Financial Highlights:
- Revenue of $84.7 million, an increase of 19.0% from $71.2 million in 1Q13 and an increase of 19.6% from $70.8 million in 2Q12.
- Net income of $0.04 per basic and diluted share, compared to net income of $0.02 per basic and diluted share in 1Q13 and a net loss of $0.11 per diluted share in 2Q12.
- Gross margin of 53.3%, compared to 53.6% in 1Q13 and 52.3% in 2Q12.
- 2Q13 operating expenses of $38.1 million, compared to operating expenses of $35.5 million in 1Q13 and $39.8 million in 2Q12. 2Q13 operating expenses included $1.4 million in R&D variable cost related to program timing, $0.7 million in variable spending primarily related to sales increases. 2Q13 financial results included a $1.9 million ($0.02 per basic and diluted share) income tax expense and $0.7 million of amortization expense from acquired intangibles.
Lattice Semiconductor Corporation (
For the second quarter, revenue was $84.7 million, an increase of 19.0% from $71.2 million reported in the prior quarter, and an increase of 19.6% from the $70.8 million reported in the same quarter a year ago. FPGA revenue for the second quarter was $26.0 million, compared to $22.9 million in the prior quarter, and $24.9 million in the same quarter a year ago. PLD revenue for the second quarter was $58.7 million, compared to $48.3 million reported in the prior quarter, and $45.9 million in the same quarter a year ago.
Net income for the second quarter was $5.0 million ($0.04 per basic and diluted share), compared to the prior quarter net income of $1.9 million ($0.02 per basic and diluted share) and net loss of $12.5 million ($0.11 per basic and diluted share) reported in the same quarter a year ago. The second quarter of 2013 included tax expense of $1.9 and amortization expense from acquired intangibles of $0.7 million, compared with the first quarter of 2013 tax expense of $0.7 million, amortization expense from acquired intangibles of $0.7 million and restructuring charges of $0.2 million. Second quarter of 2012 results included approximately $1.0 million of acquisition related costs, $0.1 million of restructuring related charges, and $10.5 million income tax expense.
Darin G. Billerbeck, President and Chief Executive Officer, said, "We achieved the Company's highest quarterly revenue level in over a decade, while maintaining a healthy gross margin and doubling our net income per share compared to the prior quarter. Growth was driven by our consumer end market and increased new product category sales. The broader communications market in Asia continues to rebound, while computing and industrial are lagging. Overall, we are confident and encouraged by the successful execution of our business strategy, along with our customer and market diversification efforts."
Joe Bedewi, Corporate Vice President and Chief Financial Officer, added, "Gross margin for Q2 was 53.3%, which is above the high end of our guidance. We were able to achieve this quarterly improvement through effective supply chain management and ongoing cost controls, while continuing to support ramping customer products. Our operating expenses came in $600 thousand above our guidance of $37.5 million, primarily due to higher variable spending related to our increased sales and higher R&D variable cost in support of new business opportunities. Specifically, Q2 operating expenses included $1.4 million in program related R&D variable cost and $0.7 million in variable spending primarily related to higher sales. We continue to focus on aggressive operating expense control; quarterly fluctuations will continue to be dependent on variable expenses related to revenue levels and the timing of R&D spending as we opportunistically support new products and new capabilities."
Recent Business Highlights:
- Signed Global Distribution Agreement with Future Electronics: Lattice and Future jointly announced the companies have entered into an agreement whereby Future Electronics is now authorized to sell Lattice's complete portfolio of innovative low power, low cost FPGA, CPLD and programmable power management design solutions worldwide. This partnership will allow Lattice to expand its technically focused, global distribution network with Future's demand creation expertise and vast global footprint.
- Introduced New Automotive Grade FPGAs to Accelerate Affordable Innovation: Lattice introduced AEC-Q100-certified "Lattice Automotive (LA)" devices in its award-winning LatticeECP3™ FPGA family. The six new devices leverage Lattice's expertise in low power, small size, and cost optimized FPGAs to deliver programmable technology that can be used for all classes of automobile, as well as automotive aftermarket products. The world's smallest automotive qualified FPGA with SERDES enables designers to rethink the automobile to improve fuel efficiency, safety, and access to entertainment.
Business Outlook - Third Quarter 2013:
- Revenue is expected to be flat plus or minus 2% on a sequential basis.
- Gross margin percentage is expected to be approximately 52% plus or minus 2%.
- Total operating expenses are expected to be approximately $36.9 million, including approximately $0.8 million of expenses associated with our Q3 San Jose office move.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the second quarter of 2013 and business outlook for the third quarter of 2013 on Thursday, July 25, 2013 at 5:00 p.m. Eastern Time. The conference call-in number is 1-888-286-6281 or 1-706-643-3761 with conference identification number 13777011. A live webcast of the conference call will also be available on Lattice's website at 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.
A replay of the call will be available approximately two hours after the conclusion of the live call through 11:59 p.m. Eastern Time on August 1, 2013, by telephone at 1-404-537-3406. To access the replay, use conference identification number 13777011. A webcast replay will also be available on Lattice's investor relations website at www.latticesemi.com.
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Such forward-looking statements include statements relating to: rebounding of the broader communications market in Asia and the lagging of computing and industrial markets; execution of our business strategy and our customer and market diversification efforts; our aggressive control of operating expenses and quarterly operating expense fluctuations being dependent on variable expenses related to revenue levels and the timing of R&D spending as we opportunistically support new products and new capabilities; and those statements under the heading "Business Outlook - Third Quarter 2013" relating to expected revenue, gross margin, total operating expenses, and projected charges associated with the Company's move to a new facility in San Jose, California. Other forward-looking statements may be indicated by words such as "will," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue" or the negative of these terms or other comparable terminology. Lattice believes the factors identified below could cause actual results to differ materially from the forward-looking statements.
Estimates of future revenue are inherently uncertain due to, among other things, the high percentage of quarterly "turns" business. In addition, revenue is affected by such factors as global economic conditions, which may affect customer demand, pricing pressures, competitive actions, the demand for our Mature, Mainstream and New products, and in particular our iCE™, MachXO™ and LatticeECP3™ devices, the ability to supply products to customers in a timely manner, changes in our distribution relationships, or the volatility of our consumer business. 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, including commodity costs, variations in manufacturing yields, the failure to sustain operational improvements, the actual amount of compensation charges due to stock price changes. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges could adversely affect our profitability.
In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements in this press release include global economic uncertainty, overall semiconductor market conditions, market acceptance and demand for our new products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, and the other risks that are described in this press release and that are otherwise described from time to time in our filings with the Securities and Exchange Commission. 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.
