[August 08, 2017] |
|
Lattice Semiconductor Reports Second Quarter 2017 Results
Lattice Semiconductor Corporation (NASDAQ:LSCC), the leading provider of
customizable smart connectivity solutions, announced financial results
today for the fiscal second quarter ended July 1, 2017.
The Company reported revenue for the second quarter of 2017 of $94.1
million, which decreased 10.0% sequentially, as compared to the first
quarter 2017 revenue of $104.6 million, and decreased 5.1%, as compared
to the second quarter 2016 revenue of $99.2 million.
Gross margin on a GAAP basis was 54.4% for the second quarter of 2017,
as compared to the first quarter of 2017 gross margin of 58.2% and 58.9%
for the second quarter of 2016. Gross margin for the second quarter of
2017 was 54.6% on a non-GAAP basis, as compared to 58.4% for the first
quarter of 2017 and 59.1% for the second quarter of 2016.
Total operating expenses for the second quarter of 2017 were $59.9
million on a GAAP basis, as compared to $61.5 million for the first
quarter of 2017 and $64.8 million for the second quarter of 2016. Total
operating expenses were $46.0 million for the second quarter of 2017 on
a non-GAAP basis, as compared to $47.7 million for the first quarter of
2017, and $50.8 million for the second quarter of 2016.
GAAP net loss for the second quarter was $13.0 million ($0.11 per basic
and diluted share), with net income of $0.1 million ($0.00 per basic and
diluted share) on a non-GAAP basis. This compares to a net loss on a
GAAP basis in the prior quarter of $7.3 million ($0.06 per basic and
diluted share), with net income on a non-GAAP basis in the prior quarter
of $7.1 million ($0.06 per basic and diluted share), and compares to a
net loss on a GAAP basis in the year ago period of $13.8 million ($0.12
per basic and diluted share), with net income of $0.2 million ($0.00 per
basic and diluted share) on a non-GAAP basis. GAAP results for the
second quarter of 2017 reflect $1.6 million in restructuring charges,
$0.9 million in acquisition related charges, less than $0.1 million in
tax expense, $8.7 million in amortization of acquired intangible assets,
and $2.9 million in stock-based compensation expense. GAAP results for
the first quarter of 2017 reflect less than $0.1 million in
restructuring charges, $1.7 million in acquisition related charges, $0.5
million in tax expense, $8.5 million in amortization of acquired
intangible assets, and $3.8 million in stock-based compensation expense.
GAAP results for the second quarter of 2016 reflect $2.6 million in
restructuring charges, $4.5 million in tax expense, $8.3 million in
amortization of acquired intangible assets, and $3.2 million in
stock-based compensation expense.
Darin G. Billerbeck, President and Chief Executive Officer, said,
"Revenue declined in the second quarter due to lower shipments to
handset customers along with continued macro softness in the China
communications market. Despite the near term environment, we are very
encouraged by the pace and attractiveness of our design wins and the
growth prospects in handsets and other smart consumer devices at large
OEMs. While revenue during the third quarter is likely to be relatively
flat sequentially, we expect to see an uptick in the fourth quarter of
2017 based on our strategy to continue growing our base FPGA business
along with investing in the next wave of growth initiatives, including
mmWave, Human Machine Interface and Artificial Intelligence."
Max Downing, Chief Financial Officer, added, "During the second quarter
of 2017, we generated $3.8 million in cash flow from operations and paid
approximately $30.0 million in debt payments ($22.9 million for
principal and $7.1 million for interest) as compared to debt payments of
$15.8 million in the prior quarter ($10.8 million for principal and $5.0
million for interest). As part of our efforts to maximize profitability,
we are taking decisive actions to right size our cost and operating
structure to focus on the areas of our business with the highest
strategic value and greatest return. We currently expect to exit the
third quarter of 2017 with quarterly non-GAAP operating expenses reduced
to approximately $43 million to $45 million. Other infrastructure
activities we have in place are expected to help us further reduce our
quarterly non-GAAP operating expense level to approximately $40 million,
while also achieving a non-GAAP operating income target of 20% by the
end of the first quarter of 2018."
Recent Business Highlights
-
Launches New Machine Learning and Sensor-to-Cloud Security
Solutions for Intelligence at the Edge: Lattice's iCE40 UltraPlus
accelerates innovation in smartphones, wearables, drones, 360 cameras,
human-machine interfaces (HMIs), industrial automation and IoT
security. New reference designs offer additional resources for
customers to develop differentiated, innovative products, while
meeting fast time-to-market requirements. Reference designs take
advantage of iCE40 UltraPlus' power efficient parallel processing for
sensor stitching and repetitive number crunching.
-
Lattice's ECP5™ FPGA Enables Energy-Efficient Embedded Vision
Systems at the Edge: Lattice announced the implementation of its
ECP5 FPGA into embedded vision applications for smart surveillance and
automotive applications at the Edge. Reinforcing Lattice's commitment
to the industrial and automotive markets, the Company's ECP5 family of
low power, small form factor FPGAs enables CPU acceleration for
license plate detection and image enhancement in intelligent traffic
cameras. In addition, Lattice's ECP5 FPGA enables the integration of
image stitching and 3D merging for Advanced Driver Assistance Systems
(ADAS) 360 surround view systems.
-
Lattice Introduces Ultra HD Wireless Solution to Deliver Blu-ray
Quality Video: Lattice introduced an ultra-high-definition (UHD)
wireless solution to deliver Blu-ray quality video for broad market
applications. Using the MOD6320-T and MOD6321-R wireless video modules
based on Lattice's SiBEAM 60 GHz technology and the Sil9396 HDMI 2.0
video bridge device, Lattice is the first to bring to market a 4K
wireless video solution that transmits in the 60 GHz band, ensuring
robust, low latency video transmission free from interference. The new
wireless reference design provides a high bandwidth, wireless
audio/video interface compatible with the HDMI standard for in-room
applications in a range of markets including medical and industrial.
-
Proposed Merger with Canyon Bridge: The Merger was approved by
Lattice's shareholders on February 28, 2017. On June 9, 2017, Lattice
and Canyon Bridge Fund I, LP ("Canyon Bridge") jointly withdrew and
re-filed their joint voluntary notice to the Committee on Foreign
Investment ("CFIUS") under the Defense Production Act of 1950, as
amended, to allow more time for review and discussion with CFIUS in
connection with the proposed merger (the "Merger") between Lattice and
an indirect wholly-owned subsidiary of Canyon Bridge. Lattice and
Canyon Bridge remain fully committed to the Merger and plan to
continue to actively engage in further discussions with CFIUS during
its review, and to allowing Lattice's stockholders to realize the
value offered by the proposed transaction.
Investor Conference Call / Outlook:
As a result of the acquisition announcement with Canyon Bridge, the
Company will not hold a quarterly conference call and webcast, and will
not provide an outlook for its future financial results.
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 we will continue to invest in our
business as we capitalize on exciting opportunities, including video and
enabling applications in consumer and industrial led by our fast growing
CrossLinkTM video bridging product, along with our wireless
products showcased in leading edge OEM wireless VR headsets; our
expectation that our FPGA technology will allow us to thrive as we
leverage the many advantages of our low power solutions critical to the
interconnected world of smart devices; and our intention to remain
committed to actively managing our operating expenses as we focus on our
financial model. 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; and our
expectation that we will remain focused on maximizing the leverage of
our operating model and reduce our outstanding debt balance. 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 disruptions of our business arising from the
announcement and pendency of our proposed acquisition by Canyon Bridge
Capital Partners, Inc., 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 December 31, 2016, and Lattice's
quarterly reports filed on Form 10-Q.
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 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 charges,
acquisition-related charges, amortization of acquired intangible assets,
purchase accounting adjustments, and the estimated tax effect of these
items. These charges and adjustments may be nonrecurring in nature but
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. In particular, investors may find the non-GAAP
measures useful in reviewing our operating performance without the
significant accounting charges resulting from the Silicon Image
acquisition, alongside the comparably adjusted prior year results.
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 when making their investment decisions.
In addition, the Company uses Adjusted EBITDA to measure compliance with
certain of its debt covenants. 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 Corporation (NASDAQ:LSCC) provides smart
connectivity solutions powered by our low power FPGA, video ASSP, 60 GHz
millimeter wave, and IP products to the consumer, communications,
industrial, computing, and automotive markets worldwide. Our unwavering
commitment to our customers enables them to accelerate their innovation,
creating an ever better and more connected world.
For more information, visit www.latticesemi.com.
You can also follow us via LinkedIn,
Twitter,
Facebook,
YouTube
or RSS.
Lattice Semiconductor Corporation, Lattice (& design), L (& design),
iCE40 and MachXO3L, 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.
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 Statements of Operations
(in thousands, except per share data)
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 1, 2017
|
|
April 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
Revenue
|
|
$
|
94,137
|
|
|
$
|
104,587
|
|
|
$
|
99,209
|
|
|
$
|
198,724
|
|
|
$
|
195,721
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
42,928
|
|
|
43,755
|
|
|
40,783
|
|
|
86,683
|
|
|
80,191
|
|
Research and development
|
|
26,820
|
|
|
27,389
|
|
|
30,915
|
|
|
54,209
|
|
|
63,523
|
|
Selling, general, and administrative
|
|
21,938
|
|
|
23,905
|
|
|
23,005
|
|
|
45,843
|
|
|
46,613
|
|
Amortization of acquired intangible assets
|
|
8,737
|
|
|
8,514
|
|
|
8,311
|
|
|
17,251
|
|
|
17,032
|
|
Restructuring
|
|
1,576
|
|
|
66
|
|
|
2,568
|
|
|
1,642
|
|
|
7,999
|
|
Acquisition related charges
|
|
867
|
|
|
1,660
|
|
|
-
|
|
|
2,527
|
|
|
94
|
|
|
|
102,866
|
|
|
105,289
|
|
|
105,582
|
|
|
208,155
|
|
|
215,452
|
|
Loss from operations
|
|
(8,729
|
)
|
|
(702
|
)
|
|
(6,373
|
)
|
|
(9,431
|
)
|
|
(19,731
|
)
|
Interest expense
|
|
(4,656
|
)
|
|
(5,568
|
)
|
|
(5,062
|
)
|
|
(10,224
|
)
|
|
(10,022
|
)
|
Other income (expense), net
|
|
564
|
|
|
(148
|
)
|
|
2,532
|
|
|
416
|
|
|
3,349
|
|
Loss before income taxes and equity in net loss of an unconsolidated
affiliate
|
|
(12,821
|
)
|
|
(6,418
|
)
|
|
(8,903
|
)
|
|
(19,239
|
)
|
|
(26,404
|
)
|
Income tax expense
|
|
47
|
|
|
518
|
|
|
4,539
|
|
|
565
|
|
|
6,439
|
|
Equity in net loss of an unconsolidated affiliate, net of tax
|
|
(154
|
)
|
|
(339
|
)
|
|
(368
|
)
|
|
(493
|
)
|
|
(678
|
)
|
Net loss
|
|
$
|
(13,022
|
)
|
|
$
|
(7,275
|
)
|
|
$
|
(13,810
|
)
|
|
$
|
(20,297
|
)
|
|
$
|
(33,521
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations, basic and diluted
|
|
122,390
|
|
|
121,800
|
|
|
119,445
|
|
|
122,095
|
|
|
119,125
|
|
Lattice Semiconductor Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
|
|
|
|
July 1, 2017
|
|
December 31, 2016
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash, cash equivalents and short-term marketable securities
|
|
$
|
84,886
|
|
|
$
|
116,860
|
Accounts receivable, net
|
|
86,791
|
|
|
99,637
|
Inventories
|
|
78,479
|
|
|
79,168
|
Other current assets
|
|
18,421
|
|
|
19,035
|
Total current assets
|
|
268,577
|
|
|
314,700
|
|
|
|
|
|
Property and equipment, net
|
|
49,356
|
|
|
49,481
|
Intangible assets, net of amortization
|
|
97,817
|
|
|
118,863
|
Goodwill
|
|
269,758
|
|
|
269,758
|
Deferred income taxes
|
|
379
|
|
|
372
|
Other long-term assets
|
|
11,394
|
|
|
13,709
|
|
|
$
|
697,281
|
|
|
$
|
766,883
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable and other accrued liabilities
|
|
$
|
75,916
|
|
|
$
|
90,798
|
Current portion of long-term debt
|
|
15,318
|
|
|
33,767
|
Deferred income and allowances on sales to sell-through distributors
and deferred license revenue
|
|
25,313
|
|
|
32,985
|
Total current liabilities
|
|
116,547
|
|
|
157,550
|
|
|
|
|
|
Long-term debt
|
|
286,979
|
|
|
300,855
|
Other long-term liabilities
|
|
34,990
|
|
|
38,048
|
Total liabilities
|
|
438,516
|
|
|
496,453
|
|
|
|
|
|
Stockholders' equity
|
|
258,765
|
|
|
270,430
|
|
|
$
|
697,281
|
|
|
$
|
766,883
|
Lattice Semiconductor Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
Six Months Ended
|
|
July 1, 2017
|
|
July 2, 2016
|
Cash flows from operating activities:
|
|
|
|
Net loss
|
$
|
(20,297
|
)
|
|
$
|
(33,521
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and amortization
|
30,497
|
|
|
32,352
|
|
Amortization of debt issuance costs and discount
|
1,354
|
|
|
659
|
|
Loss on sale or maturity of marketable securities
|
200
|
|
|
72
|
|
Gain on forward contracts
|
(26
|
)
|
|
(4
|
)
|
Stock-based compensation expense
|
6,772
|
|
|
7,798
|
|
(Gain) loss on disposal of fixed assets
|
(61
|
)
|
|
314
|
|
Gain on sale of business unit
|
(300
|
)
|
|
(2,646
|
)
|
Equity in net loss of an unconsolidated affiliate, net of tax
|
493
|
|
|
678
|
|
Changes in assets and liabilities:
|
|
|
|
Accounts receivable, net
|
12,846
|
|
|
3,524
|
|
Inventories
|
689
|
|
|
(10,847
|
)
|
Prepaid expenses and other assets
|
2,822
|
|
|
18
|
|
Accounts payable and accrued expenses (includes restructuring)
|
(13,554
|
)
|
|
23,901
|
|
Accrued payroll obligations
|
(1,894
|
)
|
|
574
|
|
Income taxes payable
|
(355
|
)
|
|
(253
|
)
|
Deferred income and allowances on sales to sell-through distributors
|
(7,342
|
)
|
|
10,155
|
|
Deferred licensing and services revenue
|
(330
|
)
|
|
(117
|
)
|
Net cash provided by operating activities
|
11,514
|
|
|
32,657
|
|
Cash flows from investing activities:
|
|
|
|
Proceeds from sales of and maturities of short-term marketable
securities
|
7,200
|
|
|
11,960
|
|
Purchases of marketable securities
|
(7,420
|
)
|
|
(2,944
|
)
|
Capital expenditures
|
(7,035
|
)
|
|
(10,102
|
)
|
Proceeds from sale of business unit, net of cash sold
|
300
|
|
|
1,972
|
|
Cash paid for a non-marketable equity method investment
|
(1,000
|
)
|
|
-
|
|
Cash paid for software licenses
|
(4,149
|
)
|
|
(5,672
|
)
|
Net cash used in investing activities
|
(12,104
|
)
|
|
(4,786
|
)
|
Cash flows from financing activities:
|
|
|
|
Restricted stock unit withholdings
|
(1,748
|
)
|
|
(1,427
|
)
|
Proceeds from issuance of common stock
|
2,931
|
|
|
3,326
|
|
Repayment of debt
|
(33,679
|
)
|
|
(3,404
|
)
|
Net cash used in financing activities
|
(32,496
|
)
|
|
(1,505
|
)
|
Effect of exchange rate change on cash
|
950
|
|
|
(441
|
)
|
Net (decrease) increase in cash and cash equivalents
|
(32,136
|
)
|
|
25,925
|
|
Beginning cash and cash equivalents
|
106,552
|
|
|
84,606
|
|
Ending cash and cash equivalents
|
$
|
74,416
|
|
|
$
|
110,531
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
Change in unrealized loss related to marketable securities, net of
tax, included in Accumulated other comprehensive loss
|
$
|
71
|
|
|
$
|
27
|
|
Income taxes paid, net of refunds
|
$
|
976
|
|
|
$
|
4,864
|
|
Interest paid
|
$
|
12,094
|
|
|
$
|
9,264
|
|
Accrued purchases of plant and equipment
|
$
|
2,216
|
|
|
$
|
1,585
|
|
Lattice Semiconductor Corporation
- Supplemental Historical Financial Information -
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 1, 2017
|
|
April 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
Operations and Cash Flow Information
|
|
|
|
|
|
|
|
|
Percent of Revenue
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
54.4
|
%
|
|
58.2
|
%
|
|
58.9
|
%
|
|
56.4
|
%
|
|
59.0
|
%
|
R&D Expense
|
|
28.5
|
%
|
|
26.2
|
%
|
|
31.2
|
%
|
|
27.3
|
%
|
|
32.5
|
%
|
SG&A Expense
|
|
23.3
|
%
|
|
22.9
|
%
|
|
23.2
|
%
|
|
23.1
|
%
|
|
23.8
|
%
|
Depreciation and amortization (in thousands)
|
|
15,201
|
|
|
15,296
|
|
|
15,021
|
|
|
30,497
|
|
|
32,352
|
|
Stock-based compensation expense (in thousands)
|
|
2,929
|
|
|
3,843
|
|
|
3,242
|
|
|
6,772
|
|
|
7,798
|
|
Restructuring and severance related charges (in thousands)
|
|
1,576
|
|
|
66
|
|
|
2,568
|
|
|
1,642
|
|
|
7,999
|
|
Net cash provided by (used in) operating activities (thousands)
|
|
3,849
|
|
|
7,665
|
|
|
9,533
|
|
|
11,514
|
|
|
32,657
|
|
Capital expenditures (in thousands)
|
|
3,661
|
|
|
3,374
|
|
|
4,402
|
|
|
7,035
|
|
|
10,102
|
|
Repayment of debt (thousands)
|
|
22,899
|
|
|
10,780
|
|
|
2,529
|
|
|
33,679
|
|
|
3,404
|
|
Interest paid (in thousands)
|
|
7,069
|
|
|
5,025
|
|
|
4,593
|
|
|
12,094
|
|
|
9,264
|
|
Taxes paid (cash, in thousands)
|
|
754
|
|
|
222
|
|
|
2,368
|
|
|
976
|
|
|
4,864
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Information
|
|
|
|
|
|
|
|
|
|
|
Current Ratio
|
|
2.3
|
|
|
2.6
|
|
|
2.0
|
|
|
|
|
|
A/R Days Revenue Outstanding
|
|
84
|
|
|
57
|
|
|
78
|
|
|
|
|
|
Inventory Months
|
|
5.5
|
|
|
5.3
|
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Geography)
|
|
|
|
|
|
|
|
|
|
|
Asia
|
|
69
|
%
|
|
70
|
%
|
|
68
|
%
|
|
70
|
%
|
|
68
|
%
|
Europe (incl. Africa)
|
|
11
|
%
|
|
11
|
%
|
|
15
|
%
|
|
11
|
%
|
|
16
|
%
|
Americas
|
|
20
|
%
|
|
19
|
%
|
|
17
|
%
|
|
19
|
%
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by End Market)
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing
|
|
29
|
%
|
|
29
|
%
|
|
29
|
%
|
|
29
|
%
|
|
31
|
%
|
Mobile and Consumer
|
|
27
|
%
|
|
30
|
%
|
|
24
|
%
|
|
29
|
%
|
|
25
|
%
|
Industrial and Automotive
|
|
32
|
%
|
|
30
|
%
|
|
37
|
%
|
|
30
|
%
|
|
35
|
%
|
Licensing and Services
|
|
12
|
%
|
|
11
|
%
|
|
10
|
%
|
|
12
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Channel)
|
|
|
|
|
|
|
|
|
|
|
Sell-through distribution
|
|
66
|
%
|
|
60
|
%
|
|
59
|
%
|
|
63
|
%
|
|
56
|
%
|
Direct
|
|
34
|
%
|
|
40
|
%
|
|
41
|
%
|
|
37
|
%
|
|
44
|
%
|
Lattice Semiconductor Corporation
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures -
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 1, 2017
|
|
April 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross margin
|
|
$
|
51,209
|
|
|
$
|
60,832
|
|
|
$
|
58,426
|
|
|
$
|
112,041
|
|
|
$
|
115,530
|
|
Inventory step-up expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
523
|
|
Stock-based compensation - gross margin
|
|
180
|
|
|
228
|
|
|
166
|
|
|
408
|
|
|
425
|
|
Non-GAAP Gross margin
|
|
$
|
51,389
|
|
|
$
|
61,060
|
|
|
$
|
58,592
|
|
|
$
|
112,449
|
|
|
$
|
116,478
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross margin %
|
|
54.4
|
%
|
|
58.2
|
%
|
|
58.9
|
%
|
|
56.4
|
%
|
|
59.0
|
%
|
Cumulative effect of non-GAAP Gross Margin adjustments
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
Non-GAAP Gross margin %
|
|
54.6
|
%
|
|
58.4
|
%
|
|
59.1
|
%
|
|
56.6
|
%
|
|
59.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
$
|
59,938
|
|
|
$
|
61,534
|
|
|
$
|
64,799
|
|
|
$
|
121,472
|
|
|
$
|
135,261
|
|
Amortization of acquired intangible assets
|
|
(8,737
|
)
|
|
(8,514
|
)
|
|
(8,311
|
)
|
|
(17,251
|
)
|
|
(17,032
|
)
|
Restructuring charges
|
|
(1,576
|
)
|
|
(66
|
)
|
|
(2,568
|
)
|
|
(1,642
|
)
|
|
(7,999
|
)
|
Acquisition related charges (1)
|
|
(867
|
)
|
|
(1,660
|
)
|
|
-
|
|
|
(2,527
|
)
|
|
(94
|
)
|
Stock-based compensation - operations
|
|
(2,749
|
)
|
|
(3,615
|
)
|
|
(3,076
|
)
|
|
(6,364
|
)
|
|
(7,373
|
)
|
Non-GAAP Operating expenses
|
|
$
|
46,009
|
|
|
$
|
47,679
|
|
|
$
|
50,844
|
|
|
$
|
93,688
|
|
|
$
|
102,763
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations Reconciliation
|
GAAP Loss from operations
|
|
$
|
(8,729
|
)
|
|
$
|
(702
|
)
|
|
$
|
(6,373
|
)
|
|
$
|
(9,431
|
)
|
|
$
|
(19,731
|
)
|
Inventory step-up expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
523
|
|
Stock-based compensation - gross margin
|
|
180
|
|
|
228
|
|
|
166
|
|
|
408
|
|
|
425
|
|
Amortization of acquired intangible assets
|
|
8,737
|
|
|
8,514
|
|
|
8,311
|
|
|
17,251
|
|
|
17,032
|
|
Restructuring charges
|
|
1,576
|
|
|
66
|
|
|
2,568
|
|
|
1,642
|
|
|
7,999
|
|
Acquisition related charges (1)
|
|
867
|
|
|
1,660
|
|
|
-
|
|
|
2,527
|
|
|
94
|
|
Stock-based compensation - operations
|
|
2,749
|
|
|
3,615
|
|
|
3,076
|
|
|
6,364
|
|
|
7,373
|
|
Non-GAAP Income from operations
|
|
$
|
5,380
|
|
|
$
|
13,381
|
|
|
$
|
7,748
|
|
|
$
|
18,761
|
|
|
$
|
13,715
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations % Reconciliation
|
GAAP Loss from operations %
|
|
(9.3
|
)%
|
|
(0.7
|
)%
|
|
(6.4
|
)%
|
|
(4.7
|
)%
|
|
(10.1
|
)%
|
Cumulative effect of non-GAAP Gross Margin and Operating adjustments
|
|
15.0
|
%
|
|
13.5
|
%
|
|
14.2
|
%
|
|
14.1
|
%
|
|
17.1
|
%
|
Non-GAAP Income from operations %
|
|
5.7
|
%
|
|
12.8
|
%
|
|
7.8
|
%
|
|
9.4
|
%
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Legal fees and outside services in connection with our pending
acquisition by Canyon Bridge Acquisition Company, Inc.
|
|
Lattice Semiconductor Corporation - Reconciliation of
U.S. GAAP to Non-GAAP Financial Measures - (in
thousands, except per share data) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 1, 2017
|
|
April 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax expense
|
|
$
|
47
|
|
|
$
|
518
|
|
|
$
|
4,539
|
|
|
$
|
565
|
|
|
$
|
6,439
|
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
663
|
|
|
(303
|
)
|
|
(2,499
|
)
|
|
360
|
|
|
(1,951
|
)
|
Non-GAAP Income tax expense
|
|
$
|
710
|
|
|
$
|
215
|
|
|
$
|
2,040
|
|
|
$
|
925
|
|
|
$
|
4,488
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
$
|
(13,022
|
)
|
|
$
|
(7,275
|
)
|
|
$
|
(13,810
|
)
|
|
$
|
(20,297
|
)
|
|
$
|
(33,521
|
)
|
Inventory step-up expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
523
|
|
Stock-based compensation - gross margin
|
|
180
|
|
|
228
|
|
|
166
|
|
|
408
|
|
|
425
|
|
Amortization of acquired intangible assets
|
|
8,737
|
|
|
8,514
|
|
|
8,311
|
|
|
17,251
|
|
|
17,032
|
|
Restructuring charges
|
|
1,576
|
|
|
66
|
|
|
2,568
|
|
|
1,642
|
|
|
7,999
|
|
Acquisition related charges (1)
|
|
867
|
|
|
1,660
|
|
|
-
|
|
|
2,527
|
|
|
94
|
|
Stock-based compensation - operations
|
|
2,749
|
|
|
3,615
|
|
|
3,076
|
|
|
6,364
|
|
|
7,373
|
|
Gain on sale of business unit
|
|
(300
|
)
|
|
-
|
|
|
(2,646
|
)
|
|
(300
|
)
|
|
(2,646
|
)
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
(663
|
)
|
|
303
|
|
|
2,499
|
|
|
(360
|
)
|
|
1,951
|
|
Non-GAAP Net income (loss)
|
|
$
|
124
|
|
|
$
|
7,111
|
|
|
$
|
164
|
|
|
$
|
7,235
|
|
|
$
|
(770
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss per share - basic and diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.28
|
)
|
Cumulative effect of Non-GAAP adjustments
|
|
0.11
|
|
|
0.12
|
|
|
0.12
|
|
|
0.23
|
|
|
0.27
|
|
Non-GAAP Net income (loss) per share - basic and diluted
|
|
$
|
-
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
0.06
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
122,390
|
|
|
121,800
|
|
|
119,445
|
|
|
122,095
|
|
|
119,125
|
|
Diluted - GAAP (3)
|
|
122,390
|
|
|
121,800
|
|
|
119,445
|
|
|
122,095
|
|
|
119,125
|
|
Diluted - Non-GAAP (3)
|
|
124,527
|
|
|
124,343
|
|
|
120,871
|
|
|
124,276
|
|
|
119,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Legal fees and outside services in connection with our pending
acquisition by Canyon Bridge Acquisition Company, Inc.
|
(2) 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."
|
(3) Diluted shares are calculated using the GAAP treasury stock
method. In a loss position, diluted shares equal basic shares.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170808006040/en/
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|