Recent Business Highlights

• Launched Industry’s First Programmable ASSP Interface Bridge for Mobile Image Sensors and Displays: Lattice's new CrossLink™ combines the flexibility and fast time to market of an FPGA with the power and functional optimization of an ASSP to create a new product class called programmable ASSP (pASSP). CrossLink, the first product in this new category, is a low cost video interface bridge with the highest bandwidth, lowest power and smallest footprint. This makes it the optimal solution for virtual reality headsets, drones, smartphones, tablets, cameras, wearable devices and human machine interfaces (HMIs).
• Expands Portfolio of Video Interface Bridging Solutions for the Industrial Market: Lattice Semiconductor introduced a suite of 19 HDMI^® transmitters, receivers, port processors and video processors, enabling high bandwidth FullHD and Ultra HD video transmission in intelligent automation systems. The latest solutions help customers accelerate time-to-market in the Human Machine Interface, Surveillance and Display Signage Segments.

Business Outlook - Third Quarter 2016*:

• Revenue for the third quarter of 2016 is expected to be between approximately $110 million and $116 million.
• Gross margin percentage for the third quarter of 2016 is expected to be approximately 52% plus or minus 2% on both a GAAP and non-GAAP basis.
• Total operating expenses are expected to be approximately $57.9 million plus or minus 2% on a GAAP basis and approximately $45 million plus or minus 2% on a non-GAAP basis.

* For a reconciliation of GAAP to non-GAAP business outlook, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the second quarter of 2016 and business outlook for the third quarter of 2016 on Tuesday, August 9 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 45895063. An accompanying presentation and 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 2 hours after the conclusion of the live call through 11:59 p.m. Eastern Time on August 23, 2016, by telephone at 1-404-537-3406. To access the replay, use conference identification number 45895063. A webcast replay will also be available on the investor relations section of www.latticesemi.com.

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 statements relating to: our expectation that in the third quarter of 2016, we will experience double-digit revenue growth along with double-digit reductions in spending; our expectation that gross margin for the full year 2016 will be more in-line with our long-term, mid-50’s percent target, as our consumer business ramps significantly; and those statements under the heading “Business Outlook - Third Quarter 2016” relating to expected revenue, gross margin and total operating expenses. 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. 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 iCE40™ and MachXO3L™ 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, the failure to achieve the anticipated benefits and synergies of the Silicon Image transaction. In addition, actual results are subject to other 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 January 2, 2016, and Lattice’s quarterly reports filed on Form 10-Q.