Oct 18, 2012 -- Lattice Semiconductor Corporation (NASDAQ: LSCC)
- Revenue of $70.9 million, essentially flat with $70.8 million in 2Q12 and a decrease of 13.2% from $81.7 million in 3Q11.
- Gross margin of 54.4%, compared to 52.3% in 2Q12 and 58.6% in 3Q11.
- Net loss of $0.02 per basic and diluted share, compared to net loss of $0.11 per basic and diluted share in 2Q12 and net income of $0.11 per diluted share in 3Q11. 3Q12 financial results included a $1.9 million ($0.02 per basic and diluted share) income tax expense, $0.7 million of acquisition related charges and $0.0 million of restructuring related charges. 2Q12 financial results included a $10.5 million ($0.09 per basic and diluted share) tax expense, $1.0 million of acquisition related charges and $0.1 million of restructuring related charges.
Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the fiscal third quarter ended September 29, 2012.
For the third quarter, revenue was $70.9 million, essentially flat with $70.8 million reported in the prior quarter, and a decrease of 13.2% from the $81.7 million reported in the same quarter a year ago. FPGA revenue for the third quarter was $26.1 million, an increase from the $24.8 million reported in the prior quarter, and essentially flat with the $26.2 million reported in the same quarter a year ago. PLD revenue for the third quarter was $44.8 million, a decrease from the $45.9 million reported in the prior quarter, and a decrease from the $55.5 million reported in the same quarter a year ago.
Net loss for the third quarter was $2.2 million ($0.02 per basic and diluted share), which includes a tax expense of $1.9 million and acquisition related charges of $0.7 million, compared to prior quarter net loss of $12.5 million ($0.11 per basic and diluted share) and net income of $13.3 million ($0.11 per diluted share) reported in the same quarter a year ago. Second quarter of 2012 results included a tax provision of $10.5 million ($0.09 per basic and diluted share) reflecting the implementation of our new global tax structure, approximately $1.0 million of acquisition related charges and $0.1 million of restructuring related charges.
Darin G. Billerbeck, President and Chief Executive Officer, said, "Results reflect the continued adverse effect of macro headwinds on our business. On an end market basis, communications had the most significant decline, which offset gains in our consumer end market. We do not attribute this to any one customer or geography but rather to the ongoing global weakness, which is impacting the entire industry. Despite the challenging environment, we continue to grow revenue from our new products. This positive uptick reflects our focus and success at winning orders across all markets. We have also initiated a corporate restructuring plan intended to further streamline our organization and to align to our low density market strategy. The restructuring is primarily focused on consolidating sales and marketing in both the U.S. and Europe, with the elimination of subscale sites and middle management positions."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Total operating expenses in the third quarter were $38.9 million, including approximately $1.1 million in severance costs related to the streamlining and refocusing of our organization. Our gross margin came in at the high end of guidance at 54.4% primarily as a result of our on-going material and manufacturing cost management efforts. We are taking additional restructuring actions which will result in a 13% headcount reduction and elimination of subscale sites during the fourth quarter, resulting in approximately $5.5 million in restructuring charges in the fourth quarter and approximately $0.5 million in the first quarter of 2013. In addition, we repurchased approximately 1.4 million shares purchased at a cost of approximately $5.4 million. Our year to date total shares repurchased is approximately 2.7 million shares purchased at a cost of approximately $12.4 million under our previously announced 2012 stock buyback program."
Third Quarter 2012 Business Highlights:
- Shipped 3 Millionth iCE40: The recently introduced iCE40 family has quickly become Lattice Semiconductor's fastest ramping product ever. The iCE40 family is designed for applications that have the most aggressive power, cost and footprint requirements, including smartphones, tablets, digital still cameras, and other space and power constrained systems.
- Awarded "Most Innovative FPGA Mobile Platform": China Electronic News magazine (CEN) recognized Lattice with its "Most Innovative FPGA Mobile Platform" award. The award was presented to Lattice as part of the FPGA Forum, which was held in Chengdu, China.
- Wins Prestigious eLegacy Award: Lattice became the only programmable logic company to win an e-Legacy Award in the "Environmental Design" category for its iCE40 family's energy saving and power efficiency. Now in its sixth year, the e-Legacy awards celebrate and reward the innovation of electronics companies.
Business Outlook - Fourth 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 53% plus or minus 2%.
- Total operating expenses are expected to be approximately $43 million, including approximately $5.5 million in restructuring charges.
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Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the third quarter of 2012 and business outlook for the fourth quarter of 2012 on Thursday, October 18, 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 37367326. 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 October 25, 2012, by telephone at 1-404-537-3406. To access the replay, use conference identification number 37367326. 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.