Lattice Q1 Earnings In-Line With Estimates, Revenues Decline Y/Y

Core Viewpoint - Lattice Semiconductor (LSCC) reported modest first-quarter 2025 results, with revenues and adjusted earnings meeting Zacks Consensus Estimates, despite year-over-year revenue contraction due to weak demand and macroeconomic challenges [1] Financial Performance - The company reported a GAAP net income of $5.02 million or 4 cents per share, down from $14.8 million or 11 cents per share in the prior year [2] - Non-GAAP net income was $30.7 million or 22 cents per share, compared to $40.3 million or 29 cents per share in the previous year, matching the Zacks Consensus Estimate [3] - Revenues declined to $120.1 million from $140.8 million year-over-year, but matched the consensus estimate of $120 million [3] Revenue Breakdown - Communications and Computing revenues grew year-over-year for the first time in two years, reaching $57.4 million [4] - Industrial and Automotive revenues fell to $52.2 million from $75.3 million in the prior year [4] - Total Consumer revenues were $10.6 million, a decrease of 2.83% year-over-year [4] Geographic Revenue Distribution - 65% of revenue was generated from Asia, while 25% came from the Americas, and Europe and Africa contributed 10% [5] Operational Metrics - Adjusted EBITDA decreased to $40.1 million from $50.3 million in the prior year [6] - GAAP operating expenses declined to $74.8 million from $79.6 million year-over-year [6] Cash Flow and Liquidity - The company generated $31.9 million in cash from operating activities, up from $29.5 million in the previous year [7] - As of March 29, 2025, Lattice had $127.6 million in cash and cash equivalents, with $21.1 million in other long-term liabilities [7] Outlook - For Q2 2025, Lattice expects revenues between $118.5 million and $128.5 million, with a non-GAAP gross margin anticipated to be between 68% and 70% [8] - Non-GAAP total operating expenses are projected to be between $50.5 million and $52.5 million, with a non-GAAP income tax rate expected between 5% and 6% [8] - Management forecasts non-GAAP net income to be between 22 and 26 cents per share [8] Zacks Rank - Lattice currently holds a Zacks Rank 3 (Hold) [9]