Lattice Semiconductor’s third quarter results were met with a negative market reaction, despite the company meeting Wall Street’s expectations for both revenue and non-GAAP profit. Management attributed the quarter’s performance to accelerating demand in communications and computing, especially from data center and AI infrastructure customers. CEO Ford Tamer highlighted expanding design wins in low-power field-programmable gate arrays (FPGAs) for data center, security, and board management applications, wh ...

Core Insights - The article emphasizes the importance of a comprehensive investment ecosystem approach rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on the entirety of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Core Insights - Lattice Semiconductor Corporation specializes in low-power, field-programmable gate arrays (FPGAs) and competes with major players like Xilinx and Altera [1] Financial Performance - In Q3, Lattice reported earnings of 28 cents per share, meeting analyst expectations, with quarterly sales of $133.349 million, slightly above the anticipated $133.028 million [2][6] - The company forecasts Q4 adjusted EPS between 30 cents and 34 cents, compared to market estimates of 32 cents, with sales projections ranging from $138 million to $148 million, exceeding the expected $141.918 million [3][6] Market Outlook - Robert W. Baird set a price target of $75 for LSCC, indicating a potential upside of 12.26% from its trading price of $66.81 [2] - CEO Ford Tamer emphasized broad-based growth across various markets and expressed optimism for continued growth into Q4 and beyond, highlighting a 13% growth in revenue and non-GAAP EPS [4] Stock Performance - LSCC's current stock price is $66.84, reflecting a decrease of 8.21% or $5.98, with a market capitalization of approximately $9.15 billion [5]

Core Insights - Lattice Semiconductor (LSCC) reported third-quarter 2025 results that met Zacks Consensus Estimates for both revenue and net income, driven by growth in the AI server market and a focus on expanding its FPGA portfolio through innovation [1][8]. Financial Performance - The company reported a GAAP net income of $2.79 million or 2 cents per share, down from $7.19 million or 5 cents per share in the same quarter last year, primarily due to higher operating expenses [2]. - Non-GAAP net income for the quarter was $38.15 million or 28 cents per share, an increase from $32.54 million or 24 cents per share year-over-year, matching the Zacks Consensus Estimate [2]. Revenue Breakdown - Net sales increased to $133.34 million from $127.09 million in the prior-year quarter, supported by strong growth in the Communications & Computing segment, aligning with the consensus estimate of $133 million [3][8]. - Communications and Computing revenues rose to $74 million from $61 million, attributed to normalized inventory and robust demand in the AI server market [4]. - Revenues from the Industrial and Automotive segment decreased to $50.3 million from $54.2 million, impacted by higher channel inventory levels, while Consumer revenues fell to $9 million from $11.9 million [4]. Geographic Revenue Distribution - In Q3 2025, 65% of the company's revenue was generated from Asia, 19% from the Americas, and 16% from Europe and Africa [5]. Operational Metrics - Adjusted EBITDA increased to $47.4 million from $42.5 million year-over-year, while GAAP operating expenses rose to $92.1 million from $80.2 million [5]. Cash Flow and Outlook - For the first nine months of 2025, Lattice generated $117.5 million in cash from operating activities, up from $95.4 million in the prior-year period. As of September 27, 2025, the company had $117.9 million in cash and cash equivalents [6]. - The company anticipates Q4 2025 revenues in the range of $138-$148 million, with a non-GAAP gross margin expected between 68.5%-70.5% and non-GAAP net income projected at 30-34 cents per share [6][8].

Lattice Semiconductor Corporation (NASDAQ:LSCC) reported in-line earnings for the third quarter on Monday.The company posted quarterly earnings of 28 cents per share which met the analyst consensus estimate. The company reported quarterly sales of $133.349 million which beat the analyst consensus estimate of $133.028 million.Lattice Semiconductor said it sees fourth-quarter adjusted EPS of 30 cents to 34 cents versus market estimates of 32 cents. The company projects sales of $138.000 million to $148.000 mi ...

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Nov 3, 2025 6:41 PM Eastern Standard Time CORRECTING and REPLACING Lattice Semiconductor Reports Record Communications & Computing Revenue in Third Quarter 2025 Share Guides to 4Q25 Revenue Growth of 22% Year Over Year CORRECTION…by Lattice Semiconductor Corporation HILLSBORO, Ore.--(BUSINESS WIRE)--In the Business Outlook - Fourth Quarter of 2025 section, third bullet should read: Total operating expenses for the fourth quarter of 2025 are expected to be between $54.5 million and $56.5 million on a non-GAA ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $133.3 million, representing a 7.6% increase from Q2 and a 4.9% increase year-over-year, marking the highest revenue in five quarters [6][11][12] - Q4 revenue guidance is set at $143 million at the midpoint, indicating a 22% year-on-year growth, the largest increase in nearly two years [7][16] - Gross margin expanded by 20 basis points quarter-over-quarter and 50 basis points year-over-year to 69.5% on a non-GAAP basis [11][12] - Non-GAAP EPS for Q3 was $0.28, reflecting a 17% growth both year-over-year and quarter-over-quarter [12][13] Business Line Data and Key Metrics Changes - Communications and computing revenue grew 21% year-over-year and 8% sequentially, driven by increased use cases in general-purpose and AI-optimized servers [7][11] - The industrial and automotive segment saw a 6% sequential increase, with growth tempered by strategic shipping to normalize channel inventory [7][8] Market Data and Key Metrics Changes - The communications and computing segment is expected to account for over 55% of total revenue in 2025, growing to about 60% in 2026 [21] - The company is experiencing strong growth in the China automotive market, while aerospace and defense applications are also performing well globally [24] Company Strategy and Development Direction - The company is focused on capitalizing on investments in AI and data center infrastructure, with a robust innovation pipeline and increasing design wins [5][6] - The strategy includes normalizing channel inventory by year-end 2025, positioning for renewed growth into 2026 [8][15] - The company aims to deliver above-average revenue growth, supported by expanding addressable markets and increasing average selling prices from new products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong bookings and a favorable outlook for 2026 driven by the communications and computing segment [6][21] - The company noted that macroeconomic conditions could impact growth, but several factors are fueling confidence, including increased infrastructure capital expenditures [8][9] Other Important Information - The company remains debt-free and has repurchased approximately $15 million of common stock during the quarter, with a total of $86 million repurchased in the first nine months of 2025 [15] - The company expects to continue generating strong free cash flow while strategically investing in capital expenditures [13][15] Q&A Session Summary Question: Is the increased confidence in the outlook for 2026 contingent on the expected normalization in industrial and auto channel inventory? - Management indicated that the growth in communications and computing is expected to accelerate further into 2026, independent of industrial and automotive inventory normalization [21][23] Question: Can you discuss regional performance in the industrial and automotive segment? - Management noted strong performance in the China automotive market and increasing design wins in aerospace and defense globally [24] Question: What has changed in the last 90 days to increase confidence? - A successful Open Compute Summit led to increased activity and spending, with forecasts for hyperscalers being raised [28][29] Question: How is the Avant platform performing? - Both Nexus and Avant platforms are performing well, with expectations for significant growth in 2026 and 2027 [32][43] Question: What is the current view on the automotive market? - Management is seeing inventories come down and is optimistic about the automotive market's recovery [112]

REVENUE Q3'25 Earnings Highlights November 2025 NASDAQ: LSCC Q3 2025 Earnings Overview & Highlights GROSS MARGIN 7.6% Growth QoQ 69.5 $133.3M %* ADJUSTED EBITDA "We delivered a strong quarter, with broad-based growth across our end markets, and grew non-GAAP earnings 17% quarter over quarter. Our Communications and Computing business achieved record revenue, and we are expecting continued growth into the fourth quarter and beyond. We continue to drive operating leverage and expand profitability, with signif ...

NEWS RELEASE CONTACTS MEDIA: INVESTORS: Sophia Hong Rick Muscha Lattice Semiconductor Corporation Lattice Semiconductor Corporation 503-268-8786 408-826-6000 Sophia.Hong@latticesemi.com Rick.Muscha@latticesemi.com Exhibit 99.1 LATTICE SEMICONDUCTOR REPORTS RECORD COMMUNICATIONS & COMPUTING REVENUE IN THIRD QUARTER 2025 Guides to 4Q25 Revenue Growth of 22% Year Over Year HILLSBORO, Ore. - November 3, 2025 - Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, announced financi ...