GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.
Lattice Semiconductor Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
------------------------------- --------------------
December September December December December
28, 2013 28, 2013 29, 2012 28, 2013 29, 2012
--------- ---------- --------- --------- ---------
Revenue $ 89,519 $ 87,154 $ 65,875 $ 332,525 $ 279,256
Costs and expenses:
Cost of products sold 40,916 40,778 30,202 154,281 128,499
Research and
development 22,331 20,254 18,655 80,966 77,610
Selling, general and
administrative 17,189 16,385 17,269 67,144 72,317
Acquisition related
charges (1) 737 737 760 2,960 4,178
Restructuring (2) 131 85 5,375 388 6,018
--------- ---------- --------- --------- ---------
81,304 78,239 72,261 305,739 288,622
--------- ---------- --------- --------- ---------
Income (loss) from
operations 8,215 8,915 (6,386) 26,786 (9,366)
Other (loss) income,
net (540) 346 (341) (300) 505
--------- ---------- --------- --------- ---------
Income (loss) before
provision for income
taxes 7,675 9,261 (6,727) 26,486 (8,861)
Provision for income
taxes (3) 1,128 417 448 4,165 20,745
--------- ---------- --------- --------- ---------
Net income (loss) $ 6,547 $ 8,844 $ (7,175) $ 22,321 $ (29,606)
========= ========== ========= ========= =========
Net income (loss) per
share (4):
Basic $ 0.06 $ 0.08 $ (0.06) $ 0.19 $ (0.25)
========= ========== ========= ========= =========
Diluted $ 0.06 $ 0.08 $ (0.06) $ 0.19 $ (0.25)
========= ========== ========= ========= =========
Shares used in per
share calculations
(4):
Basic 115,718 116,055 115,943 115,701 117,194
========= ========== ========= ========= =========
Diluted 117,156 117,349 115,943 117,081 117,194
========= ========== ========= ========= =========
Notes:
(1) During fiscal 2012, the Company recorded consulting, legal costs,
severance related integration costs and amortization of intangible
assets associated with the acquisition of SiliconBlue. During fiscal
2013, Acquisition related charges consist of amortization of intangible
assets.
(2) Represents costs and adjustments incurred primarily related to the
corporate restructuring plans announced on October 12, 2012 and April
21, 2011.
(3) The tax provision for the year ended December 29, 2012 reflects our new
global tax structure and the resulting intercompany sale of inventory
and fixed assets.
(4) For the three and twelve month periods in fiscal 2013, the computation
of diluted earnings per share includes the effects of stock options and
restricted stock units as they are dilutive. For the three and twelve
month periods in fiscal 2012, the computation of diluted earnings per
share excludes the effects of stock options, restricted stock units and
ESPP shares as they are antidilutive. ESPP shares are included if
dilutive.
Lattice Semiconductor Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
December 28, December 29,
2013 2012
------------- -------------
Assets
Current assets:
Cash, cash equivalents and short-term marketable
securities $ 215,815 $ 183,401
Accounts receivable, net 50,085 46,947
Inventories 46,222 44,194
Other current assets (1) 13,679 12,527
------------- -------------
Total current assets 325,801 287,069
Property and equipment, net 41,719 40,384
Long-term marketable securities 5,241 4,717
Other long-term assets 6,120 6,854
Intangible assets, net of amortization 12,484 15,430
Goodwill 44,808 44,808
Deferred income taxes (1) 11,703 15,357
$ 447,876 $ 414,619
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities $ 51,113 $ 42,540
Deferred income and allowances on sales to sell-
through distributors 7,495 10,553
------------- -------------
Total current liabilities 58,608 53,093
Other long-term liabilities (1) 3,588 3,976
------------- -------------
Total liabilities 62,196 57,069
Stockholders' equity 385,680 357,550
-------------
$ 447,876 $ 414,619
============= =============
Notes:
(1) In June 2013 the company adopted, with retrospective application, the
requirements of ASU 2013-11 Presentation of an Unrecognized Tax Benefit
When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax
Credit Carryforward Exists. Accordingly, previous periods have been
revised to conform with current period presentation. This resulted in
both long-term taxes payable and deferred tax assets declining by
approximately $14 million for all periods presented.
Lattice Semiconductor Corporation
- Supplemental Historical Financial Information -
Three Months Ended Year Ended
--------------------------------- ----------------------
12/28/2013 9/28/2013 12/29/2012 12/28/2013 12/29/2012
---------- --------- ---------- ---------- ----------
Operations
Information
Percent of
Revenue
Gross Margin 54.3% 53.2% 54.2% 53.6% 54.0%
R&D Expense 24.9% 23.2% 28.3% 24.3% 27.8%
SG&A Expense 19.2% 18.8% 26.2% 20.2% 25.9%
Depreciation and
amortization
(in thousands) 5,634 5,210 5,987 20,807 22,149
Capital
expenditures
(in thousands) 2,263 3,400 2,363 12,500 13,593
Stock
compensation
expense (in
thousands) 2,537 2,562 1,757 9,522 7,510
Restructuring
and severance
related charges
(in thousands) 167 376 5,299 797 8,515
Taxes paid
(cash, in
thousands) 289 126 172 1,370 908
Balance Sheet
Information
Current Ratio 5.6 5.2 5.4
A/R Days Revenue
Outstanding 50 55 64
Inventory Months 3.4 3.1 4.4
Revenue% (by
Product Family)
PLD 68% 70% 68% 69% 66%
FPGA 32% 30% 32% 31% 34%
Revenue% (by
Product
Classification)
(1)
New 46% 51% 29% 46% 22%
Mainstream 43% 41% 53% 43% 56%
Mature 11% 8% 18% 11% 22%
Revenue% (by
Geography)
Asia 76% 76% 69% 74% 68%
Europe (incl.
Africa) 12% 14% 16% 14% 17%
Americas 12% 10% 15% 12% 15%
Revenue% (by End
Market) (2)
Communications 41% 35% 38% 38% 42%
Industrial &
Other 23% 20% 31% 23% 32%
Computing 9% 9% 13% 9% 13%
Consumer 27% 36% 18% 30% 13%
Revenue% (by
Channel)
Sell-through
distribution 45% 41% 55% 45% 55%
Direct 55% 59% 45% 55% 45%
(1) New: MachXO3, LatticeECP3, MachXO2, Power Manager II, and iCE40
Mainstream: ispMACH 4000ZE, ispMACH 4000/Z, LatticeSC, LatticeECP2/M,
LatticeECP, LatticeXP2, LatticeXP, MachXO, ispClock A/D/S, Software and
IP Mature: ispXPLD, ispXPGA, FPSC, ORCA 2, ORCA 3, ORCA 4, ispPAC,
isplsi 8000V, ispMACH 5000B, ispMACH 2LV, ispMACH 5LV, ispLSI 2000V,
ispLSI 5000V, ispMACH 5000VG, all 5-volt CPLDs, ispGDX2, GDX/V, ispMACH
4/LV, iCE65, ispClock, Power Manager I, all SPLDs
* Product categories are modified as appropriate relative to our
portfolio of products and the generation within each major product
family. New products consist of our latest generation of products, while
Mainstream and Mature are older or based on unique late stage customer-
based production needs. Generally, product categories are adjusted every
two to three years, at which time prior periods are reclassified to
conform to the new categorization. In the first fiscal quarter 2012 we
reclassified our New, Mainstream and Mature product categories to better
reflect our current product portfolio.
(2) During the first quarter of 2013, the Company refined its methodology
for assigning revenue by End Market categories. All periods presented
have been revised to conform to this methodology.
