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 iCE40™, 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 (NASDAQ: LSCC) is the world's leading provider of low-power programmable IC solutions for makers of smartphones, mobile handheld devices, small-cell networking equipment, industrial control, automotive infotainment, and much more. With more than 1 billion units sold over the past 10 years, Lattice ships more FPGAs, CPLDs and Power Management solutions than any other programmable solutions vendor. For more information, visit www.latticesemi.com. You can also follow Lattice via Twitter, Facebook, or RSS.
Lattice Semiconductor Corporation, Lattice (& design), L (& design), iCE40 Ultra, iCE40, MachXO and LatticeECP3 and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.
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 | Six Months Ended | |||||||||||||||||||
June 28,
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March 29,
|
June 29,
|
June 28,
|
June 29,
|
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Revenue | $ | 99,320 | $ | 96,637 | $ | 84,694 | $ | 195,957 | $ | 155,852 | ||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of products sold | 44,345 | 42,499 | 39,584 | 86,844 | 72,587 | |||||||||||||||
Research and development | 22,302 | 21,239 | 20,267 | 43,541 | 38,381 | |||||||||||||||
Selling, general and administrative |
18,832 | 18,749 | 17,072 | 37,581 | 33,570 | |||||||||||||||
Acquisition related charges | 737 | 737 | 737 | 1,474 | 1,486 | |||||||||||||||
Restructuring | 3 | 11 | 19 | 14 | 172 | |||||||||||||||
86,219 | 83,235 | 77,679 | 169,454 | 146,196 | ||||||||||||||||
Income from operations | 13,101 | 13,402 | 7,015 | 26,503 | 9,656 | |||||||||||||||
Other income (loss), net | 906 | 309 | (54 | ) | 1,215 | (106 | ) | |||||||||||||
Income before provision for income taxes | 14,007 | 13,711 | 6,961 | 27,718 | 9,550 | |||||||||||||||
Provision for income taxes | 2,236 | 1,727 | 1,921 | 3,963 | 2,620 | |||||||||||||||
Net income | $ | 11,771 | $ | 11,984 | $ | 5,040 | $ | 23,755 | $ | 6,930 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.10 | $ | 0.10 | $ | 0.04 | $ | 0.20 | $ | 0.06 | ||||||||||
Diluted | $ | 0.10 | $ | 0.10 | $ | 0.04 | $ | 0.20 | $ | 0.06 | ||||||||||
Shares used in per share calculations: | ||||||||||||||||||||
Basic | 117,904 | 116,436 | 115,733 | 117,170 | 115,562 | |||||||||||||||
Diluted | 120,944 | 118,917 | 117,109 | 120,041 | 116,935 | |||||||||||||||
Lattice Semiconductor Corporation | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
June 28,
|
December 28,
|
||||||
Assets | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term marketable securities | $ | 247,037 | $ | 215,815 | |||
Accounts receivable, net | 66,289 | 50,085 | |||||
Inventories | 59,270 | 46,222 | |||||
Other current assets | 13,857 | 13,679 | |||||
Total current assets | 386,453 | 325,801 | |||||
Property and equipment, net | 41,132 | 41,719 | |||||
Long-term marketable securities | — | 5,241 | |||||
Other long-term assets | 8,921 | 6,120 | |||||
Intangible assets, net of amortization | 11,011 | 12,484 | |||||
Goodwill | 44,808 | 44,808 | |||||
Deferred income taxes | 9,325 | 11,703 | |||||
$ | 501,650 | $ | 447,876 | ||||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable and other accrued liabilities | $ | 48,274 | $ | 51,113 | |||
Deferred income and allowances on sales to sell-through distributors | 23,631 | 7,495 | |||||
Total current liabilities | 71,905 | 58,608 | |||||
Other long-term liabilities | 7,195 | 3,588 | |||||
Total liabilities | 79,100 | 62,196 | |||||
Stockholders' equity | 422,550 | 385,680 | |||||
$ | 501,650 | $ | 447,876 | ||||
Lattice Semiconductor Corporation - Supplemental Historical Financial Information - |
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Three Months Ended | Six Months Ended | ||||||||||||||
6/28/2014 | 3/29/2014 | 6/29/2013 | 6/28/2014 | 6/29/2013 | |||||||||||
Operations Information | |||||||||||||||
Percent of Revenue | |||||||||||||||
Gross Margin | 55.4 | % | 56.0 | % | 53.3 | % | 55.7 | % | 53.4 | % | |||||
R&D Expense | 22.5 | % | 22.0 | % | 23.9 | % | 22.2 | % | 24.6 | % | |||||
SG&A Expense | 19.0 | % | 19.4 | % | 20.2 | % | 19.2 | % | 21.5 | % | |||||
Depreciation and amortization (in thousands) | 5,773 | 5,860 | 4,894 | 11,633 | 9,962 | ||||||||||
Capital expenditures (in thousands) | 2,480 | 2,395 | 3,783 | 4,875 | 6,837 | ||||||||||
Stock compensation expense (in thousands) | 3,320 | 3,090 | 2,513 | 6,410 | 4,423 | ||||||||||
Restructuring and severance related charges (in thousands) | 403 | 90 | 19 | 493 | 172 | ||||||||||
Taxes paid (cash, in thousands) | 418 | 380 | 104 | 798 | 956 | ||||||||||
Balance Sheet Information | |||||||||||||||
Current Ratio | 5.4 | 5.2 | 5.4 | ||||||||||||
A/R Days Revenue Outstanding | 60 | 62 | 68 | ||||||||||||
Inventory Months | 4.0 | 4.1 | 3.8 | ||||||||||||
Revenue% (by Product Family) | |||||||||||||||
PLD | 65 | % | 65 | % | 69 | % | 65 | % | 69 | % | |||||
FPGA | 35 | % | 35 | % | 31 | % | 35 | % | 31 | % | |||||
Revenue% (by Product Classification) (1) | |||||||||||||||
New | 50 | % | 53 | % | 46 | % | 51 | % | 43 | % | |||||
Mainstream | 38 | % | 34 | % | 40 | % | 36 | % | 42 | % | |||||
Mature | 12 | % | 13 | % | 14 | % | 13 | % | 15 | % | |||||
Revenue% (by Geography) | |||||||||||||||
Asia | 74 | % | 75 | % | 74 | % | 75 | % | 72 | % | |||||
Europe (incl. Africa) | 16 | % | 15 | % | 14 | % | 15 | % | 16 | % | |||||
Americas | 10 | % | 10 | % | 12 | % | 10 | % | 12 | % | |||||
Revenue% (by End Market) (2) | |||||||||||||||
Communications | 44 | % | 41 | % | 38 | % | 43 | % | 38 | % | |||||
Consumer | 26 | % | 31 | % | 31 | % | 28 | % | 28 | % | |||||
Industrial | 30 | % | 28 | % | 31 | % | 29 | % | 34 | % | |||||
Revenue% (by Channel) | |||||||||||||||
Sell-through distribution | 42 | % | 39 | % | 44 | % | 40 | % | 46 | % | |||||
Direct | 58 | % | 61 | % | 56 | % | 60 | % | 54 | % | |||||