Revenue

Cost of sales

Gross margin

Operating expenses:

Research and development

Selling, general, and administrative

Amortization of acquired intangible assets

Restructuring

Impairment of acquired intangible assets

Acquisition related charges

Total operating expenses

Income (loss) from operations

)

Interest expense

)

)

)

)

)

Other expense, net

Income (loss) before income taxes

)

Income tax expense

Net income (loss)

Net income (loss) per share:

Basic

Diluted

Shares used in per share calculations:

Basic

Diluted

Assets

Current assets:

Cash and cash equivalents

Short-term marketable securities

Accounts receivable, net

Inventories

Other current assets

Total current assets

Property and equipment, net

Operating lease right-of-use assets

Intangible assets, net

Goodwill

Deferred income taxes

Other long-term assets

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and other accrued liabilities

Current portion of long-term debt

Current portion of operating lease liabilities

Total current liabilities

Long-term debt, net of current portion

Long-term operating lease liabilities, net of current portion

Other long-term liabilities

Total liabilities

Stockholders' equity

Cash flows from operating activities:

Net income (loss)

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

Impairment of acquired intangible assets

Stock-based compensation expense

Other non-cash adjustments

Net changes in assets and liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Capital expenditures

)

)

Other investing activities

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from issuance of long-term debt

Original issue discount and debt issuance costs

)

Repayment of long-term debt

)

)

Net cash flows related to stock compensation exercises

Net cash used in financing activities

Effect of exchange rate change on cash

Net increase (decrease) in cash and cash equivalents

)

Beginning cash and cash equivalents

Ending cash and cash equivalents

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

Interest paid

Income taxes paid, net of refunds

Balance Sheet Information

A/R Days Revenue Outstanding (DSO)

Inventory Days (DIO)

Revenue% (by Geography)

Asia

%

%

%

Europe (incl. Africa)

%

%

%

Americas

%

%

%

Revenue% (by End Market)

Communications and Computing

%

%

%

Industrial and Automotive

%

%

%

Consumer

%

%

%

Licensing and Services

%

%

%

Revenue% (by Channel)

Distribution

%

%

%

Direct

%

%

%

Gross Margin Reconciliation

GAAP Gross margin

Stock-based compensation - gross margin

Inventory adjustment related to restructured operations

Non-GAAP Gross margin

Gross Margin % Reconciliation

GAAP Gross margin %

%

%

%

Cumulative effect of non-GAAP Gross Margin adjustments

Non-GAAP Gross margin %

%

%

%

Research and Development Expense % (R&D Expense %) Reconciliation

GAAP R&D Expense %

%

%

%

Stock-based compensation - R&D

Non-GAAP R&D Expense %

%

%

%

Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation

GAAP SG&A Expense %

%

%

%

Stock-based compensation - SG&A

Non-GAAP SG&A Expense %

%

%

%

Operating Expenses Reconciliation

GAAP Operating expenses

Stock-based compensation - operations

)

)

)

Amortization of acquired intangible assets

)

)

)

Restructuring charges

)

)

)

Impairment of acquired intangible assets

Non-GAAP Operating expenses

Income from Operations Reconciliation

GAAP Income from operations

Stock-based compensation - gross margin

Inventory adjustment related to restructured operations

)

Stock-based compensation - operations

Amortization of acquired intangible assets

Restructuring charges

Impairment of acquired intangible assets

Non-GAAP Income from operations

Income from Operations % Reconciliation

GAAP Income from operations %

%

%

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

Non-GAAP Income from operations %

%

%

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

Other (Expense) Income, Net Reconciliation

GAAP Other expense, net

)

)

)

Loss on re-financing of long-term debt

Non-GAAP Other (expense) income, net

)

)

Income Tax Expense Reconciliation

GAAP Income tax expense

Estimated tax effect of non-GAAP adjustments (1)

Non-GAAP Income tax expense

Net Income Reconciliation

GAAP Net income

Stock-based compensation - gross margin

Inventory adjustment related to restructured operations

)

Stock-based compensation - operations

Amortization of acquired intangible assets

Restructuring charges

Impairment of acquired intangible assets

Loss on re-financing of long-term debt

Estimated tax effect of non-GAAP adjustments (1)

Non-GAAP Net income

Net Income Per Share Reconciliation

GAAP Net income per share - basic

Cumulative effect of Non-GAAP adjustments

Non-GAAP Net income per share - basic

GAAP Net income per share - diluted

Cumulative effect of Non-GAAP adjustments

Non-GAAP Net income per share - diluted

Shares used in per share calculations:

Basic

Diluted - GAAP (2)

Diluted - Non-GAAP (2)