|
|
|
79,857
|
|
|
Selling, general, and administrative
|
|
21,775
|
|
|
21,068
|
|
|
21,290
|
|
|
69,886
|
|
|
67,133
|
|
|
Amortization of acquired intangible assets
|
|
3,823
|
|
|
4,523
|
|
|
8,526
|
|
|
13,982
|
|
|
25,777
|
|
|
Restructuring
|
|
90
|
|
|
4,376
|
|
|
3,071
|
|
|
5,495
|
|
|
4,713
|
|
|
Acquisition related charges
|
|
—
|
|
|
864
|
|
|
681
|
|
|
1,531
|
|
|
3,208
|
|
|
Impairment of acquired intangible assets
|
|
586
|
|
|
11,900
|
|
|
36,198
|
|
|
12,486
|
|
|
36,198
|
|
|
Gain on sale of building
|
|
—
|
|
|
—
|
|
|
(4,624
|
)
|
|
—
|
|
|
(4,624
|
)
|
|
|
|
88,525
|
|
|
116,279
|
|
|
129,439
|
|
|
304,222
|
|
|
337,594
|
|
|
Income (loss) from operations
|
|
12,959
|
|
|
(13,564
|
)
|
|
(37,468
|
)
|
|
(1,400
|
)
|
|
(46,899
|
)
|
|
Interest expense
|
|
(5,500
|
)
|
|
(4,968
|
)
|
|
(3,888
|
)
|
|
(15,582
|
)
|
|
(14,112
|
)
|
|
Other expense, net
|
|
(452
|
)
|
|
(348
|
)
|
|
(2,027
|
)
|
|
(246
|
)
|
|
(2,104
|
)
|
|
Income (loss) before income taxes
|
|
7,007
|
|
|
(18,880
|
)
|
|
(43,383
|
)
|
|
(17,228
|
)
|
|
(63,115
|
)
|
|
Income tax expense (benefit)
|
|
33
|
|
|
1,343
|
|
|
(331
|
)
|
|
1,973
|
|
|
234
|
|
|
Net income (loss)
|
|
$
|
6,974
|
|
|
$
|
(20,223
|
)
|
|
$
|
(43,052
|
)
|
|
$
|
(19,201
|
)
|
|
$
|
(63,349
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.52
|
)
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.52
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
127,816
|
|
|
124,843
|
|
|
122,990
|
|
|
125,578
|
|
|
122,393
|
|
|
Diluted
|
|
129,474
|
|
|
124,843
|
|
|
122,990
|
|
|
125,578
|
|
|
122,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
Consolidated Balance Sheets
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
September 29,
2018
|
|
December 30,
2017
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
107,893
|
|
|
$
|
106,815
|
|
Short-term marketable securities
|
|
9,600
|
|
|
4,982
|
|
Accounts receivable, net
|
|
75,648
|
|
|
55,104
|
|
Inventories
|
|
66,381
|
|
|
79,903
|
|
Other current assets
|
|
24,143
|
|
|
16,567
|
|
Total current assets
|
|
283,665
|
|
|
263,371
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
35,724
|
|
|
40,423
|
|
Intangible assets, net
|
|
24,977
|
|
|
51,308
|
|
Goodwill
|
|
267,514
|
|
|
267,514
|
|
Deferred income taxes
|
|
188
|
|
|
198
|
|
Other long-term assets
|
|
20,259
|
|
|
13,147
|
|
|
|
$
|
632,327
|
|
|
$
|
635,961
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and other accrued liabilities
|
|
$
|
56,788
|
|
|
$
|
64,821
|
|
Current portion of long-term debt
|
|
14,104
|
|
|
1,508
|
|
Deferred income and allowances on sales to distributors and deferred
license revenue
|
|
—
|
|
|
17,318
|
|
Total current liabilities
|
|
70,892
|
|
|
83,647
|
|
|
|
|
|
|
|
Long-term debt
|
|
261,035
|
|
|
299,667
|
|
Other long-term liabilities
|
|
39,274
|
|
|
34,954
|
|
Total liabilities
|
|
371,201
|
|
|
418,268
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
261,126
|
|
|
217,693
|
|
|
|
$
|
632,327
|
|
|
$
|
635,961
|
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
Consolidated Statements of Cash Flows
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 29,
2018
|
|
September 30,
2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(19,201
|
)
|
|
$
|
(63,349
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
30,740
|
|
|
45,591
|
|
|
Impairment of acquired intangible assets
|
|
12,486
|
|
|
36,198
|
|
|
Amortization of debt issuance costs and discount
|
|
1,847
|
|
|
1,680
|
|
|
(Gain) loss on sale or maturity of marketable securities
|
|
(18
|
)
|
|
237
|
|
|
Gain on forward contracts
|
|
(105
|
)
|
|
(72
|
)
|
|
Stock-based compensation expense
|
|
9,908
|
|
|
9,286
|
|
|
Gain on disposal of fixed assets
|
|
(135
|
)
|
|
(197
|
)
|
|
Gain on sale of building
|
|
—
|
|
|
(4,624
|
)
|
|
Loss on sale of assets and business units
|
|
—
|
|
|
1,496
|
|
|
Impairment of cost-method investment
|
|
266
|
|
|
692
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable, net
|
|
(18,736
|
)
|
|
20,687
|
|
|
Inventories
|
|
13,892
|
|
|
1,519
|
|
|
Prepaid expenses and other assets
|
|
(11,729
|
)
|
|
3,839
|
|
|
Accounts payable and accrued expenses (includes restructuring)
|
|
1,661
|
|
|
(17,901
|
)
|
|
Accrued payroll obligations
|
|
(557
|
)
|
|
(2,002
|
)
|
|
Income taxes payable
|
|
309
|
|
|
(711
|
)
|
|
Deferred income and allowances on sales to distributors
|
|
—
|
|
|
3,862
|
|
|
Deferred licensing and services revenue
|
|
(68
|
)
|
|
(485
|
)
|
|
Net cash provided by operating activities
|
|
20,560
|
|
|
35,746
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Proceeds from sales of and maturities of short-term marketable
securities
|
|
5,000
|
|
|
9,689
|
|
|
Purchases of marketable securities
|
|
(9,603
|
)
|
|
(7,420
|
)
|
|
Proceeds from sale of building
|
|
—
|
|
|
7,895
|
|
|
Cash paid for costs of sale of building
|
|
—
|
|
|
(1,004
|
)
|
|
Capital expenditures
|
|
(6,178
|
)
|
|
(12,325
|
)
|
|
Proceeds from sale of assets and business unit, net of cash sold
|
|
—
|
|
|
967
|
|
|
Short-term loan to cost-method investee
|
|
—
|
|
|
(2,000
|
)
|
|
Cash paid for software licenses
|
|
(6,144
|
)
|
|
(6,472
|
)
|
|
Net cash used in investing activities
|
|
(16,925
|
)
|
|
(10,670
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Restricted stock unit tax withholdings
|
|
(1,600
|
)
|
|
(2,787
|
)
|
|
Proceeds from issuance of common stock
|
|
28,051
|
|
|
3,452
|
|
|
Repayment of debt
|
|
(27,884
|
)
|
|
(33,679
|
)
|
|
Net cash used in financing activities
|
|
(1,433
|
)
|
|
(33,014
|
)
|
|
Effect of exchange rate change on cash
|
|
(1,124
|
)
|
|
1,381
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
1,078
|
|
|
(6,557
|
)
|
|
Beginning cash and cash equivalents
|
|
106,815
|
|
|
106,552
|
|
|
Ending cash and cash equivalents
|
|
$
|
107,893
|
|
|
$
|
99,995
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Change in unrealized (gain) loss related to marketable securities,
net of tax, included in Accumulated other comprehensive loss
|
|
$
|
(16
|
)
|
|
$
|
72
|
|
|
Income taxes paid, net of refunds
|
|
$
|
2,716
|
|
|
$
|
2,308
|
|
|
Interest paid
|
|
$
|
13,976
|
|
|
$
|
16,379
|
|
|
Accrued purchases of plant and equipment
|
|
$
|
332
|
|
|
$
|
51
|
|
|
Note receivable resulting from sale of assets and business units
|
|
$
|
—
|
|
|
$
|
3,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
- Supplemental Historical Financial Information -
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017
|
|
September 29,
2018
|
|
September 30,
2017
|
|
Operations and Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
Percent of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
57.5
|
%
|
|
48.9
|
%
|
|
58.0
|
%
|
|
54.5
|
%
|
|
56.9
|
%
|
|
R&D Expense
|
|
18.9
|
%
|
|
20.5
|
%
|
|
27.9
|
%
|
|
20.9
|
%
|
|
27.5
|
%
|
|
SG&A Expense
|
|
21.5
|
%
|
|
20.5
|
%
|
|
23.1
|
%
|
|
23.1
|
%
|
|
23.1
|
%
|
|
Depreciation and amortization (in thousands)
|
|
8,315
|
|
|
10,069
|
|
|
15,094
|
|
|
30,740
|
|
|
45,591
|
|
|
Stock-based compensation expense (in thousands)
|
|
2,708
|
|
|
2,400
|
|
|
2,514
|
|
|
9,908
|
|
|
9,286
|
|
|
Restructuring and severance related charges (in thousands)
|
|
90
|
|
|
4,376
|
|
|
3,071
|
|
|
5,495
|
|
|
4,713
|
|
|
Net cash provided by operating activities (thousands)
|
|
10,978
|
|
|
7,124
|
|
|
24,232
|
|
|
20,560
|
|
|
35,746
|
|
|
Capital expenditures (in thousands)
|
|
2,073
|
|
|
2,301
|
|
|
5,290
|
|
|
6,178
|
|
|
12,325
|
|
|
Repayment of debt (in thousands)
|
|
15,875
|
|
|
11,134
|
|
|
—
|
|
|
27,884
|
|
|
33,679
|
|
|
Interest paid (in thousands)
|
|
4,799
|
|
|
4,757
|
|
|
4,285
|
|
|
13,976
|
|
|
16,379
|
|
|
Taxes paid (cash, in thousands)
|
|
659
|
|
|
2,017
|
|
|
1,332
|
|
|
2,716
|
|
|
2,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Information
|
|
|
|
|
|
|
|
|
|
|
|
Current Ratio
|
|
4.0
|
|
|
3.1
|
|
|
2.2
|
|
|
|
|
|
|
A/R Days Revenue Outstanding
|
|
68
|
|
|
68
|
|
|
78
|
|
|
|
|
|
|
Inventory Months
|
|
4.6
|
|
|
3.8
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Geography)
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
|
76
|
%
|
|
76
|
%
|
|
75
|
%
|
|
75
|
%
|
|
71
|
%
|
|
Europe (incl. Africa)
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
11
|
%
|
|
Americas
|
|
12
|
%
|
|
12
|
%
|
|
13
|
%
|
|
13
|
%
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by End Market)
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing
|
|
32
|
%
|
|
29
|
%
|
|
30
|
%
|
|
30
|
%
|
|
29
|
%
|
|
Mobile and Consumer
|
|
27
|
%
|
|
24
|
%
|
|
28
|
%
|
|
26
|
%
|
|
29
|
%
|
|
Industrial and Automotive
|
|
37
|
%
|
|
43
|
%
|
|
37
|
%
|
|
40
|
%
|
|
33
|
%
|
|
Licensing and Services
|
|
4
|
%
|
|
4
|
%
|
|
5
|
%
|
|
4
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Channel) *
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
82
|
%
|
|
86
|
%
|
|
80
|
%
|
|
85
|
%
|
|
75
|
%
|
|
Direct
|
|
18
|
%
|
|
14
|
%
|
|
20
|
%
|
|
15
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
During the first quarter of 2018, we updated our channel categories
to group all forms of distribution into a single channel. Prior
periods have been reclassified to match current period presentation.
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures -
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017
|
|
September 29,
2018
|
|
September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Reconciliation
|
|
|
|
GAAP Gross margin
|
|
$
|
58,364
|
|
|
$
|
50,248
|
|
|
$
|
53,322
|
|
|
$
|
165,133
|
|
|
$
|
165,363
|
|
|
Inventory adjustment related to restructured operations
|
|
(288
|
)
|
|
8,277
|
|
|
—
|
|
|
7,989
|
|
|
—
|
|
|
Stock-based compensation - gross margin
|
|
219
|
|
|
196
|
|
|
154
|
|
|
652
|
|
|
562
|
|
|
Non-GAAP Gross margin
|
|
$
|
58,295
|
|
|
$
|
58,721
|
|
|
$
|
53,476
|
|
|
$
|
173,774
|
|
|
$
|
165,925
|
|
|
|
|
|
|
Gross Margin % Reconciliation
|
|
|
|
GAAP Gross margin %
|
|
57.5
|
%
|
|
48.9
|
%
|
|
58.0
|
%
|
|
54.5
|
%
|
|
56.9
|
%
|
|
Cumulative effect of non-GAAP Gross Margin adjustments
|
|
(0.1
|
)%
|
|
8.3
|
%
|
|
0.1
|
%
|
|
2.9
|
%
|
|
0.2
|
%
|
|
Non-GAAP Gross margin %
|
|
57.4
|
%
|
|
57.2
|
%
|
|
58.1
|
%
|
|
57.4
|
%
|
|
57.1
|
%
|
|
|
|
|
|
Operating Expenses Reconciliation
|
|
|
|
GAAP Operating expenses
|
|
$
|
45,405
|
|
|
$
|
63,812
|
|
|
$
|
90,790
|
|
|
$
|
166,533
|
|
|
$
|
212,262
|
|
|
Amortization of acquired intangible assets
|
|
(3,823
|
)
|
|
(4,523
|
)
|
|
(8,526
|
)
|
|
(13,982
|
)
|
|
(25,777
|
)
|
|
Restructuring charges
|
|
(90
|
)
|
|
(4,376
|
)
|
|
(3,071
|
)
|
|
(5,495
|
)
|
|
(4,713
|
)
|
|
Acquisition related charges (1)
|
|
—
|
|
|
(864
|
)
|
|
(681
|
)
|
|
(1,531
|
)
|
|
(3,208
|
)
|
|
Impairment of acquired intangible assets
|
|
(586
|
)
|
|
(11,900
|
)
|
|
(36,198
|
)
|
|
(12,486
|
)
|
|
(36,198
|
)
|
|
Stock-based compensation - operations
|
|
(2,489
|
)
|
|
(2,204
|
)
|
|
(2,360
|
)
|
|
(9,256
|
)
|
|
(8,724
|
)
|
|
Gain on sale of building
|
|
—
|
|
|
—
|
|
|
4,624
|
|
|
—
|
|
|
4,624
|
|
|
Non-GAAP Operating expenses
|
|
$
|
38,417
|
|
|
$
|
39,945
|
|
|
$
|
44,578
|
|
|
$
|
123,783
|
|
|
$
|
138,266
|
|
|
|
|
|
|
Income (Loss) from Operations Reconciliation
|
|
|
|
GAAP Income (loss) from operations
|
|
$
|
12,959
|
|
|
$
|
(13,564
|
)
|
|
$
|
(37,468
|
)
|
|
$
|
(1,400
|
)
|
|
$
|
(46,899
|
)
|
|
Inventory adjustment related to restructured operations
|
|
(288
|
)
|
|
8,277
|
|
|
—
|
|
|
7,989
|
|
|
—
|
|
|
Stock-based compensation - gross margin
|
|
219
|
|
|
196
|
|
|
154
|
|
|
652
|
|
|
562
|
|
|
Amortization of acquired intangible assets
|
|
3,823
|
|
|
4,523
|
|
|
8,526
|
|
|
13,982
|
|
|
25,777
|
|
|
Restructuring charges
|
|
90
|
|
|
4,376
|
|
|
3,071
|
|
|
5,495
|
|
|
4,713
|
|
|
Acquisition related charges (1)
|
|
—
|
|
|
864
|
|
|
681
|
|
|
1,531
|
|
|
3,208
|
|
|
Impairment of acquired intangible assets
|
|
586
|
|
|
11,900
|
|
|
36,198
|
|
|
12,486
|
|
|
36,198
|
|
|
Stock-based compensation - operations
|
|
2,489
|
|
|
2,204
|
|
|
2,360
|
|
|
9,256
|
|
|
8,724
|
|
|
Gain on sale of building
|
|
—
|
|
|
—
|
|
|
(4,624
|
)
|
|
—
|
|
|
(4,624
|
)
|
|
Non-GAAP Income from operations
|
|
$
|
19,878
|
|
|
$
|
18,776
|
|
|
$
|
8,898
|
|
|
$
|
49,991
|
|
|
$
|
27,659
|
|
|
|
|
|
|
Income (Loss) from Operations % Reconciliation
|
|
|
|
GAAP Income (loss) from operations %
|
|
12.8
|
%
|
|
(13.2
|
)%
|
|
(40.7
|
)%
|
|
(0.5
|
)%
|
|
(16.1
|
)%
|
|
Cumulative effect of non-GAAP Gross Margin and Operating adjustments
|
|
6.8
|
%
|
|
31.5
|
%
|
|
50.4
|
%
|
|
17.0
|
%
|
|
25.6
|
%
|
|
Non-GAAP Income from operations %
|
|
19.6
|
%
|
|
18.3
|
%
|
|
9.7
|
%
|
|
16.5
|
%
|
|
9.5
|
%
|
|
|
|
|
|
(1) Legal fees and outside services that were related to our
proposed acquisition by Canyon Bridge Acquisition Company, Inc.
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures -
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
|
September 30,
2017
|
|
September 29,
2018
|
|
September 30,
2017
|
|
|
|
|
|
Other Expense, Net Reconciliation
|
|
|
|
GAAP Other expense, net
|
|
$
|
(452
|
)
|
|
$
|
(348
|
)
|
|
$
|
(2,027
|
)
|
|
$
|
(246
|
)
|
|
$
|
(2,104
|
)
|
|
Loss on sale of assets and business units
|
|
—
|
|
|
—
|
|
|
1,796
|
|
|
—
|
|
|
1,496
|
|
|
Non-GAAP Other expense, net
|
|
$
|
(452
|
)
|
|
$
|
(348
|
)
|
|
$
|
(231
|
)
|
|
$
|
(246
|
)
|
|
$
|
(608
|
)
|
|
|
|
|
|
Income Tax Expense (Benefit) Reconciliation
|
|
|
|
GAAP Income tax expense (benefit)
|
|
$
|
33
|
|
|
$
|
1,343
|
|
|
$
|
(331
|
)
|
|
$
|
1,973
|
|
|
$
|
234
|
|
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
108
|
|
|
(258
|
)
|
|
(218
|
)
|
|
(88
|
)
|
|
142
|
|
|
Non-GAAP Income tax expense (benefit)
|
|
$
|
141
|
|
|
$
|
1,085
|
|
|
$
|
(549
|
)
|
|
$
|
1,885
|
|
|
$
|
376
|
|
|
|
|
|
|
Net Income (Loss) Reconciliation
|
|
|
|
GAAP Net income (loss)
|
|
$
|
6,974
|
|
|
$
|
(20,223
|
)
|
|
$
|
(43,052
|
)
|
|
$
|
(19,201
|
)
|
|
$
|
(63,349
|
)
|
|
Inventory adjustment related to restructured operations
|
|
(288
|
)
|
|
8,277
|
|
|
—
|
|
|
7,989
|
|
|
—
|
|
|
Stock-based compensation - gross margin
|
|
219
|
|
|
196
|
|
|
154
|
|
|
652
|
|
|
562
|
|
|
Amortization of acquired intangible assets
|
|
3,823
|
|
|
4,523
|
|
|
8,526
|
|
|
13,982
|
|
|
25,777
|
|
|
Restructuring charges
|
|
90
|
|
|
4,376
|
|
|
3,071
|
|
|
5,495
|
|
|
4,713
|
|
|
Acquisition related charges (1)
|
|
—
|
|
|
864
|
|
|
681
|
|
|
1,531
|
|
|
3,208
|
|
|
Impairment of acquired intangible assets
|
|
586
|
|
|
11,900
|
|
|
36,198
|
|
|
12,486
|
|
|
36,198
|
|
|
Stock-based compensation - operations
|
|
2,489
|
|
|
2,204
|
|
|
2,360
|
|
|
9,256
|
|
|
8,724
|
|
|
Gain on sale of building
|
|
—
|
|
|
—
|
|
|
(4,624
|
)
|
|
—
|
|
|
(4,624
|
)
|
|
Loss on sale of assets and business unit
|
|
—
|
|
|
—
|
|
|
1,796
|
|
|
—
|
|
|
1,496
|
|
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
(108
|
)
|
|
258
|
|
|
218
|
|
|
88
|
|
|
(142
|
)
|
|
Non-GAAP Net income
|
|
$
|
13,785
|
|
|
$
|
12,375
|
|
|
$
|
5,328
|
|
|
$
|
32,278
|
|
|
$
|
12,563
|
|
|
|
|
|
|
Net Income (Loss) Per Share Reconciliation
|
|
|
|
GAAP Net income (loss) per share - basic and diluted
|
|
$
|
0.05
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.52
|
)
|
|
Cumulative effect of Non-GAAP adjustments
|
|
0.06
|
|
|
0.26
|
|
|
0.39
|
|
|
0.41
|
|
|
0.62
|
|
|
Non-GAAP Net income per share - basic and diluted
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
$
|
0.04
|
|
|
$
|
0.26
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
127,816
|
|
|
124,843
|
|
|
122,990
|
|
|
125,578
|
|
|
122,393
|
|
|
Diluted - GAAP (3)
|
|
129,474
|
|
|
124,843
|
|
|
122,990
|
|
|
125,578
|
|
|
122,393
|
|
|
Diluted - Non-GAAP (3)
|
|
129,474
|
|
|
125,620
|
|
|
124,225
|
|
|
126,862
|
|
|
124,454
|
|
|
|
|
|
|
|
|
|
|
(1) Legal fees and outside services that were related to our
proposed acquisition by Canyon Bridge Acquisition Company, Inc.
|
|
(2) 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.”
|
|
(3) Diluted shares are calculated using the GAAP treasury stock
method. In a loss position, diluted shares equal basic shares.
|
|
|
|
|
|
Lattice Semiconductor Corporation
|
|
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures -
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 29, 2018
|
|
|
|
|
|
|
|
|
|
Business Outlook - Fourth Quarter 2018
|
|
Low
|
|
Midpoint
|
|
High
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
$
|
52,000
|
|
|
$
|
53,500
|
|
|
$
|
55,000
|
|
|
Cumulative effect of Non-GAAP Operating expense adjustments (4)
|
|
(15,000
|
)
|
|
(15,500
|
)
|
|
(16,000
|
)
|
|
Non-GAAP Operating expenses
|
|
$
|
37,000
|
|
|
$
|
38,000
|
|
|
$
|
39,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Includes estimated Amortization of acquired intangible assets,
Restructuring, and Stock-based compensation included in Operating
Expenses
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181025005858/en/
Source: Lattice Semiconductor Corporation
MEDIA:
Lattice Semiconductor Corporation
Doug Hunter,
503.268.8512
doug.hunter@latticesemi.com
or
INVESTORS:
Global
IR Partners
David Pasquale, 914-337-8801
lscc@globalirpartners.com
|
View printer-friendly version
