Core Viewpoint - Lattice Semiconductor reported disappointing earnings and revenues for the quarter ended June 2024, missing consensus estimates and showing a significant decline compared to the previous year [2][8]. Financial Performance - Lattice posted revenues of $124.08 million, missing the Zacks Consensus Estimate by 4.59%, and down from $190.08 million year-over-year [2]. - The company reported earnings of $0.23 per share, below the Zacks Consensus Estimate of $0.24 per share, and a decrease from $0.52 per share a year ago [8]. - The earnings surprise for the quarter was -4.17%, with no surprise reported in the previous quarter [1]. Stock Performance - Lattice shares have declined approximately 20.2% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3]. - The company has surpassed consensus EPS estimates only once in the last four quarters [9]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $142.43 million, and for the current fiscal year, it is $1.18 on revenues of $566.87 million [5]. - The estimate revisions trend for Lattice is mixed, leading to a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [12]. - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [10]. Industry Context - The Electronics - Semiconductors industry is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [13].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Lattice Semiconductor reported Q2 2024 revenue of $124.1 million, a significant year-over-year decrease, reflecting cyclic industry headwinds [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) GAAP results for Q2 2024 show a significant year-over-year decline in revenue and net income, with diluted EPS at $0.16 Q2 2024 GAAP Financial Performance | Metric | Q2 2024 | Q1 2024 | Q2 2023 | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $124,076K | $140,815K | $190,079K | (11.9)% | (34.7)% | | **Gross Margin %** | 68.3% | 68.3% | 69.7% | — | (140) bps | | **Income from Operations** | $22,565K | $16,574K | $53,070K | 36.1% | (57.5)% | | **Net Income** | $22,631K | $14,796K | $50,644K | 53.0% | (55.3)% | | **Net Income per Share - Diluted** | $0.16 | $0.11 | $0.36 | $0.05 | $(0.20) | - The CEO attributed the results to the impact of cyclic industry headwinds, while noting early signs of improvement as the industry undergoes inventory normalization[23](index=23&type=chunk) [Non-GAAP Financial Results](index=1&type=section&id=Non-GAAP%20Financial%20Results) Non-GAAP results for Q2 2024 show revenue of $124.1 million and a 56.7% year-over-year decline in net income Q2 2024 Non-GAAP Financial Performance | Metric | Q2 2024 | Q1 2024 | Q2 2023 | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $124,076K | $140,815K | $190,079K | (11.9)% | (34.7)% | | **Gross Margin %** | 69.0% | 69.0% | 70.5% | — | (150) bps | | **Income from Operations** | $31,526K | $42,238K | $75,968K | (25.4)% | (58.5)% | | **Net Income** | $31,432K | $40,258K | $72,509K | (21.9)% | (56.7)% | | **Net Income per Share - Diluted** | $0.23 | $0.29 | $0.52 | $(0.06) | $(0.29) | - The CFO highlighted the durability of the business model with stable gross margin, disciplined spending, and continued capital return to shareholders through share repurchases for the 15th consecutive quarter[40](index=40&type=chunk) [Business Highlights and Outlook](index=2&type=section&id=Business%20Highlights%20and%20Outlook) Lattice expanded its FPGA portfolio and security solutions while projecting Q3 2024 revenue between $117 million and $137 million [Q2 2024 Business Highlights](index=2&type=section&id=Q2%202024%20Business%20Highlights) Lattice expanded its Certus-NX FPGA portfolio and MachXO5D-NX security solutions, earning industry recognition - **Portfolio Expansion:** Launched Certus™-NX-28 and Certus™-NX-09 devices, expanding leadership in small FPGAs[41](index=41&type=chunk) - **New Security Solutions:** Introduced the Lattice MachXO5D™-NX family of secure control FPGAs and an updated Lattice Sentry™ solution stack[41](index=41&type=chunk) - **Industry Recognition:** Received multiple awards for its hardware/software security portfolio and corporate sustainability[41](index=41&type=chunk) - **Upcoming Event:** Announced the second annual Developers Conference for December 10-11, 2024[41](index=41&type=chunk) [Q3 2024 Business Outlook](index=2&type=section&id=Q3%202024%20Business%20Outlook) For Q3 2024, Lattice projects revenue between $117 million and $137 million, with a non-GAAP gross margin of approximately 69.0% Q3 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $117 million to $137 million | | **Gross Margin % (Non-GAAP)** | 69.0% ± 1% | | **Total Operating Expenses (Non-GAAP)** | $53 million to $55 million | [Consolidated Financial Statements (GAAP)](index=5&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) GAAP financial statements reveal a year-over-year decline in revenue and net income, with stable total assets and reduced cash from operations [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2024, revenue declined to $124.1 million year-over-year, with net income significantly decreasing to $22.6 million Statement of Operations Highlights (in thousands) | Line Item | Three Months Ended June 29, 2024 | Three Months Ended July 1, 2023 | | :--- | :--- | :--- | | **Revenue** | $124,076 | $190,079 | | **Gross Margin** | $84,751 | $132,561 | | **Total Operating Expenses** | $62,186 | $79,491 | | **Income from Operations** | $22,565 | $53,070 | | **Net Income** | $22,631 | $50,644 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2024, total assets were $827.5 million, slightly down from year-end 2023, with cash at $109.2 million Balance Sheet Highlights (in thousands) | Line Item | June 29, 2024 | December 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $109,216 | $128,317 | | **Inventories, net** | $101,556 | $98,826 | | **Total current assets** | $353,204 | $367,946 | | **Total assets** | $827,520 | $840,894 | | **Total current liabilities** | $80,284 | $97,400 | | **Total liabilities** | $128,671 | $148,874 | | **Stockholders' equity** | $698,849 | $692,020 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the six months ended June 29, 2024, decreased to $51.4 million, with continued share repurchases Cash Flow Highlights - Six Months Ended (in thousands) | Line Item | June 29, 2024 | July 1, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $51,442 | $115,458 | | **Net cash used in investing activities** | $(18,188) | $(17,742) | | **Net cash used in financing activities** | $(51,733) | $(139,445) | | **Net (decrease) in cash** | $(19,101) | $(41,949) | | **Repurchase of common stock** | $(29,999) | $(20,006) | [Supplemental Financial Information](index=8&type=section&id=Supplemental%20Financial%20Information) Supplemental data shows Asia as the largest market and Industrial & Automotive as the primary end market, with increased operational metrics Revenue Breakdown by Geography, End Market, and Channel (Q2 2024 vs. Q2 2023) | Category | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | **Geography** | Asia | 67% | 63% | | | Americas | 19% | 17% | | | Europe | 14% | 20% | | **End Market** | Industrial & Automotive | 47% | 61% | | | Communications & Computing | 44% | 34% | | | Consumer | 9% | 5% | | **Channel** | Distribution | 91% | 89% | | | Direct | 9% | 11% | Key Operational Metrics (Days) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | **A/R Days Outstanding (DSO)** | 76 | 64 | 46 | | **Inventory Days (DIO)** | 236 | 195 | 177 | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliations from GAAP to non-GAAP results highlight adjustments for stock-based compensation and restructuring, leading to a higher non-GAAP net income [Gross Margin and Operating Expense Reconciliation](index=9&type=section&id=Gross%20Margin%20and%20Operating%20Expense%20Reconciliation) Adjustments for stock-based compensation and other items reconciled GAAP gross margin to 69.0% non-GAAP, and operating expenses to $54.0 million non-GAAP Q2 2024 Gross Margin Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Gross margin** | $84,751 | | Stock-based compensation | $805 | | **Non-GAAP Gross margin** | $85,556 | Q2 2024 Operating Expenses Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Operating expenses** | $62,186 | | Stock-based compensation - operations | $(2,343) | | Litigation expense | $(1,065) | | Amortization of acquired intangible assets | $(869) | | Restructuring, transformation, and other | $(3,879) | | **Non-GAAP Operating expenses** | $54,030 | [Net Income and EPS Reconciliation](index=10&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) GAAP net income of $22.6 million was reconciled to non-GAAP net income of $31.4 million, primarily due to stock-based compensation and restructuring Q2 2024 Net Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Net income** | $22,631 | | Stock-based compensation (total) | $3,148 | | Litigation expense | $1,065 | | Amortization of acquired intangible assets | $869 | | Restructuring, transformation, and other | $3,879 | | Tax effect and other tax adjustments | $(160) | | **Non-GAAP Net income** | $31,432 | Q2 2024 Diluted EPS Reconciliation | Description | Amount | | :--- | :--- | | **GAAP Net income per share - diluted** | $0.16 | | Cumulative effect of Non-GAAP adjustments | $0.07 | | **Non-GAAP Net income per share - diluted** | $0.23 |

Ratings help investors make a qualitative, apples-to-apples comparison of stocks. Analysts rate stocks on a scale of strong sell and rise to a sell, hold, buy, with strong buy being the highest. Naturally, those with strong buy ratings are considered the cream of the crop. However, ratings aren't everything. Investors should still err on the side of caution and conduct their due diligence, as highly rated artificial intelligence stocks don't automatically mean it's a sure winner. Ratings are just a piece of ...

sankai Lattice Semiconductor Corporation (NASDAQ:LSCC) experienced a huge decline in share price on Monday, June 3, 2024, as a result of Dell Technologies' (DELL) Q1 earnings announcement. Despite the decline in share price, management at Dell voiced strength across AI infrastructure and positive growth for legacy servers, which are areas in which Lattice chips can be found. Despite growing demand for the next generation of server infrastructure, the stock sold off, along with many of the associated IT infr ...

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Investors in Lattice Semiconductor Corporation (LSCC) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 21, 2024 $30 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Click to see the trades now >> Clearly, options traders are pricing in a big move for Lattice Semiconductor shares, but what is the fundamental picture for the company? Currently, Lattice Semiconductor is a Zacks Rank #3 (Hold) in ...

Lattice Semiconductor Corporation (LSCC) delivered first-quarter 2024 non-GAAP earnings of 29 cents per share, in line with the Zacks Consensus Estimate. The bottom line declined 43.1% on a year-over-year basis.Revenues of $140.8 million beat the Zacks Consensus Estimate of $140 million. The top line decreased 23.6% year over year.Weakness in the communications and computing end-market led to a year-over-year decline in the top line. The sluggish industrial and automotive end-market was another concern.Neve ...

Exhibit 99.1 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 LATTICE SEMICONDUCTOR REPORTS FIRST QUARTER 2024 RESULTS HILLSBORO, OR - April 29, 2024 - Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, announced financial results today for the fiscal first quarter ended March 30, 2024. Revenue for the first qua ...

Lattice Semiconductor (LSCC) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Apr ...

Anna Bliokh In our previous assessment of Lattice Semiconductor Corporation (NASDAQ:LSCC), we delved into the remarkable upsurge of the company's growth in 2022, which surged at an impressive 28.1%, fuelled by robust performances in the Communications & Computing (26.1%) and Industrial & Automotive (41.2%) segments, where Lattice expanded its product portfolio and increased its competitiveness. We believed these factors enabled the company to edge out other competitors. Additionally, our analysis indicated ...