Lattice Semiconductor Reports Third Quarter 2013 Results
Financial Highlights:
- Revenue of
$87.2 million , an increase of 2.9% from$84.7 million in 2Q13 and an increase of 23.0% from$70.9 million in 3Q12. - Net income of
$0.07 per basic and diluted share, compared to net income of$0.04 per basic and diluted share in 2Q13 and a net loss of$0.02 per basic and diluted share in 3Q12.- Gross margin of 52.4%, compared to 53.3% in 2Q13 and 54.4% in 3Q12.
- Operating expenses of
$37.5 million , compared to operating expenses of$38.1 million in 2Q13 and$38.9 million in 3Q12.
For the third quarter, revenue was
Net income for the third quarter was
Recent Business Highlights:
- Tiny,
Ultra-Low Power iCE40™: Lattice announced its new, ultra-low density iCE40 FPGAs, delivering the world's smallest, most flexible, single chip sensor solution for ultra-low power mobile devices. The new additions to the iCE40 FPGA family allow customers to integrate functions into a smaller space. - Ultra-Low Density MachX03™: Lattice launched its ultra-low density MachXO3™ 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 Reference Designs: Lattice introduced three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor, and display technologies.
Business Outlook - Fourth Quarter 2013:
- In-line with recent annual demand trends, revenue is expected to be minus 5% to 9% 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
$37.5 million , including approximately$1.0 million of mask costs in support of growth opportunities.
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: the continuing rebound of the broader communications market in
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
About
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 | Nine Months Ended | |||||||||||||||||
| September 28, 2013 | June 29, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | ||||||||||||||
| Revenue | $ | 87,154 | $ | 84,694 | $ | 70,889 | $ | 243,006 | $ | 213,381 | ||||||||
| Costs and expenses: | ||||||||||||||||||
| Cost of products sold | 41,463 | 39,584 | 32,341 | 114,050 | 98,297 | |||||||||||||
| Research and development | 20,254 | 20,267 | 20,446 | 58,635 | 58,955 | |||||||||||||
| Selling, general and administrative | 16,385 | 17,072 | 17,720 | 49,955 | 55,048 | |||||||||||||
| Acquisition related charges (1) | 737 | 737 | 729 | 2,223 | 3,418 | |||||||||||||
| Restructuring (2) | 85 | 19 | -- | 257 | 643 | |||||||||||||
| 78,924 | 77,679 | 71,236 | 225,120 | 216,361 | ||||||||||||||
| Income (loss) from operations | 8,230 | 7,015 | (347 | ) | 17,886 | (2,980 | ) | |||||||||||
| Other income (expense), net | 346 | (54 | ) | 88 | 240 | 846 | ||||||||||||
| Income (loss) before provision for income taxes | 8,576 | 6,961 | (259 | ) | 18,126 | (2,134 | ) | |||||||||||
| Provision for income taxes (3) | 417 | 1,921 | 1,916 | 3,037 | 20,297 | |||||||||||||
| Net Income (loss) | $ | 8,159 | $ | 5,040 | $ | (2,175 | ) | $ | 15,089 | $ | (22,431 | ) | ||||||
| Net Income (loss) per share (4): | ||||||||||||||||||
| Basic | $ | 0.07 | $ | 0.04 | $ | (0.02 | ) | $ | 0.13 | $ | (0.19 | ) | ||||||
| Diluted | $ | 0.07 | $ | 0.04 | $ | (0.02 | ) | $ | 0.13 | $ | (0.19 | ) | ||||||
| Shares used in per share calculations (4): | ||||||||||||||||||
| Basic | 116,055 | 115,733 | 116,785 | 115,730 | 117,612 | |||||||||||||
| Diluted | 117,349 | 117,109 | 116,785 | 117,093 | 117,612 | |||||||||||||
| Notes: |
| (1) | During the first nine months of fiscal 2012, the Company recorded consulting, legal costs, severance related integration costs and amortization of intangible assets associated with the acquisition of SiliconBlue. During the first nine months of 2013, Acquisition related charges consist of amortization of acquired 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 three and nine months ended September 29, 2012 reflects the nonrecurring impact of transactions required to implement our global tax structure and the resulting intercompany sale of inventory and fixed assets. | |
| (4) | For the three and nine 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 nine 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. ESPP shares are included if dilutive. | |
| Lattice Semiconductor Corporation | ||||||
| Consolidated Balance Sheets | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
| September 28, 2013 |
December 29, 2012 |
|||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and short-term marketable securities | $ | 210,772 | $ | 183,401 | ||
| Accounts receivable, net | 52,991 | 46,947 | ||||
| Inventories | 42,295 | 44,194 | ||||
| Other current assets (1) | 14,631 | 12,527 | ||||
| Total current assets | 320,689 | 287,069 | ||||
| Property and equipment, net | 42,345 | 40,384 | ||||
| Long-term marketable securities | 4,717 | 4,717 | ||||
| Other long-term assets | 7,199 | 6,854 | ||||
| Intangible assets, net of amortization | 13,220 | 15,430 | ||||
| Goodwill | 44,808 | 44,808 | ||||
| Deferred income taxes (1) | 13,746 | 15,357 | ||||
| $ | 446,724 | $ | 414,619 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 44,424 | $ | 42,540 | ||
| Deferred income and allowances on sales to sell-through distributors | 17,587 | 10,553 | ||||
| Total current liabilities | 62,011 | 53,093 | ||||
| Other long-term liabilities (1) | 5,011 | 3,976 | ||||
| Total liabilities | 67,022 | 57,069 | ||||
| Stockholders' equity | 379,702 | 357,550 | ||||
| $ | 446,724 | $ | 414,619 | |||
| Notes: |
| (1) | In June 2013 the company early 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 - | ||||||
| 3Q13 | 2Q13 | 3Q12 | ||||
| Operations Information | ||||||
| Percent of Revenue | ||||||
| Gross Margin | 52.4% | 53.3% | 54.4% | |||
| R&D Expense | 23.2% | 23.9% | 28.8% | |||
| SG&A Expense | 18.8% | 20.2% | 25.0% | |||
| Depreciation and amortization (in thousands) | 5,210 | 4,894 | 5,892 | |||
| Capital expenditures (in thousands) | 3,400 | 3,783 | 3,156 | |||
| Stock compensation expense (in thousands) | 2,562 | 2,511 | 2,075 | |||
| Restructuring and severance related charges (in thousands) | 376 | 84 | 1,195 | |||
| Taxes paid (cash, in thousands) | 126 | 104 | 333 | |||
| Balance Sheet Information | ||||||
| Current Ratio | 5.2 | 5.4 | 5.7 | |||
| A/R Days Revenue Outstanding | 55 | 68 | 71 | |||
| Inventory Months | 3.1 | 3.8 | 3.5 | |||
| Revenue% (by Product Family) | ||||||
| PLD | 70% | 69% | 63% | |||
| FPGA | 30% | 31% | 37% | |||
| Revenue% (by Product Classification) (1) | ||||||
| New | 51% | 46% | 26% | |||
| Mainstream | 41% | 42% | 54% | |||
| Mature | 8% | 12% | 20% | |||
| Revenue% (by Geography) | ||||||
| Asia | 76% | 74% | 69% | |||
| Europe (incl. Africa) | 14% | 14% | 18% | |||
| Americas | 10% | 12% | 13% | |||
| Revenue% (by End Market) (2) | ||||||
| Communications | 35% | 38% | 44% | |||
| Industrial & Other | 20% | 23% | 32% | |||
| Computing | 9% | 8% | 13% | |||
| Consumer | 36% | 31% | 11% | |||
| Revenue% (by Channel) | ||||||
| Sell-through distribution | 41% | 44% | 56% | |||
| Direct | 59% | 56% | 44% | |||
| (1) | 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. | ||
| (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
Source: