Lattice Semiconductor Reports First Quarter 2012 Results
HILLSBORO, OR, Apr 19, 2012 -- Lattice Semiconductor Corporation (NASDAQ: LSCC)
- Revenue of $71.7 million, an increase of 2.2% from $70.2 million in 4Q11 and a decrease of 13.2% from $82.6 million in 1Q11.
- Gross margin of 55.1%, compared to 57.7% in 4Q11 and 60.0% in 1Q11.
- Net loss of $0.07 per basic and diluted share, compared to net income of $0.34 per diluted share in 4Q11 and net income of $0.09 per diluted share in 1Q11. 1Q12 financial results included a $7.9 million ($0.07 per basic and diluted share) tax expense, $1.7 million of acquisition related costs and $0.6 million of restructuring related charges. 4Q11 financial results included approximately $35.1 million ($0.29 per diluted share) of income tax benefit, $0.5 million of acquisition related costs and $1.1 million of restructuring related charges.
Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the first quarter ended March 31, 2012.
For the first quarter, revenue was $71.7 million, an increase of 2.2% from the $70.2 million reported in the prior quarter, and a decrease of 13.2% from the $82.6 million reported in the same quarter a year ago. FPGA revenue for the first quarter was $23.3 million, an increase from the $22.1 million reported in the prior quarter, and a decrease from the $31.2 million reported in the same quarter a year ago. PLD revenue for the first quarter was $48.4 million, which is slightly higher than the amount reported in the prior quarter, and a decrease from the $51.4 million reported in the same quarter a year ago.
Net loss for the first quarter was $7.7 million ($0.07 per basic and diluted share), compared to prior quarter net income of $40.9 million ($0.34 per diluted share) and net income of $10.9 million ($0.09 per diluted share) reported in the same quarter a year ago. In the first quarter of 2012, we recorded a tax provision of $7.9 million ($0.07 per basic and diluted share) compared to a tax benefit of $35.1 million ($0.29 per diluted share) recognized during the fourth quarter of 2011. First quarter of 2012, and the fourth quarter of 2011, taxes reflect the implementation of our new global tax structure, and for the fourth quarter of 2011, the release of tax valuation allowance for certain deferred tax assets. First quarter 2012 results include approximately $1.7 million of acquisition related costs compared to $0.5 million in the fourth quarter of 2011. First quarter 2012 financial results include approximately $0.6 million of restructuring related charges as compared to approximately $1.1 million of restructuring related charges included in the fourth quarter 2011 financial results.
Darin G. Billerbeck, President and Chief Executive Officer, said, "Revenue in the first quarter 2012 was in line with prior guidance with sequential growth in our communications and consumer businesses offset by softer demand in computing and industrial. Geographically, strength in Asia was offset by continued weakness in Europe. Distribution was soft overall. Our gross margin was lower, primarily reflecting the impact of product mix, lower revenue growth, and iCE product shipment, which combined to offset the benefit of our earlier restructuring efforts. LatticeECP3(TM) continues to gain share in the communications market, while we are beginning to see meaningful traction with Lattice's MachXO2(TM)."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Total operating expenses in the first quarter were $39.3 million, including approximately $1.7 million in acquisition related and $0.6 million in restructuring charges. Gross margin for the first quarter was 55.1%, which is at the low end of our original guidance due to product mix. We expect that gross margin during the near term will be impacted by our ongoing integration of SiliconBlue and finalization of our operational movement to our low cost site in the Philippines. During the first quarter, we repurchased approximately 250,000 shares valued at $1.6 million under our recently announced 2012 stock buyback program."
First Quarter 2012 Business Highlights:
- Reached Milestone 20 Millionth Programmable Mixed Signal Product Shipment: Lattice's programmable mixed signal devices lower cost and improve time to market. Fast-growing, worldwide adoption is spread over key mixed-signal device families, with Lattice's programmable mixed-signal devices used in a wide range of applications from low-cost solid state drives to complex high-end telecommunication infrastructure cards.
- Extended the Power Efficiency, Package Size, and Performance of the Popular LatticeECP3(TM) FPGA Family: Lattice announced the immediate availability of low power, high speed, and mini package additions to the highly successful LatticeECP3(TM) FPGA family ideal for consumer, communication, and video applications. The LatticeECP3 Low Power FPGAs consume on average 30% lower power compared to the standard devices and the High Speed FPGAs run 10% faster. Lattice separately showcased a 3D-capable display solution utilizing the Lattice HDR-60 Video Camera Development Kit based on the low cost, low power, LatticeECP3 FPGA, the Lattice dual-sensor headboard based on the Lattice MachXO2(TM) PLD and 3D ISP (Image Signal Processing) IP from Lattice partner Helion. Applications for the 3D image processing hardware and IP combinations include automotive, surveillance, medical, infotainment and gaming, among others.
- Continued to Expand Support for Video Camera Segment: Lattice released a bridge design to support the Sony IMX136 Image Sensor. Lattice's innovative image sensor bridge design utilizes the low power, low cost Lattice MachXO2(TM) PLD to interface to the Sony IMX136 image sensor. Applications that can benefit from this design include surveillance and industrial cameras. Lattice also announced support for Panasonic's 1080 image sensor. Lattice's end-to-end sensor-to-display FPGA-based video image signal processing framework provides image signal processing IP support for 1080p sensors, and design kits, improving the time-to-market for high-quality, low-power, low-cost 1080p camera applications.
- Announced Support for MIPI BIF Standard: Optimized for iCE40 devices, Lattice's MIPI BIF Master solution allows rapid support of this standard by existing mobile product chipsets and application processors. The Lattice solution supports multiple classes of batteries and different topologies. Additionally, the Lattice reconfigurable iCE40 device provides customers with a path to innovation, enabling the inclusion of customized features on demand.
Business Outlook - Second Quarter 2012:
- Revenue is expected to increase approximately flat to up 4% on a sequential basis.
- Gross margin percentage is expected to be approximately 55% plus or minus 1%.
- Total operating expenses are expected to be approximately $39.5 million, including approximately $1.0 million in acquisition related charges (primarily amortization of intangible assets).
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the first quarter 2012 and business outlook for the second quarter 2012 on Thursday, April 19, 2012 at 6:00 p.m. EDT. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 67808631. A live webcast of the conference call will also be available on Lattice's website at www.latticesemi.com. The Company's financial guidance will be limited to the comments on its 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 April 26, 2012, by telephone at 1-404-537-3406. To access the replay, use conference identification number 67808631. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com.
About Lattice Semiconductor:
Lattice is a service-driven developer of innovative low cost, low power programmable design solutions. For more information about how our FPGA, CPLD and programmable power management devices help our customers unlock their innovation, visit www.latticesemi.com.
Contact Lattice Semiconductor Corp.