Lattice Semiconductor Reports First Quarter 2013 Results
Financial Highlights:
- Revenue of
$71.2 million , an increase of 8.0% from$65.9 million in 4Q12 and a decrease of 0.7% from$71.7 million in 1Q12. - Gross margin of 53.6%, compared to 54.2% in 4Q12 and 55.1% in 1Q12.
- Operating expenses of
$35.4 million excluding restructuring charges, compared to$36.7 million in 4Q12 and$38.8 million in 1Q12. - Net income of
$0.02 per basic and diluted share, compared to net loss of$0.06 per basic and diluted share in 4Q12 and net loss of$0.07 per diluted share in 1Q12.- 1Q13 financial results included a
$0.7 million ($0.01 per basic and diluted share) income tax expense,$0.7 million of amortization expense from acquired intangibles and$0.2 million of restructuring related charges. - 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. - 1Q12 financial results included a
$7.9 million ($0.07 per basic and diluted share) income tax expense,$1.7 million of acquisition related costs and$0.6 million of restructuring related charges.
- 1Q13 financial results included a
For the first quarter, revenue was
Net income for the first quarter was
Business Outlook -
- Revenue is expected to increase approximately 15% to 20% on a sequential basis.
- Gross margin percentage is expected to be approximately 51% plus or minus 2%.
- Total operating expenses are expected to be approximately
$37.5 million . This includes approximately$1.0 million in R&D variable cost related to program timing,$0.5 million in variable spending related to sales increases and$0.3 million in other expenses associated with the Company's move to a new facility inSan Jose .
Investor Conference Call / Webcast Details:
A replay of the call will be available approximately two hours after the conclusion of the live call through
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 -
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
About
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,
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 | ||||||||||||
| March 30, 2013 | December 29, 2012 | March 31, 2012 | ||||||||||
| Revenue | $ | 71,158 | $ | 65,875 | $ | 71,700 | ||||||
| Costs and expenses: | ||||||||||||
| Cost of products sold | 33,003 | 30,202 | 32,215 | |||||||||
| Research and development | 18,114 | 18,655 | 19,146 | |||||||||
| Selling, general and administrative | 16,498 | 17,269 | 17,923 | |||||||||
| Acquisition related charges (1) | 749 | 760 | 1,707 | |||||||||
| Restructuring (2) | 153 | 5,375 | 556 | |||||||||
| 68,517 | 72,261 | 71,547 | ||||||||||
| Income (loss) from operations | 2,641 | (6,386 | ) | 153 | ||||||||
| Other income (expense), net | (52 | ) | (341 | ) | 64 | |||||||
| Income (loss) before provision (benefit) for income taxes | 2,589 | (6,727 | ) | 217 | ||||||||
| Provision (benefit) for income taxes (3) | 699 | 448 | 7,931 | |||||||||
| Net Income (loss) | $ | 1,890 | $ | (7,175 | ) | $ | (7,714 | ) | ||||
| Net Income (loss) per share (4): | ||||||||||||
| Basic | $ | 0.02 | $ | (0.06 | ) | $ | (0.07 | ) | ||||
| Diluted | $ | 0.02 | $ | (0.06 | ) | $ | (0.07 | ) | ||||
| Shares used in per share calculations (4): | ||||||||||||
| Basic | 115,391 | 115,943 | 118,174 | |||||||||
| Diluted | 116,714 | 115,943 | 118,174 | |||||||||
| 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 during the first quarter of fiscal 2012. |
| (2) | Represents costs and adjustments incurred primarily related to the corporate restructuring plan announced on October 12, 2012. |
| (3) | The tax provision for the three months ended March 31, 2012 reflects our new global tax structure and the resulting intercompany sale of inventory and fixed assets. |
| (4) | For the three 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 month period in fiscal 2013, 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) | ||||||
| March 30, 2013 |
December 29, 2012 |
|||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and short-term marketable securities | $ | 179,044 | 183,401 | |||
| Accounts receivable, net | 55,984 | 46,947 | ||||
| Inventories | 43,755 | 44,194 | ||||
| Other current assets | 14,020 | 12,806 | ||||
| Total current assets | 292,803 | 287,348 | ||||
| Property and equipment, net | 40,596 | 40,384 | ||||
| Long-term marketable securities | 4,717 | 4,717 | ||||
| Other long-term assets | 8,767 | 6,854 | ||||
| Intangible assets, net of amortization | 14,722 | 15,430 | ||||
| Goodwill | 44,808 | 44,808 | ||||
| Deferred income taxes | 28,617 | 29,218 | ||||
| $ | 435,030 | $ | 428,759 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 45,257 | $ | 42,540 | ||
| Deferred income and allowances on sales to sell-through distributors | 11,656 | 10,553 | ||||
| Total current liabilities | 56,913 | 53,093 | ||||
| Other long-term liabilities | 18,101 | 18,116 | ||||
| Total liabilities | 75,014 | 71,209 | ||||
| Stockholders' equity | 360,016 | 357,550 | ||||
| $ | 435,030 | $ | 428,759 | |||
| Lattice Semiconductor Corporation | ||||||
| - Supplemental Historical Financial Information - | ||||||
| 1Q13 | 4Q12 | 1Q12 | ||||
| Operations Information | ||||||
| Percent of Revenue | ||||||
| Gross Margin | 53.6% | 54.2% | 55.1% | |||
| R&D Expense | 25.5% | 28.3% | 26.7% | |||
| SG&A Expense | 23.2% | 26.2% | 25.0% | |||
| Depreciation and amortization (in thousands) | 5,066 | 5,987 | 5,027 | |||
| Capital expenditures (in thousands) | 3,054 | 2,363 | 3,442 | |||
| Stock compensation expense (in thousands) | 1,912 | 1,757 | 1,624 | |||
| Restructuring and severance related charges (in thousands) | 153 | 5,375 | 556 | |||
| Taxes paid (cash, in thousands) | 852 | 172 | 204 | |||
| Balance Sheet Information | ||||||
| Current Ratio | 5.1 | 5.4 | 5.6 | |||
| A/R Days Revenue Outstanding | 71 | 64 | 66 | |||
| Inventory Months | 4.0 | 4.4 | 3.4 | |||
| Revenue% (by Product Family) | ||||||
| PLD | 68% | 68% | 67% | |||
| FPGA | 32% | 32% | 33% | |||
| Revenue% (by Product Classification) (1) | ||||||
| New | 39% | 29% | 16% | |||
| Mainstream | 47% | 53% | 53% | |||
| Mature | 14% | 18% | 31% | |||
| Revenue% (by Geography) | ||||||
| Asia | 69% | 69% | 64% | |||
| Europe (incl. Africa) | 18% | 16% | 19% | |||
| Americas | 13% | 15% | 17% | |||
| Revenue% (by End Market) (2) | ||||||
| Communications | 39% | 38% | 39% | |||
| Industrial & Other | 26% | 31% | 32% | |||
| Computing | 10% | 13% | 15% | |||
| Consumer | 25% | 18% | 14% | |||
| Revenue% (by Channel) | ||||||
| Sell-through distribution | 49% | 55% | 53% | |||
| Direct | 51% | 45% | 47% | |||
(1) New: LatticeECP4, 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.
(2) During the first quarter of 2013, the Company refined its methodology for assigning revenue to End Market categories. All periods presented have been revised to conform to this methodology.
For more information contact:
Chief Financial Officer
503-268-8000
Global IR Partners
914-337-8801
lscc@globalirpartners.com
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