Financial Highlights:
- Revenue of $87.2 million, an increase of 2.9% from $84.7 million in 2Q13 and an increase of 23.0% from $70.9 million in 3Q12.
- Net income of $0.07 per basic and diluted share, compared to net income of $0.04 per basic and diluted share in 2Q13 and a net loss of $0.02 per basic and diluted share in 3Q12.
- Gross margin of 52.4%, compared to 53.3% in 2Q13 and 54.4% in 3Q12.
- Operating expenses of $37.5 million, compared to operating expenses of $38.1 million in 2Q13 and $38.9 million in 3Q12.
Lattice Semiconductor Corporation (
For the third quarter, revenue was $87.2 million, an increase of 2.9% from $84.7 million reported in the prior quarter, and an increase of 23.0% from the $70.9 million reported in the same quarter a year ago. FPGA revenue for the third quarter was $26.2 million, compared to $26.0 million in the prior quarter, and $26.1 million in the same quarter a year ago. PLD revenue for the third quarter was $61.0 million, compared to $58.7 million reported in the prior quarter, and $44.8 million in the same quarter a year ago.
Net income for the third quarter was $8.2 million ($0.07 per basic and diluted share), compared to the prior quarter net income of $5.0 million ($0.04 per basic and diluted share) and net loss of $2.2 million ($0.02 per basic and diluted share) reported in the same quarter a year ago.
Darin G. Billerbeck, President and Chief Executive Officer, said, "For the second consecutive quarter, the Company achieved record revenue levels, while maintaining a healthy gross margin and improving our net income per share. Growth was driven by our consumer end market and increased new product category sales. The broader communications market in Asia continues to rebound, while worldwide computing and industrial markets are lagging. Overall, we continue to be confident and encouraged by the successful execution of our business strategy, along with our customer and market diversification efforts."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "We continue to drive cost efficiencies organization-wide, as we leverage increasing unit volume. We are effectively managing inventory levels to meet customer demand and potential upsides. Our operations team is minimizing the impact of our fab transition at Fujitsu and is focused on keeping gross margins stable, despite anticipated seasonally lower revenue. We exited the third quarter with a debt-free balance sheet and approximately $210.8 million in cash, cash equivalents and short-term marketable securities, an increase of $36.5 million from the second quarter."
Recent Business Highlights:
- Tiny, Ultra-Low Power iCE40™: Lattice announced its new, ultra-low density iCE40 FPGAs, delivering the world's smallest, most flexible, single chip sensor solution for ultra-low power mobile devices. The new additions to the iCE40 FPGA family allow customers to integrate functions into a smaller space.
- Ultra-Low Density MachX03™: Lattice launched its ultra-low density MachXO3™ FPGA family, the world's smallest, lowest-cost-per I/O programmable platform aimed at expanding system capabilities and bridging emerging connectivity interfaces using both parallel and serial I/O.
- New Reference Designs: Lattice introduced three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor, and display technologies.
Business Outlook - Fourth Quarter 2013:
- In-line with recent annual demand trends, revenue is expected to be minus 5% to 9% 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 $37.5 million, including approximately $1.0 million of mask costs in support of growth opportunities.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the third quarter of 2013 and business outlook for the fourth quarter of 2013 on Thursday, October 24, 2013 at 5:00 p.m. Eastern Time. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 75501489. 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. Eastern Time on November 7, 2013, by telephone at 1-404-537-3406. To access the replay, use conference identification number 75501489. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com.
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Such forward-looking statements include statements relating to: the continuing rebound of the broader communications market in Asia and the lagging of computing and industrial markets; execution of our business strategy and our customer and market diversification efforts; continuing efforts to drive cost efficiencies organization-wide, as we leverage our increasing unit volume; our ability to manage our inventory; our operations' team ability to minimize the impact of our fab transition at Fujitsu and our ability to keep gross margins stable, despite anticipated seasonally lower revenue; and those statements under the heading "Business Outlook - Fourth Quarter 2013" relating to expected revenue, gross margin, total operating expenses, and projected costs associated with the Company's support of growth opportunities. Other forward-looking statements may be indicated by words such as "will," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue" or the negative of these terms or other comparable terminology. Lattice believes the factors identified below could cause actual results to differ materially from the forward-looking statements.
Estimates of future revenue are inherently uncertain due to, among other things, the high percentage of quarterly "turns" business. In addition, revenue is affected by such factors as global economic conditions, which may affect customer demand, pricing pressures, competitive actions, the demand for our Mature, Mainstream and New products, and in particular our iCE™, MachXO™ and LatticeECP3™ devices, the ability to supply products to customers in a timely manner, changes in our distribution relationships, or the volatility of our consumer business. Actual gross margin percentage and operating expenses could vary from the estimates on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, including commodity costs, variations in manufacturing yields, the failure to sustain operational improvements, the actual amount of compensation charges due to stock price changes. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges could adversely affect our profitability.
In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements in this press release include global economic uncertainty, overall semiconductor market conditions, market acceptance and demand for our new products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, and the other risks that are described in this press release and that are otherwise described from time to time in our filings with the Securities and Exchange Commission. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Lattice Semiconductor
Lattice Semiconductor (
