Revenue Performance - Revenue for Q1 2025 was $120.1 million, representing a 2.3% increase from Q4 2024 but a 14.7% decrease year-over-year[5]. - Revenue for the three months ended March 29, 2025, was $120.15 million, a 2% increase from $117.42 million in the previous quarter but a 15% decrease from $140.82 million year-over-year[19]. - Revenue by geography showed 65% from Asia, 25% from the Americas, and 10% from Europe, with a slight shift in the Americas' contribution compared to the previous quarter[25]. Profitability Metrics - GAAP gross margin for Q1 2025 was 68.0%, up 690 basis points from Q4 2024, while non-GAAP gross margin was 69.0%[3][5]. - Gross margin for the same period was $81.73 million, representing a gross margin percentage of 68.0%, compared to 61.1% in the previous quarter and 68.3% year-over-year[27]. - Net income for Q1 2025 was $5.0 million, a decline of 69.6% compared to Q4 2024, with a net income margin of 4.2%[5]. - Net income for Q1 2025 was $5.02 million, a significant decrease of 70% from $16.51 million in the previous quarter and a 66% decrease from $14.80 million year-over-year[19]. - Non-GAAP net income for the same period was $30,746,000, up from $20,181,000 in the previous quarter and down from $40,258,000 a year ago[30]. - GAAP net income margin for the three months ended March 29, 2025, was 4.2%, down from 14.1% in the previous quarter and 10.5% year-over-year[35]. Operating Expenses - Total operating expenses for Q2 2025 are projected to be between $50.5 million and $52.5 million on a non-GAAP basis[7]. - Operating expenses totaled $74.75 million, down from $83.96 million in the previous quarter, with R&D expenses increasing to $41.39 million from $38.58 million[19]. - R&D expenses as a percentage of revenue increased to 34.4% in Q1 2025, compared to 32.9% in Q4 2024[5]. - The company is maintaining disciplined control over operating expenses while focusing on execution and monitoring market conditions[4]. Cash Flow and Shareholder Returns - The company reported a GAAP net cash flow from operating activities of $31.9 million for Q1 2025, with a free cash flow of $23.3 million[3]. - Cash flows from operating activities were $31.89 million, an increase from $29.51 million in the previous year[23]. - The company repurchased $25 million in common stock during the quarter, compared to $20 million in the previous quarter[23]. - Free cash flow for the quarter was $23,276,000, down from $39,667,000 in the previous quarter and up from $26,085,000 year-over-year[35]. Adjusted Metrics - Adjusted EBITDA for Q1 2025 was $40.1 million, resulting in an adjusted EBITDA margin of 33.4%[3][5]. - Adjusted EBITDA for the three months ended March 29, 2025, was $40,080,000, compared to $29,116,000 for December 28, 2024, and $50,288,000 for March 30, 2024[35]. - Non-GAAP income from operations was $31.54 million, compared to $20.10 million in the previous quarter[27]. - Non-GAAP income from operations margin increased to 26.2% from 17.1% in the previous quarter and decreased from 30.0% year-over-year[30]. Market and Business Highlights - The company achieved a record level of design wins, driven by applications in generative AI, robotics, automotive, and security[4]. - The communications and computing segment accounted for 48% of total revenue, while industrial and automotive contributed 43%[25]. Share Performance - GAAP net income per share - basic was $0.04, compared to $0.12 for the previous quarter and $0.11 for the same quarter last year[35]. - Non-GAAP net income per share - basic increased to $0.22 from $0.15 in the previous quarter and decreased from $0.29 year-over-year[35]. Stock-Based Compensation - The cumulative effect of non-GAAP adjustments for stock-based compensation was $20,556,000 for the current quarter, compared to $14,855,000 in the previous quarter[35]. Inventory and Receivables - Accounts receivable days outstanding (DSO) remained stable at 64 days, while inventory days outstanding (DIO) increased to 225 days from 207 days in the previous quarter[25].

Group 1 - Lattice Semiconductor (LSCC) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a popular trading tool that helps smooth out price fluctuations and provides trend reversal signals, with a price above this average considered positive [2] - LSCC shares have increased by 9.3% over the past four weeks, and the company holds a Zacks Rank 2 (Buy), suggesting potential for continued growth [3] Group 2 - Positive earnings estimate revisions for LSCC strengthen the bullish outlook, with no estimates decreasing in the past two months and four estimates increasing [3] - Investors are encouraged to consider adding LSCC to their watchlist due to the important technical indicators and favorable earnings revisions [4]

Revenue Performance - Revenue for fiscal 2024 decreased by $227.8 million, or 31%, to $509.4 million compared to $737.2 million in fiscal 2023, primarily due to softer demand in industrial and automotive applications and inventory normalization by customers [185]. - Total revenue for fiscal 2024 was $509,401,000, a decrease of 30.9% compared to $737,154,000 in fiscal 2023 [193]. - Revenue from the Communications and Computing end market decreased by 11% in fiscal 2024, primarily due to softer demand in telecommunications infrastructure [190]. - Revenue from the Industrial and Automotive end market decreased by 45% in fiscal 2024, primarily due to reduced demand and inventory normalization [191]. - Revenue from Asia decreased in fiscal 2024 compared to fiscal 2023, primarily due to the macroeconomic environment in the region [192]. - Revenue from distributors accounted for 89% of total revenue for the year ended December 28, 2024, up from 87% in 2023 [254]. - Revenue from the China market was $206.380 million, representing 40% of total revenue, compared to 32% in 2023 [288]. Profitability and Margins - Gross margin for fiscal 2024 was 66.8%, down from 69.8% in fiscal 2023, reflecting the impact of decreased revenue and increased costs [184]. - Income from operations for fiscal 2024 was $34.5 million, or 6.8% of revenue, down from $212.3 million, or 28.8% of revenue, in fiscal 2023 [184]. - The GAAP net income for fiscal 2024 was $61.1 million, representing a net income margin of 12.0%, down from 35.1% in 2023 [240]. - Adjusted EBITDA for fiscal 2024 was $162.0 million, with an adjusted EBITDA margin of 31.8%, compared to $324.7 million and 44.0% in 2023 [240]. - Net income for the year ended December 28, 2024, was $61,131,000, a decrease of 76.4% compared to $259,061,000 in 2023 [242]. Expenses - Research and development expenses increased to $159.3 million, representing 31.3% of revenue in fiscal 2024, compared to 21.7% in fiscal 2023 [184]. - Selling, general and administrative expenses were $116.9 million, or 23.0% of revenue, in fiscal 2024, compared to 18.6% in fiscal 2023 [184]. - Restructuring costs increased significantly to $12,291,000, representing 2.4% of total revenue, compared to $1,908,000 in fiscal 2023 [203]. - Total operating expenses increased slightly to $305.943 million from $302.400 million in 2023, marking a rise of 0.5% [358]. Cash Flow and Liquidity - Cash provided by operating activities decreased to $140.9 million in fiscal 2024 from $269.6 million in fiscal 2023, a decline of $128.7 million [224]. - The company had cash and cash equivalents of $136.3 million as of December 28, 2024, a 6.2% increase from $128.3 million in 2023 [223]. - The company had no outstanding long-term debt as of December 28, 2024, compared to $130.0 million in discretionary payments made in fiscal 2023 [226]. - Operating cash flow for 2024 was $140,876,000, down from $269,588,000 in 2023, a decline of 47.8% [246]. Assets and Liabilities - Total assets increased slightly to $843,903,000 in 2024 from $840,894,000 in 2023, reflecting a growth of 0.1% [244]. - Total liabilities decreased to $132,971,000 in 2024 from $148,874,000 in 2023, a reduction of 10.7% [244]. - Stockholders' equity increased to $710,932,000 in 2024, up from $692,020,000 in 2023, representing a growth of 2.9% [244]. Stock and Equity - The company issued 1,509,000 shares in connection with employee equity incentive plans in 2024 [248]. - The company repurchased 1,145,000 shares of common stock in 2024, totaling $66,806,000 [248]. - The company announced a new stock repurchase program on December 9, 2024, allowing for an additional $100 million in repurchases through December 31, 2025 [338]. Tax and Deferred Tax Assets - The income tax benefit for fiscal 2024 was $(24,902,000), a decrease of 43.7% compared to $(44,205,000) in fiscal 2023, influenced by various tax benefits [209]. - Total deferred tax assets increased to $152.3 million in 2024 from $139.7 million in 2023, while the valuation allowance rose to $82.7 million from $79.1 million [343]. Audit and Compliance - The financial statements were audited and presented fairly in accordance with U.S. generally accepted accounting principles [360]. - The Company has been under audit by Ernst & Young LLP since 2020, with the latest report dated February 14, 2025 [368].

Core Viewpoint - Lattice Semiconductor (LSCC) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Lattice's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The earnings estimate for the current quarter is $0.22 per share, reflecting a decrease of 24.14% from the previous year, but the Zacks Consensus Estimate has increased by 44.52% over the last 30 days with no negative revisions [4]. - For the full year, the earnings estimate is $1.10 per share, representing a 22.22% increase from the previous year, with a 14.74% boost in the consensus estimate and four upward revisions compared to no negative changes [5]. Zacks Rank - Lattice currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions, and historically, stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have outperformed the S&P 500 [6]. - The Zacks Rank system has shown an impressive track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3]. Stock Performance - Lattice shares have increased by 12.4% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [7].

Lattice Semiconductor (LSCC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indi ...

Financial Data and Key Metrics Changes - Fourth quarter 2024 revenue was $117.4 million, down 8% sequentially and down 31% year-over-year, reflecting continued inventory normalization and macroeconomic softness [35][22] - Full year 2024 revenue was $509.4 million, down 31% from 2023, with a strong EBITDA margin of 31.8% [24][35] - Non-GAAP gross margin for Q4 was 62.1%, which would have been 68.1% without a $7 million one-time charge [36] - Non-GAAP operating expenses for Q4 were $52.8 million, down 2% sequentially and down 5% year-over-year [37] - Non-GAAP EPS for Q4 was $0.15, which would have been $0.20 without the one-time charge [40] Business Line Data and Key Metrics Changes - The computing subsegment grew in 2024, while communications and industrial automotive segments declined by double digits [35][24] - Revenue from new products, including Nexus and Avant, grew double digits in 2024 compared to 2023 [25] Market Data and Key Metrics Changes - Communications and computing markets saw a 5% sequential decline, while industrial automotive was down 9% [22] - The book-to-bill ratio has been over one for the past few weeks, indicating improvement in customer consumption [21] Company Strategy and Development Direction - The company is focusing on leveraging trends such as AI, increasing ASIC and ASSP development costs, and the need for programmability in emerging applications like post-quantum cryptography [15][16][17] - The company aims for long-term revenue growth targets of 15% to 20% in 2026 and beyond, supported by new product launches and design wins [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a U-shaped recovery in 2025, with expectations for low single-digit revenue growth compared to 2024 [28][30] - The company is encouraged by improvements in customer consumption and a stronger backlog, indicating positive trends for the coming quarters [20][21] Other Important Information - The company announced a $100 million share buyback for 2025, continuing its commitment to return capital to shareholders [43] - The new R&D center in Pune, India, is expected to enhance the company's capabilities and support local and global customers [66][68] Q&A Session Summary Question: Are there particular end-markets performing better than others? - Management noted improvements in industrial automotive and communications sectors, with expectations for all segments to grow into Q1 [50][54] Question: What are the trends in communications and computing segments? - Management indicated that communications showed slight strength in Q4 compared to Q3, while computing remained strong [56][54] Question: Where is demand picking up in the automotive segment? - Demand is increasing across various applications, including infotainment, ADAS, and electrification [60] Question: What is the outlook for inventory levels? - Management expects to bring inventory down to the midpoint of the target range by mid-year 2025, with positive trends in consumption and demand [98][99] Question: How much of the server and computing business is driven by content gains? - Management reported a 50% increase in content from one generation to the next, indicating strong growth in the server segment [114] Question: What is the company's strategy regarding post-quantum cryptography? - The company is the only one with a solution for post-quantum cryptography and is seeing rapid adoption among major Tier 1 OEMs [138][140] Question: How does the company plan to balance OpEx and R&D spending? - Management is focused on maintaining financial discipline while ramping up R&D in lower-cost geographies to capture market opportunities [145][144]

Lattice Semiconductor (LSCC) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.05%. A quarter ago, it was expected that this chipmaker would post earnings of $0.24 per share when it actually produced earnings of $0.24, delivering no surprise.Over the last four quarters, the company ...

Financial Performance - Fourth quarter 2024 revenue was $117.4 million, a decrease of 31.2% year-over-year[4] - Full year 2024 revenue totaled $509.4 million, down 30.9% compared to 2023[5] - Revenue for the three months ended December 28, 2024, was $117.419 million, a decrease of 7.1% from $127.091 million in the previous quarter[24] - Net income for the year ended December 28, 2024, was $61.131 million, down from $259.061 million in the previous year, reflecting a significant decline[24] - GAAP net income for Q4 2024 was $16,514 thousand, compared to $7,190 thousand in Q3 2024, and $98,706 thousand for the year ended December 30, 2023[41] - Non-GAAP net income for Q4 2024 was $20,181 thousand, with a year-to-date total of $124,415 thousand, reflecting a significant increase from $62,801 thousand in the previous year[41] Margins and Expenses - GAAP gross margin for the fourth quarter was 61.1%, while non-GAAP gross margin was 62.1%[4] - Projected gross margin for Q1 2025 is expected to be 69.0% plus or minus 1% on a non-GAAP basis[13] - Gross margin for the same period was $71.753 million, resulting in a gross margin percentage of approximately 61%[24] - The company incurred stock-based compensation expenses of $13.7 million in Q4 2024, impacting both gross and operating margins[36] - Total operating expenses for the year ended December 28, 2024, were $305.9 million, with non-GAAP operating expenses at $215.6 million[36] Cash Flow and Assets - The company achieved a free cash flow margin of 33.8% in the fourth quarter of 2024[6] - Cash and cash equivalents increased to $136.291 million from $128.317 million year-over-year, showing a positive cash flow trend[26] - The company reported a net cash provided by operating activities of $140.876 million for the year ended December 28, 2024, compared to $269.588 million in the previous year[29] - The company reported a GAAP net cash provided by operating activities of $45,421 thousand for Q4 2024, with an operating cash flow margin of 38.7%[46] Research and Development - Research and development expenses for the three months ended December 28, 2024, were $38.580 million, compared to $41.398 million in the previous quarter, indicating a reduction in R&D spending[24] - The company’s R&D expense as a percentage of revenue was 32.9% for Q4 2024, compared to 32.6% in Q3 2024[33] Shareholder Actions - The board authorized an additional $100 million for share repurchases, reducing dilution by over 4.3% since Q4 2020[8] Awards and Recognition - Lattice received over 20 industry awards in 2024, including recognition as the Most Respected Semiconductor Company for five consecutive years[8] Operational Metrics - The company reported a DSO (Days Sales Outstanding) of 63 days for Q4 2024, an improvement from 66 days in Q3 2024[33] - The company’s inventory days (DIO) decreased to 207 days in Q4 2024, down from 242 days in Q3 2024[33] - Revenue from the Communications and Computing segment was $58.0 million, accounting for 49% of total revenue for the quarter[33] - The company’s revenue from Asia increased to 66% in Q4 2024, up from 63% in Q3 2024[33] - The Americas contributed 23% to total revenue in Q4 2024, a significant increase from 15% in Q3 2024[33] Financial Health - Total current assets as of December 28, 2024, were $364.834 million, slightly down from $367.946 million as of December 30, 2023[26] - Total liabilities decreased to $132.971 million as of December 28, 2024, from $148.874 million a year earlier, indicating improved financial health[26] - The company incurred an impairment of acquired intangible assets amounting to $13.929 million during the year ended December 28, 2024[29] - The company recognized an impairment of acquired intangible assets of $13,929 thousand in Q4 2024[46] Future Outlook - The company expects first quarter 2025 revenue to be between $115 million and $125 million[13]

Core Insights - Lattice Semiconductor Corporation (NASDAQ: LSCC) is scheduled to report Q4 '24 earnings on February 10, 2025, after market close [1] - The semiconductor market, particularly non-AI-related segments, is experiencing a slower-than-expected recovery, impacting Lattice's performance [1] Company Overview - Lattice Semiconductor operates in the semiconductor industry, which is currently facing challenges in recovery, particularly outside of AI applications [1] Analyst Background - Michael Del Monte, a buy-side equity analyst with over 5 years of experience, provides insights into the semiconductor market dynamics and Lattice's positioning [1]

Core Insights - Lattice Semiconductor reported Q3'24 earnings on November 4, 2024, with net revenue of $127.1 million and an EPS of $0.24 per share, aligning closely with consensus estimates [1] Financial Performance - The company's net revenue for Q3'24 was $127.1 million, which is consistent with market expectations [1] - Earnings per share (EPS) for the quarter stood at $0.24, also in line with consensus estimates [1] Leadership - The earnings call was led by Lattice's new CEO, Ford, indicating a potential shift in company strategy or focus under new leadership [1]