Lattice Semiconductor Q2 Sales Dip, FY Ends Dec 28

TL;DR

LSCC Q2 sales down YoY, FY ends Dec 28. Watch for guidance.

AI Summary

Lattice Semiconductor Corp. reported its Q2 2024 results, with net sales of $119.182 million, down from $125.856 million in the prior year period. The company's fiscal year ends on December 28th. Esam Elashmawi is the Interim Chief Executive Officer and Chief Marketing and Strategy Officer.

Why It Matters

This filing provides insight into Lattice Semiconductor's recent financial performance, indicating a slight decrease in sales which could impact investor sentiment and future strategic decisions.

Risk Assessment

Risk Level: medium — The dip in net sales suggests potential market challenges or competitive pressures affecting the company's revenue generation.

Key Numbers

• $119.182M — Net Sales (Q2 2024) (Represents the company's revenue for the second quarter of 2024.)
• $125.856M — Net Sales (Q2 2023) (Represents the company's revenue for the second quarter of 2023, used for year-over-year comparison.)
• 12/28 — Fiscal Year End (Indicates the end date of the company's fiscal year.)

Key Players & Entities

• LATTICE SEMICONDUCTOR CORP (company) — Filer
• Esam Elashmawi (person) — Interim Chief Executive Officer and Chief Marketing and Strategy Officer
• 20240629 (date) — Conformed Period of Report
• 20240730 (date) — Filed as of Date
• $119,182,000 (dollar_amount) — Q2 2024 Net Sales
• $125,856,000 (dollar_amount) — Prior Year Period Net Sales

FAQ

Filing Documents

• lscc20240629_10q.htm (10-Q) — 1237KB
• ex_669981.htm (EX-31.1) — 12KB
• ex_669982.htm (EX-31.2) — 11KB
• ex_669983.htm (EX-32.1) — 5KB
• ex_669984.htm (EX-32.2) — 5KB
• latticelogocolorpmsa49.jpg (GRAPHIC) — 24KB
• 0001437749-24-023930.txt ( ) — 5591KB
• lscc-20240629.xsd (EX-101.SCH) — 51KB
• lscc-20240629_cal.xml (EX-101.CAL) — 42KB
• lscc-20240629_def.xml (EX-101.DEF) — 304KB
• lscc-20240629_lab.xml (EX-101.LAB) — 284KB
• lscc-20240629_pre.xml (EX-101.PRE) — 342KB
• lscc20240629_10q_htm.xml (XML) — 858KB

Financial Statements

Financial Statements 4 Consolidated Statements of Operations – Three and Six Months Ended June 29, 2024 and July 1, 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 29, 2024 and July 1, 2023 (unaudited) 5 Consolidated Balance Sheets – June 29, 2024 and December 30, 2023 (unaudited) 6 Consolidated Statements of Cash Flows – Six Months Ended June 29, 2024 and July 1, 2023 (unaudited) 7 Consolidated Statements of Stockholders' Equity – Three and Six Months Ended June 29, 2024 and July 1, 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 5. Other Information 27 Item 6. Exhibits 28

Signatures

Signatures 29 - 2 - Table of Contents Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains 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. We use words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "plan," "possible," "predict," "projects," "may," "will," "should," "continue," "ongoing," "future," "potential," and similar words or phrases to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about: our target or expected financial performance and our ability to achieve those results; our expectations related to attracting and retaining key personnel; future impacts of the ongoing military conflicts between Ukraine and Russia, and in the Middle East, and the outbreak of new, or expansion of current, military conflicts or terrorism; the impact of any continuing trade or travel restrictions on the export and import of products between the U.S. and China; the impact of any deterioration in relations between Taiwan and China, and other factors affecting military, political, or economic conditions in Taiwan or elsewhere in Asia; the impact of tariffs, trade sanctions, license requirements or similar actions on our suppliers and customers; the impact of inflationary pressures; future impacts of global pandemics, epidemics, and other public health problems; our business strategy; our opportunities to increase our addressable market; our expectations and strategies regarding market trends and opportunities, including market drivers such as wireless and wireline communications infrastructure deployments, data center servers and networking equipment, client computing platforms, industrial Internet of Things, factory automation, robotics,

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LATTICE SEMICONDUCTOR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In thousands, except per share data) 2024 2023 2024 2023 Revenue $ 124,076 $ 190,079 $ 264,891 $ 374,389 Cost of revenue 39,325 57,518 83,932 113,227 Gross margin 84,751 132,561 180,959 261,162 Operating expenses: Research and development 38,733 41,946 79,324 77,935 Selling, general, and administrative 20,005 36,788 56,474 69,366 Amortization of acquired intangible assets 869 869 1,739 1,739 Restructuring 2,579 ( 112 ) 4,283 ( 82 ) Total operating expenses 62,186 79,491 141,820 148,958 Income from operations 22,565 53,070 39,139 112,204 Interest income (expense), net 933 189 2,240 ( 366 ) Other income (expense), net 254 ( 176 ) 208 ( 271 ) Income before income taxes 23,752 53,083 41,587 111,567 Income tax expense 1,121 2,439 4,160 5,000 Net income $ 22,631 $ 50,644 $ 37,427 $ 106,567 Net income per share: Basic $ 0.16 $ 0.37 $ 0.27 $ 0.77 Diluted $ 0.16 $ 0.36 $ 0.27 $ 0.76 Shares used in per share calculations: Basic 137,548 137,735 137,480 137,573 Diluted 138,243 139,768 138,485 139,966 See Accompanying Notes to Unaudited Consolidated Financial Statements. - 4 - Table of Contents LATTICE SEMICONDUCTOR CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In thousands) 2024 2023 2024 2023 Net income $ 22,631 $ 50,644 $ 37,427 $ 106,567 Other comprehensive income (loss): Translation adjustment ( 296 ) ( 457 ) ( 770 ) ( 268 ) Comprehensive income $ 22,335 $ 50,187 $ 36,657 $ 106,299 See Accompanying Notes to Unaudite

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 - Basis of Presentation Lattice Semiconductor Corporation and its subsidiaries ("Lattice," the "Company," "we," "us," or "our") develop technologies that we monetize through differentiated programmable logic semiconductor products, silicon-enabling products, system solutions, design services, and technology licenses. Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In our opinion, they include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10 -K for the year ended December 30, 2023 (" 2023 10 -K"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. We base our estimates and judgments on historical experience, knowledge of current conditions, and our beliefs of what could occur in the future considering available information. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when made, and because of the uncertainty inherent in these matters, the actual results that we experience may differ materially from these estimates un

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