Lattice Semiconductor Reports Fourth Quarter and Full Year 2013 Results
- Revenue of
$89.5 million, an increase of 2.7% from $87.2 millionin 3Q13 and an increase of 35.9% from $65.9 millionin 4Q12.
- Net income of
$0.06per basic and diluted share, compared to net income of $0.08per basic and diluted share in 3Q13 and a net loss of $0.06per basic and diluted share in 4Q12.
- Gross margin of 54.3%, compared to 53.2% in 3Q13 and 54.2% in 4Q12.
- Fiscal year 2013 revenue of
$332.5 million, an increase of 19.1% from $279.3 millionin the fiscal year 2012.
- Fiscal year 2013 net income of
$0.19per basic and diluted share, compared to a net loss of $0.25per basic and diluted share in fiscal year 2012.
- Fiscal year 2013 gross margin of 53.6%, compared to 54.0% in fiscal year 2012.
For the fourth quarter, revenue was
Net income for the fourth quarter was
For the fiscal year 2013, revenue was
Recent Business Highlights:
Huawei Partnerand Supplier Awards: Huawei Technology Co., Ltd., a global leader in telecommunications network solutions, recognized Lattice for the third time as a "Core Partner" and honored the Company with the "2012 Huawei Supplier Cooperation & Support Award."
- Commences Shipments of MachXO3 FPGAs: Lattice commenced shipments of its ultra-low density MachX03™ FPGA family, the world's smallest, lowest-cost-per I/O programmable platform aimed at expanding system capabilities and bridging emerging connectivity interfaces using both parallel and serial I/O.
- New HetNet Solutions Portfolio: In collaboration with Azcom Technology, the Lattice HetNet Solutions Portfolio enables system designers to implement best-in-class solutions for connectivity, control path and power management while accelerating their development with system-level reference designs for multi-mode LTE small cells.
Business Outlook - First Quarter 2014:
- In-line with recent annual demand trends, revenue is expected to be flat to plus or minus 2% on a sequential basis.
- Gross margin percentage is expected to be approximately 53% plus or minus 2%.
- Total operating expenses are expected to be approximately
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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: the continuing growth of the new market for our innovative, low power, low cost FPGAs and those statements under the heading "Business Outlook - First Quarter 2014" relating to expected revenue, gross margin and total operating expenses. 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 iCE™, 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. 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
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|
|December 28, 2013||September 28, 2013||December 29, 2012||December 28, 2013||December 29, 2012|
|Costs and expenses:|
|Cost of products sold||40,916||40,778||30,202||154,281||128,499|
|Research and development||22,331||20,254||18,655||80,966||77,610|
|Selling, general and administrative||17,189||16,385||17,269||67,144||72,317|
|Acquisition related charges (1)||737||737||760||2,960||4,178|
|Income (loss) from operations||8,215||8,915||(6,386||)||26,786||(9,366||)|
|Other (loss) income, net||(540||)||346||(341||)||(300||)||505|
|Income (loss) before provision for income taxes||7,675||9,261||(6,727||)||26,486||(8,861||)|
|Provision for income taxes (3)||1,128||417||448||4,165||20,745|
|Net income (loss)||$||6,547||$||8,844||$||(7,175||)||$||22,321||$||(29,606||)|
|Net income (loss) per share (4):|
|Shares used in per share calculations (4):|
|(1)||During fiscal 2012, the Company recorded consulting, legal costs, severance related integration costs and amortization of intangible assets associated with the acquisition of SiliconBlue. During fiscal 2013, Acquisition related charges consist of amortization of intangible assets.|
|(2)||Represents costs and adjustments incurred primarily 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 2013, the computation of diluted earnings per share includes the effects of stock options and restricted stock units as they are dilutive. 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. ESPP shares are included if dilutive.|
|Lattice Semiconductor Corporation|
|Consolidated Balance Sheets|
|Cash, cash equivalents and short-term marketable securities||$||215,815||$||183,401|
|Accounts receivable, net||50,085||46,947|
|Other current assets (1)||13,679||12,527|
|Total current assets||325,801||287,069|
|Property and equipment, net||41,719||40,384|
|Long-term marketable securities||5,241||4,717|
|Other long-term assets||6,120||6,854|
|Intangible assets, net of amortization||12,484||15,430|
|Deferred income taxes (1)||11,703||15,357|
|Liabilities and Stockholders' Equity|
|Accounts payable and other accrued liabilities||$||51,113||$||42,540|
|Deferred income and allowances on sales to sell-through distributors||7,495||10,553|
|Total current liabilities||58,608||53,093|
|Other long-term liabilities (1)||3,588||3,976|
|(1)||In June 2013 the company adopted, with retrospective application, the requirements of ASU 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Accordingly, previous periods have been revised to conform with current period presentation. This resulted in both long-term taxes payable and deferred tax assets declining by approximately $14 million for all periods presented.|
|Lattice Semiconductor Corporation|
|- Supplemental Historical Financial Information -|
|Three Months Ended||Year Ended|
|Percent of Revenue|
|Depreciation and amortization (in thousands)||5,634||5,210||5,987||20,807||22,149|
|Capital expenditures (in thousands)||2,263||3,400||2,363||12,500||13,593|
|Stock compensation expense (in thousands)||2,537||2,562||1,757||9,522||7,510|
|Restructuring and severance related charges (in thousands)||167||376||5,299||797||8,515|
|Taxes paid (cash, in thousands)||289||126||172||1,370||908|
|Balance Sheet Information|
|A/R Days Revenue Outstanding||50||55||64|
|Revenue% (by Product Family)|
|Revenue% (by Product Classification) (1)|
|Revenue% (by Geography)|
|Europe (incl. Africa)||12||%||14||%||16||%||14||%||17||%|
|Revenue% (by End Market) (2)|
|Industrial & Other||23||%||20||%||31||%||23||%||32||%|
|Revenue% (by Channel)|
|(1)||New: MachXO3, 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 by End Market categories. All periods presented have been revised to conform to this methodology.|
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Global IR Partners