Lattice Semiconductor Reports Third Quarter 2023 Results
- Quarterly revenue growth of 11% compared to Q3 2022 and 1% compared to Q2 2023
- Gross Margin expands to 70.0% / 70.6% for Q3 2023 on a GAAP / Non-GAAP basis, compared to 68.8% / 69.5%, respectively, for Q3 2022
- Net Income improves to
$0.38 /$0.53 per diluted share for Q3 2023 on a GAAP / Non-GAAP basis, compared to$0.33 /$0.48 , respectively, for Q3 2022
* GAAP represents
Selected Third Quarter 2023 Financial Results and Comparisons (in thousands, except per share data)
|
|
GAAP Financial Results (unaudited) |
||||||||||||||
|
|
Q3 2023 |
|
Q2 2023 |
|
Q3 2022 |
|
Q/Q |
|
Y/Y |
||||||
Revenue |
|
$ |
192,169 |
|
|
$ |
190,079 |
|
|
$ |
172,509 |
|
|
1.1% |
|
11.4% |
Gross Margin % |
|
|
70.0 |
% |
|
|
69.7 |
% |
|
|
68.8 |
% |
|
30 bps |
|
120 bps |
R&D Expense % |
|
|
21.9 |
% |
|
|
22.1 |
% |
|
|
20.2 |
% |
|
(20) bps |
|
170 bps |
SG&A Expense % |
|
|
17.3 |
% |
|
|
19.4 |
% |
|
|
18.5 |
% |
|
(210) bps |
|
(120) bps |
Operating Expenses |
|
$ |
77,644 |
|
|
$ |
79,491 |
|
|
$ |
69,930 |
|
|
(2.3)% |
|
11.0% |
Income from Operations |
|
$ |
56,917 |
|
|
$ |
53,070 |
|
|
$ |
48,802 |
|
|
7.2% |
|
16.6% |
Net Income |
|
$ |
53,788 |
|
|
$ |
50,644 |
|
|
$ |
46,359 |
|
|
6.2% |
|
16.0% |
Net Income per Share - Basic |
|
$ |
0.39 |
|
|
$ |
0.37 |
|
|
$ |
0.34 |
|
|
|
|
|
Net Income per Share - Diluted |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
Non-GAAP* Financial Results (unaudited) |
||||||||||||||
|
|
Q3 2023 |
|
Q2 2023 |
|
Q3 2022 |
|
Q/Q |
|
Y/Y |
||||||
Revenue |
|
$ |
192,169 |
|
|
$ |
190,079 |
|
|
$ |
172,509 |
|
|
1.1% |
|
11.4% |
Gross Margin % |
|
|
70.6 |
% |
|
|
70.5 |
% |
|
|
69.5 |
% |
|
10 bps |
|
110 bps |
R&D Expense % |
|
|
18.2 |
% |
|
|
18.0 |
% |
|
|
17.1 |
% |
|
20 bps |
|
110 bps |
SG&A Expense % |
|
|
12.1 |
% |
|
|
12.5 |
% |
|
|
12.6 |
% |
|
(40) bps |
|
(50) bps |
Operating Expenses |
|
$ |
58,206 |
|
|
$ |
58,018 |
|
|
$ |
51,342 |
|
|
0.3% |
|
13.4% |
Income from Operations |
|
$ |
77,408 |
|
|
$ |
75,968 |
|
|
$ |
68,512 |
|
|
1.9% |
|
13.0% |
Net Income |
|
$ |
73,578 |
|
|
$ |
72,509 |
|
|
$ |
66,492 |
|
|
1.5% |
|
10.7% |
Net Income per Share - Basic |
|
$ |
0.53 |
|
|
$ |
0.53 |
|
|
$ |
0.48 |
|
|
— |
|
|
Net Income per Share - Diluted |
|
$ |
0.53 |
|
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
|
|
|
Third Quarter 2023 Highlights
- Record Revenue: Revenue increased 11% in Q3 2023 compared to Q3 2022 and 1% compared to Q2 2023.
- Profit Growth: Gross margin expanded 120 basis points on a GAAP basis and 110 basis points on a non-GAAP basis compared to Q3 2022, with net income per diluted share increasing 15% on a GAAP basis and 10% on a non-GAAP basis compared to Q3 2022.
- Continued Product Portfolio Expansion: Launched the Lattice CrossLinkU™-NX FPGA family, the industry’s first FPGA with integrated USB device functionality in its class to meet growing customer needs to simplify USB-based design for applications across multiple markets.
- Mazda Selects Lattice FPGAs: Mazda Motor Corporation's new crossover SUV models CX-60 and CX-90 leverage an interface bridging solution based on multiple power efficient Lattice FPGAs to enable safety-critical Advanced Driver Assistance System (ADAS) features.
- Lattice Receives Multiple Industry Awards:
- Hewlett Packard Enterprise 2023 Cyber Security Supplier of the Year
- 2023 AutoTech Breakthrough Award with New Lattice Drive Solution Stack
- 2023 CyberSecurity Breakthrough Award
Business Outlook - Fourth Quarter of 2023:
- Revenue for the fourth quarter of 2023 is expected to be between
$166 million and$186 million . - Gross margin percentage for the fourth quarter of 2023 is expected to be 70.5% plus or minus 1% on a non-GAAP basis.
- Total operating expenses for the fourth quarter of 2023 are expected to be between
$57 million and$59 million on a non-GAAP basis.
Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the fourth quarter of 2023, certain items that affect GAAP measurement of financial measures for gross margin percentage and total operating expenses are not accessible on a forward-looking basis because such items cannot be reasonably predicted without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures, including certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for non-GAAP gross margin percentage or non-GAAP total operating expenses for second quarter guidance or a corresponding reconciliation to GAAP for the quarter. From a qualitative perspective, the differences between our GAAP measurement of financial measures for gross margin percentage and total operating expenses and our non-GAAP measure of those items will consist of items similar to those described in the financial tables later in this release for such items historically, including, for example and without limitation, certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below, following the GAAP financial information.
Investor Conference Call / Webcast Details:
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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, but are not limited to, statements relating to our rapid product portfolio expansion and strength; launch of new products; and the statements under the heading “Business Outlook - Fourth Quarter of 2023.” 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.
Estimates of future revenue are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing and inflationary pressures, competitive actions, international trade disputes and sanctions, and potential impact of global pandemics. 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, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. Actual results may differ materially from our expectations and are subject to risks and uncertainties that relate more broadly to our overall business, including those described in Item 1A in Lattice’s most recent Annual Report on Form 10-K and as may be supplemented from time-to-time in Lattice’s other filings with the
Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. New risk factors emerge from time to time and it is not possible for Lattice’s management to predict all risk factors. 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 certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with
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. 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
For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, Twitter, Facebook, YouTube, WeChat, or Weibo.
|
||||||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Revenue |
|
$ |
192,169 |
|
|
$ |
190,079 |
|
|
$ |
172,509 |
|
|
$ |
566,558 |
|
|
$ |
484,396 |
|
Cost of sales |
|
|
57,608 |
|
|
|
57,518 |
|
|
|
53,777 |
|
|
|
170,835 |
|
|
|
154,412 |
|
Gross margin |
|
|
134,561 |
|
|
|
132,561 |
|
|
|
118,732 |
|
|
|
395,723 |
|
|
|
329,984 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
42,048 |
|
|
|
41,946 |
|
|
|
34,820 |
|
|
|
119,983 |
|
|
|
100,988 |
|
Selling, general, and administrative |
|
|
33,217 |
|
|
|
36,788 |
|
|
|
31,926 |
|
|
|
102,583 |
|
|
|
89,721 |
|
Amortization of acquired intangible assets |
|
|
870 |
|
|
|
869 |
|
|
|
869 |
|
|
|
2,609 |
|
|
|
2,908 |
|
Restructuring |
|
|
1,509 |
|
|
|
(112 |
) |
|
|
2,315 |
|
|
|
1,427 |
|
|
|
2,505 |
|
Acquisition related |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
511 |
|
Total operating expenses |
|
|
77,644 |
|
|
|
79,491 |
|
|
|
69,930 |
|
|
|
226,602 |
|
|
|
196,633 |
|
Income from operations |
|
|
56,917 |
|
|
|
53,070 |
|
|
|
48,802 |
|
|
|
169,121 |
|
|
|
133,351 |
|
Interest income (expense), net |
|
|
954 |
|
|
|
189 |
|
|
|
(1,267 |
) |
|
|
588 |
|
|
|
(2,866 |
) |
Other income (expense), net |
|
|
14 |
|
|
|
(176 |
) |
|
|
(820 |
) |
|
|
(257 |
) |
|
|
(1,085 |
) |
Income before income taxes |
|
|
57,885 |
|
|
|
53,083 |
|
|
|
46,715 |
|
|
|
169,452 |
|
|
|
129,400 |
|
Income tax expense |
|
|
4,097 |
|
|
|
2,439 |
|
|
|
356 |
|
|
|
9,097 |
|
|
|
2,431 |
|
Net income |
|
$ |
53,788 |
|
|
$ |
50,644 |
|
|
$ |
46,359 |
|
|
$ |
160,355 |
|
|
$ |
126,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.37 |
|
|
$ |
0.34 |
|
|
$ |
1.16 |
|
|
$ |
0.92 |
|
Diluted |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
1.15 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
137,948 |
|
|
|
137,735 |
|
|
|
137,267 |
|
|
|
137,697 |
|
|
|
137,397 |
|
Diluted |
|
|
139,828 |
|
|
|
139,768 |
|
|
|
139,935 |
|
|
|
139,927 |
|
|
|
140,921 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
114,397 |
|
|
$ |
145,722 |
|
Accounts receivable, net |
|
|
105,913 |
|
|
|
94,018 |
|
Inventories, net |
|
|
104,019 |
|
|
|
110,375 |
|
Other current assets |
|
|
36,404 |
|
|
|
29,052 |
|
Total current assets |
|
|
360,733 |
|
|
|
379,167 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
50,164 |
|
|
|
47,614 |
|
Operating lease right-of-use assets |
|
|
16,088 |
|
|
|
17,590 |
|
Intangible assets, net |
|
|
21,951 |
|
|
|
25,070 |
|
|
|
|
315,358 |
|
|
|
315,358 |
|
Other long-term assets |
|
|
15,328 |
|
|
|
13,914 |
|
|
|
$ |
779,622 |
|
|
$ |
798,713 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
36,887 |
|
|
$ |
42,036 |
|
Accrued liabilities |
|
|
36,305 |
|
|
|
48,467 |
|
Accrued payroll obligations |
|
|
27,471 |
|
|
|
36,870 |
|
Total current liabilities |
|
|
100,663 |
|
|
|
127,373 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
— |
|
|
|
128,752 |
|
Long-term operating lease liabilities, net of current portion |
|
|
12,122 |
|
|
|
13,618 |
|
Other long-term liabilities |
|
|
40,667 |
|
|
|
41,807 |
|
Total liabilities |
|
|
153,452 |
|
|
|
311,550 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
626,170 |
|
|
|
487,163 |
|
|
|
$ |
779,622 |
|
|
$ |
798,713 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
160,355 |
|
|
$ |
126,969 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
52,408 |
|
|
|
41,207 |
|
Depreciation and amortization |
|
|
25,279 |
|
|
|
21,498 |
|
Other non-cash adjustments |
|
|
5,199 |
|
|
|
6,935 |
|
Net changes in assets and liabilities |
|
|
(45,623 |
) |
|
|
(39,784 |
) |
Net cash provided by (used in) operating activities |
|
|
197,618 |
|
|
|
156,825 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(16,370 |
) |
|
|
(13,080 |
) |
Other investing activities |
|
|
(8,917 |
) |
|
|
(8,322 |
) |
Net cash provided by (used in) investing activities |
|
|
(25,287 |
) |
|
|
(21,402 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from long-term debt, net of issuance costs |
|
|
— |
|
|
|
148,601 |
|
Repayment of long-term debt |
|
|
(130,000 |
) |
|
|
(158,750 |
) |
Repurchase of common stock |
|
|
(30,005 |
) |
|
|
(90,137 |
) |
Net cash flows related to stock compensation exercises |
|
|
(43,114 |
) |
|
|
(45,726 |
) |
Net cash provided by (used in) financing activities |
|
|
(203,119 |
) |
|
|
(146,012 |
) |
Effect of exchange rate change on cash |
|
|
(537 |
) |
|
|
(2,215 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(31,325 |
) |
|
|
(12,804 |
) |
Beginning cash and cash equivalents |
|
|
145,722 |
|
|
|
131,570 |
|
Ending cash and cash equivalents |
|
$ |
114,397 |
|
|
$ |
118,766 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information and non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
3,240 |
|
|
$ |
2,203 |
|
Income taxes paid, net of refunds |
|
$ |
11,229 |
|
|
$ |
4,115 |
|
Operating lease payments |
|
$ |
6,179 |
|
|
$ |
5,500 |
|
|
||||||||||||
Supplemental Historical Financial Information |
||||||||||||
(unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2023 |
|
2022 |
||||||
Balance Sheet Information |
|
|
|
|
|
|
|
|
|
|
|
|
A/R Days Revenue Outstanding (DSO) |
|
|
50 |
|
|
|
46 |
|
|
|
53 |
|
Inventory Days (DIO) |
|
|
165 |
|
|
|
177 |
|
|
|
159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by Geography) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61 |
% |
|
|
63 |
% |
|
|
72 |
% |
|
|
|
17 |
% |
|
|
17 |
% |
|
|
13 |
% |
|
|
|
22 |
% |
|
|
20 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by End Market) * |
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing |
|
|
36 |
% |
|
|
34 |
% |
|
|
42 |
% |
Industrial and Automotive |
|
|
57 |
% |
|
|
61 |
% |
|
|
50 |
% |
Consumer |
|
|
7 |
% |
|
|
5 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue $M (by End Market) * |
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing |
|
$ |
68.4 |
|
|
$ |
64.2 |
|
|
$ |
73.0 |
|
Industrial and Automotive |
|
$ |
109.9 |
|
|
$ |
115.5 |
|
|
$ |
85.7 |
|
Consumer |
|
$ |
13.9 |
|
|
$ |
10.4 |
|
|
$ |
13.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue % (by Channel) |
|
|
|
|
|
|
|
|
|
|
|
|
Distribution |
|
|
90 |
% |
|
|
89 |
% |
|
|
90 |
% |
Direct |
|
|
10 |
% |
|
|
11 |
% |
|
|
10 |
% |
* During the first quarter of fiscal 2023, we realigned our end market categories. Prior periods have been reclassified to match current period presentation. |
|
||||||||||||
Reconciliation of |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2023 |
|
2022 |
||||||
Gross Margin Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross margin |
|
$ |
134,561 |
|
|
$ |
132,561 |
|
|
$ |
118,732 |
|
Stock-based compensation - gross margin (1) |
|
|
1,053 |
|
|
|
1,425 |
|
|
|
1,122 |
|
Non-GAAP Gross margin |
|
$ |
135,614 |
|
|
$ |
133,986 |
|
|
$ |
119,854 |
|
Gross Margin % Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross margin % |
|
|
70.0 |
% |
|
|
69.7 |
% |
|
|
68.8 |
% |
Cumulative effect of non-GAAP Gross Margin adjustments |
|
|
0.6 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
Non-GAAP Gross margin % |
|
|
70.6 |
% |
|
|
70.5 |
% |
|
|
69.5 |
% |
Research and Development Expense % (R&D Expense %) Reconciliation |
||||||||||||
GAAP R&D Expense % |
|
|
21.9 |
% |
|
|
22.1 |
% |
|
|
20.2 |
% |
Stock-based compensation - R&D (1) |
|
|
(3.7 |
)% |
|
|
(4.1 |
)% |
|
|
(3.1 |
)% |
Non-GAAP R&D Expense % |
|
|
18.2 |
% |
|
|
18.0 |
% |
|
|
17.1 |
% |
Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation |
|
|
|
|
|
|||||||
GAAP SG&A Expense % |
|
|
17.3 |
% |
|
|
19.4 |
% |
|
|
18.5 |
% |
Stock-based compensation - SG&A (1) |
|
|
(4.6 |
)% |
|
|
(6.7 |
)% |
|
|
(4.9 |
)% |
Litigation expense (2) |
|
|
(0.6 |
)% |
|
|
(0.2 |
)% |
|
|
(1.0 |
)% |
Non-GAAP SG&A Expense % |
|
|
12.1 |
% |
|
|
12.5 |
% |
|
|
12.6 |
% |
Operating Expenses Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses |
|
$ |
77,644 |
|
|
$ |
79,491 |
|
|
$ |
69,930 |
|
Stock-based compensation - operations (1) |
|
|
(15,956 |
) |
|
|
(20,277 |
) |
|
|
(13,758 |
) |
Litigation expense (2) |
|
|
(1,103 |
) |
|
|
(439 |
) |
|
|
(1,646 |
) |
Amortization of acquired intangible assets |
|
|
(870 |
) |
|
|
(869 |
) |
|
|
(869 |
) |
Restructuring and other |
|
|
(1,509 |
) |
|
|
112 |
|
|
|
(2,315 |
) |
Non-GAAP Operating expenses |
|
$ |
58,206 |
|
|
$ |
58,018 |
|
|
$ |
51,342 |
|
Income from Operations Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from operations |
|
$ |
56,917 |
|
|
$ |
53,070 |
|
|
$ |
48,802 |
|
Stock-based compensation - gross margin (1) |
|
|
1,053 |
|
|
|
1,425 |
|
|
|
1,122 |
|
Stock-based compensation - operations (1) |
|
|
15,956 |
|
|
|
20,277 |
|
|
|
13,758 |
|
Litigation expense (2) |
|
|
1,103 |
|
|
|
439 |
|
|
|
1,646 |
|
Amortization of acquired intangible assets |
|
|
870 |
|
|
|
869 |
|
|
|
869 |
|
Restructuring and other |
|
|
1,509 |
|
|
|
(112 |
) |
|
|
2,315 |
|
Non-GAAP Income from operations |
|
$ |
77,408 |
|
|
$ |
75,968 |
|
|
$ |
68,512 |
|
Income from Operations % Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from operations % |
|
|
29.6 |
% |
|
|
27.9 |
% |
|
|
28.3 |
% |
Cumulative effect of non-GAAP Gross Margin and Operating adjustments |
|
|
10.7 |
% |
|
|
12.1 |
% |
|
|
11.4 |
% |
Non-GAAP Income from operations % |
|
|
40.3 |
% |
|
|
40.0 |
% |
|
|
39.7 |
% |
(1) |
|
The non-GAAP adjustments for Stock-based compensation include related payroll tax expenses. |
(2) |
|
Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by |
|
||||||||||||
Reconciliation of |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2023 |
|
2022 |
||||||
Other Income (Expense) Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Other income (expense), net |
|
$ |
14 |
|
|
$ |
(176 |
) |
|
$ |
(820 |
) |
Loss on re-financing of long-term debt |
|
— |
|
|
|
— |
|
|
|
735 |
|
|
Non-GAAP Other income (expense), net |
|
$ |
14 |
|
|
$ |
(176 |
) |
|
$ |
(85 |
) |
Income Tax Expense Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax expense |
|
$ |
4,097 |
|
|
$ |
2,439 |
|
|
$ |
356 |
|
Estimated tax effect of non-GAAP adjustments |
|
|
1,467 |
|
|
|
1,372 |
|
|
|
312 |
|
Change in tax law (3) |
|
|
(766 |
) |
|
|
(339 |
) |
|
|
— |
|
Non-GAAP Income tax expense |
|
$ |
4,798 |
|
|
$ |
3,472 |
|
|
$ |
668 |
|
Net Income Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income |
|
$ |
53,788 |
|
|
$ |
50,644 |
|
|
$ |
46,359 |
|
Stock-based compensation - gross margin (1) |
|
|
1,053 |
|
|
|
1,425 |
|
|
|
1,122 |
|
Stock-based compensation - operations (1) |
|
|
15,956 |
|
|
|
20,277 |
|
|
|
13,758 |
|
Litigation expense (2) |
|
|
1,103 |
|
|
|
439 |
|
|
|
1,646 |
|
Amortization of acquired intangible assets |
|
|
870 |
|
|
|
869 |
|
|
|
869 |
|
Restructuring and other |
|
|
1,509 |
|
|
|
(112 |
) |
|
|
2,315 |
|
Loss on re-financing of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
735 |
|
Estimated tax effect of non-GAAP adjustments |
|
|
(1,467 |
) |
|
|
(1,372 |
) |
|
|
(312 |
) |
Change in tax law (3) |
|
|
766 |
|
|
|
339 |
|
|
|
— |
|
Non-GAAP Net income |
|
$ |
73,578 |
|
|
$ |
72,509 |
|
|
$ |
66,492 |
|
Net Income Per Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income per share - basic |
|
$ |
0.39 |
|
|
$ |
0.37 |
|
|
$ |
0.34 |
|
Cumulative effect of Non-GAAP adjustments |
|
|
0.14 |
|
|
|
0.16 |
|
|
|
0.14 |
|
Non-GAAP Net income per share - basic |
|
$ |
0.53 |
|
|
$ |
0.53 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income per share - diluted |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
Cumulative effect of Non-GAAP adjustments |
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.15 |
|
Non-GAAP Net income per share - diluted |
|
$ |
0.53 |
|
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
137,948 |
|
|
|
137,735 |
|
|
|
137,267 |
|
Diluted |
|
|
139,828 |
|
|
|
139,768 |
|
|
|
139,935 |
|
(1) |
|
The non-GAAP adjustments for Stock-based compensation include related payroll tax expenses. |
(2) |
|
Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by |
(3) |
|
Adjustments for Change in tax law reflect an increase in our provision for |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231030584461/en/
MEDIA:
503-268-8786
Sophia.Hong@latticesemi.com
INVESTORS:
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