Lattice Semiconductor Reports Fourth Quarter 2012 Results
HILLSBORO, OR -- (MARKETWIRE) --
- Revenue of
$65.9 million, a decrease of 7.1% from $70.9 millionin 3Q12 and a decrease of 6.1% from $70.2 millionin 4Q11.
- Gross margin of 54.2%, compared to 54.4% in 3Q12 and 57.7% in 4Q11.
- Net loss of
$0.06per basic and diluted share, compared to net loss of $0.02per basic and diluted share in 3Q12 and net income of $0.34per diluted share in 4Q11. 4Q12 financial results included a $0.4 million( $0.00per basic and diluted share) income tax expense, $0.8 millionof amortization expense from acquired intangibles and $5.4 millionof restructuring related charges. 3Q12 financial results included a $1.9 million( $0.02per basic and diluted share) tax expense, $0.7 millionof amortization expense from acquired intangibles and no restructuring related charges.
For the fourth quarter, revenue was
Net loss for the fourth quarter was
- 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
- New Security & Surveillance Solutions Showcased: Lattice demonstrated several new FPGA-based camera designs at the China Security Expo in Beijing'
Chinain the fourth quarter, including several camera solutions developed in conjunction with Lattice partner organizations.
Business Outlook -
- 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 millionin restructuring charges.
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
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.
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)|
|Three Months Ended||Year Ended|
|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|
|(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):|
|Shares used in per share calculations (4):|
|(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|
|December 31, |
|Cash, cash equivalents and short-term marketable securities||$||183,401||$||210,134|
|Accounts receivable, net||46,947||36,993|
|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|
|Deferred income taxes||29,218||45,130|
|Liabilities and Stockholders' Equity|
|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|
|Lattice Semiconductor Corporation|
|- Supplemental Historical Financial Information -|
|Percent of Revenue|
|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|
|A/R Days Revenue Outstanding||64||71||47.4|
|Revenue% (by Product Family)|
|Revenue% (by Product Classification)|
|Revenue% (by Geography)|
|Europe (incl. Africa)||16||%||18||%||19||%|
|Revenue% (by End Market)|
|Industrial & Other||28||%||27||%||30||%|
|Revenue% (by Channel)|
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.
For more information contact:
Chief Financial Officer
Global IR Partners