LSCC Lattice Semiconductor Corp

Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended December 28, 2024.

Revenue for the fourth quarter of 2024 was $117.4 million, with GAAP gross margin of 61.1%, and GAAP net income of $0.12 per diluted share. On a non-GAAP basis, gross margin was 62.1%, with net income per diluted share of $0.15. Fourth quarter of 2024 gross margin on a non-GAAP basis would have been 68.1%, in line with prior guidance, before the impact of an approximately $7.0 million one-time charge related to our assembly and test operations. The materials were purchased in anticipation of a supply constraint and are no longer expected to be used. GAAP net cash flows from operating activities for the fourth quarter of 2024 was $45.4 million, with GAAP operating cash flow margin of 38.7%, and free cash flow and free cash flow margin of $39.7 million and 33.8%, respectively.

Revenue for the full year 2024 was $509.4 million, with GAAP gross margin of 66.8% and GAAP net income of $0.44 per diluted share. On a non-GAAP basis, gross margin was 67.4%, with net income per diluted share of $0.90. Full year 2024 gross margin on a non-GAAP basis would have been 68.7% before the impact of the above noted one-time charge. GAAP net income and GAAP net income margin for the full year 2024 was $61.1 million and 12%, respectively, with adjusted EBITDA of $162.0 million and a 31.8% adjusted EBITDA margin for the full year 2024.

"We achieved record design wins, significantly reduced operating expenses, and delivered a strong 31.8% adjusted EBITDA margin in 2024,” said Ford Tamer, Chief Executive Officer. “Having just come back from sales conferences in North America, APAC and EMEA, I am more confident in our strategy and product roadmap. We are starting to see signs of improvement in the broader market environment as evidenced by our stronger backlog and improved book to bill, which bode well for our business moving forward. I'm excited by the opportunities to closely collaborate with our team, customers and partners from around the world."

Tonya Stevens, Chief Accounting Officer, former Interim Chief Financial Officer, said, "We delivered a strong free cash flow margin of 33.8% for the fourth quarter of 2024 and continued to make significant progress in the realignment of our resources to best support customer demand, and maintain the discipline of our long-term financial model. Our efforts are already beginning to yield results, including reduced operating costs. In the fourth quarter of 2024, we opened a new, state-of-the-art R&D site in Pune, India. We maintained a strong gross margin, continued to invest in our product roadmap, and delivered value to shareholders through our seventeenth consecutive quarter of share repurchases."

Fourth Quarter and Full Year 2024 Highlights:

• Double-Digit New Product Revenue Growth: Revenue of our new products, including Nexus and Avant, grew double-digits in 2024 compared to 2023, with a record total number of design wins.
• Extended Repurchase Program: Lattice's Board of Directors authorized the Company to repurchase up to an additional $100 million of its outstanding common stock through the end of December 2025. The Company has repurchased approximately 6 million shares since the fourth quarter of 2020 thereby reducing dilution by more than 4.3%.
• Extended Avant Portfolio: The Lattice Avant™ 30 and Avant™ 50 offer new capacity and package options for customers to enable edge optimized and advanced connectivity applications development. These devices provide customers more options for connectivity, functional capacity, and features.
• New Small FPGA Platform: The new Lattice Nexus™ 2 small FPGA platform combines connectivity advancements, power and performance optimizations, and leading security and reliability capabilities to meet the growing demand for edge applications requiring efficient processing, bridging, and control capabilities.
• Increased Software Solutions: Lattice launched four new solution stack updates in edge AI with Lattice sensAI™, embedded vision with Lattice mVision™, factory automation with Lattice Automate™, and automotive designs with Lattice Drive™. These updates include improved performance with enhanced application-specific features and expanded IP, demo, and reference designs, and follow the introduction earlier this year of an enhanced version of the award-winning Lattice ORAN™ solution stack.
• Enhanced FPGA Design Tool: Lattice announced new versions of the award-winning Lattice Radiant™ and Lattice Propel™ software tools that support the new Lattice Nexus 2 FPGA platform, Lattice Certus-N2 FPGA family, and Lattice Avant devices. New features include RISC-V® variants and improved debug, power calculation, and an advanced design automation flow solution with expanded functional safety and reliability capabilities.
• Successful Developers Conference: Over 6,000 registrations, with over 90 technology demonstrations for applications including edge AI, automation and robotics, datacenter security, ADAS, and telecom, with featured customer speakers, including Dell, Ericsson, Microsoft, MKS, SICK, and Teledyne FLIR.
• Over 20 Industry Awards: Lattice received over 20 industry awards during 2024, including the Global Semiconductor Alliance's Most Respected Semiconductor Company for the fifth consecutive year, was recognized as a 2024 Top Workplace in the San Francisco Bay Area by The San Francisco Chronicle, and was named a 2025 BIG Innovation Award winner for Nexus 2.

Selected Fourth Quarter and Full Year 2024 Financial Results and Comparisons (in thousands, except per share data)

 

 

GAAP Financial Results (unaudited)

 

 

Q4 2024

 

Q3 2024

 

Q4 2023

 

Q/Q

 

Y/Y

 

FY 2024

 

FY 2023

 

FY/FY

Revenue

 

$ 117,419

 

$ 127,091

 

$ 170,596

 

(7.6)%

 

(31.2)%

 

$ 509,401

 

$ 737,154

 

(30.9)%

Gross Margin %

 

61.1%

 

69.0%

 

69.7%

 

(790) bps

 

(860) bps

 

66.8%

 

69.8%

 

(300) bps

R&D Expense %

 

32.9%

 

32.6%

 

23.3%

 

30 bps

 

960 bps

 

31.3%

 

21.7%

 

960 bps

SG&A Expense %

 

25.1%

 

24.4%

 

20.3%

 

70 bps

 

480 bps

 

23.0%

 

18.6%

 

440 bps

Operating Expenses

 

$ 83,962

 

$ 80,161

 

$ 75,798

 

4.7%

 

10.8%

 

$ 305,943

 

$ 302,400

 

1.2%

Income (loss) from Operations

 

$ (12,209)

 

$ 7,527

 

$ 43,149

 

(262.2)%

 

(128.3)%

 

$ 34,457

 

$ 212,270

 

(83.8)%

Net Income

 

$ 16,514

 

$ 7,190

 

$ 98,706

 

129.7%

 

(83.3)%

 

$ 61,131

 

$ 259,061

 

(76.4)%

Net Income per Share - Basic

 

$ 0.12

 

$ 0.05

 

$ 0.72

 

$ 0.07

 

$ (0.60)

 

$ 0.44

 

$ 1.88

 

$ (1.44)

Net Income per Share - Diluted

 

$ 0.12

 

$ 0.05

 

$ 0.71

 

$ 0.07

 

$ (0.59)

 

$ 0.44

 

$ 1.85

 

$ (1.41)

Net Income Margin

 

14.1%

 

5.7%

 

57.9%

 

840 bps

 

(4380) bps

 

12.0%

 

35.1%

 

(2310) bps

Operating Cash Flow Margin

 

38.7%

 

34.6%

 

42.2%

 

410 bps

 

(350) bps

 

27.7%

 

36.6%

 

(890) bps

Fourth quarter of 2023 GAAP net income includes an income tax benefit of $0.41 per diluted share associated with a valuation allowance release. Full year 2023 GAAP net income includes an income tax benefit of $0.41 per diluted share associated with a valuation allowance release.

 

 

Non-GAAP* Financial Results (unaudited)

 

 

Q4 2024

 

Q3 2024

 

Q4 2023

 

Q/Q

 

Y/Y

 

FY 2024

 

FY 2023

 

FY/FY

Revenue

 

$ 117,419

 

$ 127,091

 

$ 170,596

 

(7.6)%

 

(31.2)%

 

$ 509,401

 

$ 737,154

 

(30.9)%

Gross Margin %

 

62.1%

 

69.0%

 

70.4%

 

(690) bps

 

(830) bps

 

67.4%

 

70.4%

 

(300) bps

R&D Expense %

 

26.8%

 

26.2%

 

18.7%

 

60 bps

 

810 bps

 

25.6%

 

17.8%

 

780 bps

SG&A Expense %

 

19.3%

 

17.4%

 

13.8%

 

190 bps

 

550 bps

 

17.6%

 

12.8%

 

480 bps

Operating Expenses

 

$ 52,799

 

$ 53,875

 

$ 55,495

 

(2.0)%

 

(4.9)%

 

$ 215,562

 

$ 225,702

 

(4.5)%

Income from Operations

 

$ 20,097

 

$ 33,756

 

$ 64,563

 

(40.5)%

 

(68.9)%

 

$ 127,617

 

$ 293,580

 

(56.5)%

Net Income

 

$ 20,181

 

$ 32,544

 

$ 62,801

 

(38.0)%

 

(67.9)%

 

$ 124,415

 

$ 280,660

 

(55.7)%

Net Income per Share - Basic

 

$ 0.15

 

$ 0.24

 

$ 0.46

 

$ (0.09)

 

$ (0.31)

 

$ 0.90

 

$ 2.04

 

$ (1.14)

Net Income per Share - Diluted

 

$ 0.15

 

$ 0.24

 

$ 0.45

 

$ (0.09)

 

$ (0.30)

 

$ 0.90

 

$ 2.01

 

$ (1.11)

Adjusted EBITDA Margin

 

24.8%

 

33.5%

 

43.1%

 

(870) bps

 

(1830) bps

 

31.8%

 

44.0%

 

(1220) bps

Free Cash Flow Margin

 

33.8%

 

31.0%

 

40.0%

 

280 bps

 

(620) bps

 

23.5%

 

33.8%

 

(1030) bps

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. Additional information relating to these measures is included below in “Non-GAAP Financial Measures.” For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

Business Outlook - First Quarter of 2025:

• Revenue for the first quarter of 2025 is expected to be between $115 million and $125 million.
• Gross margin percentage for the first quarter of 2025 is expected to be 69.0% plus or minus 1% on a non-GAAP basis.
• Total operating expenses for the first quarter of 2025 are expected to be between $50 million and $52 million on a non-GAAP basis.
• Income tax rate for the first quarter of 2025 is expected to be between 5% and 6% on a non-GAAP basis.
• Net income for the first quarter of 2025 is expected to be between $0.20 and $0.24 per share 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 first quarter of 2025, certain items that affect calculation of GAAP financial measures for gross margin percentage and total operating expenses are not available on a forward-looking basis because such items cannot be reasonably calculated without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP financial measures, including certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; restructuring; and impairment. Consequently, the Company is unable to calculate the most directly comparable GAAP measure to non-GAAP gross margin percentage or non-GAAP total operating expenses for the Company’s first quarter 2025 quarterly guidance.

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the fiscal fourth quarter and full year 2024, and business outlook on Monday, February 10 at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-877-407-3982 or 1-201-493-6780 with conference identification number 13751120. 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:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are neither historical facts nor assurances of future performance and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to our strategy, product roadmap, long-term financial model; market improvement; and the statements under the heading “Business Outlook - First Quarter of 2025.” 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 and other financial and operational outcomes are inherently uncertain due to factors such as global economic conditions which may affect customer demand, the cyclical nature of the semiconductor industry, pricing and inflationary pressures, competitive actions, international trade disputes and sanctions, the potential impact of global pandemics, and other significant risks and uncertainties that are beyond our ability to predict or control. 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 income tax rate and actual net income on a per share basis may differ from our expectations. 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 described in our filings with the Securities and Exchange Commission, including Lattice’s most recent Annual Report on Form 10-K, especially those under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations”, all of which are expressly incorporated herein by reference.

Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. New risk factors emerge from time to time and it is not possible for the Company to predict all risk factors. You should not 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 and undertakes no obligation 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, including non-GAAP gross margin, gross margin percentage, R&D expense, SG&A expense, operating expenses, income from operations, other (expense) income, net, income tax expense, net income, net income per share – basic, and net income per share – diluted, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation and related payroll tax effects, litigation expense outside the ordinary course of business, amortization of acquired intangible assets, restructuring plans, transformation activities, and other charges, impairments, and the estimated tax effect of these items, non-cash changes in net deferred income taxes, change in tax law and other tax adjustments, and depreciation and other amortization. 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. The non-GAAP financial information used by the Company may differ from that used by other companies. 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 the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support let our customers quickly and easily unleash their innovation to create a smart, secure, and connected world.

For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, X, Facebook, YouTube, WeChat, or Weibo.

Lattice Semiconductor Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

 

$

117,419

 

 

$

127,091

 

 

$

170,596

 

 

$

509,401

 

 

$

737,154

 

Cost of sales

 

 

45,666

 

 

 

39,403

 

 

 

51,649

 

 

 

169,001

 

 

 

222,484

 

Gross margin

 

 

71,753

 

 

 

87,688

 

 

 

118,947

 

 

 

340,400

 

 

 

514,670

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

38,580

 

 

 

41,398

 

 

 

39,787

 

 

 

159,302

 

 

 

159,770

 

Selling, general, and administrative

 

 

29,474

 

 

 

30,994

 

 

 

34,661

 

 

 

116,942

 

 

 

137,244

 

Amortization of acquired intangible assets

 

 

870

 

 

 

870

 

 

 

869

 

 

 

3,479

 

 

 

3,478

 

Restructuring

 

 

1,109

 

 

 

6,899

 

 

 

481

 

 

 

12,291

 

 

 

1,908

 

Impairment of acquired intangible assets

 

 

13,929

 

 

 

—

 

 

 

—

 

 

 

13,929

 

 

 

—

 

Total operating expenses

 

 

83,962

 

 

 

80,161

 

 

 

75,798

 

 

 

305,943

 

 

 

302,400

 

Income (loss) from operations

 

 

(12,209

)

 

 

7,527

 

 

 

43,149

 

 

 

34,457

 

 

 

212,270

 

Interest income (expense), net

 

 

772

 

 

 

936

 

 

 

1,453

 

 

 

3,948

 

 

 

2,041

 

Other income (expense), net

 

 

(2,135

)

 

 

(249

)

 

 

802

 

 

 

(2,176

)

 

 

545

 

Income (loss) before income taxes

 

 

(13,572

)

 

 

8,214

 

 

 

45,404

 

 

 

36,229

 

 

 

214,856

 

Income tax (benefit) expense

 

 

(30,086

)

 

 

1,024

 

 

 

(53,302

)

 

 

(24,902

)

 

 

(44,205

)

Net income

 

$

16,514

 

 

$

7,190

 

 

$

98,706

 

 

$

61,131

 

 

$

259,061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

$

0.05

 

 

$

0.72

 

 

$

0.44

 

 

$

1.88

 

Diluted

 

$

0.12

 

 

$

0.05

 

 

$

0.71

 

 

$

0.44

 

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

137,861

 

 

 

137,709

 

 

 

137,686

 

 

 

137,623

 

 

 

137,694

 

Diluted

 

 

138,322

 

 

 

137,894

 

 

 

139,114

 

 

 

138,322

 

 

 

139,790

 

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

136,291

 

 

$

128,317

 

Accounts receivable, net

 

 

81,060

 

 

 

104,373

 

Inventories, net

 

 

103,410

 

 

 

98,826

 

Other current assets

 

 

44,073

 

 

 

36,430

 

Total current assets

 

 

364,834

 

 

 

367,946

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

52,988

 

 

 

49,546

 

Operating lease right-of-use assets

 

 

13,870

 

 

 

14,487

 

Intangible assets, net

 

 

4,587

 

 

 

20,974

 

Goodwill

 

 

315,358

 

 

 

315,358

 

Deferred income taxes

 

 

66,980

 

 

 

57,762

 

Other long-term assets

 

 

25,286

 

 

 

14,821

 

 

 

$

843,903

 

 

$

840,894

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

36,828

 

 

$

34,487

 

Accrued liabilities

 

 

45,638

 

 

 

36,048

 

Accrued payroll obligations

 

 

17,156

 

 

 

26,865

 

Total current liabilities

 

 

99,622

 

 

 

97,400

 

 

 

 

 

 

 

 

 

 

Long-term operating lease liabilities, net of current portion

 

 

9,433

 

 

 

10,739

 

Other long-term liabilities

 

 

23,916

 

 

 

40,735

 

Total liabilities

 

 

132,971

 

 

 

148,874

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

710,932

 

 

 

692,020

 

 

 

$

843,903

 

 

$

840,894

 

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Year Ended

 

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

61,131

 

 

$

259,061

 

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

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

52,985

 

 

 

70,197

 

Depreciation and amortization

 

 

38,737

 

 

 

34,432

 

Change in deferred income tax provision

 

 

(12,060

)

 

 

(58,614

)

Change in noncurrent taxes payable

 

 

(19,370

)

 

 

299

 

Impairment of acquired intangible assets

 

 

13,929

 

 

 

—

 

Charge for expiring production materials

 

 

7,019

 

 

 

—

 

Other non-cash adjustments

 

 

10,220

 

 

 

7,017

 

Net changes in assets and liabilities

 

 

(11,715

)

 

 

(42,804

)

Net cash provided by (used in) operating activities

 

 

140,876

 

 

 

269,588

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(20,985

)

 

 

(20,098

)

Other investing activities

 

 

(16,708

)

 

 

(13,152

)

Net cash provided by (used in) investing activities

 

 

(37,693

)

 

 

(33,250

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

—

 

 

 

(130,000

)

Repurchase of common stock

 

 

(66,998

)

 

 

(80,004

)

Net cash flows related to stock compensation exercises

 

 

(27,462

)

 

 

(43,713

)

Net cash provided by (used in) financing activities

 

 

(94,460

)

 

 

(253,717

)

Effect of exchange rate change on cash

 

 

(749

)

 

 

(26

)

Net increase (decrease) in cash and cash equivalents

 

 

7,974

 

 

 

(17,405

)

Beginning cash and cash equivalents

 

 

128,317

 

 

 

145,722

 

Ending cash and cash equivalents

 

$

136,291

 

 

$

128,317

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Interest paid

 

$

—

 

 

$

3,240

 

Income taxes paid, net of refunds

 

$

8,587

 

 

$

15,754

 

Operating lease payments

 

$

9,567

 

 

$

8,344

 

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A/R Days Revenue Outstanding (DSO)

 

 

63

 

 

 

66

 

 

 

56

 

 

 

 

 

 

 

 

 

Inventory Days (DIO)

 

 

207

 

 

 

242

 

 

 

175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue % (by Geography)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

66

%

 

 

63

%

 

 

60

%

 

 

65

%

 

 

60

%

Americas

 

 

23

%

 

 

15

%

 

 

22

%

 

 

20

%

 

 

20

%

Europe (incl. Africa)

 

 

11

%

 

 

22

%

 

 

18

%

 

 

15

%

 

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue % (by End Market)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications and Computing

 

 

49

%

 

 

48

%

 

 

34

%

 

 

45

%

 

 

35

%

Industrial and Automotive

 

 

42

%

 

 

43

%

 

 

59

%

 

 

46

%

 

 

59

%

Consumer

 

 

9

%

 

 

9

%

 

 

7

%

 

 

9

%

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue $M (by End Market)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications and Computing

 

$

58.0

 

 

$

61.0

 

 

$

58.7

 

 

$

228.1

 

 

$

257.6

 

Industrial and Automotive

 

$

49.2

 

 

$

54.2

 

 

$

99.8

 

 

$

237.0

 

 

$

433.5

 

Consumer

 

$

10.2

 

 

$

11.9

 

 

$

12.1

 

 

$

44.3

 

 

$

46.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue % (by Channel)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

84

%

 

 

95

%

 

 

82

%

 

 

89

%

 

 

87

%

Direct

 

 

16

%

 

 

5

%

 

 

18

%

 

 

11

%

 

 

13

%

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Gross Margin Reconciliation

GAAP Gross margin

 

$

71,753

 

 

$

87,688

 

 

$

118,947

 

 

$

340,400

 

 

$

514,670

 

Stock-based compensation - gross margin (1)

 

 

1,143

 

 

 

(57

)

 

 

1,111

 

 

 

2,779

 

 

 

4,612

 

Non-GAAP Gross margin

 

$

72,896

 

 

$

87,631

 

 

$

120,058

 

 

$

343,179

 

 

$

519,282

 

Gross Margin % Reconciliation

GAAP Gross margin %

 

 

61.1

%

 

 

69.0

%

 

 

69.7

%

 

 

66.8

%

 

 

69.8

%

Stock-based compensation - gross margin (1)

 

 

1.0

%

 

 

0.0

%

 

 

0.7

%

 

 

0.6

%

 

 

0.6

%

Non-GAAP Gross margin %

 

 

62.1

%

 

 

69.0

%

 

 

70.4

%

 

 

67.4

%

 

 

70.4

%

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

GAAP R&D Expense %

 

 

32.9

%

 

 

32.6

%

 

 

23.3

%

 

 

31.3

%

 

 

21.7

%

Stock-based compensation - R&D (1)

 

 

(6.1

)%

 

 

(6.4

)%

 

 

(4.6

)%

 

 

(5.7

)%

 

 

(3.9

)%

Non-GAAP R&D Expense %

 

 

26.8

%

 

 

26.2

%

 

 

18.7

%

 

 

25.6

%

 

 

17.8

%

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

GAAP SG&A Expense %

 

 

25.1

%

 

 

24.4

%

 

 

20.3

%

 

 

23.0

%

 

 

18.6

%

Stock-based compensation - SG&A (1)

 

 

(5.6

)%

 

 

(6.9

)%

 

 

(5.3

)%

 

 

(4.4

)%

 

 

(5.3

)%

Litigation expense (2)

 

 

(0.2

)%

 

 

(0.1

)%

 

 

(1.2

)%

 

 

(1.0

)%

 

 

(0.5

)%

Non-GAAP SG&A Expense %

 

 

19.3

%

 

 

17.4

%

 

 

13.8

%

 

 

17.6

%

 

 

12.8

%

Operating Expenses Reconciliation

GAAP Operating expenses

 

$

83,962

 

 

$

80,161

 

 

$

75,798

 

 

$

305,943

 

 

$

302,400

 

Stock-based compensation - operations (1)

 

 

(13,712

)

 

 

(16,767

)

 

 

(16,811

)

 

 

(50,939

)

 

 

(67,340

)

Litigation expense (2)

 

 

(181

)

 

 

(170

)

 

 

(2,098

)

 

 

(5,248

)

 

 

(3,928

)

Amortization of acquired intangible assets

 

 

(870

)

 

 

(870

)

 

 

(869

)

 

 

(3,479

)

 

 

(3,478

)

Restructuring, transformation, and other (3)

 

 

(2,471

)

 

 

(8,479

)

 

 

(525

)

 

 

(16,786

)

 

 

(1,952

)

Impairment of acquired intangible assets

 

 

(13,929

)

 

 

—

 

 

 

—

 

 

 

(13,929

)

 

 

—

 

Non-GAAP Operating expenses

 

$

52,799

 

 

$

53,875

 

 

$

55,495

 

 

$

215,562

 

 

$

225,702

 

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde.

(3)

 

Restructuring, transformation, and other includes transformation charges of approximately $1.0 million, $0.9 million, and $2.8 million for Q4, Q3 and YTD 2024, respectively.

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Income from Operations Reconciliation

GAAP Income (loss) from operations

 

$

(12,209

)

 

$

7,527

 

 

$

43,149

 

 

$

34,457

 

 

$

212,270

 

Stock-based compensation - gross margin (1)

 

 

1,143

 

 

 

(57

)

 

 

1,111

 

 

 

2,779

 

 

 

4,612

 

Stock-based compensation - operations (1)

 

 

13,712

 

 

 

16,767

 

 

 

16,811

 

 

 

50,939

 

 

 

67,340

 

Litigation expense (2)

 

 

181

 

 

 

170

 

 

 

2,098

 

 

 

5,248

 

 

 

3,928

 

Amortization of acquired intangible assets

 

 

870

 

 

 

870

 

 

 

869

 

 

 

3,479

 

 

 

3,478

 

Restructuring, transformation, and other (3)

 

 

2,471

 

 

 

8,479

 

 

 

525

 

 

 

16,786

 

 

 

1,952

 

Impairment of acquired intangible assets

 

 

13,929

 

 

 

—

 

 

 

—

 

 

 

13,929

 

 

 

—

 

Non-GAAP Income from operations

 

$

20,097

 

 

$

33,756

 

 

$

64,563

 

 

$

127,617

 

 

$

293,580

 

Income from Operations % Reconciliation

GAAP Income (loss) from operations %

 

 

(10.4

)%

 

 

5.9

%

 

 

25.3

%

 

 

6.8

%

 

 

28.8

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

 

 

27.5

%

 

 

20.7

%

 

 

12.5

%

 

 

18.3

%

 

 

11.0

%

Non-GAAP Income from operations %

 

 

17.1

%

 

 

26.6

%

 

 

37.8

%

 

 

25.1

%

 

 

39.8

%

Other Income (Expense) Reconciliation

 

GAAP Other income (expense), net

 

$

(2,135

)

 

$

(249

)

 

$

802

 

 

$

(2,176

)

 

$

545

 

Write-off of nonrecoverable cost-basis investment

 

 

2,023

 

 

 

—

 

 

 

—

 

 

 

2,023

 

 

 

—

 

Non-GAAP Other income (expense), net

 

$

(112

)

 

$

(249

)

 

$

802

 

 

$

(153

)

 

$

545

 

Income Tax (Benefit) Expense Reconciliation

GAAP Income tax (benefit) expense

 

$

(30,086

)

 

$

1,024

 

 

$

(53,302

)

 

$

(24,902

)

 

$

(44,205

)

Estimated tax effect of non-GAAP adjustments

 

 

4,735

 

 

 

1,695

 

 

 

1,170

 

 

 

16,416

 

 

 

5,679

 

Non-cash changes in net deferred income taxes (4)

 

 

25,757

 

 

 

402

 

 

 

56,913

 

 

 

22,315

 

 

 

56,913

 

Change in tax law (5)

 

 

170

 

 

 

(1,222

)

 

 

(764

)

 

 

(6,832

)

 

 

(2,881

)

Non-GAAP Income tax expense

 

$

576

 

 

$

1,899

 

 

$

4,017

 

 

$

6,997

 

 

$

15,506

 

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde.

(3)

 

Restructuring, transformation, and other includes transformation charges of approximately $1.0 million, $0.9 million, and $2.8 million for Q4, Q3 and YTD 2024, respectively.

(4)

 

Non-cash changes in net deferred income taxes associated with the release of the valuation allowance against $56.9 million of our U.S. deferred tax assets in the fourth quarter of fiscal 2023 and $27.7 million of certain tax matters related to prior fiscal periods in the fourth quarter of fiscal 2024.

(5)

 

Adjustments for Change in tax law reflect an increase in our provision for U.S. tax on foreign operations resulting from The 2017 Tax Cuts and Jobs Act and is related to the capitalization and subsequent amortization of R&D costs for tax purposes.

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net Income Reconciliation

GAAP Net income

 

$

16,514

 

 

$

7,190

 

 

$

98,706

 

 

$

61,131

 

 

$

259,061

 

Stock-based compensation - gross margin (1)

 

 

1,143

 

 

 

(57

)

 

 

1,111

 

 

 

2,779

 

 

 

4,612

 

Stock-based compensation - operations (1)

 

 

13,712

 

 

 

16,767

 

 

 

16,811

 

 

 

50,939

 

 

 

67,340

 

Litigation expense (2)

 

 

181

 

 

 

170

 

 

 

2,098

 

 

 

5,248

 

 

 

3,928

 

Amortization of acquired intangible assets

 

 

870

 

 

 

870

 

 

 

869

 

 

 

3,479

 

 

 

3,478

 

Restructuring, transformation, and other (3)

 

 

2,471

 

 

 

8,479

 

 

 

525

 

 

 

16,786

 

 

 

1,952

 

Impairment of acquired intangible assets

 

 

13,929

 

 

 

—

 

 

 

—

 

 

 

13,929

 

 

 

—

 

Write-off of nonrecoverable cost-basis investment

 

 

2,023

 

 

 

—

 

 

 

—

 

 

 

2,023

 

 

 

—

 

Estimated tax effect of non-GAAP adjustments

 

 

(4,735

)

 

 

(1,695

)

 

 

(1,170

)

 

 

(16,416

)

 

 

(5,679

)

Non-cash changes in net deferred income taxes (4)

 

 

(25,757

)

 

 

(402

)

 

 

(56,913

)

 

 

(22,315

)

 

 

(56,913

)

Change in tax law (5)

 

 

(170

)

 

 

1,222

 

 

 

764

 

 

 

6,832

 

 

 

2,881

 

Non-GAAP Net income

 

$

20,181

 

 

$

32,544

 

 

$

62,801

 

 

$

124,415

 

 

$

280,660

 

Net Income Per Share Reconciliation

GAAP Net income per share - basic

 

$

0.12

 

 

$

0.05

 

 

$

0.72

 

 

$

0.44

 

 

$

1.88

 

Cumulative effect of Non-GAAP adjustments

 

 

0.03

 

 

 

0.19

 

 

 

(0.26

)

 

 

0.46

 

 

 

0.16

 

Non-GAAP Net income per share - basic

 

$

0.15

 

 

$

0.24

 

 

$

0.46

 

 

$

0.90

 

 

$

2.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share - diluted

 

$

0.12

 

 

$

0.05

 

 

$

0.71

 

 

$

0.44

 

 

$

1.85

 

Cumulative effect of Non-GAAP adjustments

 

 

0.03

 

 

 

0.19

 

 

 

(0.26

)

 

 

0.46

 

 

 

0.16

 

Non-GAAP Net income per share - diluted

 

$

0.15

 

 

$

0.24

 

 

$

0.45

 

 

$

0.90

 

 

$

2.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

137,861

 

 

 

137,709

 

 

 

137,686

 

 

 

137,623

 

 

 

137,694

 

Diluted

 

 

138,322

 

 

 

137,894

 

 

 

139,114

 

 

 

138,322

 

 

 

139,790

 

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde.

(3)

 

Restructuring, transformation, and other includes transformation charges of approximately $1.0 million, $0.9 million, and $2.8 million for Q4, Q3 and YTD 2024, respectively.

(4)

 

Non-cash changes in net deferred income taxes associated with the release of the valuation allowance against $56.9 million of our U.S. deferred tax assets in the fourth quarter of fiscal 2023 and $27.7 million of certain tax matters related to prior fiscal periods in the fourth quarter of fiscal 2024.

(5)

 

Adjustments for Change in tax law reflect an increase in our provision for U.S. tax on foreign operations resulting from The 2017 Tax Cuts and Jobs Act and is related to the capitalization and subsequent amortization of R&D costs for tax purposes.

Lattice Semiconductor Corporation

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

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 28,

 

 

September 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Reconciliation of Net income to Adjusted EBITDA

 

GAAP Net income

 

$

16,514

 

 

$

7,190

 

 

$

98,706

 

 

$

61,131

 

 

$

259,061

 

Interest (income) expense, net

 

 

(772

)

 

 

(936

)

 

 

(1,453

)

 

 

(3,948

)

 

 

(2,041

)

Income tax (benefit) expense

 

 

(30,086

)

 

 

1,024

 

 

 

(53,302

)

 

 

(24,902

)

 

 

(44,205

)

Amortization of acquired intangible assets

 

 

870

 

 

 

870

 

 

 

869

 

 

 

3,479

 

 

 

3,478

 

Depreciation and other amortization

 

 

9,131

 

 

 

9,036

 

 

 

8,103

 

 

 

34,502

 

 

 

30,562

 

Stock-Based Compensation (1)

 

 

14,855

 

 

 

16,710

 

 

 

17,922

 

 

 

53,718

 

 

 

71,952

 

Litigation expense (2)

 

 

181

 

 

 

170

 

 

 

2,098

 

 

 

5,248

 

 

 

3,928

 

Restructuring, transformation, and other (3)

 

 

2,471

 

 

 

8,479

 

 

 

525

 

 

 

16,786

 

 

 

1,952

 

Impairment of acquired intangible assets

 

 

13,929

 

 

 

—

 

 

 

—

 

 

 

13,929

 

 

 

—

 

Write-off of nonrecoverable cost-basis investment

 

 

2,023

 

 

 

—

 

 

 

—

 

 

 

2,023

 

 

 

—

 

Adjusted EBITDA

 

$

29,116

 

 

$

42,543

 

 

$

73,468

 

 

$

161,966

 

 

$

324,687

 

Reconciliation of Net income margin to Adjusted EBITDA margin

GAAP Net income margin

 

 

14.1

%

 

 

5.7

%

 

 

57.9

%

 

 

12.0

%

 

 

35.1

%

Cumulative effect of EBITDA adjustments

 

 

10.7

%

 

 

27.8

%

 

 

(14.8

)%

 

 

19.8

%

 

 

8.9

%

Adjusted EBITDA margin

 

 

24.8

%

 

 

33.5

%

 

 

43.1

%

 

 

31.8

%

 

 

44.0

%

Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow

 

GAAP Net cash provided by operating activities

 

$

45,421

 

 

$

44,013

 

 

$

71,970

 

 

$

140,876

 

 

$

269,588

 

Operating cash flow margin

 

 

38.7

%

 

 

34.6

%

 

 

42.2

%

 

 

27.7

%

 

 

36.6

%

Capital expenditures

 

 

(5,754

)

 

 

(4,650

)

 

 

(3,728

)

 

 

(20,985

)

 

 

(20,098

)

Free cash flow

 

$

39,667

 

 

$

39,363

 

 

$

68,242

 

 

$

119,891

 

 

$

249,490

 

Free cash flow margin

 

 

33.8

%

 

 

31.0

%

 

 

40.0

%

 

 

23.5

%

 

 

33.8

%

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Legal expenses associated with the defense of claims that are outside the ordinary course of business that were brought against the Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswalde.

(3)

 

Restructuring, transformation, and other includes transformation charges of approximately $1.0 million, $0.9 million, and $2.8 million for Q4, Q3 and YTD 2024, respectively.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210727577/en/

MEDIA: Sophia Hong Lattice Semiconductor Corporation 503-268-8786 Sophia.Hong@latticesemi.com

INVESTORS: Rick Muscha Lattice Semiconductor Corporation 408-826-6000 Rick.Muscha@latticesemi.com