[July 26, 2018] |
|
Lattice Semiconductor Reports Second Quarter of 2018 Results
Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of
customizable smart connectivity solutions, announced financial results
today for the fiscal second quarter ended June 30, 2018.
Selected Q2 2018 Financial Results and Comparisons (in thousands,
except per share data)
|
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GAAP - Three Months Ended
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Non-GAAP - Three Months Ended
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|
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June 30, 2018
|
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March 31, 2018
|
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July 1,
2017 †
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|
June 30, 2018
|
|
March 31, 2018
|
|
July 1,
2017 †
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Revenue
|
|
|
|
$
|
102,715
|
|
|
$
|
98,623
|
|
|
$
|
94,137
|
|
|
$
|
102,715
|
|
|
$
|
98,623
|
|
|
$
|
94,137
|
|
Gross Margin %
|
|
|
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48.9
|
%
|
|
57.3
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%
|
|
54.4
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%
|
|
57.2
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%
|
|
57.6
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%
|
|
54.6
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%
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Operating Expense
|
|
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$
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63,812
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|
|
$
|
57,316
|
|
|
$
|
59,938
|
|
|
$
|
39,945
|
|
|
$
|
45,421
|
|
|
$
|
46,009
|
|
Net (Loss) Income
|
|
|
|
$
|
(20,223
|
)
|
|
$
|
(5,952
|
)
|
|
$
|
(13,022
|
)
|
|
$
|
12,375
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|
|
$
|
6,118
|
|
|
$
|
124
|
|
Net (Loss) Income per share, basic and diluted
|
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
$
|
-
|
|
|
|
|
|
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†Results for periods in 2017 presented in accordance with
ASC 605, which was in effect during that fiscal year.
Glen Hawk, Interim Chief Executive Officer, said, "We exceeded our
expectations for the second quarter of 2018. We are delivering revenue
growth and higher profitability on a non-GAAP basis by focusing on our
core business and further improving operational efficiencies. As an
example, after pursuing strategic opportunities, we discontinued our
non-core millimeter wave business, which was unable to achieve
profitability levels necessary to warrant further investment. We remain
committed to increasing shareholder value and are well-positioned for
the future as our control, connect and compute solutions are ideally
suited for the emerging IoT markets, particularly in the industrial
segment."
Max Downing, Chief Financial Officer, added, "The discontinuation of our
millimeter wave business resulted in $24 million of primarily non-cash
restructuring and impairment charges which impacted GAAP operating
expenses and gross margin. Non-GAAP operating expenses for the second
quarter were 12% lower, as compared to the first quarter of 2018, at
$39.9 million, as we continue to execute improvements to our cost
structure. Importantly, this does not yet reflect the expected $13
million annual operating expense reduction from the discontinuation of
our millimeter wave business, which will start to benefit us in the
third quarter. Our non-GAAP gross margin came in at the high end of our
expectations at 57.2% reflecting the acceleration of server related
sales and automotive and industrial applications. Another key takeaway
from the quarter is that we made a $10 million discretionary payment
against our corporate debt and continue to maintain a healthy balance of
$106 million in cash and short-term investments."
Business Outlook - Third Quarter of 2018:
-
Revenue for the third quarter of 2018 is expected to be between
approximately $100 million and $103 million.
-
Gross margin percentage for the third quarter of 2018 is expected to
be approximately 57% plus or minus 2% on both a GAAP and non-GAAP
basis.
-
Total operating expenses for the third quarter of 2018 are expected to
be between approximately $44 million and $47 million on a GAAP basis
and between approximately $39 million and $41 million on a non-GAAP
basis. Both GAAP and non-GAAP operating expenses will reflect the
initial benefits of the millimeter wave discontinuance. These savings
are expected to be offset primarily by $1.5 million in mask and
associated project costs related to new product advancements.
* 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 fiscal second quarter of 2018 and business outlook for the third
quarter of 2018 on Thursday, July 26 at 5:00 p.m. Eastern Time. The
conference call-in number is 1-888-684-5603 or 1-918-398-4852 with
conference identification number 6199158. 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 two hours after the
conclusion of the live call through 11:59 p.m. Eastern Time on August 2,
2018, by telephone at 1-404-537-3406. To access the replay, use
conference identification number 6199158. 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: the expected $13 million annual operating expense reduction
from the discontinuation of our millimeter wave business will start to
benefit us in the third quarter; and the statements under the heading
"Business Outlook - Third Quarter of 2018." 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 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. 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 30, 2017, 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,
impairment of intangible assets, inventory written off from the
discontinuation of the Company's millimeter wave business, 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. 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 in calculating the annual
excess cash flow debt payment. 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 smart connectivity
solutions at the network edge, where the "things" of IoT live. Our low
power FPGA, and video ASSP products deliver edge intelligence, edge
connectivity, and control solutions to the consumer, communications,
industrial, compute, 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
|
|
Six Months Ended
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
July 1, 2017
|
|
June 30, 2018
|
|
July 1, 2017
|
Revenue
|
|
|
|
$
|
102,715
|
|
|
$
|
98,623
|
|
|
$
|
94,137
|
|
|
$
|
201,338
|
|
|
$
|
198,724
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
52,467
|
|
|
42,102
|
|
|
42,928
|
|
|
94,569
|
|
|
86,683
|
|
Research and development
|
|
|
|
21,081
|
|
|
22,941
|
|
|
26,820
|
|
|
44,022
|
|
|
54,209
|
|
Selling, general, and administrative
|
|
|
|
21,068
|
|
|
27,043
|
|
|
21,938
|
|
|
48,111
|
|
|
45,843
|
|
Amortization of acquired intangible assets
|
|
|
|
4,523
|
|
|
5,636
|
|
|
8,737
|
|
|
10,159
|
|
|
17,251
|
|
Restructuring
|
|
|
|
4,376
|
|
|
1,029
|
|
|
1,576
|
|
|
5,405
|
|
|
1,642
|
|
Acquisition related charges
|
|
|
|
864
|
|
|
667
|
|
|
867
|
|
|
1,531
|
|
|
2,527
|
|
Impairment of acquired intangible assets
|
|
|
|
11,900
|
|
|
-
|
|
|
-
|
|
|
11,900
|
|
|
-
|
|
|
|
|
|
116,279
|
|
|
99,418
|
|
|
102,866
|
|
|
215,697
|
|
|
208,155
|
|
Loss from operations
|
|
|
|
(13,564
|
)
|
|
(795
|
)
|
|
(8,729
|
)
|
|
(14,359
|
)
|
|
(9,431
|
)
|
Interest, net
|
|
|
|
(4,968
|
)
|
|
(5,114
|
)
|
|
(4,656
|
)
|
|
(10,082
|
)
|
|
(10,224
|
)
|
Other (expense) income, net
|
|
|
|
(348
|
)
|
|
554
|
|
|
410
|
|
|
206
|
|
|
(77
|
)
|
Loss before income taxes
|
|
|
|
(18,880
|
)
|
|
(5,355
|
)
|
|
(12,975
|
)
|
|
(24,235
|
)
|
|
(19,732
|
)
|
Income tax expense
|
|
|
|
1,343
|
|
|
597
|
|
|
47
|
|
|
1,940
|
|
|
565
|
|
Net loss
|
|
|
|
$
|
(20,223
|
)
|
|
$
|
(5,952
|
)
|
|
$
|
(13,022
|
)
|
|
$
|
(26,175
|
)
|
|
$
|
(20,297
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations, basic and diluted
|
|
|
|
124,843
|
|
|
124,076
|
|
|
122,390
|
|
|
124,460
|
|
|
122,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
December 30, 2017
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash, cash equivalents and short-term marketable securities
|
|
|
|
$
|
105,785
|
|
|
$
|
111,797
|
Accounts receivable, net
|
|
|
|
76,566
|
|
|
55,104
|
Inventories
|
|
|
|
65,586
|
|
|
79,903
|
Other current assets
|
|
|
|
21,729
|
|
|
16,567
|
Total current assets
|
|
|
|
269,666
|
|
|
263,371
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
36,418
|
|
|
40,423
|
Intangible assets, net
|
|
|
|
29,189
|
|
|
51,308
|
Goodwill
|
|
|
|
267,514
|
|
|
267,514
|
Deferred income taxes
|
|
|
|
192
|
|
|
198
|
Other long-term assets
|
|
|
|
20,225
|
|
|
13,147
|
|
|
|
|
$
|
623,204
|
|
|
$
|
635,961
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and other accrued liabilities
|
|
|
|
$
|
62,200
|
|
|
$
|
64,821
|
Current portion of long-term debt
|
|
|
|
24,526
|
|
|
1,508
|
Deferred income and allowances on sales to distributors and deferred
license revenue
|
|
|
|
-
|
|
|
17,318
|
Total current liabilities
|
|
|
|
86,726
|
|
|
83,647
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
265,699
|
|
|
299,667
|
Other long-term liabilities
|
|
|
|
40,159
|
|
|
34,954
|
Total liabilities
|
|
|
|
392,584
|
|
|
418,268
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
230,620
|
|
|
217,693
|
|
|
|
|
$
|
623,204
|
|
|
$
|
635,961
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2018
|
|
July 1, 2017
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(26,175
|
)
|
|
$
|
(20,297
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
22,425
|
|
|
30,497
|
|
Impairment of acquired intangible assets
|
|
|
|
11,900
|
|
|
-
|
|
Amortization of debt issuance costs and discount
|
|
|
|
1,058
|
|
|
1,354
|
|
(Gain) loss on sale or maturity of marketable securities
|
|
|
|
(1
|
)
|
|
200
|
|
Gain on forward contracts
|
|
|
|
(36
|
)
|
|
(26
|
)
|
Stock-based compensation expense
|
|
|
|
7,200
|
|
|
6,772
|
|
Gain on disposal of fixed assets
|
|
|
|
(93
|
)
|
|
(61
|
)
|
Gain on sale of assets and business units
|
|
|
|
-
|
|
|
(300
|
)
|
Impairment of cost-method investment
|
|
|
|
-
|
|
|
493
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(19,654
|
)
|
|
12,846
|
|
Inventories
|
|
|
|
14,687
|
|
|
689
|
|
Prepaid expenses and other assets
|
|
|
|
(7,891
|
)
|
|
2,822
|
|
Accounts payable and accrued expenses (includes restructuring)
|
|
|
|
7,095
|
|
|
(13,554
|
)
|
Accrued payroll obligations
|
|
|
|
(1,716
|
)
|
|
(1,894
|
)
|
Income taxes payable
|
|
|
|
851
|
|
|
(355
|
)
|
Deferred income and allowances on sales to distributors
|
|
|
|
-
|
|
|
(7,342
|
)
|
Deferred licensing and services revenue
|
|
|
|
(68
|
)
|
|
(330
|
)
|
Net cash provided by operating activities
|
|
|
|
9,582
|
|
|
11,514
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Proceeds from sales of and maturities of short-term marketable
securities
|
|
|
|
2,500
|
|
|
7,200
|
|
Purchases of marketable securities
|
|
|
|
(9,603
|
)
|
|
(7,420
|
)
|
Capital expenditures
|
|
|
|
(4,105
|
)
|
|
(7,035
|
)
|
Proceeds from sale of assets and business unit, net of cash sold
|
|
|
|
-
|
|
|
300
|
|
Short-term loan to cost-method investee
|
|
|
|
-
|
|
|
(1,000
|
)
|
Cash paid for software licenses
|
|
|
|
(3,981
|
)
|
|
(4,149
|
)
|
Net cash used in investing activities
|
|
|
|
(15,189
|
)
|
|
(12,104
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Restricted stock unit withholdings
|
|
|
|
(1,369
|
)
|
|
(1,748
|
)
|
Proceeds from issuance of common stock
|
|
|
|
6,409
|
|
|
2,931
|
|
Repayment of debt
|
|
|
|
(12,009
|
)
|
|
(33,679
|
)
|
Net cash used in financing activities
|
|
|
|
(6,969
|
)
|
|
(32,496
|
)
|
Effect of exchange rate change on cash
|
|
|
|
(540
|
)
|
|
950
|
|
Net decrease in cash and cash equivalents
|
|
|
|
(13,116
|
)
|
|
(32,136
|
)
|
Beginning cash and cash equivalents
|
|
|
|
106,815
|
|
|
106,552
|
|
Ending cash and cash equivalents
|
|
|
|
$
|
93,699
|
|
|
$
|
74,416
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
Change in unrealized (gain) loss related to marketable securities,
net of tax, included in Accumulated other comprehensive loss
|
|
|
|
$
|
(2
|
)
|
|
$
|
71
|
|
Income taxes paid, net of refunds
|
|
|
|
$
|
2,057
|
|
|
$
|
976
|
|
Interest paid
|
|
|
|
$
|
9,177
|
|
|
$
|
12,094
|
|
Accrued purchases of plant and equipment
|
|
|
|
$
|
354
|
|
|
$
|
2,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lattice Semiconductor Corporation
- Supplemental Historical Financial Information -
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
July 1, 2017
|
|
June 30, 2018
|
|
July 1, 2017
|
Operations and Cash Flow Information
|
|
|
|
|
|
|
|
|
Percent of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
|
|
48.9
|
%
|
|
57.3
|
%
|
|
54.4
|
%
|
|
53.0
|
%
|
|
56.4
|
%
|
R&D Expense
|
|
|
|
|
20.5
|
%
|
|
23.3
|
%
|
|
28.5
|
%
|
|
21.9
|
%
|
|
27.3
|
%
|
SG&A Expense
|
|
|
|
|
20.5
|
%
|
|
27.4
|
%
|
|
23.3
|
%
|
|
23.9
|
%
|
|
23.1
|
%
|
Depreciation and amortization (in thousands)
|
|
|
|
|
10,069
|
|
|
12,356
|
|
|
15,201
|
|
|
22,425
|
|
|
30,497
|
|
Stock-based compensation expense (in thousands)
|
|
|
|
|
2,400
|
|
|
4,800
|
|
|
2,929
|
|
|
7,200
|
|
|
6,772
|
|
Restructuring and severance related charges (in thousands)
|
|
|
|
|
4,376
|
|
|
1,029
|
|
|
1,576
|
|
|
5,405
|
|
|
1,642
|
|
Net cash provided by operating activities (thousands)
|
|
|
|
|
7,124
|
|
|
2,458
|
|
|
3,849
|
|
|
9,582
|
|
|
11,514
|
|
Capital expenditures (in thousands)
|
|
|
|
|
2,301
|
|
|
1,804
|
|
|
3,661
|
|
|
4,105
|
|
|
7,035
|
|
Repayment of debt (in thousands)
|
|
|
|
|
11,134
|
|
|
875
|
|
|
22,899
|
|
|
12,009
|
|
|
33,679
|
|
Interest paid (in thousands)
|
|
|
|
|
4,757
|
|
|
4,420
|
|
|
7,069
|
|
|
9,177
|
|
|
12,094
|
|
Taxes paid (cash, in thousands)
|
|
|
|
|
2,017
|
|
|
40
|
|
|
754
|
|
|
2,057
|
|
|
976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Ratio
|
|
|
|
|
3.1
|
|
|
4.2
|
|
|
2.3
|
|
|
|
|
|
A/R Days Revenue Outstanding
|
|
|
|
|
68
|
|
|
61
|
|
|
84
|
|
|
|
|
|
Inventory Months
|
|
|
|
|
3.8
|
|
|
5.6
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Geography)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
|
|
|
|
76
|
%
|
|
73
|
%
|
|
69
|
%
|
|
74
|
%
|
|
70
|
%
|
Europe (incl. Africa)
|
|
|
|
|
12
|
%
|
|
12
|
%
|
|
11
|
%
|
|
12
|
%
|
|
11
|
%
|
Americas
|
|
|
|
|
12
|
%
|
|
15
|
%
|
|
20
|
%
|
|
14
|
%
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by End Market)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications and Computing
|
|
|
|
|
29
|
%
|
|
28
|
%
|
|
29
|
%
|
|
29
|
%
|
|
29
|
%
|
Mobile and Consumer
|
|
|
|
|
24
|
%
|
|
27
|
%
|
|
27
|
%
|
|
25
|
%
|
|
29
|
%
|
Industrial and Automotive
|
|
|
|
|
43
|
%
|
|
41
|
%
|
|
32
|
%
|
|
42
|
%
|
|
30
|
%
|
Licensing and Services
|
|
|
|
|
4
|
%
|
|
4
|
%
|
|
12
|
%
|
|
4
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue% (by Channel) *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
86
|
%
|
|
87
|
%
|
|
76
|
%
|
|
87
|
%
|
|
73
|
%
|
Direct
|
|
|
|
|
14
|
%
|
|
13
|
%
|
|
24
|
%
|
|
13
|
%
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
During the first quarter of 2018, we updated our channel categories
to group all forms of distribution into a single channel. Prior
periods have been reclassified to match current period presentation.
|
|
|
|
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
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
July 1, 2017
|
|
June 30, 2018
|
|
July 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Reconciliation
|
GAAP Gross margin
|
|
|
|
$
|
50,248
|
|
|
$
|
56,521
|
|
|
$
|
51,209
|
|
|
$
|
106,769
|
|
|
$
|
112,041
|
|
Inventory write-off related to restructured operations
|
|
|
|
8,277
|
|
|
-
|
|
|
-
|
|
|
8,277
|
|
|
-
|
|
Stock-based compensation - gross margin
|
|
|
|
196
|
|
|
237
|
|
|
180
|
|
|
433
|
|
|
408
|
|
Non-GAAP Gross margin
|
|
|
|
$
|
58,721
|
|
|
$
|
56,758
|
|
|
$
|
51,389
|
|
|
$
|
115,479
|
|
|
$
|
112,449
|
|
|
Gross Margin % Reconciliation
|
GAAP Gross margin %
|
|
|
|
48.9
|
%
|
|
57.3
|
%
|
|
54.4
|
%
|
|
53.0
|
%
|
|
56.4
|
%
|
Cumulative effect of non-GAAP Gross Margin adjustments
|
|
|
|
8.3
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|
4.4
|
%
|
|
0.2
|
%
|
Non-GAAP Gross margin %
|
|
|
|
57.2
|
%
|
|
57.6
|
%
|
|
54.6
|
%
|
|
57.4
|
%
|
|
56.6
|
%
|
|
Operating Expenses Reconciliation
|
GAAP Operating expenses
|
|
|
|
$
|
63,812
|
|
|
$
|
57,316
|
|
|
$
|
59,938
|
|
|
$
|
121,128
|
|
|
$
|
121,472
|
|
Amortization of acquired intangible assets
|
|
|
|
(4,523
|
)
|
|
(5,636
|
)
|
|
(8,737
|
)
|
|
(10,159
|
)
|
|
(17,251
|
)
|
Restructuring charges
|
|
|
|
(4,376
|
)
|
|
(1,029
|
)
|
|
(1,576
|
)
|
|
(5,405
|
)
|
|
(1,642
|
)
|
Acquisition related charges (1)
|
|
|
|
(864
|
)
|
|
(667
|
)
|
|
(867
|
)
|
|
(1,531
|
)
|
|
(2,527
|
)
|
Impairment of acquired intangible assets
|
|
|
|
(11,900
|
)
|
|
-
|
|
|
-
|
|
|
(11,900
|
)
|
|
-
|
|
Stock-based compensation - operations
|
|
|
|
(2,204
|
)
|
|
(4,563
|
)
|
|
(2,749
|
)
|
|
(6,767
|
)
|
|
(6,364
|
)
|
Non-GAAP Operating expenses
|
|
|
|
$
|
39,945
|
|
|
$
|
45,421
|
|
|
$
|
46,009
|
|
|
$
|
85,366
|
|
|
$
|
93,688
|
|
|
(Loss) Income from Operations Reconciliation
|
GAAP Loss from operations
|
|
|
|
$
|
(13,564
|
)
|
|
$
|
(795
|
)
|
|
$
|
(8,729
|
)
|
|
$
|
(14,359
|
)
|
|
$
|
(9,431
|
)
|
Inventory write-off related to restructured operations
|
|
|
|
8,277
|
|
|
-
|
|
|
-
|
|
|
8,277
|
|
|
-
|
|
Stock-based compensation - gross margin
|
|
|
|
196
|
|
|
237
|
|
|
180
|
|
|
433
|
|
|
408
|
|
Amortization of acquired intangible assets
|
|
|
|
4,523
|
|
|
5,636
|
|
|
8,737
|
|
|
10,159
|
|
|
17,251
|
|
Restructuring charges
|
|
|
|
4,376
|
|
|
1,029
|
|
|
1,576
|
|
|
5,405
|
|
|
1,642
|
|
Acquisition related charges (1)
|
|
|
|
864
|
|
|
667
|
|
|
867
|
|
|
1,531
|
|
|
2,527
|
|
Impairment of acquired intangible assets
|
|
|
|
11,900
|
|
|
-
|
|
|
-
|
|
|
11,900
|
|
|
-
|
|
Stock-based compensation - operations
|
|
|
|
2,204
|
|
|
4,563
|
|
|
2,749
|
|
|
6,767
|
|
|
6,364
|
|
Non-GAAP Income from operations
|
|
|
|
$
|
18,776
|
|
|
$
|
11,337
|
|
|
$
|
5,380
|
|
|
$
|
30,113
|
|
|
$
|
18,761
|
|
|
(Loss) Income from Operations % Reconciliation
|
GAAP Loss from operations %
|
|
|
|
(13.2
|
)%
|
|
(0.8
|
)%
|
|
(9.3
|
)%
|
|
(7.1
|
)%
|
|
(4.7
|
)%
|
Cumulative effect of non-GAAP Gross Margin and Operating adjustments
|
|
|
|
31.5
|
%
|
|
12.3
|
%
|
|
15.0
|
%
|
|
22.1
|
%
|
|
14.1
|
%
|
Non-GAAP Income from operations %
|
|
|
|
18.3
|
%
|
|
11.5
|
%
|
|
5.7
|
%
|
|
15.0
|
%
|
|
9.4
|
%
|
|
(1) Legal fees and outside services that were related to our
proposed 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
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
July 1, 2017
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Income Tax Expense Reconciliation
|
GAAP Income tax expense
|
|
|
|
$
|
1,343
|
|
|
$
|
597
|
|
|
$
|
47
|
|
|
$
|
1,940
|
|
|
$
|
565
|
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
|
|
(258
|
)
|
|
62
|
|
|
663
|
|
|
(196
|
)
|
|
360
|
|
Non-GAAP Income tax expense
|
|
|
|
$
|
1,085
|
|
|
$
|
659
|
|
|
$
|
710
|
|
|
$
|
1,744
|
|
|
$
|
925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Reconciliation
|
GAAP Net loss
|
|
|
|
$
|
(20,223
|
)
|
|
$
|
(5,952
|
)
|
|
$
|
(13,022
|
)
|
|
$
|
(26,175
|
)
|
|
$
|
(20,297
|
)
|
Inventory write-off related to restructured operations
|
|
|
|
8,277
|
|
|
-
|
|
|
-
|
|
|
8,277
|
|
|
-
|
|
Stock-based compensation - gross margin
|
|
|
|
196
|
|
|
237
|
|
|
180
|
|
|
433
|
|
|
408
|
|
Amortization of acquired intangible assets
|
|
|
|
4,523
|
|
|
5,636
|
|
|
8,737
|
|
|
10,159
|
|
|
17,251
|
|
Restructuring charges
|
|
|
|
4,376
|
|
|
1,029
|
|
|
1,576
|
|
|
5,405
|
|
|
1,642
|
|
Acquisition related charges (1)
|
|
|
|
864
|
|
|
667
|
|
|
867
|
|
|
1,531
|
|
|
2,527
|
|
Impairment of acquired intangible assets
|
|
|
|
11,900
|
|
|
-
|
|
|
-
|
|
|
11,900
|
|
|
-
|
|
Stock-based compensation - operations
|
|
|
|
2,204
|
|
|
4,563
|
|
|
2,749
|
|
|
6,767
|
|
|
6,364
|
|
Gain on sale of business unit
|
|
|
|
-
|
|
|
-
|
|
|
(300
|
)
|
|
-
|
|
|
(300
|
)
|
Estimated tax effect of non-GAAP adjustments (2)
|
|
|
|
258
|
|
|
(62
|
)
|
|
(663
|
)
|
|
196
|
|
|
(360
|
)
|
Non-GAAP Net income
|
|
|
|
$
|
12,375
|
|
|
$
|
6,118
|
|
|
$
|
124
|
|
|
$
|
18,493
|
|
|
$
|
7,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Per Share Reconciliation
|
GAAP Net loss per share - basic and diluted
|
|
|
|
$
|
(0.16
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.17
|
)
|
Cumulative effect of Non-GAAP adjustments
|
|
|
|
0.26
|
|
|
0.10
|
|
|
0.11
|
|
|
0.36
|
|
|
0.23
|
|
Non-GAAP Net income per share - basic and diluted
|
|
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
$
|
-
|
|
|
$
|
0.15
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
124,843
|
|
|
124,076
|
|
|
122,390
|
|
|
124,460
|
|
|
122,095
|
|
Diluted - GAAP (3)
|
|
|
|
124,843
|
|
|
124,076
|
|
|
122,390
|
|
|
124,460
|
|
|
122,095
|
|
Diluted - Non-GAAP (3)
|
|
|
|
125,620
|
|
|
125,144
|
|
|
124,527
|
|
|
125,432
|
|
|
124,276
|
|
|
|
|
|
|
(1) Legal fees and outside services that were related to our
proposed 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.
|
|
|
Lattice Semiconductor Corporation
|
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures -
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 29, 2018
|
|
|
|
|
|
|
|
|
|
Business Outlook - Third Quarter 2018
|
|
|
|
Low
|
|
Midpoint
|
|
High
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
|
|
$
|
44,000
|
|
|
$
|
45,500
|
|
|
$
|
47,000
|
|
Cumulative effect of Non-GAAP Operating expense adjustments (4)
|
|
|
|
(5,000
|
)
|
|
(5,500
|
)
|
|
(6,000
|
)
|
Non-GAAP Operating expenses
|
|
|
|
$
|
39,000
|
|
|
$
|
40,000
|
|
|
$
|
41,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Includes estimated Amortization of acquired intangible assets
and Stock-based compensation included in Operating Expenses
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005800/en/
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|