Financial Highlights:
- Revenue of $83.6 million, a decrease of 3.4% from $86.6 million in 3Q14 and a decrease of 6.6% from $89.5 million in 4Q13.
- Net income of $0.13 per basic and diluted share, compared to net income of $0.08 per basic and diluted share in 3Q14 and net income of $0.06 per basic and diluted share in 4Q13.
- Gross margin of 55.3%, compared to 58.7% in 3Q14 and 54.3% in 4Q13.
- Fiscal year 2014 revenue of $366.1 million, an increase of 10.1% from $332.5 million in the fiscal year 2013.
- Fiscal year 2014 net income of $0.40 per diluted share, compared to $0.19 per diluted share in fiscal year 2013.
- Fiscal year 2014 gross margin of 56.3%, compared to 53.6% in fiscal year 2013.
HILLSBORO, Ore. — (BUSINESS WIRE) — February 3, 2015 — Lattice Semiconductor Corporation (NASDAQ: LSCC), the leader in low power, small form factor and customizable solutions, announced financial results today for the fiscal fourth quarter and fiscal year ended January 3, 2015.
For the fourth quarter, revenue was $83.6 million, a decrease of 3.4% from $86.6 million reported in the prior quarter, and a decrease of 6.6% from the $89.5 million reported in the same quarter a year ago.
Net income for the fourth quarter was $15.4 million ($0.13 per basic and diluted share), compared to the prior quarter net income of $9.4 million ($0.08 per basic and diluted share) and net income of $6.5 million ($0.06 per basic and diluted share) reported in the same quarter a year ago. Net income for the fourth quarter included a non-recurring tax benefit of $11.5 million ($0.10 per basic and diluted share), resulting from the release of deferred tax asset valuation allowance.
For the fiscal year 2014, revenue was $366.1 million, an increase of 10.1% from $332.5 million in the fiscal year 2013. Net income for fiscal year 2014 was $48.6 million ($0.40 per diluted share), compared to a net income of $22.3 million ($0.19 per basic and diluted share) reported in fiscal year 2013.
Darin G. Billerbeck, President and Chief Executive Officer, said, "Revenue for the full year 2014 was up 10.1% and EPS was up 110.5%, as compared to the full year 2013, while gross margin improved to 56.3%, as compared to 53.6% for the full year 2013. This growth directly reflects our successful execution, operations focus, and the breadth and diversity of our customer base. Over the last twelve months, we have introduced next generations of all our key product families targeting the consumer, communications and industrial markets, enhancing our already strong product solutions portfolio. Most importantly, we continue to execute on the major strategic and operational initiatives designed to further accelerate our market penetration, and drive our revenue and EPS growth in the coming years. We are creating a global leader in wired and wireless connectivity solutions, while building value for all of our shareholders."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Revenue and gross margin for the fourth quarter of 2014 were in line with our guidance. Total operating expenses for the fourth quarter of 2014 were approximately $1 million above our guidance at $41.5 million, with higher salary and engineering costs partially offset by a decline in mask costs. Net income in the fourth quarter was positively impacted by an $11.5 million non-recurring tax benefit, which resulted in a net tax benefit of $10.6 million in the fourth quarter and $5.6 million for the full year 2014. During the fourth quarter we repurchased approximately 1.7 million shares of our common stock at a cost of $11.4 million. We have approximately $6.9 million left under our previously authorized $20 million repurchase program, under which we may continue to repurchase shares through February 2015. During the fourth quarter, our balance of cash and investments decreased approximately $2.3 million to end with approximately $255 million."
Recent Business Highlights:
- Lattice Semiconductor to Acquire Silicon Image; Creates Global Leader in Wired and Wireless Connectivity Solutions: Lattice Semiconductor and Silicon Image announced that they signed a definitive agreement, pursuant to which Lattice will acquire Silicon Image in an all-cash tender offer of $7.30 per share, representing an equity value of approximately $600 million (or approximately $450 million on an enterprise value basis). Full details of the proposed acquisition, the tender offer and closing conditions are detailed in the press release issued on January 27, 2015 and in the Company’s filings with the U.S. Securities and Exchange Commission.
- Named one of the 100 Hot Products of 2014: Lattice’s MachXO3L™ FPGA Family was chosen by EDN as one of the “100 Hot Products of 2014.” The 2014 EDN Hot 100 highlights the electronics industry’s most noteworthy products of the year based on innovation, significance, usefulness and popularity.
- New Bridge Solution: Lattice’s new sub-LVDS to CSI-2 bridge solution gives designers the freedom to architect their camera based sub-system without compromise. This will enable manufacturers to cost-effectively create camera-based products for mobile, surveillance, machine vision and medical applications with Lattice’s solution for bridging Sony sub-LVDS CMOS image sensors to the popular MIPI® CSI-2 interface.
- Expanded Programmable Mobile Solutions Portfolio: Lattice launched the industry’s lowest power, programmable, “Always Listening” voice detection and recognition solutions for smartphones and other handhelds for the growing Internet of Things (IoT) category of devices. The solutions are implemented in Lattice’s iCE40™ family of mobile FPGAs, enabling manufacturers to improve the user experience of their mobile devices with new voice activation capabilities and by maximizing battery life by minimizing false wake-up triggers to the processor.
