Darin G. Billerbeck, President and Chief Executive Officer, said, "Growth in the fourth quarter and second half of 2016 was led by the overall consumer market and the ramp of our flagship win at a major consumer OEM. The higher consumer volumes combined with targeted manufacturing efficiencies allowed us to deliver a 57.7% gross margin for the full year 2016, up from 54.2% in the prior year. Our long term growth will be based on a combination of new consumer design wins along with continuous growth in our industrial and communications businesses focused on new applications such as medical devices, virtual and augmented reality, along with wireless connectivity. Smart connectivity, made easy."

Max Downing, Interim Chief Financial Officer, added, "We made significant progress in 2016 on better aligning our operating expenses, while further improving our cash flow generation. During 2016 we generated $41.7 million in cash flows from operations and ended the year with $116.9 million in cash and short-term investments. We intend to remain focused on maximizing the leverage of our operating model and reducing our outstanding debt balance."

Recent Business Highlights

• Launches New iCE40 UltraPlus™ Devices: This latest addition to the iCE40 Ultra family delivers eight times more memory (1.1 Mbit RAM), twice the digital signal processors (8x DSPs), and improved I/Os over previous generations. Available in multiple package sizes, the programmable nature of the iCE40 UltraPlus device is ideal for smartphones, wearables, drones, 360 cameras, human-machine interfaces (HMIs) and industrial automation.
• Partners with NDS Surgical Imaging Leveraging 60 GHz WirelessHD® Technology: Lattice Semiconductor’s production-proven WirelessHD solution based on its SiBEAM millimeter-wave (mmWave) technology delivers low-latency, high-resolution HD video that is extremely reliable, while NDS Surgical Imaging brings expertise in medical device manufacturing and regulatory compliance. The partnership will allow medical device manufacturers to benefit from NDS’s experience in bringing FDA-approved medical technologies with WirelessHD to market more quickly and efficiently.
• TPCAST Partners with Lattice Semiconductor to Deliver an Immersive Wireless VR Experience: Lattice Semiconductor and TPCAST announced an exclusive partnership to deliver wireless solutions for head mount display (HMD)-based VR systems. Lattice’s WirelessHD® solution, along with a suite of FPGA and ASSP products, will be offered exclusively in TPCAST’s VR applications, which require low latency, high bandwidth wireless video transmission.
• Acquisition by Canyon Bridge Capital Partners, Inc.: On November 3, 2016, the Company announced that it had entered into a definitive agreement to be acquired by Canyon Bridge Capital Partners, Inc. The transaction with Canyon Bridge will allow Lattice to grow its operations in the U.S. and globally and better reach its target markets. The process of obtaining approval from the Committee on Foreign Investment in the United States (CFIUS) is well underway, and the Company looks forward to continuing to have constructive discussions with the Committee in order to conclude the deal as soon as possible.

Investor Conference Call / Outlook:

As a result of the acquisition announcement with Canyon Bridge, the Company will not hold a quarterly conference call and webcast, and will not provide an outlook for its future financial results.

Special Meeting of Stockholders on February 28, 2017 at 8:00 am, Pacific Time:

At the Special Meeting, shareholders will be asked to consider and vote on a proposal to adopt the Agreement and Plan of Merger, as it may be amended from time to time, dated November 3, 2016, among Lattice, Canyon Bridge Acquisition Company, Inc., a Delaware corporation, and Canyon Bridge Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary Canyon Bridge Acquisition Company, Inc. The Board of Directors of Lattice Semiconductor, after considering the factors more fully described in the proxy statement as filed with the U.S. Securities and Exchange Commission, has unanimously determined that the Merger Agreement, the Merger and the transactions contemplated by the Merger Agreement are advisable and in the best interests of Lattice Semiconductor and its stockholders, and adopted and approved the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement. The Special Meeting will be held at Lattice Semiconductor's principal executive offices, located on the 8th floor of the US Bancorp Tower, 111 SW 5th Ave., Portland, Oregon 97204.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Such forward-looking statements include statements relating to: our expectation that our long term growth will be based on a combination of new consumer design wins along with continuous growth in our industrial and communications businesses focused on new applications such as medical devices, virtual and augmented reality, along with wireless connectivity. Other forward-looking statements may be indicated by words such as “will,” “could,” “should,” “would,” “may,” “expect,” “plan,” “project,” “anticipate,” “intend,” “forecast,” “future,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms or other comparable terminology; and our expectation that we will remain focused on maximizing the leverage of our operating model and reduce our outstanding debt balance. Lattice believes the factors identified below could cause actual results to differ materially from the forward-looking statements.