HILLSBORO, OR — (Marketwire) — 07/21/11 — Lattice Semiconductor Corporation (NASDAQ: LSCC)
Revenue of $83.9 million, an increase of 2% from $82.6 million in 1Q11 and an increase of 9% from $77.1 million in 2Q10.
Gross margin of 60.4%, compared to 60.0% in 1Q11 and 61.2% in 2Q10.
Net income of $0.11 per diluted share, compared to net income of $0.09 per diluted share in 1Q11 and net income of $0.14 per diluted share in 2Q10. 2Q11 financial results include approximately $1.4 million ($0.01 per diluted share) of restructuring related charges.
Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the second quarter ended July 2, 2011.
For the second quarter, revenue was $83.9 million, an increase of 2% from the $82.6 million reported in the prior quarter, and an increase of 9% from the $77.1 million reported in the same quarter a year ago. FPGA revenue for the second quarter was $27.9 million, a decrease of 11% from the $31.2 million reported in the prior quarter, and an increase of 13% from the $24.6 million reported in the same quarter a year ago. PLD revenue for the second quarter was $56.0 million, an increase of 9% from the $51.4 million reported in the prior quarter, and an increase of 7% from the $52.5 million reported in the same quarter a year ago.
Net income for the second quarter was $13.0 million ($0.11 per diluted share), compared to a prior quarter net income of $10.9 million ($0.09 per diluted share) and net income of $16.7 million ($0.14 per diluted share) reported in the same quarter a year ago. Second quarter 2011 financial results include approximately $1.4 million ($0.01 per diluted share) of restructuring related charges due to the Company-s previously announced strategic decision to refocus certain of its world-wide research and development activities as compared to approximately $1.8 million ($0.02 per diluted share) of restructuring related charges included in the first quarter 2011 financial results.
Darin G. Billerbeck, President and Chief Executive Officer, said, “The second quarter developed as expected, with revenue increasing sequentially. In total, the second quarter 2011 was our highest revenue quarter in ten years. Of note, revenue in our new product segment increased 28% year over year and 11% sequentially. We continue to receive positive customer feedback and design wins for our MachXO2 family, which is now in volume production. We remained focused on our product quality, reduction in development and operational costs, and streamlining our supply chain for improved predictability and flexibility.”
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, “Gross margin for the second quarter improved sequentially to 60.4%, consistent with prior guidance. Total operating expenses of $37.8 million were also in-line with prior guidance. We incurred approximately $1.4 million in restructuring charges in the quarter. We generated $16.5 million of cash from operations, ending the quarter with a cash, cash equivalents and short-term marketable securities balance of $247.5 million. During the quarter, we repurchased approximately 592,500 of the Company-s outstanding shares. We have now repurchased approximately 1.7 million shares valued at approximately $9.9 million, under the $20 million stock repurchase program we announced on October 21, 2010.”
The LCMXO2-1200 is one of six members of the MachXO2 PLD family, offering designers of low-density PLDs an unprecedented mix of low cost, low power and high system integration in a single device. Built on a low power 65-nm process, these devices have a rich feature set that includes embedded memory, PLLs, user Flash memory (UFM) and popular functions such as I2C, SPI and timer/counter that have been hardened into the device.
The battery powered Pico Development Kit accelerates time-to-market for low power space constrained consumer designs.
Lattice announced a 4 x 3.125Gbps version of the Serial RapidIO 2.1, Level 1 endpoint core. The announcement demonstrated Lattice-s continued leadership in mid-range FPGAs by supporting all lane configurations/rates of high speed serial protocols such as Level 1 SRIO and also providing the lowest cost, lowest power programmable Gen2 SRIO solution available.
With its partner Oregano Systems, Lattice announced comprehensive versions of the IEEE-1588 Timing Node System IP Core, providing scalable, resource-efficient, self-contained SoC solutions for the telecom and industrial markets.
Lattice and partner Flexibilis Oy announced the first FPGA Ethernet Switch IP cores with HSR (IEC 62439-3) protocol support. The FES – HSR IP cores enable designers of smart grid substation automation and industrial networking applications to immediately and confidently apply the emerging High-availability Seamless Redundancy (HSR) protocol using LatticeECP3 FPGAs.
Arrow-s comprehensive supply chain and logistic capabilities, combined with its history of demand generation and superior customer service, will be invaluable assets as Lattice further expands its presence in the European market.
Digi-Key is one of the world-s leading totally integrated, cloud-based distributors of electronic components. As a full-service provider of both prototype/design and production quantities of electronic components, Digi-Key offers more than 2 million products from over 470 quality name-brand manufacturers.
The global franchise agreement with Avnet and Lattice Semiconductor is ending effective August 28, 2011. After the transition Lattice will serve its customers with a sales network that includes a global distributor, regional distributors, manufacturer-s representatives, and our direct sales team.
Revenue is expected to be flat to up 5% on a sequential basis.
Gross margin percentage is expected to be approximately 60% plus or minus 2%.
Total operating expenses are expected to be approximately $36.5 million, including approximately $1.1 million in restructuring charges.
Lattice Semiconductor will review the Company-s financial results for the second quarter 2011 and business outlook for the third quarter 2011 on Thursday, July 21, 2011 at 5:00 p.m. EDT. The conference call-in number is 1-888-286-6281 or 1-706-643-3761. A live webcast of the conference call will also be available on Lattice-s website at . Our financial guidance will be limited to the comments on our 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. EDT on July 28, 2011, by telephone at 1-706-645-9291. To access the replay, use conference identification number 81087384. A webcast replay will also be available on Lattice-s investor relations website at .
The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Such forward-looking statements include statements relating to: our business outlook, including those statements under the heading “Business Outlook – Third Quarter 2011” relating to expected revenue, gross margin, total operating expenses and projected restructuring charges; positive feedback and continued design wins for our MachXO2 family; our ability to enhance product quality, reduce development and operational costs and streamline our supply chain for improved predictability and flexibility; our continued leadership in the mid-range FPGA market; the value of Arrow-s capabilities in allowing us to further expand our presence in the European market; and our effective service of our customers through a sales network that includes a global distributor, regional distributors, manufacturer-s representatives and our direct sales team after the ending of our global franchise agreement with Avnet. 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 MachXO and LatticeECP3 solutions, the ability to supply products to customers in a timely manner and any further unanticipated consequences associated with the Japan earthquakes and tsunami or changes in our distribution relationships. 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, variations in manufacturing yields, the failure to sustain operational improvements, the actual amount of restructuring charges and compensation charges due to stock price changes. Restructuring charges may vary from the estimate on the basis of the timing and scope of the restructuring. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges, including without limitation, restructuring charges could adversely affect our profitability during the quarter.
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.
Lattice is the source for innovative , , programmable and solutions. For more information, visit . Follow Lattice via , and .
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FPSC, 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, GDX/V, ispMACH 4/LV, all SPLDs
Joe Bedewi
Chief Financial Officer
Lattice Semiconductor Corporation
503-268-8000
David Pasquale
Global IR Partners
914-337-8801
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