Jul 19, 2012-- Lattice Semiconductor Corporation today announced financial results for the fiscal second quarter ended June 30, 2012.
For the second quarter, revenue was $70.8 million, a decrease of 1.3% from the $71.7 million reported in the prior quarter, and a decrease of 15.6% from the $83.9 million reported in the same quarter a year ago. FPGA revenue for the second quarter was $24.9 million, an increase from the $23.3 million reported in the prior quarter, and a decrease from the $27.9 million reported in the same quarter a year ago. PLD revenue for the second quarter was $45.9 million, a decrease from the $48.4 million reported in the prior quarter, and a decrease from the $56.0 million reported in the same quarter a year ago.
Net loss for the second quarter was $12.5 million ($0.11 per basic and diluted share), compared to prior quarter net loss of $7.7 million ($0.07 per basic and diluted share) and net income of $13.0 million ($0.11 per diluted share) reported in the same quarter a year ago. In the second quarter of 2012, Lattice recorded a tax provision of $10.5 million ($0.09 per basic and diluted share) compared to a tax provision of $7.9 million ($0.07 per basic and diluted share) recognized during the first quarter of 2012. Second quarter of 2012 and first quarter of 2012 taxes reflect the implementation of our new global tax structure. Second quarter of 2012 results include approximately $1.0 million of acquisition related costs compared to $1.7 million in the first quarter of 2012. Second quarter of 2012 financial results include $0.1 million of restructuring related charges as compared to approximately $0.6 million of restructuring related charges included in the first quarter of 2012 financial results.
Darin G. Billerbeck, President and Chief Executive Officer, said, "During the second quarter of 2012, we continued to feel the effect of macro headwinds on our business and we were impacted by customer mix. Growth in our strategic accounts, which tend to carry lower margins, was offset by continued weakness in the worldwide distribution channel, especially in Europe. Our new product growth remained strong. We continue to stay focused on streamlining our Company structure while driving our overall product costs downward. Our recent foundry partner announcement with UMC was another step to increase our new product innovation, lower our costs, and to further advance our non-volatile memory technology acquired from SiliconBlue."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Total operating expenses in the second quarter were $39.8 million, including approximately $1.0 million in acquisition related charges and approximately $0.1 million in restructuring charges. Second quarter spending also included severance charges of approximately $1.4 million related to streamlining and improving operational efficiencies, which included a headcount reduction of approximately 5%. Operating charges for the quarter represent a near-term peak. Gross margin was 52.3%. We continue to implement cost reductions that are targeted to increase gross margins. During the second quarter, we completed our 2011 restructuring plan, which has been focused primarily on our R&D and operations worldwide. In addition, we repurchased approximately 1.1 million shares valued at approximately $5.4 million; our year to date total shares repurchased is approximately 1.3 million shares valued at approximately $7.0 million under our previously announced 2012 stock buyback program."
Second Quarter 2012 Business Highlights:
- Reached Milestone One Millionth MachXO2 Programmable Logic Device Shipment: Less than four months after the MachXO2™ family's production release, the one millionth device was shipped. MachXO2 customers are using the versatile devices as an essential design solution for applications in numerous markets, including consumer, communications, computing, industrial and medical.
- Announced Production Release of iCE40 "Los Angeles" LP-Series and HX-Series mobileFPGA Device Families: Lattice announced that its iCE40™ "Los Angeles" mobileFPGA™ family has been fully qualified and released into volume production. The iCE40 mobileFPGA family, fabricated on non-volatile 40nm technology, follows the very successful 65nm iCE65™ family that has already been adopted by large consumer electronics OEMs. These customers have taken advantage of its flexibility, low power, low cost and small footprint to quickly create new and innovative consumer products within ever shrinking development cycles.
- Shipped First Samples of LatticeECP4 FPGAs: Lattice announced that it has begun shipping the highest density member of its next generation LatticeECP4™ FPGA family to select customers. The new LatticeECP4 FPGA family offers high performance innovations such as 6G SERDES in low cost packages, powerful DSP blocks and built-in hard IP-based communication blocks. The highest density device in the family, the LatticeECP4-190, features 183K LUTs, 480 double data rate DSP multipliers (18x18), 5.8 Mbits of memory and twelve 6 Gbps SERDES channels, making it ideally suited for a broad range of cost- and power-sensitive wireless, wireline, video and computing applications.
- Announced Revolutionary Power Management Architecture: Lattice announced a scalable, in-system upgradable, star topology power management architecture that can be used across a wide range of circuit boards requiring more than 12 power supply rails. Lattice has simultaneously made available two new application notes for its award winning Platform Manager™ devices that will enable customers to quickly adopt the new architecture. Designers are now more easily able to modify their designs to meet unforeseen power management requirements and minimize the need for a board re-spin.
Business Outlook - Third Quarter 2012:
- Revenue is expected to be approximately flat plus or minus 2% on a sequential basis.
- Gross margin percentage is expected to be approximately 52% plus or minus 2%.
- Total operating expenses are expected to be approximately $38.0 million, including approximately $0.8 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 second quarter of 2012 and business outlook for the third quarter of 2012 on Thursday, July 19, 2012 at 5:00 p.m. EDT. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 97353599. A live webcast of the conference call will also be available on Lattice's website at http://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 July 26, 2012, by telephone at 1-404-537-3406. To access the replay, use conference identification number 97353599. A webcast replay will also be available on Lattice's investor relations website at http://www.latticesemi.com/.
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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 http://www.latticesemi.com/.