First Quarter 2017 Financial Highlights*:
- Revenue of $104.6 million.
- On a GAAP basis, net loss of $7.3 million or $0.06 per basic and diluted share.
- On a Non-GAAP basis, net income of $7.1 million or $0.06 per basic and diluted share.
- Gross margin of 58.2% on a GAAP basis and 58.4% on a non-GAAP basis.
* 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. For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."
PORTLAND, Ore. — (BUSINESS WIRE) — May 9, 2017 — Lattice Semiconductor Corporation (NASDAQ: LSCC), the leading provider of customizable smart connectivity solutions, announced financial results today for the fiscal first quarter ended April 1, 2017.
The Company reported revenue for the first quarter of 2017 of $104.6 million, which decreased 11.4% sequentially, as compared to the fourth quarter 2016 revenue of $118.1 million, and increased 8.4%, as compared to the first quarter 2016 revenue of $96.5 million.
Gross margin on a GAAP basis was 58.2% for the first quarter of 2017, as compared to the fourth quarter of 2016 gross margin of 53.7% and 59.2% for the first quarter of 2016. Gross margin for the first quarter of 2017 was 58.4% on a non-GAAP basis, as compared to 53.9% for the fourth quarter of 2016 and 60.0% for the first quarter of 2016.
Total operating expenses for the first quarter of 2017 were $61.5 million on a GAAP basis, as compared to $64.4 million for the fourth quarter of 2016 and $70.5 million for the first quarter of 2016. Total operating expenses were $47.7 million for the first quarter of 2017 on a non-GAAP basis, as compared to $45.1 million for the fourth quarter of 2016, and $51.9 million for the first quarter of 2016.
GAAP net loss for the first quarter was $7.3 million ($0.06 per basic and diluted share), with net income of $7.1 million ($0.06 per basic and diluted share) on a non-GAAP basis. This compares to a net loss on a GAAP basis in the prior quarter of $8.2 million ($0.07 per basic and diluted share), with net income on a non-GAAP basis in the prior quarter of $11.8 million ($0.10 per basic and diluted share), and compares to a net loss on a GAAP basis in the year ago period of $19.7 million ($0.17 per basic and diluted share), or a net loss of $0.9 million ($0.01 per basic and diluted share) on a non-GAAP basis. GAAP results for the first quarter of 2017 reflect less than $0.1 million in restructuring charges, $1.7 million in acquisition related charges, $0.5 million in tax expense, $8.5 million in amortization of acquired intangible assets, and $3.8 million in stock-based compensation expense. GAAP results for the fourth quarter of 2016 reflect $1.0 million in restructuring charges, $6.2 million in acquisition related charges, $2.5 million in tax expense, $8.3 million in amortization of acquired intangible assets, and $4.1 million in stock-based compensation expense. GAAP results for the first quarter of 2016 reflect $5.4 million in restructuring charges, less than $0.1 million in acquisition related charges, $1.9 million in tax expense, $8.7 million in amortization of acquired intangible assets, and $4.6 million in stock-based compensation expense.
Darin G. Billerbeck, President and Chief Executive Officer, said, "We achieved a 58.2% gross margin on a GAAP basis in the first quarter of 2017 as we continued to execute on our business strategy. Revenue was sequentially lower primarily reflecting macro demand softness from typical seasonality, compounded by lower shipments to a major consumer OEM, as a design we are supporting likely reached its peak life cycle shipment level in the December quarter. We continue to invest in our business as we capitalize on exciting opportunities, including video and enabling applications in consumer and industrial led by our fast growing CrossLinkTM video bridging product, along with our wireless products showcased in leading edge OEM wireless VR headsets. At the same time, our FPGA technology remains very unique and will allow us to thrive as we leverage the many advantages of our low power solutions critical to the interconnected world of smart devices."
Max Downing, Chief Financial Officer, added, "The benefit of our prior
operating expense reductions was muted primarily by annual compensation
increases, as well as cyclical costs in the first quarter of 2017. We
remain committed to actively managing our operating expenses as we focus
on our financial model. During the first quarter of 2017, we generated
$7.7 million in cash flow from operations and paid approximately $10.8
million in debt payments. We ended the quarter with $109.4 million in
cash and short-term investments."
