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. You can also follow us via Twitter, Facebook, or RSS.
Lattice Semiconductor Corporation, Lattice (& design), L (& design), iCE40 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.
GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.
Lattice Semiconductor Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
----------------------------- -------------------
June 29, March 30, June 30, June 29, June 30,
2013 2013 2012 2013 2012
--------- --------- --------- --------- ---------
Revenue $ 84,694 $ 71,158 $ 70,792 $ 155,852 $ 142,492
Costs and expenses:
Cost of products sold 39,584 33,003 33,741 72,587 65,956
Research and development 20,267 18,114 19,363 38,381 38,509
Selling, general and
administrative 17,072 16,498 19,405 33,570 37,328
Acquisition related
charges (1) 737 749 982 1,486 2,689
Restructuring (2) 19 153 87 172 643
--------- --------- --------- --------- ---------
77,679 68,517 73,578 146,196 145,125
--------- --------- --------- --------- ---------
Income (loss) from
operations 7,015 2,641 (2,786) 9,656 (2,633)
Other (expense) income,
net (54) (52) 694 (106) 758
--------- --------- --------- --------- ---------
Income (loss) before
provision for income
taxes 6,961 2,589 (2,092) 9,550 (1,875)
Provision for income taxes
(3) 1,921 699 10,450 2,620 18,381
--------- --------- --------- --------- ---------
Net Income (loss) $ 5,040 $ 1,890 $ (12,542)$ 6,930 $ (20,256)
========= ========= ========= ========= =========
Net Income (loss) per
share (4):
Basic $ 0.04 $ 0.02 $ (0.11)$ 0.06 $ (0.17)
========= ========= ========= ========= =========
Diluted $ 0.04 $ 0.02 $ (0.11)$ 0.06 $ (0.17)
========= ========= ========= ========= =========
Shares used in per share
calculations (4):
Basic 115,733 115,391 117,874 115,562 118,024
========= ========= ========= ========= =========
Diluted 117,109 116,714 117,874 116,935 118,024
========= ========= ========= ========= =========
______________________
Notes:
(1) During the first six months of fiscal 2012, the Company recorded
consulting, legal costs, severance related integration costs and
amortization of intangible assets associated with the acquisition of
SiliconBlue. During the first six months of 2013, Acquisition related
charges consist of amortization of acquired intangible assets.
(2) Represents costs and adjustments incurred primarily related to the
corporate restructuring plans announced on October 12, 2012 and April
21, 2011.
(3) The tax provision for the three and six months ended June 30, 2012
reflects our new global tax structure and the resulting intercompany
sale of inventory and fixed assets.
(4) For the three and six month periods in fiscal 2012, the computation of
diluted earnings per share excludes the effects of stock options,
restricted stock units and ESPP shares as they are antidilutive. For the
three and six month periods in fiscal 2013, the computation of diluted
earnings per share includes the effects of stock options and restricted
stock units as they are dilutive. ESPP shares are included if dilutive.
Lattice Semiconductor Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
June 29, December 29,
2013 2012
------------- -------------
Assets
Current assets:
Cash, cash equivalents and short-term marketable
securities $ 174,224 183,401
Accounts receivable, net 63,605 46,947
Inventories 49,654 44,194
Other current assets (1) 13,342 12,527
------------- -------------
Total current assets 300,825 287,069
Property and equipment, net 41,733 40,384
Long-term marketable securities 4,717 4,717
Other long-term assets 8,503 6,854
Intangible assets, net of amortization 13,957 15,430
Goodwill 44,808 44,808
Deferred income taxes (1) 13,757 15,357
------------- -------------
$ 428,300 $ 414,619
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities $ 42,013 42,540
Deferred income and allowances on sales to sell-
through distributors 13,890 10,553
------------- -------------
Total current liabilities 55,903 53,093
Other long-term liabilities (1) 5,222 3,976
------------- -------------
Total liabilities 61,125 57,069
Stockholders' equity 367,175 357,550
$ 428,300 $ 414,619
============= =============
______________________
Notes:
(1) In June 2013 the company early adopted, with retrospective application,
the requirements of ASU 2013-11 Presentation of an Unrecognized Tax
Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a
Tax Credit Carryforward Exists. Accordingly, previous periods have been
revised to conform with current period presentation. This resulted in
both long-term taxes payable and deferred tax assets declining by
approximately $14 million for all periods presented.
Lattice Semiconductor Corporation
- Supplemental Historical Financial Information -
2Q13 1Q13 2Q12
Operations Information
Percent of Revenue
Gross Margin 53.3% 53.6% 52.3%
R&D Expense 23.9% 25.5% 27.4%
SG&A Expense 20.2% 23.2% 27.4%
Depreciation and amortization (in
thousands) 4,894 5,066 5,243
Capital expenditures (in thousands) 3,783 3,054 4,632
Stock compensation expense (in thousands) 2,513 1,912 2,054
Restructuring and severance related charges
(in thousands) 19 153 1,493
Taxes paid (cash, in thousands) 104 852 53
Balance Sheet Information
Current Ratio 5.4 5.1 5.8
A/R Days Revenue Outstanding 68 71 77
Inventory Months 3.8 4.0 3.3
Revenue% (by Product Family)
PLD 69% 68% 65%
FPGA 31% 32% 35%
Revenue% (by Product Classification) (1)
New 46% 39% 20%
Mainstream 42% 47% 60%
Mature 12% 14% 20%
Revenue% (by Geography)
Asia 74% 69% 70%
Europe (incl. Africa) 14% 18% 17%
Americas 12% 13% 13%
Revenue% (by End Market) (2)
Communications 38% 39% 46%
Industrial & Other 23% 26% 33%
Computing 8% 10% 13%
Consumer 31% 25% 8%
Revenue% (by Channel)
Sell-through distribution 44% 49% 56%
Direct 56% 51% 44%
(1) New: LatticeECP3, MachXO2, Power Manager II, and iCE40 Mainstream:
ispMACH 4000ZE, ispMACH 4000/Z, LatticeSC, LatticeECP2/M, LatticeECP,
LatticeXP2, LatticeXP, MachXO, ispClock A/D/S, Software and IP Mature:
ispXPLD, ispXPGA, FPSC, ORCA 2, ORCA 3, ORCA 4, ispPAC, isplsi 8000V,
ispMACH 5000B, ispMACH 2LV, ispMACH 5LV, ispLSI 2000V, ispLSI 5000V,
ispMACH 5000VG, all 5-volt CPLDs, ispGDX2, GDX/V, ispMACH 4/LV, iCE65,
ispClock, Power Manager I, all SPLDs
* Product categories are modified as appropriate relative to our
portfolio of products and the generation within each major product
family. New products consist of our latest generation of products, while
Mainstream and Mature are older or based on unique late stage customer-
based production needs. Generally, product categories are adjusted every
two to three years, at which time prior periods are reclassified to
conform to the new categorization. In the first fiscal quarter 2012 we
reclassified our New, Mainstream and Mature product categories to better
reflect our current product portfolio.
(2) During the first quarter of 2013, the Company refined its methodology
for assigning revenue to End Market categories. All periods presented
have been revised to conform to this methodology.
