Lattice Semiconductor(US:LSCC)2025-05-05 20:09Revenue 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].