HILLSBORO, Ore. - January 23, 2003 - - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the fourth quarter and year ending December 2002.
For the year 2002, revenue was $229.1 million, a decrease of 22 percent from the $295.3 million reported in 2001. On a GAAP basis, net loss for 2002 was $175.2 million ($1.59 per share), as compared to the net loss of $109.5 million ($1.01 per share) reported in 2001. Net loss for 2002 includes a non-recurring, non-cash charge of $111.1 million ($1.01 per share) to eliminate deferred tax assets. Net loss for 2001 included a non-recurring, non-cash charge of $94.9 million ($0.87 per share) related to foundry investments.
Non-GAAP earnings for 2002 were $24.0 million ($0.21 per share), a decrease of 55 percent from the $53.9 million ($0.48 per share), excluding the foundry investment charge, reported in 2001. Non-GAAP earnings exclude non-cash acquisition related amortization expenses and include cash acquisition related tax benefits. A reconciliation of non-GAAP to GAAP earnings accompanies the financial tables in this earnings release.
For the fourth quarter, revenue was $57.7 million, an increase of 11 percent from the $52.1 million reported in the same quarter a year ago and an increase of three percent from the $56.1 million reported last quarter.
On a GAAP basis, net loss for the fourth quarter of 2002 was $127.1 million ($1.14 per share), as compared to the net loss of $12.5 million ($0.11 per share) reported in the same quarter a year ago and the net loss of $14.4 million ($0.13 per share) reported last quarter. Excluding the charge related to deferred tax assets, net loss for the fourth quarter of 2002 was $16.0 million ($0.14 per share).
Non-GAAP earnings for the quarter were $6.4 million ($0.06 per share), an increase of 25 percent from the $5.1 million ($0.05 per share) reported in the same quarter a year ago and a decrease of four percent from the $6.6 million ($0.06 per share) reported last quarter.
In the fourth quarter, CPLD revenue grew slightly on a sequential basis to $39.2 million and now accounts for 68 percent of total revenue. Additionally, in the fourth quarter FPGA revenue grew 29 percent sequentially to $9.2 million and now accounts for 16 percent of total revenue.
"Last year saw a continuation of subdued market conditions in the semiconductor and PLD markets," stated Cyrus Y. Tsui, chairman and chief executive officer. "Given this undercurrent, we are gratified to have generated substantial cash from our operations during 2002 and end the year by posting sequential quarterly revenue growth. Additionally, we consistently maintained gross margins at approximately 60 percent and achieved operating profitability, on a non-GAAP basis, each quarter. This financial performance allowed us to sustain a healthy investment in new product development throughout the year."
"This investment resulted in a record number of new product introductions and the achievement of four important strategic goals. First, the introduction of two new advanced product families, the ispMACH® 4000V and the ispMACH 5000B, allows us to extend our product and technology leadership in the CPLD market. Second, our acquisition, extension and relaunch of the ORCA FPSC products gives us an enviable leadership position in SERDES technology within the high-end embedded FPGA market. Third, our two new ispXPTM families, the ispXPLD and ispXPGA, allow us to broaden our market coverage within the current PLD market. Lastly, our recently announced ultra low-power ispMACH 4000Z family and ispPAC-POWR, the first mixed signal PLD, extend the market reach of our product line outside traditional PLD applications," Tsui continued.
"As we exit 2002, our product portfolio has been completely renewed. With these new products, for the first time in our corporate history, we can now address the entire PLD market. We are excited and eager to meet the challenge of growing our presence within this attractive and dynamic market," Tsui concluded.
On January 23, 2003, Lattice will hold a telephone conference call at 2:00 pm (Pacific Time) with financial analysts and publish a "Business Outlook Statement" covering the March 2003 quarter. Investors may listen to our conference call via the web at www.on24.com. Both the conference call and our business outlook statement will be available on our website,www.lscc.com through January 29, 2003. On March 13, 2003, we plan to publish a "Business Update Statement" on our website for five calendar days. Our financial guidance will be limited to the comments on our public quarterly earnings call and these public business outlook statements.
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws including statements about future quarterly financial results, revenues, customers, product offerings and our ability to compete. Investors are cautioned that actual events and results could differ materially from these statements as a result of a number of factors, including overall semiconductor market conditions, market acceptance and demand for our new products, risks related to our recent acquisitions and their integration with Lattice, our dependencies on our silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks.
Oregon-based Lattice Semiconductor Corporation designs, develops and markets the broadest range of high-performance ISPTM programmable logic devices (PLDs), Field Programmable Gate Arrays (FPGAs) and Field Programmable System-on-a-Chip (FPSC) devices. Lattice offers total solutions for today's system designs by delivering the most innovative programmable silicon products that embody leading-edge system expertise.
Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in the communication, computing, industrial and military end markets. Company headquarters are located at 5555 N.E. Moore Court, Hillsboro, Oregon 97124 USA. For more information access our web site at www.latticesemi.com.
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Lattice Semiconductor Corporation, L (& design), Lattice (& design), in-system programmable, ISP, ispXPGA, ispXPLD, ispPAC and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.