HILLSBORO, OR, Jan 26, 2012 -- Lattice Semiconductor Corporation (NASDAQ: LSCC)
Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the fourth quarter ended December 31, 2011. Results for the fourth quarter of 2011 reflect the Company's acquisition of SilionBlue Technologies Ltd. ("SiliconBlue") on December 16, 2011.
- Revenue of $70.2 million, a decrease of 14.1% from $81.7 million in 3Q11 and a decrease of 4.0% from $73.1 million in 4Q10.
- Gross margin of 57.7%, compared to 58.6% in 3Q11 and 62.7% in 4Q10.
- Net income of $0.34 per diluted share, compared to net income of $0.11 per diluted share in 3Q11 and net income of $0.11 per diluted share in 4Q10. 4Q11 financial results include approximately $35.1 million ($0.29 per diluted share) of income tax benefit, $1.1 million of restructuring related charges and $0.5 million of acquisition related costs. 3Q11 financial results included approximately $1.8 million of restructuring related charges and a $0.9 million tax settlement benefit.
For the fourth quarter, revenue was $70.2 million, a decrease of 14% from the $81.7 million reported in the prior quarter, and a decrease of 4% from the $73.1 million reported in the same quarter a year ago. FPGA revenue for the fourth quarter was $22.1 million, a decrease from the $26.2 million reported in the prior quarter, and a decrease from the $24.4 million reported in the same quarter a year ago. PLD revenue for the fourth quarter was $48.1 million, a decrease from the $55.5 million reported in the prior quarter, and a decrease from the $48.7 million reported in the same quarter a year ago.
Net income for the fourth quarter was $40.9 million ($0.34 per diluted share), compared to a prior quarter net income of $13.3 million ($0.11 per diluted share) and net income of $13.9 million ($0.11 per diluted share) reported in the same quarter a year ago. In the fourth quarter of 2011, we recognized a tax benefit of $35.1 million ($0.29 per diluted share) related to the release of tax valuation allowance for certain deferred tax assets, based on an evaluation of the likelihood of use of these tax attributes due to the improvement in our operating results in 2011 and the implementation of a new global tax structure during the fourth quarter of 2011. The Company anticipates completing its global tax restructuring during the first quarter of 2012, which will result in a tax provision of approximately $10.8 million. Fourth quarter 2011 financial results include approximately $1.1 million of restructuring related charges, as compared to approximately $1.8 million of restructuring related charges included in the third quarter 2011 financial results. The fourth quarter of 2011 also included $0.5 million related to acquisition charges.
Darin G. Billerbeck, President and Chief Executive Officer, said, "We achieved approximately 7% revenue growth in 2011 compared to 2010, even with ongoing, broader market weakness and the macro softening of demand, primarily in the communications business. During this period of uncertainty, our primary focus is on controlling costs and our spending, and continuing to invest in new products and technologies, while managing our inventory. Our integration of the SiliconBlue acquisition is progressing well. Importantly, we believe this acquisition will accelerate our growth strategy in the Consumer market driven by its desire for longer battery life, more natural interfaces, increased functionality, smaller form factors and lower cost."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Total operating expenses were $34.8 million, including approximately $1.1 million in restructuring charges in the quarter. While most elements of our 2011 restructuring program are now substantially complete, we will incur restructuring charges in the first quarter of 2012 related to our previously discussed transfer of our operations to our low cost site in the Philippines. Gross margin for the fourth quarter was 57.7%, in line with our original guidance. This also includes the impact of SiliconBlue. We generated $10.3 million of cash from operations, ending the quarter with a cash, cash equivalents and short-term marketable securities balance of $210.1 million, reflecting our acquisition of SiliconBlue for approximately $63 million in cash. We concluded our stock repurchase program on October 20, 2011, having repurchased approximately 2.8 million shares during the term of the program at a cost of $16.4 million."
Fourth Quarter 2011 Business Highlights:
- Acquired SiliconBlue: Lattice extended its leadership position in the highly attractive mobile consumer and handheld market with its $63 million acquisition of SiliconBlue. The mobile consumer market for PLD's includes digital cameras, smartphones, eReaders, tablets, notebooks and netbooks. Key market growth trends include the drive for longer battery life, more natural interfaces, increased functionality, lower cost and reduced weight.
- Shipped More Than 75 Million MachXO(TM) Programmable Logic Devices: Lattice has now shipped more than 75 million MachXO(TM) PLDs since their introduction. Widely adopted in a broad range of high volume, cost sensitive applications, customers worldwide are taking advantage of the MachXO(TM) PLD family's innovative combination of ease-of-use, flexibility, system integration and price. The MachXO(TM) PLD family's unique system integration benefits have continued to drive its widespread adoption in a broad range of low-density applications that require general purpose I/O expansion, interface bridging and power-up management functions.
- All members Of Lattice's Award Winning MachXO2(TM) PLD Family Released To Production: The MachXO2(TM) PLD family consists of nine devices in 29 device/package combinations to satisfy a broad range of customer requirements.
- MachXO2(TM) PLD Family Recognized by EDN Magazine as "Hot 100" Product: Recognition as a Hot 100 product is unique because there is no nomination process: instead, EDN's editors select from among thousands of new products that, in their judgment, are particularly noteworthy.
- Shipped 15 Millionth Power Manager Device: Lattice's seven Power Manager devices have been broadly adopted in a wide range of high volume, cost sensitive applications because they enable board designers to integrate the multiple power management functions of a circuit board into a single programmable device. Integration reduces overall system cost by eliminating duplicate functions.
- Announced New Release Of Lattice Diamond(R) Design Software: Release 1.4 of Lattice Diamond(R) design software will accelerate FPGA design optimization for low power and cost sensitive applications, and reduce time to market. Lattice Diamond 1.4 software enhances support for the MachXO2(TM) PLD family by providing final production timing, power models and bitstreams for the entire family, including the latest wafer-level chip scale packaged version of the LCMXO2-2000U and LCMXO2-1200U devices that are ideal for very high volume, cost- and power-sensitive applications.
Business Outlook - First Quarter 2012:
- Revenue is expected to increase approximately 1% to 5% on a sequential basis.
- Gross margin percentage is expected to be approximately 57% plus or minus 2%.
- Total operating expenses are expected to be approximately $39.0 million, including approximately $0.8 million in restructuring charges and $0.9 million in acquisition related charges (primarily amortization of intangible assets).
- Income will be affected by a tax provision of approximately $10.8 million primarily associated with the completion of the Company's new global tax structure.
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Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the fourth quarter 2011 and business outlook for the first quarter 2012 on Thursday, January 26, 2012 at 5:00 p.m. EST. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 41340129. 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 February 2, 2012, by telephone at 1-404-537-3406. To access the replay, use conference identification number 41340129. 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, and programmable Power Management solutions. For more information, visit www.latticesemi.com.