Financial Highlights:
- Revenue of $89.5 million, an increase of 2.7% from $87.2 million in 3Q13 and an increase of 35.9% from $65.9 million in 4Q12.
- Net income of $0.06 per basic and diluted share, compared to net income of $0.08 per basic and diluted share in 3Q13 and a net loss of $0.06 per 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 million in the fiscal year 2012.
- Fiscal year 2013 net income of $0.19 per basic and diluted share, compared to a net loss of $0.25 per basic and diluted share in fiscal year 2012.
- Fiscal year 2013 gross margin of 53.6%, compared to 54.0% in fiscal year 2012.
Lattice Semiconductor Corporation (
For the fourth quarter, revenue was $89.5 million, an increase of 2.7% from $87.2 million reported in the prior quarter, and an increase of 35.9% from the $65.9 million reported in the same quarter a year ago. FPGA revenue for the fourth quarter was $28.5 million, compared to $26.2 million in the prior quarter, and $20.9 million in the same quarter a year ago. PLD revenue for the fourth quarter was $61.0 million, compared to $61.0 million reported in the prior quarter, and $45.0 million in the same quarter a year ago.
Net income for the fourth quarter was $6.5 million ($0.06 per basic and diluted share), compared to the prior quarter net income of $8.8 million ($0.08 per basic and diluted share) and net loss of $7.2 million ($0.06 per basic and diluted share) reported in the same quarter a year ago. The net loss in the fourth quarter of 2012 included restructuring charges of $5.4 million.
For the fiscal year 2013, revenue was $332.5 million, an increase of 19.1% from $279.3 million in the fiscal year 2012. Net income for fiscal year 2013 was $22.3 million ($0.19 per basic and diluted share), compared to a net loss of $29.6 million ($0.25 per basic and diluted share) reported in fiscal year 2012. The net loss in fiscal 2012 included restructuring charges of $6.0 million.
Darin G. Billerbeck, President and Chief Executive Officer, said, "We executed to our strategy in 2013 and created a new, fast growth market for our innovative, low power, low cost FPGAs. The result was the expanded use of our FPGAs in the consumer market where we achieved a 180% increase in revenue compared to 2012. We are also pleased to have grown revenue from our new products by 145% for the fiscal 2013 over the fiscal 2012. We diversified our customer base, while we continued to create compelling and defendable solutions in our traditional markets."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Fourth quarter of 2013 revenue exceeded our earlier expectations, coming in 8% above the high-end of our guidance. Sustained product cost reductions contributed to an improved fourth quarter 2013 gross margin of 54.3%. Our strong results led to increased variable compensation, which affected our fourth quarter operating expenses. During the fourth quarter we repurchased approximately 830,000 shares at a cost of $3.7 million, with a total of 1.41 million shares repurchased during fiscal 2013 at a cost of $6.1 million. Operating cash flow was $56.5 million for fiscal 2013 compared to $4.3 million for fiscal 2012. We ended 2013 with a debt-free balance sheet and approximately $216 million in cash, cash equivalents and short-term marketable securities."
Recent Business Highlights:
- Huawei Partner and 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 $38.5 million.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the fourth quarter of 2013 and business outlook for the first quarter of 2014 on Thursday, February 6, 2014 at 5:00 p.m. Eastern Time. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 34244513. A live webcast of the conference call will also be available on Lattice's website at www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.
A replay of the call will be available approximately two hours after the conclusion of the live call through 11:59 p.m. Eastern Time on February 20, 2014, by telephone at 1-404-537-3406. To access the replay, use conference identification number 34244513. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com.
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 Securities and Exchange Commission. 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.
About Lattice Semiconductor:
Lattice Semiconductor (
