• Gross Margin Expands to 59.1% / 59.8% for Q1 2020 on a GAAP / Non-GAAP Basis, from 58.8% / 58.6%, respectively, for Q1 2019
• Operating Margin at 10.0% / 22.7% of revenue for Q1 2020 on a GAAP / Non-GAAP Basis, from 12.7% / 19.9%, respectively, for Q1 2019
• Net Income Improves to $0.06 / $0.15 Per Diluted Share for Q1 2020 on a GAAP / Non-GAAP Basis, from $0.05 / $0.11, respectively, for Q1 2019

* 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."

HILLSBORO, Ore. — (BUSINESS WIRE) — April 28, 2020 — Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal first quarter ended March 28, 2020.

Jim Anderson, President and Chief Executive Officer, said, "I am pleased with the results we delivered in the first quarter of 2020 given the dynamic environment around COVID-19. We achieved a 120 basis point expansion in gross margin on a non-GAAP basis in the first quarter 2020 on a year over year basis, with a 39% increase in non-GAAP net income on a year over year basis, as we benefited from our actions to expand gross margin and profitability. With regard to COVID-19, we took action quickly to ensure employee health and safety, while making sure our operations ran as close to normal as possible. I want to thank our employees and partners for strong execution in the current environment. We are focused on continuing to build the momentum of the products we launched last year, including our NEXUS™ next generation platform, our CrossLink-NX™ FPGA, and our MachXO3D™ platform security product."

Sherri Luther, Chief Financial Officer, said, "For the first quarter 2020, diluted EPS was up 20% on a GAAP basis and up 36% on a non-GAAP basis compared to Q1 2019. We generated healthy cash flow from operations of $21 million, as we continue our focus on cash generation. Given the current environment, we took the opportunity to preemptively draw down $50 million on our credit revolver to further solidify our cash position. As a result, we ended the quarter with $177 million in cash on hand providing very strong liquidity for the Company. We remain focused on making progress toward our financial goals and target model."

Selected First Quarter 2020 Financial Results and Comparisons (in thousands, except per share data)