Delaware | 000-18032 | 93-0835214 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | ||
99.1 | Press Release, dated April 21, 2011, entitled “Lattice Semiconductor Reports First Quarter 2011 Results; Exceeds High End of Prior Revenue Guidance” (furnished herewith). |
LATTICE SEMICONDUCTOR CORPORATION | ||
Date: April 21, 2011 | By: | /s/ Joe Bedewi |
Joe Bedewi Corporate Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 | Press Release dated April 21, 2011 (furnished herewith) |
• | Revenue of $82.6 million, an increase of 13% from $73.1 million in 4Q10 and an increase of 17% from $70.4 million in 1Q10. |
• | Gross margin of 60.0%, compared to 62.7% in 4Q10 and 58.5% in 1Q10. |
• | Net income of $0.09 per diluted share, compared to net income of $0.11 per diluted share in 4Q10 and net income of $0.10 per diluted share in 1Q10. 1Q11 financial results include approximately $1.8 million ($0.02 per diluted share) of restructuring related charges. |
• | Japan's Severe Earthquake and Tsunami: We express our deep concern for the people of Japan, and the difficult situation surrounding the affected nuclear power plants. We continue to prioritize the safety of our partners and our employees. Despite the severity of post earthquake and tsunami conditions, we have not experienced any material impact on customer deliveries and lead times. |
• | Launched MachXO2: The MachXO2 offers PLD designers a competitive mix of low power, low cost and high system integration in a single device. Built on a low power 65-nm process featuring embedded Flash technology, the MachXO2 family delivers a 3X increase in logic density, and a 100X reduction in static power versus the MachXO PLD family. In addition, several popular functions used in low-density PLD applications, including User Flash Memory, I2C, SPI and timer/counter, have been hardened into the MachXO2 devices, optimizing them for both the consumer and the systems markets. |
• | Released Platform Manager: Our third-generation mixed-signal family, the Platform Manager family of products, has been fully qualified and released to volume production. Lattice's Platform Manager simplifies board management design by integrating programmable analog and digital logic to support many common functions, such as power management, digital housekeeping and glue logic. |
• | Shipped the 10 Millionth Power Manager Device: All seven Power Manager devices have been broadly adopted in a wide range of high volume, cost sensitive applications, because they enable board designers to integrate multiple power management functions of a circuit board into a single Power Manager device. Within the last 12 months, shipments of Lattice's Power Manager devices have accelerated in a variety of end markets, including communications, consumer, and computing, making the Power Manager devices among Lattice's fastest growing products. |
• | Launched Five New IP Suites for Lattice ECP3 FPGA Family: The five new comprehensive Intellectual Property (IP) Suites (PCI Express, Ethernet Networking, Digital Signal Processing, Video & Display, and Value) help accelerate the design of electronic systems in a variety of industries using the award winning LatticeECP3™ FPGA family. Lattice is committed to providing a comprehensive silicon ecosystem that includes evaluation kits, reference designs, software |
• | Revenue is expected to be flat to up 5% on a sequential basis. |
• | Gross margin percentage is expected to be approximately 60% to 62% of revenue. |
• | Total operating expenses are expected to be approximately $38 million, including approximately $0.9 million to $1.4 million in restructuring charges. |
Three months ended | ||||||||||||
April 2, 2011 | January 1, 2011 | April 3, 2010 | ||||||||||
Revenue | $ | 82,615 | $ | 73,080 | $ | 70,432 | ||||||
Costs and expenses: | ||||||||||||
Cost of products sold | 33,006 | 27,239 | 29,264 | |||||||||
Research and development | 20,140 | 15,672 | 14,682 | |||||||||
Selling, general and administrative | 17,170 | 16,738 | 15,418 | |||||||||
Restructuring (1) | 1,835 | (30 | ) | 82 | ||||||||
72,151 | 59,619 | 59,446 | ||||||||||
Income from operations | 10,464 | 13,461 | 10,986 | |||||||||
Other income, net (2) | 663 | 558 | 302 | |||||||||
Income before provision for income taxes | 11,127 | 14,019 | 11,288 | |||||||||
Provision for income taxes | 208 | 140 | 199 | |||||||||
Net income | $ | 10,919 | $ | 13,879 | $ | 11,089 | ||||||
Net income per share (3): | ||||||||||||
Basic | $ | 0.09 | $ | 0.12 | $ | 0.10 | ||||||
Diluted | $ | 0.09 | $ | 0.11 | $ | 0.10 | ||||||
Shares used in per share calculations (3): | ||||||||||||
Basic | 117,996 | 117,907 | 115,669 | |||||||||
Diluted | 121,864 | 121,215 | 116,717 |
(1) | Represents costs and adjustments incurred under corporate restructuring plans. On April 21, 2011, the Company announced a restructuring plan for which an initial charge of $2.6 million was recorded during the first quarter of fiscal 2011. Of this, $2.5 million were for severance and related costs and $0.1 million were for other restructuring costs. This initial charge was offset by an $0.8 million credit, primarily the result of changes in original estimates under the 2009 restructuring plan. During the fourth quarter of fiscal 2010, the Company recorded a net credit of less than $0.1 million, primarily the result from changes in original estimates. During the first quarter of fiscal 2010, the Company recorded a charge of $0.1 million, comprised primarily of severance and related costs. |
(2) | During the first quarter of fiscal 2011 and the fourth quarter of fiscal 2010, the Company recognized a gain on the sale of certain auction rate securities of $0.6 million and $0.3 million, respectively. |
(3) | For the three months ended April 2, 2011, January 1, 2011 and April 3, 2010, the computation of diluted earnings per share includes the effects of stock options and restricted stock units as they are dilutive. |
April 2, | January 1, | |||||||
2011 | 2011 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term marketable securities | $ | 235,669 | $ | 238,220 | ||||
Accounts receivable, net | 49,904 | 41,188 | ||||||
Inventories | 38,069 | 37,333 | ||||||
Other current assets | 8,502 | 8,648 | ||||||
Total current assets | 332,144 | 325,389 | ||||||
Property and equipment, net | 40,385 | 39,322 | ||||||
Long-term marketable securities | 7,389 | 10,232 | ||||||
Other long-term assets | 2,534 | 2,744 | ||||||
$ | 382,452 | $ | 377,687 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and other accrued liabilities | $ | 34,541 | $ | 38,648 | ||||
Deferred income and allowances on sales to sell-through distributors | 15,925 | 15,692 | ||||||
Total current liabilities | 50,466 | 54,340 | ||||||
Other long-term liabilities | 3,867 | 4,625 | ||||||
Total liabilities | 54,333 | 58,965 | ||||||
Stockholders' equity | 328,119 | 318,722 | ||||||
$ | 382,452 | $ | 377,687 |
Q111 | Q410 | Q110 | |||||||
Operations Information | |||||||||
Percent of Revenue | |||||||||
Gross Margin | 60.0 | % | 62.7 | % | 58.5 | % | |||
R&D Expense | 24.4 | % | 21.4 | % | 20.8 | % | |||
SG&A Expense | 20.8 | % | 22.9 | % | 21.9 | % | |||
Depreciation and amortization (in thousands) | 4,083 | 3,850 | 3,508 | ||||||
Capital Expenditures (in thousands) | 4,065 | 5,325 | 1,954 | ||||||
Stock Compensation Expense (in thousands) | 1,344 | 1,046 | 1,195 | ||||||
Balance Sheet Information | |||||||||
Current Ratio | 6.6 | 6.0 | 5.2 | ||||||
A/R Days Revenue Outstanding | 54 | 51 | 62 | ||||||
Inventory Months | 3.5 | 4.1 | 2.5 | ||||||
Revenue% (by Product Family) | |||||||||
PLD | 62 | % | 67 | % | 67 | % | |||
FPGA | 38 | % | 33 | % | 33 | % | |||
Revenue% (by Product Classification) | |||||||||
New | 44 | % | 43 | % | 40 | % | |||
Mainstream | 32 | % | 30 | % | 35 | % | |||
Mature | 24 | % | 27 | % | 25 | % | |||
Revenue% (by Geography) | |||||||||
Asia | 61 | % | 66 | % | 67 | % | |||
Europe (incl. Africa) | 21 | % | 19 | % | 18 | % | |||
Americas | 18 | % | 15 | % | 15 | % | |||
Revenue% (by End Market) | |||||||||
Communications | 44 | % | 46 | % | 52 | % | |||
Industrial & Other | 31 | % | 29 | % | 22 | % | |||
Computing | 13 | % | 13 | % | 15 | % | |||
Consumer | 12 | % | 12 | % | 11 | % | |||
Revenue% (by Channel) | |||||||||
Distribution | 62 | % | 59 | % | 55 | % | |||
Direct | 38 | % | 41 | % | 45 | % |