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 Nine Months Ended
--------------------------------- ---------------------
September June 29, September September September
28, 2013 2013 29, 2012 28, 2013 29, 2012
---------- ---------- ---------- ---------- ----------
Revenue $ 87,154 $ 84,694 $ 70,889 $ 243,006 $ 213,381
Costs and
expenses:
Cost of products
sold 41,463 39,584 32,341 114,050 98,297
Research and
development 20,254 20,267 20,446 58,635 58,955
Selling, general
and
administrative 16,385 17,072 17,720 49,955 55,048
Acquisition
related charges
(1) 737 737 729 2,223 3,418
Restructuring (2) 85 19 -- 257 643
---------- ---------- ---------- ---------- ----------
78,924 77,679 71,236 225,120 216,361
---------- ---------- ---------- ---------- ----------
Income (loss) from
operations 8,230 7,015 (347) 17,886 (2,980)
Other income
(expense), net 346 (54) 88 240 846
---------- ---------- ---------- ---------- ----------
Income (loss)
before provision
for income taxes 8,576 6,961 (259) 18,126 (2,134)
Provision for
income taxes (3) 417 1,921 1,916 3,037 20,297
---------- ---------- ---------- ---------- ----------
Net Income (loss) $ 8,159 $ 5,040 $ (2,175) $ 15,089 $ (22,431)
========== ========== ========== ========== ==========
Net Income (loss)
per share (4):
Basic $ 0.07 $ 0.04 $ (0.02) $ 0.13 $ (0.19)
========== ========== ========== ========== ==========
Diluted $ 0.07 $ 0.04 $ (0.02) $ 0.13 $ (0.19)
========== ========== ========== ========== ==========
Shares used in per
share
calculations (4):
Basic 116,055 115,733 116,785 115,730 117,612
========== ========== ========== ========== ==========
Diluted 117,349 117,109 116,785 117,093 117,612
========== ========== ========== ========== ==========
------------------
Notes:
(1) During the first nine 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 nine 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 nine months ended September 29,
2012 reflects the nonrecurring impact of transactions required to
implement our global tax structure and the resulting intercompany sale
of inventory and fixed assets.
(4) For the three and nine 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 nine 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)
September 28, December 29,
2013 2012
-------------- --------------
Assets
Current assets:
Cash, cash equivalents and short-term
marketable securities $ 210,772 $ 183,401
Accounts receivable, net 52,991 46,947
Inventories 42,295 44,194
Other current assets (1) 14,631 12,527
-------------- --------------
Total current assets 320,689 287,069
Property and equipment, net 42,345 40,384
Long-term marketable securities 4,717 4,717
Other long-term assets 7,199 6,854
Intangible assets, net of amortization 13,220 15,430
Goodwill 44,808 44,808
Deferred income taxes (1) 13,746 15,357
-------------- --------------
$ 446,724 $ 414,619
============== ==============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities $ 44,424 $ 42,540
Deferred income and allowances on sales to
sell-through distributors 17,587 10,553
-------------- --------------
Total current liabilities 62,011 53,093
Other long-term liabilities (1) 5,011 3,976
-------------- --------------
Total liabilities 67,022 57,069
Stockholders' equity 379,702 357,550
-------------- --------------
$ 446,724 $ 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 -
3Q13 2Q13 3Q12
Operations Information
Percent of Revenue
Gross Margin 52.4% 53.3% 54.4%
R&D Expense 23.2% 23.9% 28.8%
SG&A Expense 18.8% 20.2% 25.0%
Depreciation and amortization (in thousands) 5,210 4,894 5,892
Capital expenditures (in thousands) 3,400 3,783 3,156
Stock compensation expense (in thousands) 2,562 2,511 2,075
Restructuring and severance related charges (in
thousands) 376 84 1,195
Taxes paid (cash, in thousands) 126 104 333
Balance Sheet Information
Current Ratio 5.2 5.4 5.7
A/R Days Revenue Outstanding 55 68 71
Inventory Months 3.1 3.8 3.5
Revenue% (by Product Family)
PLD 70% 69% 63%
FPGA 30% 31% 37%
Revenue% (by Product Classification) (1)
New 51% 46% 26%
Mainstream 41% 42% 54%
Mature 8% 12% 20%
Revenue% (by Geography)
Asia 76% 74% 69%
Europe (incl. Africa) 14% 14% 18%
Americas 10% 12% 13%
Revenue% (by End Market) (2)
Communications 35% 38% 44%
Industrial & Other 20% 23% 32%
Computing 9% 8% 13%
Consumer 36% 31% 11%
Revenue% (by Channel)
Sell-through distribution 41% 44% 56%
Direct 59% 56% 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.
