HILLSBORO, OR, Jul 22, 2010 --
Lattice Semiconductor (NASDAQ: LSCC)
Second Quarter 2010 Highlights:
- Revenue of $77.1 million, an increase of 10% compared to 1Q10 and up 64% compared to 2Q09.
- Gross margin of 61.2%, compared to 58.5% in 1Q10 and 52.4% in 2Q09.
- Net income of $0.14 per share, compared to net income of $0.10 per share in 1Q10 and a net loss of $0.02 per share in 2Q09.
Lattice Semiconductor (NASDAQ: LSCC) today announced financial results for the second quarter ended July 3, 2010.
For the second quarter, revenue was $77.1 million, an increase of 10% from the $70.4 million reported in the prior quarter, and an increase of 64% from the $46.9 million reported in the same quarter a year ago. FPGA revenue for the second quarter was $24.6 million, an increase of 5% from the $23.4 million reported in the prior quarter, and an increase of 43% from the $17.2 million reported in the same quarter a year ago. PLD revenue for the second quarter was $52.5 million, an increase of 12% from the $47.0 million reported in the prior quarter, and an increase of 77% from the $29.7 million reported in the same quarter a year ago.
Net income for the second quarter was $16.7 million ($0.14 per share), compared to $11.1 million ($0.10 per share) in the prior quarter and a net loss of $2.7 million ($0.02 per share) reported in the same quarter a year ago.
Other income, net, for the second quarter was $0.9 million compared to $0.3 million reported in the prior quarter and $0.2 million reported in the same quarter a year ago. Other income, net, included a realized gain of $0.7 million in the second quarter of 2010 related to the sale of excess real estate in China. Other income, net, included a gain of less than $0.1 million in the first quarter and second quarter of 2010 related to the sale of a portion of the Company's auction rate security portfolio. During the same quarter a year ago, the Company recorded an impairment charge of $0.5 million related to an other-than-temporary decline in fair value of auction rate securities.
Bruno Guilmart, Lattice's President and CEO, commented, "This was another strong quarter for us with growth across all geographies, end markets and product categories. The second quarter was the strongest quarter ever for our new FPGA business and our MachXO product family. LatticeECP3 revenue more than doubled from the prior quarter and it continues to be the best launch of an FPGA product in the Company's history. Our mid-range FPGAs continue their feature and low power leadership and remain particularly attractive to the wireless communications market. We continue to build design win momentum with our LatticeECP3, LatticeXP2, MachXO and Power Manager solutions in the communications, computing and consumer markets. We are well positioned with our comprehensive roadmap in the low density space, and we are working on capturing new opportunities in high-end portable consumer applications, such as smartphones, advanced digital cameras and other products, which represent a new attractive growth segment not currently served by traditional programmable logic. We remain very confident in our business given existing customer demand, momentum with new product families, and the successful transition to our improved distributor network over the last year."
Michael G. Potter, Lattice's Corporate Vice President and Chief Financial Officer, added, "Our results reflect both our successful growth strategy and disciplined control of operating expenses. The fact that we were able to improve our gross margin to 61.2% in the second quarter underscores the increased volumes we are achieving, favorable product mix and the continued benefits from our prior cost reduction actions. However, we also realized a one-time benefit of some sales of older, fully reserved products in Q2 2010. We generated $28.1 million of cash from operations, ending the quarter with a cash, cash equivalents and short-term marketable securities balance of $212.0 million. Our remaining balance of advance credits with Fujitsu was used in the second quarter. Inventory at July 3, 2010 was $26.8 million, compared to $24.7 million in the prior quarter and $28.1 million in the year ago period. Currently, we do not see capacity related issues with our supply chain partners and we continue to meet customer demand."
Second Quarter Highlights:
- Named Nu Horizons Electronics Corp. as a global distributor for the full range of Lattice products.
- Released Version 1.0 of Lattice Diamond FPGA design software, the new flagship design environment for Lattice FPGA products. Lattice Diamond software provides a complete set of powerful tools, efficient design flows, and modern user interface that enable designers to more quickly target low power, cost sensitive FPGA applications.
- Partnered with Affarii Technologies to successfully demonstrate the industry's lowest cost, low power Remote Radio Head (RRH) solution at 1300mW per antenna. The integration of all RRH processing was achieved on a single LatticeECP3-150 device, part of Lattice's high value low-power LatticeECP3 FPGA family.
- Announced the availability of a new low cost PCI Express development kit for its award winning LatticeECP3 FPGA family. The kit will typically allow users to achieve working PCI Express hardware in thirty minutes, and a known good starting point for a design in less than two hours.
- Published "Power 2 You," a book on implementing board power supply management solutions that reduce costs, improve reliability and manage risk. Lattice also announced the Hercules development kit to accelerate time to market for these power management applications.
Business Outlook - Third Quarter 2010:
- Revenue is expected to be flat to up 5% on a sequential basis.
- Gross margin percentage is expected to be approximately 59% to 61% of revenue.
- Total operating expenses are expected to be approximately $31 million.
- We expect continued profitability in the third quarter.
To read financial tables, click here
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review detailed second quarter 2010 results on Thursday, July 22, 2010 at 5:00 p.m. EDT. The conference call-in number is 1-706-758-4489. A live webcast of the conference call will also be available on Lattice's website at www.latticesemi.com. 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 29, 2010, by telephone at 1-706-645-9291. To access the replay, use conference identification number 87291432. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com
About Lattice Semiconductor:
Lattice is the source for innovative FPGA, PLD, programmable Power Management and Clock Management solutions. For more information, visit www.latticesemi.com.