Lattice continues to deliver "More of the Best" to its customers with comprehensive solutions for system design, including an unequaled portfolio of high performance, non-volatile and low cost FPGAs.
Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in communications, computing, industrial, consumer, automotive, medical and military end markets. For more information, visit http://www.latticesemi.com.
Lattice Semiconductor Corporation, Lattice (& design), L (& design), ispLEVER, ispXP2, LatticeECP2M, LatticeSC, 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. HyperTransport™ is a licensed trademark of the HyperTransport Technology Consortium in the U.S. and other jurisdictions.
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 Statement of Operations
(in thousands, except per share data)
Three months ended Six months ended
---------------------------------- ----------------------
June 30, March 31, July 1, June 30, July 1,
Description 2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
(unaudited)(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $ 59,243 $ 58,107 $ 62,719 $ 117,350 $ 120,171
Costs and
expenses (1):
Cost of
products
sold 26,593 26,218 26,946 52,811 52,091
Research and
development 20,752 22,008 20,440 42,760 40,791
Selling,
general and
administrative 14,785 14,566 14,594 29,351 28,283
Amortization
of intangible
assets (2) 2,665 2,667 2,670 5,332 5,483
Restructuring
(3) 27 (130) 97 (103) 216
========== ========== ========== ========== ==========
Total costs and
expenses 64,822 65,329 64,747 130,151 126,864
========== ========== ========== ========== ==========
Loss from
operations (5,579) (7,222) (2,028) (12,801) (6,693)
Other income,
net (4) 4,299 3,008 4,350 7,307 8,397
========== ========== ========== ========== ==========
(Loss) income
before
provision for
income taxes (1,280) (4,214) 2,322 (5,494) 1,704
Provision for
income taxes 181 169 256 350 445
========== ========== ========== ========== ==========
Net (loss)
income $ (1,461) $ (4,383) $ 2,066 $ (5,844) $ 1,259
========== ========== ========== ========== ==========
Basic net
(loss) income
per share $ (0.01) $ (0.04) $ 0.02 $ (0.05) $ 0.01
========== ========== ========== ========== ==========
Diluted net
(loss) income
per share $ (0.01) $ (0.04) $ 0.02 $ (0.05) $ 0.01
========== ========== ========== ========== ==========
Shares used in
per share
calculations:
Basic 114,827 114,688 114,165 114,758 113,960
========== ========== ========== ========== ==========
Diluted (5) 114,827 114,688 125,343 114,758 114,287
========== ========== ========== ========== ==========
Notes:
(1) As a result of the restructuring implemented in the fourth quarter of
2005, the Company realigned certain departments and job
responsibilities in 2006. Due to these changes, the Company reviewed
its historical cost center allocations and has reclassified these to
reflect post-restructuring operations. Amounts previously reported
in the three and six months ended July 1, 2006 have been reclassified
to be consistent with the approach applied for the other periods
presented.
(2) Intangible assets subject to amortization aggregate $10.3 million,
net, at June 30, 2007 and relate to the acquisition of Cerdelinx
Technologies, Inc. on August 26, 2002 and the acquisition of the FPGA
business of Agere Systems, Inc. on January 18, 2002. These intangible
assets are amortized to expense generally over three to seven years
on a straight-line basis.
(3) Represents costs and adjustments incurred under the corporate
restructuring plan, which was implemented in the fourth quarter
of 2005.
(4) Includes a $1.6 million gain recorded during the three months ended
June 30, 2007 as a result of the Company selling a parcel of
undeveloped land near its corporate headquarters.
(5) For the three months ended June 30, 2007 and March 31, 2007 and the
six months ended June 30, 2007, the computation of diluted earnings
per share excludes the effects of stock options, restricted stock
units, warrants and Convertible Notes, as they are antidilutive.
For the six months ended July 1, 2006, the computation of diluted
earnings per share excludes Convertible Notes, as they are
antidilutive.
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Income (Loss)
(in thousands)
Three months ended Six months ended
---------------------------------- ----------------------
June 30, March 31, July 1, June 30, July 1,
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
GAAP net (loss)
income $ (1,461) $ (4,383) $ 2,066 $ (5,844) $ 1,259
Reconciling items:
Amortization of
intangibles(1) 2,665 2,667 2,670 5,332 5,483
Stock-based
compensation 1,325 1,389 638 2,714 1,345
Restructuring
(2) 27 (130) 97 (103) 216
---------- ---------- ----------- ---------- -----------
Non-GAAP net
income (loss) $ 2,556 $ (457) $ 5,471 $ 2,099 $ 8,303
========== ========== =========== ========== ===========
Reconciliation of GAAP Net (Loss) Income per Share to Non-GAAP
Net Income (Loss) per Share
Three months ended Six months ended
---------------------------------- ----------------------
June 30, March 31, July 1, June 30, July 1,
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
(unaudited)(unaudited) (unaudited) (unaudited) (unaudited)
Basic and
Diluted (4):
GAAP net (loss)
income $ (0.01) $ (0.04) $ 0.02 $ (0.05) $ 0.01
Reconciling
items:
Amortization of
Intangibles (1) 0.02 0.02 0.02 0.05 0.05
Stock-based
compensation 0.01 0.01 0.01 0.02 0.01
Restructuring
(2) 0.00 (0.00) 0.00 (0.00) 0.00
---------- ---------- ----------- ---------- -----------
Non-GAAP net
income (loss) $ 0.02 $ (0.00) $ 0.05 $ 0.02 $ 0.07
========== ========== =========== ========== ===========
Shares used in
per share
calculations:
Basic 114,827 114,688 114,165 114,758 113,960
========== ========== =========== ========== ===========
Diluted (3) 122,611 114,688 125,343 123,290 124,763
========== ========== =========== ========== ===========
Notes:
(1) Relates to intangible assets acquired through our acquisition of
Cerdelinx Technologies, Inc. on August 26, 2002 and the acquisition
of the FPGA business of Agere Systems, Inc. on January 18, 2002.
(2) Represents costs incurred under the corporate restructuring plan,
which was implemented in the fourth quarter of 2005. These costs
primarily relate to separation packages, costs to vacate space under
long-term lease arrangements and adjustments to sublease income.
(3) For the three months ended March 31, 2007, the computation of diluted
earnings excludes the effects of stock options, restricted stock
units, warrants and Convertible Notes, as they are antidilutive.
(4) Per share amounts may differ due to rounding.
Lattice Semiconductor Corporation
Consolidated Balance Sheet
(in thousands)
June 30, December 30,
Description 2007 2006
----------- -----------
(unaudited)
Assets
Current assets:
Cash and short-term investments $ 165,220 $ 233,208
Accounts receivable, net 29,661 22,545
Inventories 38,207 38,816
Other current assets 34,553 35,474
----------- -----------
Total current assets 267,641 330,043
Property and equipment, net 46,101 46,696
Foundry investments, advances and other assets 101,259 109,964
Goodwill and other intangible assets, net (1) 233,870 239,203
----------- -----------
$ 648,871 $ 725,906
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities $ 37,741 $ 82,843
Deferred income and allowances on sales to
distributors 7,290 6,230
Other current liabilities -- 20,480
----------- -----------
Total current liabilities 45,031 109,553
Zero Coupon Convertible Notes due in 2010 (2) 80,000 89,120
Other long-term liabilities 5,814 15,488
----------- -----------
Total liabilities 130,845 214,161
Stockholders' equity 518,026 511,745
----------- -----------
$ 648,871 $ 725,906
=========== ===========
Notes:
(1) At June 30, 2007, includes approximately $223.6 million in goodwill
and $10.3 million of other intangible assets, net, related to
previous acquisitions. The other intangible assets will be amortized
to expense generally over three to seven years. Goodwill is not
amortized effective with the March 2002 quarter.
(2) Effective July 1, 2007, the Convertible Notes will be classified as
a current liability as the holders of the Convertible Notes have a
right to require payment of the Convertible Notes on July 1, 2008.
Lattice Semiconductor Corporation
- Supplemental Historic Financial Information -
Operations Information Q207 Q107 Q206
------- ------- -------
Percent of Revenue (1):
Gross Margin 55.1% 54.9% 57.0%
R&D Expense 35.0% 37.9% 32.6%
SG&A Expense 25.0% 25.1% 23.3%
Depreciation Expense ($000) 3,396 3,383 3,028
Capital Expenditures ($000) 2,914 3,915 5,461
Balance Sheet Information
Current Ratio 5.9 4.7 5.7
A/R Days Revenue Outstanding 46 45 48
Inventory Months 4.3 4.6 4.0
Revenue% (by Product Family)
FPGA 23% 20% 21%
PLD 77% 80% 79%
Revenue% (by Product Classification)
New 11% 8% 5%
Mainstream 50% 48% 46%
Mature 39% 44% 49%
Revenue% (by Geography)
Americas 24% 23% 30%
Europe (incl. Africa) 18% 22% 24%
Asia 58% 55% 46%
Revenue% (by End Market)
Communications 52% 45% 51%
Industrial & Other 24% 32% 23%
Consumer & Automotive 13% 12% 9%
Computing 11% 11% 17%
Revenue% (by Channel)
Direct 64% 62% 58%
Distribution 36% 38% 42%
New: LatticeSC, LatticeECP2/M, LatticeECP, LatticeXP, MachXO, Power
Manager, ispClock
Mainstream: FPSC, XPLD, ispGDX2, ispMACH 4/LV, ispGDX/V, ispMACH 4000/Z,
XPGA, Software and IP
Mature: ORCA 2, ORCA 3, ORCA 4, ispPAC, ispLSI 8000V, ispMACH 5000B,
ispMACH 2LV, ispMACH 5LV, ispLSI 2000V, ispLSI 5000V,
ispMACH 5000VG, all 5 Volt CPLDs, all SPLDs
Note:
(1) Q206 amounts have been reclassified to be consistent with the
current period.
For more information contact: Jan Johannessen Chief Financial Officer Lattice Semiconductor Corporation (503) 268-8000
« Previous Page 1 | 2
