Lattice Semiconductor(US:LSCC)2023-05-01 16:00Revenue 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]