• Revenue Growth of 2.2% Sequentially
• Gross Margin Expansion from Q4’18 to Q1’19 of 220 /190 Basis Points on a GAAP / Non-GAAP Basis
• Net Income Improves to $0.05 / $0.11 Per Diluted Share on a GAAP / Non-GAAP Basis

* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

HILLSBORO, Ore. — (BUSINESS WIRE) — April 30, 2019 — Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of FPGAs, announced financial results today for the fiscal first quarter ended March 30, 2019.

Jim Anderson, President and Chief Executive Officer, said, "We achieved significant improvements in both gross margin and net income sequentially and year over year. Strategies we implemented to improve the Company's overall operational performance delivered initial benefits in Q1. We are still in the early stages of our planned enhancements but are encouraged by our progress and improved results. We remain focused on execution as we unlock additional value for the Company and its shareholders. We look forward to sharing more details at our Financial Analyst and Investor Day on May 20th."

Sherri Luther, Chief Financial Officer, said, “Our first quarter results demonstrated meaningful improvements in net income with $0.05 per diluted share on a GAAP basis and $0.11 per diluted share on a non-GAAP basis in Q1, compared to a net loss of $0.05 per diluted share on a GAAP basis and net income of $0.05 per diluted share on a non-GAAP basis in Q1 2018. Gross margin expanded to 58.8% on a GAAP basis and 58.6% on a non-GAAP basis in Q1 driven by the initial benefits of our operational enhancements and product mix benefit. Our continued focus on working capital generated $21.8 million in cash from operations in Q1 2019 up from only $2.4 million in Q1 2018. In addition, we made $25 million in discretionary debt payments further de-levering our balance sheet. We are pleased with our progress in Q1 and remain committed to delivering improved operating leverage."

Selected First Quarter 2019 Financial Results and Comparisons (in thousands, except per share data)