Lattice Semiconductor Reports Second Quarter Financial Results

Lattice Semiconductor Corporation provides the industry's broadest range of Programmable Logic Devices (PLD), including Field Programmable Gate Arrays (FPGA), Complex Programmable Logic Devices (CPLD), Mixed-Signal Power Management and Clock Generation Devices, and industry-leading SERDES products.

Lattice continues to deliver "More of the Best" to its customers with comprehensive solutions for system design, including an unequaled portfolio of high performance, non-volatile and low cost FPGAs.

Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in communications, computing, industrial, consumer, automotive, medical and military end markets. For more information, visit http://www.latticesemi.com.

Lattice Semiconductor Corporation, Lattice (& design), L (& design), ispLEVER, ispXP2, LatticeECP2M, LatticeSC, and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries. HyperTransport™ is a licensed trademark of the HyperTransport Technology Consortium in the U.S. and other jurisdictions.

GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.




                      Lattice Semiconductor Corporation

                    Consolidated Statement of Operations

                   (in thousands, except per share data)


                         Three months ended            Six months ended
                ----------------------------------  ----------------------
                 June 30,   March 31,    July 1,     June 30,    July 1,
  Description      2007        2007       2006        2007        2006
                ----------  ----------  ----------  ----------  ----------
                (unaudited)(unaudited) (unaudited) (unaudited) (unaudited)

Revenue         $   59,243  $   58,107  $   62,719  $  117,350  $  120,171

Costs and
 expenses (1):
  Cost of
   products
   sold             26,593      26,218      26,946      52,811      52,091
  Research and
   development      20,752      22,008      20,440      42,760      40,791
  Selling,
   general and
   administrative   14,785      14,566      14,594      29,351      28,283
  Amortization
   of intangible
   assets (2)        2,665       2,667       2,670       5,332       5,483
  Restructuring
   (3)                  27        (130)         97        (103)        216
                ==========  ==========  ==========  ==========  ==========

Total costs and
 expenses           64,822      65,329      64,747     130,151     126,864
                ==========  ==========  ==========  ==========  ==========
Loss from
 operations         (5,579)     (7,222)     (2,028)    (12,801)     (6,693)

Other income,
 net (4)             4,299       3,008       4,350       7,307       8,397
                ==========  ==========  ==========  ==========  ==========

(Loss) income
 before
 provision for
 income taxes       (1,280)     (4,214)      2,322      (5,494)      1,704

Provision for
 income taxes          181         169         256         350         445
                ==========  ==========  ==========  ==========  ==========

Net (loss)
 income         $   (1,461) $   (4,383) $    2,066  $   (5,844) $    1,259
                ==========  ==========  ==========  ==========  ==========

Basic net
 (loss) income
 per share      $    (0.01) $    (0.04) $     0.02  $    (0.05) $     0.01
                ==========  ==========  ==========  ==========  ==========

Diluted net
 (loss) income
 per share      $    (0.01) $    (0.04) $     0.02  $    (0.05) $     0.01
                ==========  ==========  ==========  ==========  ==========

Shares used in
 per share
 calculations:

Basic              114,827     114,688     114,165     114,758     113,960
                ==========  ==========  ==========  ==========  ==========

Diluted (5)        114,827     114,688     125,343     114,758     114,287
                ==========  ==========  ==========  ==========  ==========



Notes:
  (1) As a result of the restructuring implemented in the fourth quarter of
      2005, the Company realigned certain departments and job
      responsibilities in 2006.  Due to these changes, the Company reviewed
      its historical cost center allocations and has reclassified these to
      reflect post-restructuring operations.  Amounts previously reported
      in the three and six months ended July 1, 2006 have been reclassified
      to be consistent with the approach applied for the other periods
      presented.

  (2) Intangible assets subject to amortization aggregate $10.3 million,
      net, at June 30, 2007 and relate to the acquisition of Cerdelinx
      Technologies, Inc. on August 26, 2002 and the acquisition of the FPGA
      business of Agere Systems, Inc. on January 18, 2002. These intangible
      assets are amortized to expense generally over three to seven years
      on a straight-line basis.

  (3) Represents costs and adjustments incurred under the corporate
      restructuring plan, which was implemented in the fourth quarter
      of 2005.

  (4) Includes a $1.6 million gain recorded during the  three  months  ended
            June  30,  2007  as  a  result  of  the  Company  selling  a  parcel  of
            undeveloped  land  near  its  corporate  headquarters.

    (5)  For  the  three  months  ended  June  30,  2007  and  March  31,  2007  and  the
            six  months  ended  June  30,  2007,  the  computation  of  diluted  earnings
            per  share  excludes  the  effects  of  stock  options,  restricted  stock
            units,  warrants  and  Convertible  Notes,  as  they  are  antidilutive.
            For  the  six  months  ended  July  1,  2006,  the  computation  of  diluted
            earnings  per  share  excludes  Convertible  Notes,  as  they  are
            antidilutive.



        Reconciliation  of  GAAP  Net  (Loss)  Income  to  Non-GAAP  Income  (Loss)

                                                            (in  thousands)

                                              Three  months  ended                            Six  months  ended
                                  ----------------------------------    ----------------------
                                    June  30,      March  31,        July  1,          June  30,        July  1,
                                        2007                2007              2006                2007                2006
                                  ----------    ----------    ----------    ----------    ----------
                                (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)


GAAP  net  (loss)
  income                    $    (1,461)    $    (4,383)    $      2,066      $    (5,844)    $        1,259
Reconciling  items:
      Amortization  of
        intangibles(1)      2,665              2,667              2,670              5,332                5,483
      Stock-based
        compensation          1,325              1,389                  638              2,714                1,345
      Restructuring
        (2)                                  27                (130)                  97                (103)                  216
                                ----------    ----------    -----------  ----------    -----------
Non-GAAP  net
  income  (loss)      $      2,556      $        (457)    $      5,471      $      2,099      $        8,303
                                ==========    ==========    ===========  ==========    ===========


                Reconciliation  of  GAAP  Net  (Loss)  Income  per  Share  to  Non-GAAP
                                                  Net  Income  (Loss)  per  Share


                                              Three  months  ended                            Six  months  ended
                                ----------------------------------    ----------------------
                                  June  30,      March  31,        July  1,          June  30,        July  1,
                                      2007                2007              2006                2007                2006
                                ----------    ----------    ----------    ----------    ----------
                                (unaudited)(unaudited)  (unaudited)  (unaudited)  (unaudited)
Basic  and
  Diluted  (4):
GAAP  net  (loss)
  income                  $        (0.01)  $        (0.04)  $            0.02  $        (0.05)  $            0.01
Reconciling
  items:
      Amortization  of
        Intangibles  (1)      0.02                0.02                  0.02              0.05                  0.05
      Stock-based
        compensation            0.01                0.01                  0.01              0.02                  0.01
      Restructuring
      (2)                                0.00              (0.00)                0.00            (0.00)                0.00
                                ----------    ----------    -----------  ----------    -----------
Non-GAAP  net
  income  (loss)    $          0.02    $        (0.00)  $            0.05  $          0.02    $            0.07
                                ==========    ==========    ===========  ==========    ===========
Shares  used  in
  per  share
  calculations:
    Basic                        114,827          114,688            114,165        114,758            113,960
                                ==========    ==========    ===========  ==========    ===========
    Diluted  (3)            122,611          114,688            125,343        123,290            124,763
                                ==========    ==========    ===========  ==========    ===========


Notes:

    (1)  Relates  to  intangible  assets  acquired  through  our  acquisition  of
            Cerdelinx  Technologies,  Inc.  on  August  26,  2002  and  the  acquisition
            of  the  FPGA  business  of  Agere  Systems,  Inc.  on  January  18,  2002.

    (2)  Represents  costs  incurred  under  the  corporate  restructuring  plan,
            which  was  implemented  in  the  fourth  quarter  of  2005.  These  costs
            primarily  relate  to  separation  packages,  costs  to  vacate  space  under
            long-term  lease  arrangements  and  adjustments  to  sublease  income.

    (3)  For  the  three  months  ended  March  31,  2007,  the  computation  of  diluted
            earnings  excludes  the  effects  of  stock  options,  restricted  stock
            units,  warrants  and  Convertible  Notes,  as  they  are  antidilutive.

    (4)  Per  share  amounts  may  differ  due  to  rounding.



                                              Lattice  Semiconductor  Corporation

                                                    Consolidated  Balance  Sheet

                                                                (in  thousands)


                                                                                                          June  30,    December  30,
Description                                                                                        2007                2006
                                                                                                        -----------  -----------
                                                                                                        (unaudited)

                                                    Assets
Current  assets:
    Cash  and  short-term  investments                                      $      165,220  $      233,208
    Accounts  receivable,  net                                                              29,661            22,545
    Inventories                                                                                        38,207            38,816
    Other  current  assets                                                                      34,553            35,474
                                                                                                        -----------  -----------
      Total  current  assets                                                                  267,641          330,043

Property  and  equipment,  net                                                            46,101            46,696
Foundry  investments,  advances  and  other  assets                    101,259          109,964
Goodwill  and  other  intangible  assets,  net  (1)                      233,870          239,203
                                                                                                        -----------  -----------

                                                                                                        $      648,871  $      725,906
                                                                                                        ===========  ===========

                      Liabilities  and  Stockholders'  Equity

Current  liabilities:
    Accounts  payable  and  other  accrued  liabilities        $        37,741  $        82,843
    Deferred  income  and  allowances  on  sales  to
      distributors                                                                                      7,290              6,230
    Other  current  liabilities                                                                    --            20,480
                                                                                                        -----------  -----------
      Total  current  liabilities                                                          45,031          109,553

Zero  Coupon  Convertible  Notes  due  in  2010  (2)                        80,000            89,120
Other  long-term  liabilities                                                              5,814            15,488
                                                                                                        -----------  -----------
      Total  liabilities                                                                        130,845          214,161

Stockholders'  equity                                                                        518,026          511,745
                                                                                                        -----------  -----------

                                                                                                        $      648,871  $      725,906
                                                                                                        ===========  ===========


Notes:

    (1)  At  June  30,  2007,  includes  approximately  $223.6  million  in  goodwill
            and  $10.3  million  of  other  intangible  assets,  net,  related  to
            previous  acquisitions.  The  other  intangible  assets  will  be  amortized
            to  expense  generally  over  three  to  seven  years.  Goodwill  is  not
            amortized  effective  with  the  March  2002  quarter.

    (2)  Effective  July  1,  2007,  the  Convertible  Notes  will  be  classified  as
            a  current  liability  as  the  holders  of  the  Convertible  Notes  have  a
            right  to  require  payment  of  the  Convertible  Notes  on  July  1,  2008.



                                      Lattice  Semiconductor  Corporation

                        -  Supplemental  Historic  Financial  Information  -


Operations  Information                                                      Q207            Q107            Q206
                                                                                              -------      -------      -------
Percent  of  Revenue  (1):
Gross  Margin                                                                            55.1%          54.9%          57.0%
R&D  Expense                                                                              35.0%          37.9%          32.6%
SG&A  Expense                                                                            25.0%          25.1%          23.3%


Depreciation  Expense  ($000)                                            3,396          3,383          3,028
Capital  Expenditures  ($000)                                            2,914          3,915          5,461

Balance  Sheet  Information
Current  Ratio                                                                            5.9              4.7              5.7
A/R  Days  Revenue  Outstanding                                                46                45                48
Inventory  Months                                                                      4.3              4.6              4.0

Revenue%  (by  Product  Family)
FPGA                                                                                                23%              20%              21%
PLD                                                                                                  77%              80%              79%

Revenue%  (by  Product  Classification)
New                                                                                                  11%                8%                5%
Mainstream                                                                                    50%              48%              46%
Mature                                                                                            39%              44%              49%

Revenue%  (by  Geography)
Americas                                                                                        24%              23%              30%
Europe  (incl.  Africa)                                                              18%              22%              24%
Asia                                                                                                58%              55%              46%

Revenue%  (by  End  Market)
Communications                                                                            52%              45%              51%
Industrial  &  Other                                                                    24%              32%              23%
Consumer  &  Automotive                                                              13%              12%                9%
Computing                                                                                      11%              11%              17%

Revenue%  (by  Channel)
Direct                                                                                            64%              62%              58%
Distribution                                                                                36%              38%              42%



New:                  LatticeSC,  LatticeECP2/M,  LatticeECP,  LatticeXP,  MachXO,  Power
                          Manager,  ispClock

Mainstream:    FPSC,  XPLD,  ispGDX2,  ispMACH  4/LV,  ispGDX/V,  ispMACH  4000/Z,
                          XPGA,  Software  and  IP

Mature:            ORCA  2,  ORCA  3,  ORCA  4,  ispPAC,  ispLSI  8000V,  ispMACH  5000B,
                          ispMACH  2LV,  ispMACH  5LV,  ispLSI  2000V,  ispLSI  5000V,
                          ispMACH  5000VG,  all  5  Volt  CPLDs,  all  SPLDs

Note:

    (1)  Q206  amounts  have  been  reclassified  to  be  consistent  with  the
            current  period.



 

For more information contact:
Jan Johannessen
Chief Financial Officer
Lattice Semiconductor Corporation
(503) 268-8000




« Previous Page 1 | 2             



Review Article Be the first to review this article
Aldec

 True Circuits: Ultra PLL

Featured Video
Editorial
More Editorial  
Latest Blog Posts
Modesto (Mo) CasasGlobal Business in EDA
by Modesto (Mo) Casas
The Contingent Purchase Order Reassures Buyer and Seller
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Meet the New Cylynt, Fighting Software Piracy Around the Globe
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Smart Assembly of SoC Designs
Jobs
Senior Physical Design/Layout Engineer for EDA Careers at EAST COAST, California
Digital Design ASIC Manager for EDA Careers at RTP, North Carolina
Senior Analog Design Engineers #5337 for EDA Careers at EAST COAST, California
Senior Application Engineer Formal Verification for EDA Careers at San Jose and Austin, California
Upcoming Events
57th Design Automation Conference 2020 at San Francisco CA - Jul 19 - 23, 2020
SEMICON West 2020 - Virtual Event at - Jul 20 - 23, 2020
Semicon Southeast Asia 2020 at MITEC Kuala Lumpur Malaysia - Aug 11 - 13, 2020
Drive World Conference & Expo at Santa Clara Convention Center Santa Clara CA - Aug 11 - 13, 2020
DownStream: Solutions for Post Processing PCB Designs
Verific: SystemVerilog & VHDL Parsers
TrueCircuits:



© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise