Lattice Semiconductor Reports Third Quarter 2019 Results

Lattice Semiconductor Reports Third Quarter 2019 Results

Gross Margin Expands Year-Over-Year to 59.4% on a GAAP Basis and 59.8% on a Non-GAAP Basis from 57.5% and 57.4%, respectively, in 3Q 2018

Operating Margin Increases Year-Over-Year to 16.1% of revenue on a GAAP Basis and 25.1% on a Non-GAAP Basis from 12.8% and 19.6%, respectively, in 3Q 2018

Net Income Improves Year-Over-Year to $0.10 / $0.17 Per Diluted Share on a GAAP / Non-GAAP Basis, from $0.05 / $0.11, respectively, in 3Q 2018

$33.4 Million in Total Debt Payments in Q3 2019, Further Reducing the Leverage Ratio

* 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 third quarter ended September 28, 2019.

Jim Anderson, President and Chief Executive Officer, said, “We improved our operating margin to 25% on a non-GAAP basis as we continued to execute on our business strategy and drive additional operational improvements. We made solid progress on our product roadmap and are excited about the acceleration in the schedule of our planned new product rollouts. This includes our recently introduced CrossLinkPlus™ FPGA family, which is already sampling to customers ahead of plan. Our priority remains executing on our business strategy as we unlock additional value for the company and its shareholders.”

Sherri Luther, Chief Financial Officer, said, “We achieved a 67% sequential improvement in GAAP diluted EPS in Q3 2019 compared to Q2 2019 and a 100% year-over-year improvement compared to Q3 2018. We have generated approximately $85 million in cash flow from operations in the first nine months of 2019, 4 times the same period in 2018, underscoring our focus on cash generation. This has allowed us to make $107 million in total debt payments for the first nine months of 2019, including $33.4 million in total debt payments in Q3 2019. Reducing our leverage ratio below 1.5, as defined in our credit agreement, allowed us to lower the interest rate by another 25 basis points in the quarter for a total reduction of 300 basis points in 2019. We continue to focus on profitability and cash generation, and have a clear line of sight on achieving our financial model targets.”

Selected Third Quarter 2019 Financial Results and Comparisons (in thousands, except per share data)

 

 

 

GAAP Quarterly Financial Results

 

 

Q3 2019

 

Q2 2019

 

Q3 2018

 

Q/Q

 

Y/Y

Revenue

 

$

103,469

 

 

$

102,296

 

 

$

101,484

 

 

+ 1.1%

 

+ 2.0%

Gross Margin %

 

59.4

%

 

58.7

%

 

57.5

%

 

+ 70 bps

 

+ 190 bps

R&D Expense %

 

19.4

%

 

18.9

%

 

18.9

%

 

+ 50 bps

 

+ 50 bps

SG&A Expense %

 

20.4

%

 

19.3

%

 

21.5

%

 

+ 110 bps

 

(110) bps

Operating Expense

 

$

44,751

 

 

$

45,652

 

 

$

45,405

 

 

(2.0%)

 

(1.4%)

Operating Income

 

$

16,688

 

 

$

14,386

 

 

$

12,959

 

 

+ 16.0%

 

+ 28.8%

Net Income

 

$

13,539

 

 

$

8,559

 

 

$

6,974

 

 

+ 58.2%

 

+ 94.1%

Net Income per share – Basic

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

 

+ $0.04

 

+ $0.05

Net Income per share – Diluted

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

 

+ $0.04

 

+ $0.05

 

 

 

Non-GAAP* Quarterly Financial Results

 

 

Q3 2019

 

Q2 2019

 

Q3 2018

 

Q/Q

 

Y/Y

Revenue

 

$

103,469

 

 

$

102,296

 

 

$

101,484

 

 

+ 1.1%

 

+ 2.0%

Gross Margin %

 

59.8

%

 

59.0

%

 

57.4

%

 

+ 80 bps

 

+ 240 bps

R&D Expense %

 

17.8

%

 

17.7

%

 

17.9

%

 

+ 10 bps

 

(10) bps

SG&A Expense %

 

16.9

%

 

17.0

%

 

19.9

%

 

(10) bps

 

(300) bps

Operating Expense

 

$

35,883

 

 

$

35,494

 

 

$

38,417

 

 

+ 1.1%

 

(6.6%)

Operating Income

 

$

26,009

 

 

$

24,871

 

 

$

19,878

 

 

+ 4.6%

 

+ 30.8%

Net Income

 

$

22,943

 

 

$

21,087

 

 

$

13,785

 

 

+ 8.8%

 

+ 66.4%

Net Income per share – Basic

 

$

0.17

 

 

$

0.16

 

 

$

0.11

 

 

+ $0.01

 

+ $0.06

Net Income per share – Diluted

 

$

0.17

 

 

$

0.15

 

 

$

0.11

 

 

+ $0.02

 

+ $0.06

* 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.”

Third Quarter 2019 Highlights

Improved Profitability: Achieved a 100% increase in net income per diluted share on a GAAP basis in Q3 2019 compared to Q3 2018, and a 54.5% increase in net income per diluted share on a non-GAAP basis in Q3 2019 compared to Q3 2018.

Debt Refinance and De-lever: Total debt payments of $33.4 million, including $29 million in discretionary debt payments, reduced leverage ratio below 1.5, as defined in the credit agreement. This further lowered the interest rate by another 25 basis points for a total reduction of 300 basis points in 2019.

Launched and Sampled New CrossLinkPlusTM FPGA Family: Lattice launched and sampled its new CrossLinkPlus family ahead of schedule. CrossLinkPlus FPGAs are innovative, small, low power FPGAs optimized with features including flash memory, a hardened MIPI D-PHY and high-speed I/O support for instant-on panel display performance, with flexible on-device programming capabilities.

Next Generation FDSOI Platform to Sample Before Year End 2019: Development of Lattice’s next generation 28nm FDSOI platform is executing well with sampling to customers now expected before year end 2019. The combination of the new product platform’s low-power architecture and power-efficient process technology is expected to result in a significant power reduction for customers.

MachXO3D Received NIST Certification: The National Institute of Standards and Technology (“NIST”) independently certified that Lattice’s MachXO3D is compliant with the U.S. government’s standard for cryptographic software. The product was developed specifically for customers seeking a reliable hardware security solution.

Enhanced Award-Winning sensAITM Solutions Stack: Key performance enhancements and innovative new application reference designs are now available in Lattice’s award-winning sensAI solutions stack, including key phrase detection for AI/ML-enabled human machine interface applications using microphones and human facial recognition for user identification.

Business Outlook – Fourth Quarter of 2019:

Revenue for the fourth quarter of 2019 is expected to be between $97 million and $103 million.

Gross margin percentage for the fourth quarter of 2019 is expected to be 59.5% plus or minus 1% on a non-GAAP basis.

Total operating expenses for the fourth quarter of 2019 are expected to be between $35.5 million and $36.5 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 fourth quarter of 2019, 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 third quarter and business outlook on Tuesday, October 29 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 9191529. 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 prioritizing of our business strategy; our belief that we will unlock additional value for the Company and its shareholders; our belief that we achieve our financial model targets; and the statements under the heading “Business Outlook – Fourth Quarter of 2019.” 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. 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 29, 2018, and Lattice’s quarterly reports filed on Form 10-Q. 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, acquisition-related charges, amortization and impairment 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 a leader in low power, small form factor programmable logic devices. Our FPGAs deliver intelligence, connectivity, and control solutions to the industrial, compute, communications, consumer, and automotive markets. Our unwavering commitment to our global customers enables them to accelerate their innovation, creating an even better and more 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

 

Nine Months Ended

 

 

September 28,
2019

 

June 29,
2019

 

September 29,
2018

 

September 28,
2019

 

September 29,
2018

Revenue

 

$

103,469

 

 

$

102,296

 

 

$

101,484

 

 

$

303,856

 

 

$

302,822

 

Cost of sales

 

42,030

 

 

42,258

 

 

43,120

 

 

124,727

 

 

137,689

 

Gross margin

 

61,439

 

 

60,038

 

 

58,364

 

 

179,129

 

 

165,133

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Research and development

 

20,032

 

 

19,377

 

 

19,131

 

 

59,074

 

 

63,153

 

Selling, general, and administrative

 

21,078

 

 

19,759

 

 

21,775

 

 

61,618

 

 

69,886

 

Amortization of acquired intangible assets

 

3,389

 

 

3,390

 

 

3,823

 

 

10,168

 

 

13,982

 

Restructuring

 

252

 

 

3,126

 

 

90

 

 

4,719

 

 

5,495

 

Impairment of acquired intangible assets

 

 

 

 

 

586

 

 

 

 

12,486

 

Acquisition related charges

 

 

 

 

 

 

 

 

 

1,531

 

Total operating expenses

 

44,751

 

 

45,652

 

 

45,405

 

 

135,579

 

 

166,533

 

Income (loss) from operations

 

16,688

 

 

14,386

 

 

12,959

 

 

43,550

 

 

(1,400

)

Interest expense

 

(2,022

)

 

(3,538

)

 

(5,500

)

 

(10,547

)

 

(15,582

)

Other expense, net

 

(61

)

 

(2,109

)

 

(452

)

 

(2,017

)

 

(246

)

Income (loss) before income taxes

 

14,605

 

 

8,739

 

 

7,007

 

 

30,986

 

 

(17,228

)

Income tax expense

 

1,066

 

 

180

 

 

33

 

 

1,480

 

 

1,973

 

Net income (loss)

 

$

13,539

 

 

$

8,559

 

 

$

6,974

 

 

$

29,506

 

 

$

(19,201

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

 

$

0.22

 

 

$

(0.15

)

Diluted

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

 

$

0.21

 

 

$

(0.15

)

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

Basic

 

132,997

 

 

132,206

 

 

127,816

 

 

132,065

 

 

125,578

 

Diluted

 

138,894

 

 

137,221

 

 

129,474

 

 

137,679

 

 

125,578

 

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

September 28,
2019

 

December 29,
2018

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

97,413

 

 

$

119,051

 

Short-term marketable securities

 

 

 

9,624

 

Accounts receivable, net

 

47,433

 

 

60,890

 

Inventories

 

59,672

 

 

67,096

 

Other current assets

 

34,691

 

 

27,762

 

Total current assets

 

239,209

 

 

284,423

 

 

 

 

 

 

Property and equipment, net

 

40,163

 

 

34,883

 

Operating lease right-of-use assets

 

24,563

 

 

 

Intangible assets, net

 

10,381

 

 

21,325

 

Goodwill

 

267,514

 

 

267,514

 

Deferred income taxes

 

226

 

 

215

 

Other long-term assets

 

11,349

 

 

15,327

 

 

 

$

593,405

 

 

$

623,687

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and other accrued liabilities

 

$

59,609

 

 

$

61,128

 

Current portion of long-term debt

 

17,196

 

 

8,290

 

Current portion of operating lease liabilities

 

4,623

 

 

 

Total current liabilities

 

81,428

 

 

69,418

 

 

 

 

 

 

Long-term debt, net of current portion

 

139,230

 

 

251,357

 

Long-term operating lease liabilities, net of current portion

 

22,484

 

 

 

Other long-term liabilities

 

40,618

 

 

44,455

 

Total liabilities

 

283,760

 

 

365,230

 

 

 

 

 

 

Stockholders’ equity

 

309,645

 

 

258,457

 

 

 

$

593,405

 

 

$

623,687

 

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Nine Months Ended

 

September 28,
2019

 

September 29,
2018

Cash flows from operating activities:

 

 

 

Net income (loss)

$

29,506

 

 

$

(19,201

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

24,682

 

 

30,740

 

Impairment of acquired intangible assets

 

 

12,486

 

Stock-based compensation expense

13,335

 

 

9,908

 

Other non-cash adjustments

9,060

 

 

1,855

 

Net changes in assets and liabilities

8,234

 

 

(15,228

)

Net cash provided by operating activities

84,817

 

 

20,560

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(11,729

)

 

(6,178

)

Other investing activities

3,910

 

 

(10,747

)

Net cash used in investing activities

(7,819

)

 

(16,925

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of long-term debt

206,500

 

 

 

Original issue discount and debt issuance costs

(2,086

)

 

 

Repayment of long-term debt

(311,408

)

 

(27,884

)

Net cash flows related to stock compensation exercises

8,365

 

 

26,451

 

Net cash used in financing activities

(98,629

)

 

(1,433

)

Effect of exchange rate change on cash

(7

)

 

(1,124

)

Net increase (decrease) in cash and cash equivalents

(21,638

)

 

1,078

 

Beginning cash and cash equivalents

119,051

 

 

106,815

 

Ending cash and cash equivalents

$

97,413

 

 

$

107,893

 

 

 

 

 

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

Interest paid

$

9,932

 

 

$

13,976

 

Income taxes paid, net of refunds

$

1,922

 

 

$

2,716

 

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

 

 

Three Months Ended

 

September 28,
2019

 

June 29,
2019

 

September 29,
2018

Balance Sheet Information

 

 

 

 

 

A/R Days Revenue Outstanding (DSO)

42

 

 

34

 

 

68

 

Inventory Days (DIO)

130

 

 

140

 

 

141

 

 

 

 

 

 

 

Revenue% (by Geography)

 

 

 

 

 

Asia

77

%

 

75

%

 

76

%

Europe (incl. Africa)

11

%

 

12

%

 

12

%

Americas

12

%

 

13

%

 

12

%

 

 

 

 

 

 

Revenue% (by End Market)

 

 

 

 

 

Communications and Computing

40

%

 

39

%

 

32

%

Industrial and Automotive

36

%

 

38

%

 

37

%

Consumer

18

%

 

19

%

 

27

%

Licensing and Services

6

%

 

4

%

 

4

%

 

 

 

 

 

 

Revenue% (by Channel)

 

 

 

 

 

Distribution

81

%

 

85

%

 

82

%

Direct

19

%

 

15

%

 

18

%

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 28,
2019

 

June 29,
2019

 

September 29,
2018

 

 

 

 

 

 

 

Gross Margin Reconciliation

GAAP Gross margin

 

$

61,439

 

 

$

60,038

 

 

$

58,364

 

Stock-based compensation – gross margin

 

453

 

 

327

 

 

219

 

Inventory adjustment related to restructured operations

 

 

 

 

 

(288

)

Non-GAAP Gross margin

 

$

61,892

 

 

$

60,365

 

 

$

58,295

 

 

Gross Margin % Reconciliation

GAAP Gross margin %

 

59.4

%

 

58.7

%

 

57.5

%

Cumulative effect of non-GAAP Gross Margin adjustments

 

0.4

%

 

0.3

%

 

(0.1

)%

Non-GAAP Gross margin %

 

59.8

%

 

59.0

%

 

57.4

%

 

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

GAAP R&D Expense %

 

19.4

%

 

18.9

%

 

18.9

%

Stock-based compensation – R&D

 

(1.6

)%

 

(1.2

)%

 

(1.0

)%

Non-GAAP R&D Expense %

 

17.8

%

 

17.7

%

 

17.9

%

 

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

GAAP SG&A Expense %

 

20.4

%

 

19.3

%

 

21.5

%

Stock-based compensation – SG&A

 

(3.5

)%

 

(2.3

)%

 

(1.6

)%

Non-GAAP SG&A Expense %

 

16.9

%

 

17.0

%

 

19.9

%

 

Operating Expenses Reconciliation

GAAP Operating expenses

 

$

44,751

 

 

$

45,652

 

 

$

45,405

 

Stock-based compensation – operations

 

(5,227

)

 

(3,642

)

 

(2,489

)

Amortization of acquired intangible assets

 

(3,389

)

 

(3,390

)

 

(3,823

)

Restructuring charges

 

(252

)

 

(3,126

)

 

(90

)

Impairment of acquired intangible assets

 

 

 

 

 

(586

)

Non-GAAP Operating expenses

 

$

35,883

 

 

$

35,494

 

 

$

38,417

 

 

Income from Operations Reconciliation

GAAP Income from operations

 

$

16,688

 

 

$

14,386

 

 

$

12,959

 

Stock-based compensation – gross margin

 

453

 

 

327

 

 

219

 

Inventory adjustment related to restructured operations

 

 

 

 

 

(288

)

Stock-based compensation – operations

 

5,227

 

 

3,642

 

 

2,489

 

Amortization of acquired intangible assets

 

3,389

 

 

3,390

 

 

3,823

 

Restructuring charges

 

252

 

 

3,126

 

 

90

 

Impairment of acquired intangible assets

 

 

 

 

 

586

 

Non-GAAP Income from operations

 

$

26,009

 

 

$

24,871

 

 

$

19,878

 

 

 

 

 

 

 

 

Income from Operations % Reconciliation

GAAP Income from operations %

 

16.1

%

 

14.1

%

 

12.8

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

 

9.0

%

 

10.2

%

 

6.8

%

Non-GAAP Income from operations %

 

25.1

%

 

24.3

%

 

19.6

%

 

 

 

 

 

 

 

 

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 28,
2019

 

June 29,
2019

 

September 29,
2018

 

Other (Expense) Income, Net Reconciliation

GAAP Other expense, net

 

$

(61

)

 

$

(2,109

)

 

$

(452

)

Loss on re-financing of long-term debt

 

 

 

2,235

 

 

 

Non-GAAP Other (expense) income, net

 

$

(61

)

 

$

126

 

 

$

(452

)

 

Income Tax Expense Reconciliation

GAAP Income tax expense

 

$

1,066

 

 

$

180

 

 

$

33

 

Estimated tax effect of non-GAAP adjustments (1)

 

(83

)

 

192

 

 

108

 

Non-GAAP Income tax expense

 

$

983

 

 

$

372

 

 

$

141

 

 

Net Income Reconciliation

GAAP Net income

 

$

13,539

 

 

$

8,559

 

 

$

6,974

 

Stock-based compensation – gross margin

 

453

 

 

327

 

 

219

 

Inventory adjustment related to restructured operations

 

 

 

 

 

(288

)

Stock-based compensation – operations

 

5,227

 

 

3,642

 

 

2,489

 

Amortization of acquired intangible assets

 

3,389

 

 

3,390

 

 

3,823

 

Restructuring charges

 

252

 

 

3,126

 

 

90

 

Impairment of acquired intangible assets

 

 

 

 

 

586

 

Loss on re-financing of long-term debt

 

 

 

2,235

 

 

 

Estimated tax effect of non-GAAP adjustments (1)

 

83

 

 

(192

)

 

(108

)

Non-GAAP Net income

 

$

22,943

 

 

$

21,087

 

 

$

13,785

 

 

Net Income Per Share Reconciliation

GAAP Net income per share – basic

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

Cumulative effect of Non-GAAP adjustments

 

0.07

 

 

0.10

 

 

0.06

 

Non-GAAP Net income per share – basic

 

$

0.17

 

 

$

0.16

 

 

$

0.11

 

 

 

 

 

 

 

 

GAAP Net income per share – diluted

 

$

0.10

 

 

$

0.06

 

 

$

0.05

 

Cumulative effect of Non-GAAP adjustments

 

0.07

 

 

0.09

 

 

0.06

 

Non-GAAP Net income per share – diluted

 

$

0.17

 

 

$

0.15

 

 

$

0.11

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

Basic

 

132,997

 

 

132,206

 

 

127,816

 

Diluted – GAAP (2)

 

138,894

 

 

137,221

 

 

129,474

 

Diluted – Non-GAAP (2)

 

138,894

 

 

137,221

 

 

129,474

 

(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
[email protected]

INVESTORS:Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
[email protected]

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