Lattice Semiconductor Corporation (NASDAQ:LSCC), the leading
provider of customizable smart connectivity solutions, announced
that it would discuss its preliminary business outlook based on
current expectations at the Company’s analyst and investor meeting
today at the Shelburne NYC Hotel. A live webcast will begin at
10:00 a.m. EDT today at www.LatticeSemi.com, with a replay
available for those unable to attend the presentations in person.
The Company plans to release financial results and host a
conference call for the third quarter of 2017 in early
November.
Darin Billerbeck, President and CEO, commented, “We have a clear
pathway to growth and profitability, with stability in our core
business as the foundation to build upon. At today’s analyst and
investor meeting, we are discussing how Edge of the cloud devices
and applications require our Edge connectivity and Edge
intelligence solutions. Edge connectivity drives our core business
stability and growth today, while Edge intelligence will accelerate
our future growth. We remain committed to creating greater
shareholder value as we work to deliver increased free cash flow
for future investments and to pay down our debt.”
Preliminary Company Business Outlook Based on Current
Expectations:
- Revenue:
Revenue is expected to be approximately $91 million to $93 million
for the third quarter 2017, approximately $92 million to $97
million for the fourth quarter 2017, and approximately $383 million
to $388 million for the full year 2017.
- Gross
Margin: Gross margin percentage for the third quarter of
2017 is expected to be approximately 56% plus or minus 2%, with
gross margin for both the fourth quarter and full year 2017
expected to be approximately 56% plus or minus 2% on a GAAP basis.
Gross margin percentage is expected to be approximately 56% plus or
minus 2% on a non-GAAP basis for the third quarter of 2017, with
gross margin for both the fourth quarter and full year 2017
expected to be approximately 56% plus or minus 2% on a non-GAAP
basis.
- Total Operating
Expenses: Total operating expenses, excluding acquisition,
impairment and restructuring related charges, amortization of
intangibles and stock compensation, are expected to be
approximately $45 million to $47 million for the third quarter
2017, approximately $43 million to $45 million for the fourth
quarter 2017 and approximately $182 million to $186 million on a
non-GAAP basis for the full year 2017.
- Full Year
2018: The Company is targeting double-digit annual revenue
growth, gross margin percentage at the mid-50% level, operating
expenses excluding items noted above at approximately 37% to 38% of
revenue and operating income in the mid-to-high teens, with EBITDA
of approximately $110 million to $120 million, free cash flow of
approximately $80 million to $100 million and a debt reduction of
approximately $50 million to $60 million.
- Restructuring and
Impairment Charges: The Company expects GAAP results for the
third quarter 2017 will reflect restructuring charges of
approximately $3.5 million to $4.0 million, primarily related to
operating expense reduction actions taken. The Company also expects
GAAP results for the third quarter 2017 will reflect a non-cash
impairment charge of approximately $36 million, related to the
Company’s strategic decision to cease future investment in wired
ASSP development as it concentrates its resources on higher
potential growth opportunities.
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that
involve estimates, assumptions, risks and uncertainties. Any
statements about our expectations, beliefs, plans, objectives,
assumptions or future events or performance are not historical
facts and may be forward-looking. Such forward-looking statements
include statements relating to: our belief that we have a clear
pathway to growth and profitability, with stability in our core
business as the foundation to build upon; that Edge of the cloud
devices and applications require our Edge connectivity and Edge
intelligence solutions; that Edge connectivity will drive our core
business stability and growth today, while Edge intelligence will
accelerate our future growth; and those statements under the
heading “Company Updates Business Outlook” relating to revenue,
gross margin, total operating expenses, EBITDA, free cash flow and
debt reduction for Q3 2017, Q4 2017 and the full fiscal years 2017
and 2018, and restructuring and impairment charges for Q3 2017.
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. Lattice
believes the factors identified below could cause actual results to
differ materially from the forward-looking statements.
Estimates of future revenue are inherently uncertain due to,
among other things, the high percentage of quarterly “turns”
business. In addition, revenue is affected by such factors as
global economic conditions, which may affect customer demand,
pricing pressures, competitive actions, the demand for our Mature,
Mainstream and New products, and in particular our iCE40™ and
MachXO3L™ devices, the ability to supply products to customers in a
timely manner, changes in our distribution relationships, or the
volatility of our consumer business. Actual gross margin percentage
and operating expenses could vary from the estimates on the basis
of, among other things, changes in revenue levels, changes in
product pricing and mix, changes in wafer, assembly, test and other
costs, including commodity costs, variations in manufacturing
yields, the failure to sustain operational improvements, the actual
amount of compensation charges due to stock price changes. Any
unanticipated declines in revenue or gross margin, any
unanticipated increases in our operating expenses or unanticipated
charges could adversely affect our profitability.
In addition to the foregoing, other factors that may cause
actual results to differ materially from the forward-looking
statements in this press release include 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, and 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 31, 2016, and Lattice’s quarterly
reports filed on Form 10-Q.
You should not unduly rely on forward-looking statements because
actual results could differ materially from those expressed in any
forward-looking statements. In addition, any forward-looking
statement applies only as of the date on which it is made. The
Company does not intend to update or revise any forward-looking
statements, whether as a result of events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
About Lattice Semiconductor
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, 60 GHz millimeter wave, video ASSP
and IP 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 ever 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005385/en/
Global IR PartnersDavid Pasquale,
914-337-8801lscc@globalirpartners.com
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