Lattice Semiconductor Reports First Quarter 2020 Results

  • Gross Margin Expands to 59.1% / 59.8% for Q1 2020 on a GAAP / Non-GAAP Basis, from 58.8% / 58.6%, respectively, for Q1 2019
  • Operating Margin at 10.0% / 22.7% of revenue for Q1 2020 on a GAAP / Non-GAAP Basis, from 12.7% / 19.9%, respectively, for Q1 2019
  • Net Income Improves to $0.06 / $0.15 Per Diluted Share for Q1 2020 on a GAAP / Non-GAAP Basis, from $0.05 / $0.11, respectively, for Q1 2019

* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

HILLSBORO, Ore.--(BUSINESS WIRE)--Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal first quarter ended March 28, 2020.

Jim Anderson, President and Chief Executive Officer, said, "I am pleased with the results we delivered in the first quarter of 2020 given the dynamic environment around COVID-19. We achieved a 120 basis point expansion in gross margin on a non-GAAP basis in the first quarter 2020 on a year over year basis, with a 39% increase in non-GAAP net income on a year over year basis, as we benefited from our actions to expand gross margin and profitability. With regard to COVID-19, we took action quickly to ensure employee health and safety, while making sure our operations ran as close to normal as possible. I want to thank our employees and partners for strong execution in the current environment. We are focused on continuing to build the momentum of the products we launched last year, including our NEXUS next generation platform, our CrossLink-NXFPGA, and our MachXO3D platform security product."

Sherri Luther, Chief Financial Officer, said, "For the first quarter 2020, diluted EPS was up 20% on a GAAP basis and up 36% on a non-GAAP basis compared to Q1 2019. We generated healthy cash flow from operations of $21 million, as we continue our focus on cash generation. Given the current environment, we took the opportunity to preemptively draw down $50 million on our credit revolver to further solidify our cash position. As a result, we ended the quarter with $177 million in cash on hand providing very strong liquidity for the Company. We remain focused on making progress toward our financial goals and target model."

Selected First Quarter 2020 Financial Results and Comparisons (in thousands, except per share data)

 

 

GAAP Quarterly Financial Results (unaudited)

 

 

Q1 2020

 

Q4 2019

 

Q1 2019

 

Q/Q

 

Y/Y

Revenue

 

$

97,316

 

 

$

100,237

 

 

$

98,091

 

 

(2.9)%

 

(0.8)%

Gross Margin %

 

 

59.1

%

 

 

59.2

%

 

 

58.8

%

 

(10) bps

 

30 bps

R&D Expense %

 

 

22.3

%

 

 

19.5

%

 

 

20.0

%

 

280 bps

 

230 bps

SG&A Expense %

 

 

23.2

%

 

 

20.9

%

 

 

21.2

%

 

230 bps

 

200 bps

Operating Expense

 

$

47,824

 

 

$

43,802

 

 

$

45,176

 

 

9.2%

 

5.9%

Operating Income

 

$

9,738

 

 

$

15,491

 

 

$

12,476

 

 

(37.1)%

 

(21.9)%

Net Income

 

$

8,167

 

 

$

13,987

 

 

$

7,408

 

 

(41.6)%

 

10.2%

Net Income per Share – Basic

 

$

0.06

 

 

$

0.10

 

 

$

0.06

 

 

$(0.04)

 

Net Income per Share – Diluted

 

$

0.06

 

 

$

0.10

 

 

$

0.05

 

 

$(0.04)

 

$ 0.01

 

 

Non-GAAP* Quarterly Financial Results (unaudited)

 

 

Q1 2020

 

Q4 2019

 

Q1 2019

 

Q/Q

 

Y/Y

Revenue

 

$

97,316

 

 

$

100,237

 

 

$

98,091

 

 

(2.9)%

 

(0.8)%

Gross Margin %

 

 

59.8

%

 

 

59.6

%

 

 

58.6

%

 

20 bps

 

120 bps

R&D Expense %

 

 

19.6

%

 

 

17.9

%

 

 

18.9

%

 

170 bps

 

70 bps

SG&A Expense %

 

 

17.5

%

 

 

17.4

%

 

 

18.8

%

 

10 bps

 

(130) bps

Operating Expense

 

$

36,107

 

 

$

35,343

 

 

$

37,985

 

 

2.2%

 

(4.9)%

Operating Income

 

$

22,046

 

 

$

24,390

 

 

$

19,531

 

 

(9.6)%

 

12.9%

Net Income

 

$

20,195

 

 

$

22,897

 

 

$

14,561

 

 

(11.8)%

 

38.7%

Net Income per Share – Basic

 

$

0.15

 

 

$

0.17

 

 

$

0.11

 

 

$ (0.02)

 

$ 0.04

Net Income per Share – Diluted

 

$

0.15

 

 

$

0.17

 

 

$

0.11

 

 

$ (0.02)

 

$ 0.04

* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

First Quarter 2020 Highlights

Improved Financial Performance and Increased Profitability: Net income per diluted share was up 20% on a GAAP basis and up 36% on a non-GAAP basis in Q1 2020 compared to Q1 2019, with a 30 basis point improvement in gross margin on a GAAP basis and a 120 basis improvement on a non-GAAP basis.

mVision™ Solutions Stack Launched: Lattice's new mVision solutions stack for low power embedded vision design brings ease-of-use benefits, with performance, reliability and power savings made possible by the company's Nexus FPGA platform. The complete solutions stack provides the hardware and software needed to accelerate and simplify the implementation of embedded vision for the industrial, automotive, compute and consumer markets.

Embedded World 'Best in Show': Lattice's mVision solutions stack received the prestigious 'Best in Show' award at the 2020 Embedded World Exhibition and Conference. The company's newest complete solutions stack expands its portfolio together with its award winning sensAI stack.

Key Industrial Certifications: Lattice’s Diamond® software tool for low power FPGA design was certified as compliant with the IEC 61508 and ISO 26262 functional safety standards. These standards are widely used in mission-critical systems within industrial equipment and vehicles to deliver highly reliable performance with minimal system failures.

Business Outlook - Second Quarter of 2020:

Revenue for the second quarter of 2020 is expected to be between $95 million and $105 million.

Gross margin percentage for the second quarter of 2020 is expected to be 60% plus or minus 1% on a non-GAAP basis.

Total operating expenses for the second quarter of 2020 are expected to be between $36 million and $37 million on a non-GAAP basis.

Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the first quarter of 2020, certain items that affect GAAP measurement of financial measures are out of the Company’s control and/or cannot be reasonably predicted. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for guidance or a corresponding reconciliation to GAAP for the quarter. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below, following the GAAP financial information.

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the fiscal first quarter 2020, and business outlook on Tuesday, April 28 at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-888-684-5603 or 1-918-398-4852 with conference identification number 8369259. A live webcast of the conference call will also be available on the investor relations section of www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to: our belief that we will continue to build the momentum of the products we launched last year, including our NEXUS next generation platform, our CrossLink-NXFPGA, and our MachXO3D platform security product; our belief that we will achieve our financial goals and target model; and the statements under the heading “Business Outlook - Second Quarter of 2020.” Other forward-looking statements may be indicated by words such as “will,” “could,” “should,” “would,” “may,” “expect,” “plan,” “project,” “anticipate,” “intend,” “forecast,” “future,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms or other comparable terminology.

Estimates of future revenue are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing pressures, competitive actions, and international trade disputes and sanctions. In addition, the COVID-19 pandemic has negatively impacted the overall economy and, as a result of the foregoing, may negatively impact our operating results for future periods. Actual gross margin percentage and operating expenses could vary from the estimates on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. Actual results may differ materially from our expectations and are subject to risks and uncertainties that relate more broadly to our overall business, including those risks more fully described in Lattice’s filings with the SEC including its Annual Report on Form 10-K for the fiscal year ended December 28, 2019, and Lattice’s quarterly reports filed on Form 10-Q. COVID-19 may increase or change the severity of our other risks reported in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019. Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. You should not unduly rely on forward-looking statements because actual results could differ materially from those expressed in any forward-looking statements. In addition, any forward-looking statement applies only as of the date on which it is made. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures:

Included within this press release and the accompanying tables and notes are certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with U.S. GAAP. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation, restructuring plans and related charges, amortization of acquired intangible assets, inventory adjustments related to restructured operations, and the estimated tax effect of these items. These charges and adjustments are a result of periodic or non-core operating activities of the Company. The Company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.

The Company's management believes that these non-GAAP financial measures provide an additional and useful way of viewing aspects of our performance that, when viewed in conjunction with our GAAP results, provide a more comprehensive understanding of the various factors and trends affecting our ongoing financial performance and operating results than GAAP measures alone. Management also uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting, and resource allocation processes and believes that investors should have access to similar data.

These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP and should be considered together with the consolidated financial information located in the tables attached to this press release.

About Lattice Semiconductor Corporation:

Lattice Semiconductor (NASDAQ: LSCC) is the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support lets our customers quickly and easily unleash their innovation to create a smart, secure and connected world.

For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, Twitter, Facebook, YouTube, WeChat, Weibo or Youku.

Lattice Semiconductor Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 28,

 

December 28,

 

March 30,

 

 

2020

 

2019

 

2019

Revenue

 

$

97,316

 

 

$

100,237

 

 

$

98,091

 

Cost of sales

 

 

39,754

 

 

 

40,944

 

 

 

40,439

 

Gross margin

 

 

57,562

 

 

 

59,293

 

 

 

57,652

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

21,693

 

 

 

19,543

 

 

 

19,665

 

Selling, general, and administrative

 

 

22,551

 

 

 

20,924

 

 

 

20,781

 

Amortization of acquired intangible assets

 

 

2,640

 

 

 

3,390

 

 

 

3,389

 

Restructuring

 

 

940

 

 

 

(55

)

 

 

1,341

 

Total operating expenses

 

 

47,824

 

 

 

43,802

 

 

 

45,176

 

Income from operations

 

 

9,738

 

 

 

15,491

 

 

 

12,476

 

Interest expense

 

 

(1,077

)

 

 

(1,184

)

 

 

(4,987

)

Other (expense) income, net

 

 

(50

)

 

 

(228

)

 

 

153

 

Income before income taxes

 

 

8,611

 

 

 

14,079

 

 

 

7,642

 

Income tax expense

 

 

444

 

 

 

92

 

 

 

234

 

Net income

 

$

8,167

 

 

$

13,987

 

 

$

7,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.06

 

 

$

0.10

 

 

$

0.06

 

Diluted

 

$

0.06

 

 

$

0.10

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

134,253

 

 

 

133,691

 

 

 

130,992

 

Diluted

 

 

138,044

 

 

 

138,196

 

 

 

134,810

 

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

March 28,

 

December 28,

 

 

2020

 

2019

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

176,572

 

 

$

118,081

 

Accounts receivable, net

 

 

68,643

 

 

 

64,917

 

Inventories

 

 

48,932

 

 

 

54,980

 

Other current assets

 

 

24,531

 

 

 

24,452

 

Total current assets

 

 

318,678

 

 

 

262,430

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

39,933

 

 

 

39,230

 

Operating lease right-of-use assets

 

 

22,212

 

 

 

23,591

 

Intangible assets, net

 

 

4,323

 

 

 

6,977

 

Goodwill

 

 

267,514

 

 

 

267,514

 

Deferred income taxes

 

 

476

 

 

 

478

 

Other long-term assets

 

 

11,069

 

 

 

11,796

 

 

 

$

664,205

 

 

$

612,016

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and other accrued liabilities

 

$

67,679

 

 

$

73,650

 

Current portion of long-term debt

 

 

21,484

 

 

 

21,474

 

Current portion of operating lease liabilities

 

 

4,564

 

 

 

4,686

 

Total current liabilities

 

 

93,727

 

 

 

99,810

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

170,791

 

 

 

125,072

 

Long-term operating lease liabilities, net of current portion

 

 

20,172

 

 

 

21,438

 

Other long-term liabilities

 

 

36,556

 

 

 

38,028

 

Total liabilities

 

 

321,246

 

 

 

284,348

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

342,959

 

 

 

327,668

 

 

 

$

664,205

 

 

$

612,016

 

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 28,

 

March 30,

 

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

8,167

 

 

$

7,408

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,793

 

 

 

8,403

 

Stock-based compensation expense

 

 

8,728

 

 

 

3,686

 

Other non-cash adjustments

 

 

1,509

 

 

 

2,801

 

Net changes in assets and liabilities

 

 

(5,094

)

 

 

(540

)

Net cash provided by operating activities

 

 

21,103

 

 

 

21,758

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(3,867

)

 

 

(3,074

)

Other investing activities

 

 

(2,775

)

 

 

7,916

 

Net cash (used in) provided by investing activities

 

 

(6,642

)

 

 

4,842

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

50,000

 

 

 

 

Repayment of long-term debt

 

 

(4,375

)

 

 

(26,875

)

Net cash flows related to stock compensation exercises

 

 

(1,484

)

 

 

11,568

 

Net cash provided by (used in) financing activities

 

 

44,141

 

 

 

(15,307

)

Effect of exchange rate change on cash

 

 

(111

)

 

 

47

 

Net increase in cash and cash equivalents

 

 

58,491

 

 

 

11,340

 

Beginning cash and cash equivalents

 

 

118,081

 

 

 

119,051

 

Ending cash and cash equivalents

 

$

176,572

 

 

$

130,391

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Interest paid

 

$

1,113

 

 

$

4,383

 

Income taxes paid, net of refunds

 

$

852

 

 

$

280

 

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

 

 

 

Three Months Ended

 

 

March 28,

 

December 28,

 

March 30,

 

 

2020

 

2019

 

2019

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

A/R Days Revenue Outstanding (DSO)

 

 

64

 

 

 

59

 

 

 

52

 

Inventory Days (DIO)

 

 

112

 

 

 

123

 

 

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Geography)

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

71

%

 

 

73

%

 

 

71

%

Europe (incl. Africa)

 

 

12

%

 

 

11

%

 

 

12

%

Americas

 

 

17

%

 

 

16

%

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by End Market)

 

 

 

 

 

 

 

 

 

 

 

 

Communications and Computing

 

 

39

%

 

 

38

%

 

 

36

%

Industrial and Automotive

 

 

43

%

 

 

39

%

 

 

37

%

Consumer

 

 

14

%

 

 

18

%

 

 

20

%

Licensing and Services

 

 

4

%

 

 

5

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Channel)

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

78

%

 

 

84

%

 

 

79

%

Direct

 

 

22

%

 

 

16

%

 

 

21

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

March 28,

 

December 28,

 

March 30,

 

 

2020

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin

 

$

57,562

 

 

$

59,293

 

 

$

57,652

 

Stock-based compensation - gross margin

 

 

591

 

 

 

440

 

 

 

202

 

Inventory adjustment related to restructured operations

 

 

 

 

 

 

 

 

(338

)

Non-GAAP Gross margin

 

$

58,153

 

 

$

59,733

 

 

$

57,516

 

Gross Margin % Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin %

 

 

59.1

%

 

 

59.2

%

 

 

58.8

%

Cumulative effect of non-GAAP Gross Margin adjustments

 

 

0.7

%

 

 

0.4

%

 

 

(0.2

)%

Non-GAAP Gross margin %

 

 

59.8

%

 

 

59.6

%

 

 

58.6

%

Research and Development Expense % (R&D Expense %) Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP R&D Expense %

 

 

22.3

%

 

 

19.5

%

 

 

20.0

%

Stock-based compensation - R&D

 

 

(2.7

)%

 

 

(1.6

)%

 

 

(1.1

)%

Non-GAAP R&D Expense %

 

 

19.6

%

 

 

17.9

%

 

 

18.9

%

Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP SG&A Expense %

 

 

23.2

%

 

 

20.9

%

 

 

21.2

%

Stock-based compensation - SG&A

 

 

(5.7

)%

 

 

(3.5

)%

 

 

(2.4

)%

Non-GAAP SG&A Expense %

 

 

17.5

%

 

 

17.4

%

 

 

18.8

%

Operating Expenses Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating expenses

 

$

47,824

 

 

$

43,802

 

 

$

45,176

 

Stock-based compensation - operations

 

 

(8,137

)

 

 

(5,124

)

 

 

(3,484

)

Amortization of acquired intangible assets

 

 

(2,640

)

 

 

(3,390

)

 

 

(3,389

)

Restructuring charges

 

 

(940

)

 

 

55

 

 

 

(1,341

)

Impairment of acquired intangible assets

 

 

 

 

 

 

 

 

1,023

 

Non-GAAP Operating expenses

 

$

36,107

 

 

$

35,343

 

 

$

37,985

 

Income from Operations Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income from operations

 

$

9,738

 

 

$

15,491

 

 

$

12,476

 

Stock-based compensation - gross margin

 

 

591

 

 

 

440

 

 

 

202

 

Inventory adjustment related to restructured operations

 

 

 

 

 

 

 

 

(338

)

Stock-based compensation - operations

 

 

8,137

 

 

 

5,124

 

 

 

3,484

 

Amortization of acquired intangible assets

 

 

2,640

 

 

 

3,390

 

 

 

3,389

 

Restructuring charges

 

 

940

 

 

 

(55

)

 

 

1,341

 

Impairment of acquired intangible assets

 

 

 

 

 

 

 

 

(1,023

)

Non-GAAP Income from operations

 

$

22,046

 

 

$

24,390

 

 

$

19,531

 

Income from Operations % Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income from operations %

 

 

10.0

%

 

 

15.5

%

 

 

12.7

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

 

 

12.7

%

 

 

8.8

%

 

 

7.2

%

Non-GAAP Income from operations %

 

 

22.7

%

 

 

24.3

%

 

 

19.9

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

Income Tax Expense Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income tax expense

 

$

444

 

 

$

92

 

 

$

234

 

Estimated tax effect of non-GAAP adjustments (1)

 

 

280

 

 

 

(11

)

 

 

(98

)

Non-GAAP Income tax expense

 

$

724

 

 

$

81

 

 

$

136

 

Net Income Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income

 

$

8,167

 

 

$

13,987

 

 

$

7,408

 

Stock-based compensation - gross margin

 

 

591

 

 

 

440

 

 

 

202

 

Inventory adjustment related to restructured operations

 

 

 

 

 

 

 

 

(338

)

Stock-based compensation - operations

 

 

8,137

 

 

 

5,124

 

 

 

3,484

 

Amortization of acquired intangible assets

 

 

2,640

 

 

 

3,390

 

 

 

3,389

 

Restructuring charges

 

 

940

 

 

 

(55

)

 

 

1,341

 

Impairment of acquired intangible assets

 

 

 

 

 

 

 

 

(1,023

)

Estimated tax effect of non-GAAP adjustments (1)

 

 

(280

)

 

 

11

 

 

 

98

 

Non-GAAP Net income

 

$

20,195

 

 

$

22,897

 

 

$

14,561

 

Net Income Per Share Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share - basic

 

$

0.06

 

 

$

0.10

 

 

$

0.06

 

Cumulative effect of Non-GAAP adjustments

 

 

0.09

 

 

 

0.07

 

 

 

0.05

 

Non-GAAP Net income per share - basic

 

$

0.15

 

 

$

0.17

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share - diluted

 

$

0.06

 

 

$

0.10

 

 

$

0.05

 

Cumulative effect of Non-GAAP adjustments

 

 

0.09

 

 

 

0.07

 

 

 

0.06

 

Non-GAAP Net income per share - diluted

 

$

0.15

 

 

$

0.17

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

134,253

 

 

 

133,691

 

 

 

130,992

 

Diluted - GAAP (2)

 

 

138,044

 

 

 

138,196

 

 

 

134,810

 

Diluted - Non-GAAP (2)

 

 

138,044

 

 

 

138,196

 

 

 

134,810

 

(1)

 

We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as the “Estimated tax effect of non-GAAP adjustments.”

(2)

 

Diluted Shares are calculated using the GAAP treasury stock method. In a loss position, diluted shares equal basic shares.

 


Contacts

MEDIA:
Bob Nelson
Lattice Semiconductor Corporation
408-826-6339
Bob.Nelson@latticesemi.com

INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com