HILLSBORO, OR, Oct 21, 2010 -- Lattice Semiconductor Corporation (NASDAQ: LSCC)
Third Quarter 2010 Highlights:
- Revenue of $77.1 million, flat compared to 2Q10 and up 57% compared to 3Q09.
- Gross margin of 59.1%, compared to 61.2% in 2Q10 and 54.2% in 3Q09.
- Net income of $0.13 per share, compared to net income of $0.14 per share in 2Q10 and a net loss of $0.04 per share in 3Q09.
Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the third quarter ended October 2, 2010.
For the third quarter, revenue was $77.1 million, unchanged from the $77.1 million reported in the prior quarter, and an increase of 57% from the $49.1 million reported in the same quarter a year ago. FPGA revenue for the third quarter was $24.7 million compared to $24.6 million reported in the prior quarter, and increased 63% from the $15.2 million reported in the same quarter a year ago. PLD revenue for the third quarter was $52.4 million compared to $52.5 million reported in the prior quarter, and increased 55% from the $33.9 million reported in the same quarter a year ago.
Net income for the third quarter was $15.4 million ($0.13 per share), compared to $16.7 million ($0.14 per share) in the prior quarter and a net loss of $4.1 million ($0.04 per share) reported in the same quarter a year ago.
Other income, net, for the third quarter was $0.7 million compared to $0.9 million reported in the prior quarter and an expense of $0.5 million reported in the same quarter a year ago. Other income, net, included a gain of $0.4 million from the sale of auction rate securities compared to a gain of $0.7 million in the second quarter related to the sale of excess real estate in China. During the same quarter a year ago, the Company recorded an impairment charge of $1.1 million related to an other-than-temporary decline in fair value of auction rate securities.
Christopher M. Fanning, Interim Chief Executive Officer, Corporate Vice President & General Manager Low Density & Mixed Signal Solutions, said, "While the third quarter was in line with guidance, the last month of the quarter was slower than our expectations with some signs of customers managing their inventory at quarter-end. Specifically, revenue was also impacted by lower sequential sales in our mature product category. Importantly, we achieved 10% sequential revenue growth of our new products quarter on quarter and a doubling from the same quarter last year. Our MachXO grew and became our largest revenue contributor, and our LatticeECP3 continues as the fastest growing FPGA product in the Company's history. We are successfully differentiating our business based on our low cost and low power mid-range FPGAs, our low cost and convenient low density solutions and our programmable Power Manager solutions, including the recently launched Platform Manager products. We are excited about our roadmap and are looking forward to several additional new product introductions during the fourth quarter."
Michael G. Potter, Lattice's Corporate Vice President and Chief Financial Officer, added, "Our disciplined cost control allowed us to selectively invest in new product opportunities while keeping total operating expenses at $30.7 million compared to guidance of $31.0 million. Gross margin came in lower than the prior quarter primarily due to the impact of lower sequential sales in our mature product category. We generated $15.4 million of cash from operations, ending the quarter with a cash, cash equivalents and short-term marketable securities balance of $229.1 million. Our inventory increased sequentially in the third quarter of 2010, mainly due to wafer deliveries for new products, specifically our LatticeECP3, to address near-term customer demand."
Business Outlook - Fourth Quarter 2010:
- Revenue is expected to be down 2% to 7% on a sequential basis.
- Gross margin percentage is expected to be approximately 58% to 60% of revenue.
- Total operating expenses are expected to be approximately $34.0 million. The majority of the sequential increase is related to new product launch expenses and associated mask costs.
- We expect continued profitability in the fourth quarter.
To read financial tables, click here
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review detailed third quarter 2010 results on Thursday, October 21, 2010 at 5:00 p.m. EDT. The conference call-in number is 1-706-643-3761. 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 October 28, 2010, by telephone at 1-706-645-9291. To access the replay, use conference identification number 15840374. 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.