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Lattice Is the Best Chip Stock to Buy for 2024, Says Analyst
Barrons· 2024-01-02 12:23
Lattice Is the Best Chip Stock to Buy for 2024, Says Analyst ...
Lattice Semiconductor(LSCC) - 2023 Q3 - Quarterly Report
2023-10-31 20:52
Financial Performance - Revenue for Q3 2023 was $192.169 million, a 11.4% increase from $172.509 million in Q3 2022[66] - Gross margin for Q3 2023 was 70.0%, up from 68.8% in Q3 2022, reflecting a 120 basis point improvement[76] - Total revenue for the first nine months of 2023 was $566.558 million, a 17.0% increase from $484.396 million in the same period of 2022[66] - Gross margin for the first nine months of 2023 was 69.8%, up from 68.1% in the same period of 2022, reflecting a 170 basis point improvement[76] Revenue Breakdown - Revenue from the Industrial and Automotive end market increased by 28% in Q3 2023 compared to Q3 2022, driven by strong customer adoption[71] - Revenue from the Communications and Computing end market decreased by 6% in Q3 2023 compared to Q3 2022, primarily due to softer demand[70] - Revenue from Asia decreased to $117.335 million (61.1% of total revenue) in Q3 2023 from $122.860 million (71.2%) in Q3 2022[74] - Revenue from the Consumer end market decreased by 24% for the first nine months of 2023 compared to the same period in 2022, primarily due to macroeconomic weakness[72] - Revenue attributable to distributors was 90% for Q3 2023, consistent with Q3 2022, indicating stable distribution channels[75] Expenses - Research and development expenses increased by 20.8% to $42.048 million in Q3 2023 compared to $34.820 million in Q3 2022[77] - Selling, general, and administrative expenses for Q3 2023 were $33.2 million, a 4.0% increase from $31.9 million in Q3 2022, representing 17.3% of revenue[78] - Amortization of acquired intangible assets was $870,000 in Q3 2023, flat compared to $869,000 in Q3 2022, and decreased by 10.3% to $2.6 million for the first nine months of fiscal 2023[79] - Restructuring costs decreased by 34.8% to $1.5 million in Q3 2023 from $2.3 million in Q3 2022, representing 0.8% of revenue[80] Income and Tax - Interest income (expense), net improved to $954,000 in Q3 2023 from an expense of $1.3 million in Q3 2022, a change of 175.3%[82] - Income tax expense increased significantly to $4.1 million in Q3 2023, up 1,050.8% from $356,000 in Q3 2022, driven by increased worldwide income[84] Cash Flow and Investments - Cash and cash equivalents decreased by 21.5% to $114.4 million as of September 30, 2023, down from $145.7 million at the end of 2022[89] - Cash provided by operating activities for the first nine months of fiscal 2023 was $197.6 million, an increase of $40.8 million compared to $156.8 million in the same period of fiscal 2022[91] - Net cash used by investing activities increased to $25.3 million in the first nine months of fiscal 2023 from $21.4 million in the same period of fiscal 2022, primarily due to increased capital expenditures[92] - Net cash used by financing activities rose to $203.1 million in the first nine months of fiscal 2023, up $57.1 million from $146.0 million in the same period of fiscal 2022[93] Balance Sheet and Working Capital - Accounts receivable, net increased by approximately $11.9 million, or 12.7%, to $105.9 million as of September 30, 2023, compared to $94.0 million on December 31, 2022[94] - Inventories decreased by $6.4 million, or 5.8%, to $104.0 million as of September 30, 2023, from $110.4 million on December 31, 2022, primarily due to increased product shipments[95] - Days sales outstanding increased by 1 day to 50 days as of September 30, 2023, compared to 49 days on December 31, 2022[94] - Days of inventory on hand decreased by 22 days to 165 days as of September 30, 2023, from 187 days on December 31, 2022[95] Future Outlook and Risk Management - The company may consider future acquisition opportunities to extend its product or technology portfolios and expand product offerings[88] - As of September 30, 2023, the company had no used or unused credit arrangements beyond the secured revolving loan facility described in the 2022 Credit Agreement[97] - The company has established policies to protect against market risks related to foreign currency exchange rates and interest rates, with no material changes reported since the previous disclosures[99] - The share repurchase program details are available in the quarterly report, indicating ongoing capital management strategies[98]
Lattice Semiconductor(LSCC) - 2023 Q2 - Earnings Call Transcript
2023-08-01 03:38
Jim Anderson - President and Chief Executive Officer David Williams - Benchmark Company Ruben Roy - Stifel Nicolaus Rick Muscha We will refer primarily to non-GAAP financial measures during this call. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. For historical periods, we provided reconciliations of these non-GAAP financial measures to GAAP financial measures that ...
Lattice Semiconductor(LSCC) - 2023 Q2 - Quarterly Report
2023-07-31 16:00
FOR THE TRANSITION PERIOD FROM __________ TO __________ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 1, 2023 OR Commission file number 000-18032 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 LATTICE SEMICONDUCTOR CORPORATION (Exact name of Registrant as specified in its char ...
Lattice Semiconductor(LSCC) - 2023 Q1 - Earnings Call Transcript
2023-05-02 01:42
Matt Ramsay Yeah, thanks for the question, Matt. Yeah, so we're quite pleased with the results that we saw in Q1 in particular, the year-over-year growth of 22%. We feel like [indiscernible] a good start for the year, especially considering over the last two years, we've grown at over 20% per year and like I said, 12 consecutive quarters of growth. So we feel good about that. The power efficiency that we bring, the flexibility, the increasing software content that we're delivering to our customers, all of t ...
Lattice Semiconductor(LSCC) - 2023 Q1 - Quarterly Report
2023-05-01 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission file number 000-18032 LATTICE SEMICONDUCTOR CORPORATION (Exact name of Registrant as specified in its cha ...
Lattice Semiconductor(LSCC) - 2022 Q4 - Annual Report
2023-02-17 21:20
PART I [Business](index=4&type=section&id=Item%201.%20Business) Lattice Semiconductor is a fabless leader in low-power programmable logic, providing FPGAs, software, and IP to global Communications, Computing, Industrial, Automotive, and Consumer markets - Lattice positions itself as the **low-power programmable leader**, addressing customer needs from Edge to Cloud across Communications, Computing, Industrial, Automotive, and Consumer markets[13](index=13&type=chunk) - The product portfolio includes FPGA families like Lattice Avant™, Certus™, Mach™, iCE™, and CrossLink™, tailored for specific applications[25](index=25&type=chunk)[32](index=32&type=chunk) - Lattice operates a **fabless business model**, relying on third-party foundries (TSMC, Samsung, UMC) and OSATs (ASE, Amkor) for manufacturing[31](index=31&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) Sales to Distributors as a Percentage of Net Revenue | Fiscal Year | Percentage of Net Revenue | | :--- | :--- | | 2022 | 89% | | 2021 | 87% | | 2020 | 83% | - As of December 31, 2022, the company had **949 employees** worldwide[48](index=48&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant global operational risks, including geopolitical tensions, trade sanctions, supply chain reliance on Asian manufacturers, IP licensing fluctuations, litigation, cybersecurity threats, and high distributor dependence - Global operations are exposed to economic, political, and regulatory risks, including geopolitical conflicts and U.S.-China trade relations, potentially disrupting manufacturing partners[59](index=59&type=chunk)[60](index=60&type=chunk) - Reliance on a few subcontractors for wafer fabrication (TSMC, Samsung, UMC) and assembly/test (ASE, Amkor) in Asia poses significant disruption risks[72](index=72&type=chunk)[73](index=73&type=chunk) - High dependence on distributors for sales, with **Weikeng Group and Arrow Electronics Inc. accounting for 59% of total revenue** in fiscal 2022[121](index=121&type=chunk) - Cybersecurity is a major risk, with threats from cyber-attacks, hacking, and fraud potentially compromising intellectual property and disrupting business operations[85](index=85&type=chunk)[88](index=88&type=chunk) - The business is subject to cyclical patterns in the semiconductor industry, where downturns could reduce demand, erode prices, and lead to inventory write-downs[111](index=111&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[139](index=139&type=chunk) [Properties](index=23&type=section&id=Item%202.%20Properties) Lattice leases all major facilities, including its 47,800 sq ft corporate headquarters in Hillsboro, Oregon, and key R&D sites in San Jose, Shanghai, and Muntinlupa City - Corporate headquarters is leased in Hillsboro, Oregon, spanning **47,800 sq ft** through October 2028[140](index=140&type=chunk) - Major research and development facilities are leased in San Jose, CA (**98,874 sq ft**), Shanghai, China (**68,027 sq ft**), and Muntinlupa City, Philippines (**50,503 sq ft**)[141](index=141&type=chunk)[142](index=142&type=chunk) [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) The company is defending a December 2018 lawsuit alleging violations related to 2008 product sales, with plaintiffs seeking **$155 million to $268 million** in damages - A lawsuit commenced on December 19, 2018, alleges the company failed to disclose the export-controlled status of certain products sold around 2008[332](index=332&type=chunk) - Plaintiffs are seeking damages of **$155 million to $268 million**, plus treble damages, which the company believes are without merit and is defending[332](index=332&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[144](index=144&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Lattice's common stock trades on NASDAQ under "LSCC"; the company has never paid dividends and authorized a **$150 million** stock repurchase program in August 2022, repurchasing **$110.1 million** in fiscal 2022 - The company's common stock trades on the **NASDAQ Global Select Market** under the symbol **"LSCC"**[146](index=146&type=chunk) - Lattice has never paid cash dividends, intending to retain earnings for business financing[148](index=148&type=chunk) Fiscal 2022 Stock Repurchase Activity | Metric | Value | | :--- | :--- | | Program Authorization (Aug 2022) | $150.0 million | | Total Shares Repurchased (FY 2022) | 1,951,934 shares | | Total Cost (FY 2022) | $110.1 million | | Average Price Per Share (FY 2022) | $56.42 | | Remaining Authorization (as of Dec 31, 2022) | $129.7 million | [Reserved](index=25&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2022, Lattice achieved strong financial growth with **28.1% revenue increase to $660.4 million**, **gross margin expansion to 68.5%**, and **net income growth of 86.5% to $178.9 million**, maintaining solid liquidity Fiscal 2022 vs. 2021 Financial Performance | Metric | Fiscal 2022 | Fiscal 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $660.4 million | $515.3 million | +28.1% | | Gross Margin | $452.1 million (68.5%) | $321.7 million (62.4%) | +40.5% | | Income from Operations | $187.4 million | $100.8 million | +85.9% | | Net Income | $178.9 million | $95.9 million | +86.5% | Revenue by End Market (Fiscal 2022) | End Market | Revenue (in millions) | % of Total | YoY Change | | :--- | :--- | :--- | :--- | | Industrial and Automotive | $319.4 | 48.4% | +41.2% | | Communications and Computing | $274.8 | 41.6% | +26.1% | | Consumer | $49.1 | 7.4% | -3.1% | | Licensing and Services | $17.1 | 2.6% | -16.3% | - Gross margin percentage increased by **610 basis points** from **62.4% in fiscal 2021 to 68.5% in fiscal 2022**, driven by the company's margin expansion strategy[183](index=183&type=chunk) - Cash provided by operating activities increased to **$238.8 million in fiscal 2022** from **$167.7 million in fiscal 2021**, primarily due to improved operating performance[205](index=205&type=chunk) - Inventories increased by **63.3% to $110.4 million** at the end of fiscal 2022, primarily to meet increased customer demand and support new product ramps[210](index=210&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency and interest rate fluctuations, with a **$130.0 million** variable-rate debt exposure where a **1% SOFR increase** would raise quarterly interest expense by **$0.3 million** - The company's main market risks are foreign currency exchange rates and interest rates[215](index=215&type=chunk) - Interest rate risk stems from **$130.0 million in variable-rate debt** outstanding as of December 31, 2022, where a hypothetical **100 basis point (1%) increase** in one-month SOFR would increase future interest expense by approximately **$0.3 million per quarter**[217](index=217&type=chunk) [Financial Statements and Supplementary Data](index=35&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for fiscal years 2022-2020, with Ernst & Young LLP issuing an unqualified opinion on financials and internal controls, highlighting inventory valuation as a critical audit matter Consolidated Statement of Operations Highlights (in thousands) | | Year Ended Dec 31, 2022 | Year Ended Jan 1, 2022 | Year Ended Jan 2, 2021 | | :--- | :--- | :--- | :--- | | Revenue (in thousands) | $660,356 | $515,327 | $408,120 | | Gross margin (in thousands) | $452,050 | $321,675 | $245,306 | | Income from operations (in thousands) | $187,367 | $100,816 | $52,366 | | Net income (in thousands) | $178,882 | $95,922 | $47,392 | | Diluted EPS ($) | $1.27 | $0.67 | $0.34 | Consolidated Balance Sheet Highlights (in thousands) | | As of Dec 31, 2022 | As of Jan 1, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents (in thousands) | $145,722 | $131,570 | | Total Assets (in thousands) | $798,713 | $726,494 | | Long-term debt, net (in thousands) | $128,752 | $140,760 | | Total Stockholders' Equity (in thousands) | $487,163 | $411,633 | - The independent auditor, **Ernst & Young LLP**, issued an **unqualified opinion** on the financial statements and internal controls over financial reporting[336](index=336&type=chunk)[337](index=337&type=chunk) - The auditor identified **Inventory Valuation** as a Critical Audit Matter due to challenging and subjective judgments in estimating excess and obsolete inventory, sensitive to future customer demand assumptions[341](index=341&type=chunk) [Changes in and Disagreements with Accountants On Accounting and Financial Disclosure](index=62&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20On%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting principles, practices, or financial disclosure - None[354](index=354&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2022, management concluded disclosure controls and internal control over financial reporting were effective, with Ernst & Young LLP issuing an unqualified opinion and no material changes reported - Management concluded that disclosure controls and procedures were **effective** as of December 31, 2022[355](index=355&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2022, based on the **COSO 2013 framework**[358](index=358&type=chunk) - There were no material changes in internal controls over financial reporting during the fourth quarter of fiscal 2022[360](index=360&type=chunk) [Other Information](index=63&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[361](index=361&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=63&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[362](index=362&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement, with the company maintaining a Code of Conduct for all personnel - All required information regarding directors, executive officers, and corporate governance is incorporated by reference from the **2023 Proxy Statement**[364](index=364&type=chunk)[365](index=365&type=chunk) - The company has adopted a **Code of Conduct** applicable to all directors, employees, consultants, and agents, posted on its website[367](index=367&type=chunk) [Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) All information related to executive and director compensation, and related committee reports, is incorporated by reference from the company's **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Proxy Statement under "Executive Compensation," "Director Compensation," and related committee reports[370](index=370&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=64&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, and equity compensation plans, is incorporated by reference from the company's **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Proxy Statement under "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information"[371](index=371&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=64&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning related party transactions and director independence is incorporated by reference from the **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Proxy Statement under "Certain Relationships and Related Transactions" and "Corporate Governance and Other Matters--Director Independence"[372](index=372&type=chunk) [Principal Accountant Fees and Services](index=64&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Details regarding fees paid to and services provided by the principal independent registered public accounting firm are incorporated by reference from the **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Proxy Statement under "Proposal 5: Ratification of Appointment of Independent Registered Public Accounting Firm--Audit and Related Fees"[373](index=373&type=chunk) PART IV [Exhibits](index=65&type=section&id=Item%2015.%20Exhibits) This section lists documents filed as part of the Form 10-K, including consolidated financial statements, corporate documents, material contracts, employee compensation plans, and CEO/CFO certifications - Lists the financial statements filed under Item 8[374](index=374&type=chunk)[375](index=375&type=chunk) - Provides a detailed list of all exhibits filed, including key corporate documents, material agreements like the **Amended and Restated Credit Agreement dated September 1, 2022**, and various management compensation plans[376](index=376&type=chunk)[378](index=378&type=chunk) - Includes CEO and CFO certifications pursuant to Sections 302 and 906 of the **Sarbanes-Oxley Act of 2002**[380](index=380&type=chunk)
Lattice Semiconductor(LSCC) - 2022 Q4 - Earnings Call Transcript
2023-02-13 23:21
Lattice Semiconductor Corporation (NASDAQ:LSCC) Q4 2022 Earnings Conference Call February 13, 2023 5:00 PM ET Company Participants Rick Muscha - Director of Investor Relations Jim Anderson - President and Chief Executive Officer Sherri Luther - Chief Financial Officer Conference Call Participants Alessandra Vecchi - William Blair David Williams - Benchmark Company Matt Ramsay - Cowen Christopher Rolland - SIG Hans Mosesmann - Rosenblatt Securities Operator Greetings, welcome to Lattice Semiconductor Fourth ...
Lattice Semiconductor(LSCC) - 2022 Q3 - Earnings Call Transcript
2022-11-01 00:28
Lattice Semiconductor Corporation (NASDAQ:LSCC) Q3 2022 Results Conference Call October 31, 2022 5:00 PM ET Company Participants Rick Muscha - Senior Director, Investor Relations Jim Anderson - President & Chief Executive Officer Sherri Luther - Chief Financial Officer Conference Call Participants Ruben Roy - Stifel Christopher Rolland - Susquehanna Matt Ramsay - Cowen Alessandra Vecchi - William Blair Tristan Gerra - Robert W. Baird Mark Lipacis - Jefferies Hans Mosesmann - Rosenblatt Securities David Will ...
Lattice Semiconductor(LSCC) - 2022 Q3 - Quarterly Report
2022-10-31 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 1, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission file number 000-18032 LATTICE SEMICONDUCTOR CORPORATION (Exact name of Registrant as specified in its c ...