Lattice Semiconductor Reports Fourth Quarter and Full Year 2023 Results – Business Wire

Record Full Year 2023 Revenue of $737 Million, up 12% Year Over Year
HILLSBORO, Ore.–()–Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended December 30, 2023.

Revenue for the fourth quarter of 2023 was $170.6 million, with GAAP gross margin of 69.7% and GAAP net income of $0.71 per diluted share, including a GAAP-only income tax benefit of $0.41 per diluted share associated with a valuation release. On a non-GAAP basis, gross margin was 70.4% with net income per diluted share of $0.45.
Revenue for the full year 2023 was $737.2 million, with GAAP gross margin of 69.8% and GAAP net income of $1.85 per diluted share, including a GAAP-only income tax benefit of $0.41 per diluted share associated with a valuation release. On a non-GAAP basis, gross margin was 70.4% with net income per diluted share of $2.01.
Jim Anderson, president and CEO, said, “We achieved double-digit annual revenue growth in 2023, with record gross margin and continued profit expansion. Despite near-term cyclical industry headwinds, we continue to be well positioned for the long-term with a rapidly expanding product portfolio and strong customer momentum.”
Sherri Luther, CFO, said, “We achieved operating margin of 28.8% on a GAAP basis and a record 39.8% on a non-GAAP basis for the full year 2023, with gross margin expanding to 69.8% on a GAAP basis and 70.4% on a non-GAAP basis. We generated a record level of cash flow from operations in 2023, representing a 13% increase compared to the prior year, and exited the year with zero outstanding debt. In addition, in the fourth quarter, we repurchased approximately 900,000 shares, representing our thirteenth consecutive quarter of share repurchases.”
Selected Fourth Quarter and Full Year 2023 Financial Results and Comparisons (in thousands, except per share data)
 
 
GAAP Financial Results (unaudited)
 
 
Q4 2023
 
Q3 2023
 
Q4 2022
 
Q/Q
 
Y/Y
 
FY 2023
 
FY 2022
 
FY/FY
Revenue
 
$ 170,596
 
$ 192,169
 
$ 175,960
 
(11.2)%
 
(3.0)%
 
$ 737,154
 
$ 660,356
 
11.6%
Gross Margin %
 
69.7%
 
70.0%
 
69.4%
 
(30) bps
 
30 bps
 
69.8%
 
68.5%
 
130 bps
R&D Expense %
 
23.3%
 
21.9%
 
19.8%
 
140 bps
 
350 bps
 
21.7%
 
20.6%
 
110 bps
SG&A Expense %
 
20.3%
 
17.3%
 
18.4%
 
300 bps
 
190 bps
 
18.6%
 
18.5%
 
10 bps
Operating Expenses
 
$ 75,798
 
$ 77,644
 
$ 68,050
 
(2.4)%
 
11.4%
 
$ 302,400
 
$ 264,683
 
14.2%
Income from Operations
 
$ 43,149
 
$ 56,917
 
$ 54,016
 
(24.2)%
 
(20.1)%
 
$ 212,270
 
$ 187,367
 
13.3%
Net Income
 
$ 98,706
 
$ 53,788
 
$ 51,913
 
83.5%
 
90.1%
 
$ 259,061
 
$ 178,882
 
44.8%
Net Income per Share – Basic
 
$ 0.72
 
$ 0.39
 
$ 0.38
 
$ 0.33
 
$ 0.34
 
$ 1.88
 
$ 1.30
 
$ 0.58
Net Income per Share – Diluted
 
$ 0.71
 
$ 0.38
 
$ 0.37
 
$ 0.33
 
$ 0.34
 
$ 1.85
 
$ 1.27
 
$ 0.58
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 2023
 
Q3 2023
 
Q4 2022
 
Q/Q
 
Y/Y
 
FY 2023
 
FY 2022
 
FY/FY
Revenue
 
$ 170,596
 
$ 192,169
 
$ 175,960
 
(11.2)%
 
(3.0)%
 
$ 737,154
 
$ 660,356
 
11.6%
Gross Margin %
 
70.4%
 
70.6%
 
70.0%
 
(20) bps
 
40 bps
 
70.4%
 
69.1%
 
130 bps
R&D Expense %
 
18.7%
 
18.2%
 
16.8%
 
50 bps
 
190 bps
 
17.8%
 
17.4%
 
40 bps
SG&A Expense %
 
13.8%
 
12.1%
 
13.1%
 
170 bps
 
70 bps
 
12.8%
 
13.0%
 
(20) bps
Operating Expenses
 
$ 55,495
 
$ 58,206
 
$ 52,469
 
(4.7)%
 
5.8%
 
$ 225,702
 
$ 200,997
 
12.3%
Income from Operations
 
$ 64,563
 
$ 77,408
 
$ 70,653
 
(16.6)%
 
(8.6)%
 
$ 293,580
 
$ 255,363
 
15.0%
Net Income
 
$ 62,801
 
$ 73,578
 
$ 68,367
 
(14.6)%
 
(8.1)%
 
$ 280,660
 
$ 246,679
 
13.8%
Net Income per Share – Basic
 
$ 0.46
 
$ 0.53
 
$ 0.50
 
$ (0.07)
 
$ (0.04)
 
$ 2.04
 
$ 1.80
 
$ 0.24
Net Income per Share – Diluted
 
$ 0.45
 
$ 0.53
 
$ 0.49
 
$ (0.08)
 
$ (0.04)
 
$ 2.01
 
$ 1.75
 
$ 0.26
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.”
Fourth Quarter and Full Year 2023 Highlights:
Business Outlook – First Quarter of 2024:
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 2024, certain items that affect GAAP measurement of financial measures for gross margin percentage and total operating expenses are not accessible on a forward-looking basis because such items cannot be reasonably predicted without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures, including certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for non-GAAP gross margin percentage or non-GAAP total operating expenses for quarterly guidance or a corresponding reconciliation to GAAP for the quarter. From a qualitative perspective, the differences between our GAAP measurement of financial measures for gross margin percentage and total operating expenses and our non-GAAP measure of those items will consist of items similar to those described in the financial tables later in this release for such items historically, including, for example and without limitation, certain large and/or unpredictable charges such as stock-based compensation expense; litigation expense outside the ordinary course of business; and restructuring. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included in this press release.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company’s financial results for the fiscal fourth quarter and full year 2023, and business outlook on Monday, February 12 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 13743739. 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, that 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 rapid product portfolio expansion; long-term position; near-term cyclical industry headwinds; accelerating customer momentum; and the statements under the heading “Business Outlook – First Quarter of 2024.” 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 are inherently uncertain due to such 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, and potential impact of global pandemics. 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 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 Item 1A in Lattice’s most recent Annual Report on Form 10-K and as may be supplemented from time-to-time in Lattice’s other filings with the Securities and Exchange Commission, 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 Lattice’s management 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. 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 and other charges, and the estimated tax effect of these items, non-cash changes in net deferred income taxes, change in tax law and other tax adjustments. 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, Twitter, 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 30,
 
 
September 30,
 
 
December 31,
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
Revenue
 
$
170,596
 
 
$
192,169
 
 
$
175,960
 
 
$
737,154
 
 
$
660,356
 
Cost of sales
 
 
51,649
 
 
 
57,608
 
 
 
53,894
 
 
 
222,484
 
 
 
208,306
 
Gross margin
 
 
118,947
 
 
 
134,561
 
 
 
122,066
 
 
 
514,670
 
 
 
452,050
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
 
39,787
 
 
 
42,048
 
 
 
34,779
 
 
 
159,770
 
 
 
135,767
 
Selling, general, and administrative
 
 
34,661
 
 
 
33,217
 
 
 
32,355
 
 
 
137,244
 
 
 
122,076
 
Amortization of acquired intangible assets
 
 
869
 
 
 
870
 
 
 
870
 
 
 
3,478
 
 
 
3,778
 
Restructuring
 
 
481
 
 
 
1,509
 
 
 
46
 
 
 
1,908
 
 
 
2,551
 
Acquisition related
 
 

 
 
 

 
 
 

 
 
 

 
 
 
511
 
Total operating expenses
 
 
75,798
 
 
 
77,644
 
 
 
68,050
 
 
 
302,400
 
 
 
264,683
 
Income from operations
 
 
43,149
 
 
 
56,917
 
 
 
54,016
 
 
 
212,270
 
 
 
187,367
 
Interest income (expense), net
 
 
1,453
 
 
 
954
 
 
 
(1,280
)
 
 
2,041
 
 
 
(4,146
)
Other income (expense), net
 
 
802
 
 
 
14
 
 
 
(24
)
 
 
545
 
 
 
(1,109
)
Income before income taxes
 
 
45,404
 
 
 
57,885
 
 
 
52,712
 
 
 
214,856
 
 
 
182,112
 
Income tax (benefit) expense
 
 
(53,302
)
 
 
4,097
 
 
 
799
 
 
 
(44,205
)
 
 
3,230
 
Net income
 
$
98,706
 
 
$
53,788
 
 
$
51,913
 
 
$
259,061
 
 
$
178,882
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.72
 
 
$
0.39
 
 
$
0.38
 
 
$
1.88
 
 
$
1.30
 
Diluted
 
$
0.71
 
 
$
0.38
 
 
$
0.37
 
 
$
1.85
 
 
$
1.27
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares used in per share calculations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
137,686
 
 
 
137,948
 
 
 
137,095
 
 
 
137,694
 
 
 
137,321
 
Diluted
 
 
139,114
 
 
 
139,828
 
 
 
139,631
 
 
 
139,790
 
 
 
140,667
 
Lattice Semiconductor Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2022
 
Assets
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
128,317
 
 
$
145,722
 
Accounts receivable, net
 
 
104,373
 
 
 
94,018
 
Inventories, net
 
 
98,826
 
 
 
110,375
 
Other current assets
 
 
36,430
 
 
 
29,052
 
Total current assets
 
 
367,946
 
 
 
379,167
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
 
 
49,546
 
 
 
47,614
 
Operating lease right-of-use assets
 
 
14,487
 
 
 
17,590
 
Intangible assets, net
 
 
20,974
 
 
 
25,070
 
Goodwill
 
 
315,358
 
 
 
315,358
 
Deferred income taxes
 
 
57,762
 
 
 
1,022
 
Other long-term assets
 
 
14,821
 
 
 
12,892
 
 
 
$
840,894
 
 
$
798,713
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
$
34,487
 
 
$
42,036
 
Accrued liabilities
 
 
36,048
 
 
 
48,467
 
Accrued payroll obligations
 
 
26,865
 
 
 
36,870
 
Total current liabilities
 
 
97,400
 
 
 
127,373
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
 

 
 
 
128,752
 
Long-term operating lease liabilities, net of current portion
 
 
10,739
 
 
 
13,618
 
Other long-term liabilities
 
 
40,735
 
 
 
41,807
 
Total liabilities
 
 
148,874
 
 
 
311,550
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity
 
 
692,020
 
 
 
487,163
 
 
 
$
840,894
 
 
$
798,713
 
Lattice Semiconductor Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
Year Ended
 
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2022
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
Net income
 
$
259,061
 
 
$
178,882
 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
 
70,197
 
 
 
55,530
 
Depreciation and amortization
 
 
34,432
 
 
 
29,323
 
Change in deferred income tax provision
 
 
(58,614
)
 
 
(1,420
)
Other non-cash adjustments
 
 
7,017
 
 
 
8,415
 
Net changes in assets and liabilities
 
 
(42,505
)
 
 
(31,924
)
Net cash provided by (used in) operating activities
 
 
269,588
 
 
 
238,806
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
Capital expenditures
 
 
(20,098
)
 
 
(23,338
)
Other investing activities
 
 
(13,152
)
 
 
(11,594
)
Net cash provided by (used in) investing activities
 
 
(33,250
)
 
 
(34,932
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
Proceeds from long-term debt, net of issuance costs
 
 

 
 
 
148,597
 
Repayment of long-term debt
 
 
(130,000
)
 
 
(178,750
)
Repurchase of common stock
 
 
(80,004
)
 
 
(110,132
)
Net cash flows related to stock compensation exercises
 
 
(43,713
)
 
 
(47,787
)
Net cash provided by (used in) financing activities
 
 
(253,717
)
 
 
(188,072
)
Effect of exchange rate change on cash
 
 
(26
)
 
 
(1,650
)
Net increase (decrease) in cash and cash equivalents
 
 
(17,405
)
 
 
14,152
 
Beginning cash and cash equivalents
 
 
145,722
 
 
 
131,570
 
Ending cash and cash equivalents
 
$
128,317
 
 
$
145,722
 
 
 
 
 
 
 
 
 
 
Supplemental disclosure of cash flow information and non-cash investing and financing activities:
 
 
 
 
 
 
 
 
Interest paid
 
$
3,240
 
 
$
3,973
 
Income taxes paid, net of refunds
 
$
15,754
 
 
$
4,621
 
Operating lease payments
 
$
8,344
 
 
$
7,419
 
Lattice Semiconductor Corporation
Supplemental Historical Financial Information
(unaudited)
 
 
Three Months Ended
 
 
Year Ended
 
 
 
December 30,
 
 
September 30,
 
 
December 31,
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
Balance Sheet Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A/R Days Revenue Outstanding (DSO)
 
 
56
 
 
 
50
 
 
 
49
 
 
 
 
 
 
 
 
 
Inventory Days (DIO)
 
 
175
 
 
 
165
 
 
 
187
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue % (by Geography)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia
 
 
60
%
 
 
61
%
 
 
65
%
 
 
60
%
 
 
71
%
Americas
 
 
22
%
 
 
17
%
 
 
19
%
 
 
20
%
 
 
15
%
Europe (incl. Africa)
 
 
18
%
 
 
22
%
 
 
16
%
 
 
20
%
 
 
14
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue % (by End Market) *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Communications and Computing
 
 
34
%
 
 
36
%
 
 
42
%
 
 
35
%
 
 
43
%
Industrial and Automotive
 
 
59
%
 
 
57
%
 
 
51
%
 
 
59
%
 
 
48
%
Consumer
 
 
7
%
 
 
7
%
 
 
7
%
 
 
6
%
 
 
9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue $M (by End Market) *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Communications and Computing
 
$
58.7
 
 
$
68.4
 
 
$
73.2
 
 
$
257.6
 
 
$
282.9
 
Industrial and Automotive
 
$
99.8
 
 
$
109.9
 
 
$
89.6
 
 
$
433.5
 
 
$
319.4
 
Consumer
 
$
12.1
 
 
$
13.9
 
 
$
13.2
 
 
$
46.1
 
 
$
58.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue % (by Channel)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution
 
 
82
%
 
 
90
%
 
 
89
%
 
 
87
%
 
 
89
%
Direct
 
 
18
%
 
 
10
%
 
 
11
%
 
 
13
%
 
 
11
%
* During the first quarter of fiscal 2023, we realigned our end market categories. 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
 
 
Year Ended
 
 
 
December 30,
 
 
September 30,
 
 
December 31,
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
Gross Margin Reconciliation
GAAP Gross margin
 
$
118,947
 
 
$
134,561
 
 
$
122,066
 
 
$
514,670
 
 
$
452,050
 
Stock-based compensation – gross margin (1)
 
 
1,111
 
 
 
1,053
 
 
 
1,056
 
 
 
4,612
 
 
 
4,310
 
Non-GAAP Gross margin
 
$
120,058
 
 
$
135,614
 
 
$
123,122
 
 
$
519,282
 
 
$
456,360
 
Gross Margin % Reconciliation
GAAP Gross margin %
 
 
69.7
%
 
 
70.0
%
 
 
69.4
%
 
 
69.8
%
 
 
68.5
%
Stock-based compensation – gross margin (1)
 
 
0.7
%
 
 
0.6
%
 
 
0.6
%
 
 
0.6
%
 
 
0.6
%
Non-GAAP Gross margin %
 
 
70.4
%
 
 
70.6
%
 
 
70.0
%
 
 
70.4
%
 
 
69.1
%
Research and Development Expense % (R&D Expense %) Reconciliation
GAAP R&D Expense %
 
 
23.3
%
 
 
21.9
%
 
 
19.8
%
 
 
21.7
%
 
 
20.6
%
Stock-based compensation – R&D (1)
 
 
(4.6
)%
 
 
(3.7
)%
 
 
(3.0
)%
 
 
(3.9
)%
 
 
(3.2
)%
Non-GAAP R&D Expense %
 
 
18.7
%
 
 
18.2
%
 
 
16.8
%
 
 
17.8
%
 
 
17.4
%
Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation
GAAP SG&A Expense %
 
 
20.3
%
 
 
17.3
%
 
 
18.4
%
 
 
18.6
%
 
 
18.5
%
Stock-based compensation – SG&A (1)
 
 
(5.3
)%
 
 
(4.6
)%
 
 
(4.7
)%
 
 
(5.3
)%
 
 
(5.1
)%
Litigation expense (2)
 
 
(1.2
)%
 
 
(0.6
)%
 
 
(0.6
)%
 
 
(0.5
)%
 
 
(0.4
)%
Non-GAAP SG&A Expense %
 
 
13.8
%
 
 
12.1
%
 
 
13.1
%
 
 
12.8
%
 
 
13.0
%
Operating Expenses Reconciliation
GAAP Operating expenses
 
$
75,798
 
 
$
77,644
 
 
$
68,050
 
 
$
302,400
 
 
$
264,683
 
Stock-based compensation – operations (1)
 
 
(16,811
)
 
 
(15,956
)
 
 
(13,584
)
 
 
(67,340
)
 
 
(54,119
)
Litigation expense (2)
 
 
(2,098
)
 
 
(1,103
)
 
 
(1,081
)
 
 
(3,928
)
 
 
(2,727
)
Amortization of acquired intangible assets
 
 
(869
)
 
 
(870
)
 
 
(870
)
 
 
(3,478
)
 
 
(3,778
)
Restructuring and other
 
 
(525
)
 
 
(1,509
)
 
 
(46
)
 
 
(1,952
)
 
 
(3,062
)
Non-GAAP Operating expenses
 
$
55,495
 
 
$
58,206
 
 
$
52,469
 
 
$
225,702
 
 
$
200,997
 
Income from Operations Reconciliation
GAAP Income from operations
 
$
43,149
 
 
$
56,917
 
 
$
54,016
 
 
$
212,270
 
 
$
187,367
 
Stock-based compensation – gross margin (1)
 
 
1,111
 
 
 
1,053
 
 
 
1,056
 
 
 
4,612
 
 
 
4,310
 
Stock-based compensation – operations (1)
 
 
16,811
 
 
 
15,956
 
 
 
13,584
 
 
 
67,340
 
 
 
54,119
 
Litigation expense (2)
 
 
2,098
 
 
 
1,103
 
 
 
1,081
 
 
 
3,928
 
 
 
2,727
 
Amortization of acquired intangible assets
 
 
869
 
 
 
870
 
 
 
870
 
 
 
3,478
 
 
 
3,778
 
Restructuring and other
 
 
525
 
 
 
1,509
 
 
 
46
 
 
 
1,952
 
 
 
3,062
 
Non-GAAP Income from operations
 
$
64,563
 
 
$
77,408
 
 
$
70,653
 
 
$
293,580
 
 
$
255,363
 
(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.
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 30,
 
 
September 30,
 
 
December 31,
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
Income from Operations % Reconciliation
GAAP Income from operations %
 
 
25.3
%
 
 
29.6
%
 
 
30.7
%
 
 
28.8
%
 
 
28.4
%
Cumulative effect of non-GAAP Gross Margin and Operating adjustments
 
 
12.5
%
 
 
10.7
%
 
 
9.5
%
 
 
11.0
%
 
 
10.3
%
Non-GAAP Income from operations %
 
 
37.8
%
 
 
40.3
%
 
 
40.2
%
 
 
39.8
%
 
 
38.7
%
Other Income (Expense) Reconciliation
GAAP Other income (expense), net
 
$
802
 
 
$
14
 
 
$
(24
)
 
$
545
 
 
$
(1,109
)
Loss on re-financing of long-term debt
 
 

 
 
 

 
 
 
4
 
 
 

 
 
 
739
 
Non-GAAP Other income (expense), net
 
$
802
 
 
$
14
 
 
$
(20
)
 
$
545
 
 
$
(370
)
Income Tax (Benefit) Expense Reconciliation
GAAP Income tax (benefit) expense
 
$
(53,302
)
 
$
4,097
 
 
$
799
 
 
$
(44,205
)
 
$
3,230
 
Estimated tax effect of non-GAAP adjustments
 
 
1,170
 
 
 
1,467
 
 
 
187
 
 
 
5,679
 
 
 
938
 
Non-cash changes in net deferred income taxes (3)
 
 
56,913
 
 
 

 
 
 

 
 
 
56,913
 
 
 

 
Change in tax law (4)
 
 
(764
)
 
 
(766
)
 
 

 
 
 
(2,881
)
 
 

 
Non-GAAP Income tax expense
 
$
4,017
 
 
$
4,798
 
 
$
986
 
 
$
15,506
 
 
$
4,168
 
Net Income Reconciliation
GAAP Net income
 
$
98,706
 
 
$
53,788
 
 
$
51,913
 
 
$
259,061
 
 
$
178,882
 
Stock-based compensation – gross margin (1)
 
 
1,111
 
 
 
1,053
 
 
 
1,056
 
 
 
4,612
 
 
 
4,310
 
Stock-based compensation – operations (1)
 
 
16,811
 
 
 
15,956
 
 
 
13,584
 
 
 
67,340
 
 
 
54,119
 
Litigation expense (2)
 
 
2,098
 
 
 
1,103
 
 
 
1,081
 
 
 
3,928
 
 
 
2,727
 
Amortization of acquired intangible assets
 
 
869
 
 
 
870
 
 
 
870
 
 
 
3,478
 
 
 
3,778
 
Restructuring and other
 
 
525
 
 
 
1,509
 
 
 
46
 
 
 
1,952
 
 
 
3,062
 
Loss on re-financing of long-term debt
 
 

 
 
 

 
 
 
4
 
 
 

 
 
 
739
 
Estimated tax effect of non-GAAP adjustments
 
 
(1,170
)
 
 
(1,467
)
 
 
(187
)
 
 
(5,679
)
 
 
(938
)
Non-cash changes in net deferred income taxes (3)
 
 
(56,913
)
 
 

 
 
 

 
 
 
(56,913
)
 
 

 
Change in tax law (4)
 
 
764
 
 
 
766
 
 
 

 
 
 
2,881
 
 
 

 
Non-GAAP Net income
 
$
62,801
 
 
$
73,578
 
 
$
68,367
 
 
$
280,660
 
 
$
246,679
 
(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)
 
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.
(4)
 
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 30,
 
 
September 30,
 
 
December 31,
 
 
December 30,
 
 
December 31,
 
 
 
2023
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
Net Income Per Share Reconciliation
GAAP Net income per share – basic
 
$
0.72
 
 
$
0.39
 
 
$
0.38
 
 
$
1.88
 
 
$
1.30
 
Cumulative effect of Non-GAAP adjustments
 
 
(0.26
)
 
 
0.14
 
 
 
0.12
 
 
 
0.16
 
 
 
0.50
 
Non-GAAP Net income per share – basic
 
$
0.46
 
 
$
0.53
 
 
$
0.50
 
 
$
2.04
 
 
$
1.80
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Net income per share – diluted
 
$
0.71
 
 
$
0.38
 
 
$
0.37
 
 
$
1.85
 
 
$
1.27
 
Cumulative effect of Non-GAAP adjustments
 
 
(0.26
)
 
 
0.15
 
 
 
0.12
 
 
 
0.16
 
 
 
0.48
 
Non-GAAP Net income per share – diluted
 
$
0.45
 
 
$
0.53
 
 
$
0.49
 
 
$
2.01
 
 
$
1.75
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares used in per share calculations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
137,686
 
 
 
137,948
 
 
 
137,095
 
 
 
137,694
 
 
 
137,321
 
Diluted
 
 
139,114
 
 
 
139,828
 
 
 
139,631
 
 
 
139,790
 
 
 
140,667
 
 
MEDIA:
Sophia Hong
Lattice Semiconductor Corporation
503-268-8786
[email protected]
INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
[email protected]
MEDIA:
Sophia Hong
Lattice Semiconductor Corporation
503-268-8786
[email protected]
INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
[email protected]

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