HILLSBORO, Ore.--(BUSINESS WIRE)--Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, today announced that it will hold its fourth quarter and full year 2023 conference call on Monday, Feb. 12, 2024. Jim Anderson, President and Chief Executive Officer, and Sherri Luther, Chief Financial Officer, will discuss Lattice Semiconductor’s financial results and business outlook. The dial-in number for the live audio call beginning on Monday, Feb. 12, 2024, at 5 p.m. Eastern Time is ...

HILLSBORO, Ore.--(BUSINESS WIRE)--Lattice Semiconductor (NASDAQ: LSCC), the low power programmable leader, today announced its new Lattice Drive™ solution stack has been named a 2024 BIG Innovation Award winner in the product category for enabling power efficient, scalable, and secure in-vehicle experiences. “At Lattice, we’re committed to delivering innovation that makes it easier for our customers to achieve their design goals and get to market fast,” said Matt Dobrodziej, Corporate Vice President of S ...

Lattice Is the Best Chip Stock to Buy for 2024, Says Analyst ...

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]

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 ...

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 ...

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 ...

Revenue Performance - Revenue for the first quarter of fiscal 2023 was $184.31 million, a 22.5% increase from $150.52 million in the same period of fiscal 2022[63] - Revenue from the Industrial and Automotive end market surged by 55% year-over-year, driven by strong adoption in industrial automation and robotics[68] - Revenue from the Communications and Computing end market increased by 3% year-over-year, primarily due to growth in datacenter servers and 5G infrastructure[67] - Revenue from the Consumer end market decreased by 42% year-over-year, attributed to macroeconomic weakness[69] - Revenue from Asia accounted for 57.4% of total revenue, down from 72.3% in the previous year[70] Profitability and Expenses - Gross margin increased to 69.8% in Q1 2023 from 66.9% in Q1 2022, reflecting a 290 basis point improvement[72] - Research and development expenses rose by 10.5% to $35.99 million, representing 19.5% of revenue, compared to 21.6% in the prior year[73] - Selling, general, and administrative expenses increased by 13.2% to $32.58 million, representing 17.7% of revenue[74] - Interest expense decreased by 21.6% to $(0.56) million, primarily due to a reduction in the principal balance of long-term debt[79] - Other (expense) income, net, showed a significant increase, with a loss of $(0.095) million compared to $(0.022) million in the prior year, primarily due to foreign currency effects[80] - Income tax expense for Q1 2023 was $2,561,000, a 100+% increase from $955,000 in Q1 2022[82] Cash Flow and Investments - Cash provided by operating activities increased to $44,900,000 in Q1 2023 from $43,200,000 in Q1 2022, an increase of $1,700,000[89] - Net cash used in investing activities rose to $11,000,000 in Q1 2023 from $7,100,000 in Q1 2022, an increase of $3,900,000 due to higher capital expenditures[90] - Net cash used in financing activities increased to $67,600,000 in Q1 2023 from $44,400,000 in Q1 2022, a $23,200,000 increase attributed to tax payments and discretionary loan repayments[91] Balance Sheet Items - Cash and cash equivalents decreased by $33,586,000, or 23.0%, from $145,722,000 on December 31, 2022, to $112,136,000 on April 1, 2023[87] - Accounts receivable, net decreased by $3,196,000, or 3.4%, from $94,018,000 on December 31, 2022, to $90,822,000 on April 1, 2023[92] - Inventories increased by $6,704,000, or 6.1%, from $110,375,000 on December 31, 2022, to $117,079,000 on April 1, 2023, to meet customer demand[93] Future Outlook and Risk Management - The company may consider acquisition opportunities to expand its product offerings and technology portfolios in the future[86] - The company has established policies to manage market risks related to foreign currency exchange rates and interest rates, with no material changes reported[97] - The company had no significant long-term commitments for capital expenditures as of April 1, 2023[85]

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 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 ...