Delaware | 000-18032 | 93-0835214 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | ||
99.1 | Press Release, dated July 30, 2015 (furnished herewith). |
LATTICE SEMICONDUCTOR CORPORATION | |||
By: | /s/ Joe Bedewi | ||
Date: | July 30, 2015 | Joe Bedewi Corporate Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 | Press Release July 30, 2015 (furnished herewith) |
• | Revenue of $106.5 million on a GAAP basis and $109.4 million on a non-GAAP basis. |
• | Net loss of $35.6 million or $0.30 per basic and diluted share on a GAAP basis, compared to net loss of $8.6 million or $0.07 per basic and diluted share on a non-GAAP basis. GAAP results reflect $4.1 million in restructuring costs, $3.3 million in acquisition related charges, a $4.1 million tax provision, $8.9 million in amortization of acquired intangible assets and $5.0 million in stock based compensation expense. |
• | Gross margin of 54.6% on a GAAP basis and 56.9% on a non-GAAP basis. |
• | Expands Relationship with Huawei: Lattice's iCE40 LM FPGA was integrated into the new Huawei P8 flagship smartphone to enable optimal 4G reception. Huawei will continue to use Lattice’s low latency, tunable antenna controller in other devices incorporating its Kirin 930 chipset. |
• | ZTE Chooses Lattice: Lattice's iCE40 LM FPGA was integrated into the recently released ZTE Star 2 flagship smartphone to perform IR remote control, and sensor hub functions. ZTE was able to individually decide which functions to incorporate, targeting the features of each model, while simultaneously saving board space, cost and power, and improving reliability and performance. |
• | Partners with Google: Google ATAP selected Lattice's SiBEAM® as one of the partners to bring touchless gesture sensing to the next generation of smart devices. Based on SiBEAM’s millimeter-wave (mmWave) innovations, this technology enables rich hand gesture interactions with smart devices and small wearables, without the limitations of ever-shrinking screen sizes. |
• | Launches MachXO3LF™: Lattice launched the MachXO3LF™ device, the newest member of its MachXO3™ FPGA family, which provides essential bridging and I/O expansion functions to meet the increasing connectivity requirements of communications, computing, consumer and industrial markets. Customers now have multiple footprint compatible options: the MachXO3L device, which offers low-cost reprogrammable non-volatile configuration memory, and now the MachXO3LF device with on-chip Flash memory. |
• | Letv's Le Max Smartphone Win: Lattice's SiBEAM announced a key UltraGig™ design win with Letv’s Le Max smartphone. Featuring SiBEAM’s UltraGig SiI6400 transmitter, Le Max is the world’s first smartphone offering 60GHz millimeter-wave wireless video technology in volume production. The UltraGig SiI6400 transmitter is a single-chip solution that integrates network processor, RF transceiver, and in-package antennas, offering Full HD quality with near-zero latency for immersive entertainment and gaming. |
• | Revenue for the third quarter of 2015 is expected to be approximately flat to up 6% on a non-GAAP basis, as compared to the second quarter of 2015, with revenue on a non-GAAP basis for the full year 2015 now expected to be approximately 10% below $485 million, which was the midpoint of prior guidance. |
• | Gross margin percentage for both the third quarter and full year 2015 is expected to be approximately 56.5% plus or minus 2% on a non-GAAP basis. |
• | Total operating expenses, excluding acquisition or restructuring related charges, are expected to be approximately $60 million plus or minus 2% on a non-GAAP basis for the third quarter of 2015, and approximately $215 million plus or minus 2% on a non-GAAP basis for the full year 2015, which includes the benefit of synergy savings. |
• | Restructuring charges are expected to be approximately $7.0 million for the third quarter of 2015 and approximately $25 million for the full year 2015. |
• | Acquisition related charges, including amortization of acquired intangible assets are expected to be approximately $9.5 million in the third quarter of 2015, and approximately $52.2 million for the full year 2015. |
• | The Company reaffirms that it expects operating synergies to be approximately $42 million on an annualized basis as it exits 2015. |
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 4, 2015 | April 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | ||||||||||||||||
Revenue | $ | 106,460 | $ | 88,597 | $ | 99,320 | $ | 195,057 | $ | 195,957 | ||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales | 48,334 | 40,765 | 44,345 | 89,099 | 86,844 | |||||||||||||||
Research and development | 39,552 | 27,642 | 22,302 | 67,194 | 43,541 | |||||||||||||||
Selling, general and administrative | 28,189 | 21,088 | 18,832 | 49,277 | 37,581 | |||||||||||||||
Acquisition related charges | 3,270 | 18,198 | — | 21,468 | — | |||||||||||||||
Restructuring | 4,068 | 4,894 | 3 | 8,962 | 14 | |||||||||||||||
Amortization of acquired intangible assets | 8,941 | 2,942 | 737 | 11,883 | 1,474 | |||||||||||||||
132,354 | 115,529 | 86,219 | 247,883 | 169,454 | ||||||||||||||||
(Loss) income from operations | (25,894 | ) | (26,932 | ) | 13,101 | (52,826 | ) | 26,503 | ||||||||||||
Interest expense | (5,505 | ) | (1,611 | ) | — | (7,116 | ) | (48 | ) | |||||||||||
Other (expense) income, net | (201 | ) | (154 | ) | 906 | (355 | ) | 1,263 | ||||||||||||
(Loss) income before income taxes | (31,600 | ) | (28,697 | ) | 14,007 | (60,297 | ) | 27,718 | ||||||||||||
Income tax expense | 4,056 | 24,665 | 2,236 | 28,721 | 3,963 | |||||||||||||||
Net (loss) income | (35,656 | ) | (53,362 | ) | 11,771 | (89,018 | ) | 23,755 | ||||||||||||
Net loss attributable to non-controlling interest | 86 | 15 | — | 101 | — | |||||||||||||||
Net (loss) income attributable to common stockholders | $ | (35,570 | ) | $ | (53,347 | ) | $ | 11,771 | $ | (88,917 | ) | $ | 23,755 | |||||||
Net (loss) income per share: | ||||||||||||||||||||
Basic | $ | (0.30 | ) | $ | (0.46 | ) | $ | 0.10 | $ | (0.76 | ) | $ | 0.20 | |||||||
Diluted | $ | (0.30 | ) | $ | (0.46 | ) | $ | 0.10 | $ | (0.76 | ) | $ | 0.20 | |||||||
Shares used in per share calculations: | ||||||||||||||||||||
Basic | 116,903 | 116,863 | 117,904 | 116,883 | 117,170 | |||||||||||||||
Diluted | 116,903 | 116,863 | 120,944 | 116,883 | 120,041 |
July 4, 2015 | January 3, 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term marketable securities | $ | 138,135 | $ | 254,844 | ||||
Accounts receivable, net | 76,873 | 62,372 | ||||||
Inventories | 80,796 | 64,925 | ||||||
Other current assets | 20,527 | 16,281 | ||||||
Total current assets | 316,331 | 398,422 | ||||||
Property and equipment, net | 50,182 | 27,796 | ||||||
Other long-term assets | 11,619 | 9,862 | ||||||
Intangible assets, net of amortization | 189,449 | 9,537 | ||||||
Goodwill | 270,083 | 44,808 | ||||||
Deferred income taxes | 3,941 | 20,105 | ||||||
$ | 841,605 | $ | 510,530 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and other accrued liabilities | $ | 90,903 | $ | 45,800 | ||||
Current portion of long-term debt | 242 | — | ||||||
Deferred income and allowances on sales to sell-through distributors and deferred license revenue | 21,150 | 14,946 | ||||||
Total current liabilities | 112,295 | 60,746 | ||||||
Long-term debt | 338,206 | — | ||||||
Other long-term liabilities | 24,316 | 8,809 | ||||||
Total liabilities | 474,817 | 69,555 | ||||||
Redeemable non-controlling interest | 7,366 | — | ||||||
Stockholders' equity | 359,422 | 440,975 | ||||||
$ | 841,605 | $ | 510,530 |
Three Months Ended | Six Months Ended | ||||||||||||||
July 4, 2015 | April 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | |||||||||||
Operations Information | |||||||||||||||
Percent of Revenue | |||||||||||||||
Gross Margin | 54.6 | % | 54.0 | % | 55.4 | % | 54.3 | % | 55.7 | % | |||||
R&D Expense | 37.2 | % | 31.2 | % | 22.5 | % | 34.4 | % | 22.2 | % | |||||
SG&A Expense | 26.5 | % | 23.8 | % | 19.0 | % | 25.3 | % | 19.2 | % | |||||
Depreciation and amortization (in thousands) | 17,055 | 7,904 | 5,773 | 24,959 | 11,633 | ||||||||||
Capital expenditures (in thousands) | 4,155 | 2,878 | 2,480 | 7,033 | 4,875 | ||||||||||
Stock-based compensation (in thousands) | 4,979 | 3,384 | 3,320 | 8,363 | 6,410 | ||||||||||
Stock-based compensation included in acquisition related charges (in thousands) | — | 3,891 | — | 3,891 | — | ||||||||||
Restructuring and severance related charges (in thousands) | 4,068 | 4,894 | 403 | 8,962 | 493 | ||||||||||
Severance costs included in acquisition related charges (in thousands) | — | 4,017 | — | 4,017 | — | ||||||||||
Taxes paid (cash, in thousands) | 2,049 | 1,063 | 418 | 3,112 | 798 | ||||||||||
Balance Sheet Information | |||||||||||||||
Current Ratio | 2.8 | 2.9 | 5.4 | ||||||||||||
A/R Days Revenue Outstanding | 66 | 82 | 60 | ||||||||||||
Inventory Months | 5.0 | 5.9 | 4.0 | ||||||||||||
Revenue% (by Geography) | |||||||||||||||
Asia | 78 | % | 70 | % | 74 | % | 75 | % | 75 | % | |||||
Europe (incl. Africa) | 13 | % | 19 | % | 16 | % | 15 | % | 15 | % | |||||
Americas | 9 | % | 11 | % | 10 | % | 10 | % | 10 | % | |||||
Revenue% (by End Market) (1) | |||||||||||||||
Communications | 23 | % | 37 | % | 44 | % | 29 | % | 43 | % | |||||
Consumer | 37 | % | 22 | % | 26 | % | 30 | % | 28 | % | |||||
Industrial | 31 | % | 38 | % | 30 | % | 34 | % | 29 | % | |||||
Licensing | 9 | % | 3 | % | — | % | 7 | % | — | % | |||||
Revenue% (by Channel) | |||||||||||||||
Sell-through distribution | 43 | % | 48 | % | 42 | % | 45 | % | 40 | % | |||||
Direct | 57 | % | 52 | % | 58 | % | 55 | % | 60 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 4, 2015 | April 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | ||||||||||||||||
GAAP Revenue | $ | 106,460 | $ | 88,597 | $ | 99,320 | $ | 195,057 | $ | 195,957 | ||||||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 2,921 | 1,809 | — | 4,730 | — | |||||||||||||||
Non-GAAP Revenue | $ | 109,381 | $ | 90,406 | $ | 99,320 | $ | 199,787 | $ | 195,957 | ||||||||||
GAAP Cost of Products Sold | $ | 48,334 | $ | 40,765 | $ | 44,345 | $ | 89,099 | $ | 86,844 | ||||||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 805 | 644 | — | 1,449 | — | |||||||||||||||
Inventory Step-Up Expense | (1,605 | ) | (3,041 | ) | — | (4,646 | ) | — | ||||||||||||
Stock-Based Compensation - Gross Margin | (398 | ) | (240 | ) | (211 | ) | (638 | ) | (376 | ) | ||||||||||
Non-GAAP Cost of Products Sold | $ | 47,136 | $ | 38,128 | $ | 44,134 | $ | 85,264 | $ | 86,468 | ||||||||||
GAAP Gross Margin | $ | 58,126 | $ | 47,832 | $ | 54,975 | $ | 105,958 | $ | 109,113 | ||||||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 2,116 | 1,165 | — | 3,281 | — | |||||||||||||||
Inventory Step-Up Expense | 1,605 | 3,041 | — | 4,646 | — | |||||||||||||||
Stock-Based Compensation - Gross Margin | 398 | 240 | 211 | 638 | 376 | |||||||||||||||
Non-GAAP Gross Margin | $ | 62,245 | $ | 52,278 | $ | 55,186 | $ | 114,523 | $ | 109,489 | ||||||||||
Non-GAAP Gross Margin % | 56.9% | 57.8% | 55.6% | 57.3% | 55.9% | |||||||||||||||
GAAP Operating Expenses | $ | 84,020 | $ | 74,764 | $ | 41,874 | $ | 158,784 | $ | 82,610 | ||||||||||
Restructuring | (4,068 | ) | (4,894 | ) | (3 | ) | (8,962 | ) | (14 | ) | ||||||||||
Acquisition Related Charges (1) | (3,270 | ) | (18,198 | ) | — | (21,468 | ) | — | ||||||||||||
Amortization of Acquired Intangible Assets | (8,941 | ) | (2,942 | ) | (737 | ) | (11,883 | ) | (1,474 | ) | ||||||||||
Stock-Based Compensation - Operations | (4,581 | ) | (3,144 | ) | (3,109 | ) | (7,725 | ) | (6,033 | ) | ||||||||||
Non-GAAP Operating Expenses | $ | 63,160 | $ | 45,586 | $ | 38,025 | $ | 108,746 | $ | 75,089 | ||||||||||
GAAP (Loss) Income from Operations | $ | (25,894 | ) | $ | (26,932 | ) | $ | 13,101 | $ | (52,826 | ) | $ | 26,503 | |||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 2,116 | 1,165 | — | 3,281 | — | |||||||||||||||
Inventory Step-Up Expense | 1,605 | 3,041 | — | 4,646 | — | |||||||||||||||
Stock-Based Compensation - Gross Margin | 398 | 240 | 211 | 638 | 376 | |||||||||||||||
Restructuring | 4,068 | 4,894 | 3 | 8,962 | 14 | |||||||||||||||
Acquisition Related Charges (1) | 3,270 | 18,198 | — | 21,468 | — | |||||||||||||||
Amortization of Acquired Intangible Assets | 8,941 | 2,942 | 737 | 11,883 | 1,474 | |||||||||||||||
Stock-Based Compensation - Operations | 4,581 | 3,144 | 3,109 | 7,725 | 6,033 | |||||||||||||||
Non-GAAP (Loss) Income from Operations | $ | (915 | ) | $ | 6,692 | $ | 17,161 | $ | 5,777 | $ | 34,400 | |||||||||
(1) Includes stock-based compensation and severance costs related to change in control. |
Lattice Semiconductor Corporation | ||||||||||||||||||||
- Reconciliation of U.S. GAAP to Non-GAAP Financial Measures - | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 4, 2015 | April 4, 2015 | June 28, 2014 | July 4, 2015 | June 28, 2014 | ||||||||||||||||
GAAP (Loss) Income before Income Taxes | $ | (31,600 | ) | $ | (28,697 | ) | $ | 14,007 | $ | (60,297 | ) | $ | 27,718 | |||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 2,116 | 1,165 | — | 3,281 | — | |||||||||||||||
Inventory Step-Up Expense | 1,605 | 3,041 | — | 4,646 | — | |||||||||||||||
Stock-Based Compensation - Gross Margin | 398 | 240 | 211 | 638 | 376 | |||||||||||||||
Restructuring | 4,068 | 4,894 | 3 | 8,962 | 14 | |||||||||||||||
Acquisition Related Charges (1) | 3,270 | 18,198 | — | 21,468 | — | |||||||||||||||
Amortization of Acquired Intangible Assets | 8,941 | 2,942 | 737 | 11,883 | 1,474 | |||||||||||||||
Stock-Based Compensation - Operations | 4,581 | 3,144 | 3,109 | 7,725 | 6,033 | |||||||||||||||
Non-GAAP (Loss) Income before Income Taxes | $ | (6,621 | ) | $ | 4,927 | $ | 18,067 | $ | (1,694 | ) | $ | 35,615 | ||||||||
GAAP Income Tax Expense | $ | 4,056 | $ | 24,665 | $ | 2,236 | $ | 28,721 | $ | 3,963 | ||||||||||
Non-cash Income Tax Expense | (2,007 | ) | (23,602 | ) | (1,818 | ) | (25,609 | ) | (3,165 | ) | ||||||||||
Non-GAAP Income Tax Expense | $ | 2,049 | $ | 1,063 | $ | 418 | $ | 3,112 | $ | 798 | ||||||||||
GAAP Net (Loss) Income Attributable to Common Stockholders | $ | (35,570 | ) | $ | (53,347 | ) | $ | 11,771 | $ | (88,917 | ) | $ | 23,755 | |||||||
Fair Value Adjustment To Deferred Revenue From Purchase Accounting | 2,116 | 1,165 | — | 3,281 | — | |||||||||||||||
Inventory Step-Up Expense | 1,605 | 3,041 | — | 4,646 | — | |||||||||||||||
Stock-Based Compensation - Gross Margin | 398 | 240 | 211 | 638 | 376 | |||||||||||||||
Restructuring | 4,068 | 4,894 | 3 | 8,962 | 14 | |||||||||||||||
Acquisition Related Charges (1) | 3,270 | 18,198 | — | 21,468 | — | |||||||||||||||
Amortization of Acquired Intangible Assets | 8,941 | 2,942 | 737 | 11,883 | 1,474 | |||||||||||||||
Stock-Based Compensation - Operations | 4,581 | 3,144 | 3,109 | 7,725 | 6,033 | |||||||||||||||
Non-cash Income Tax Expense | 2,007 | 23,602 | 1,818 | 25,609 | 3,165 | |||||||||||||||
Non-GAAP Net (Loss) Income Attributable to Common Stockholders | $ | (8,584 | ) | $ | 3,879 | $ | 17,649 | $ | (4,705 | ) | $ | 34,817 | ||||||||
GAAP Net (Loss) Income per Share - Basic | $ | (0.30 | ) | $ | (0.46 | ) | $ | 0.10 | $ | (0.76 | ) | $ | 0.20 | |||||||
Cumulative Effect of Non-GAAP Adjustments | 0.23 | 0.49 | 0.05 | 0.72 | 0.10 | |||||||||||||||
Non-GAAP Net (Loss) Income per Share - Basic | $ | (0.07 | ) | $ | 0.03 | $ | 0.15 | $ | (0.04 | ) | $ | 0.30 | ||||||||
GAAP Net (Loss) Income per Share - Diluted | $ | (0.30 | ) | $ | (0.46 | ) | $ | 0.10 | $ | (0.76 | ) | $ | 0.20 | |||||||
Cumulative Effect of Non-GAAP Adjustments | 0.23 | 0.49 | 0.05 | 0.72 | 0.09 | |||||||||||||||
Non-GAAP Net (Loss) Income per Share - Diluted | $ | (0.07 | ) | $ | 0.03 | $ | 0.15 | $ | (0.04 | ) | $ | 0.29 | ||||||||
Shares Used In Per Share Calculations: | ||||||||||||||||||||
Basic | 116,903 | 116,863 | 117,904 | 116,883 | 117,170 | |||||||||||||||
Diluted - GAAP | 116,903 | 116,863 | 120,944 | 116,883 | 120,041 | |||||||||||||||
Diluted - Non-GAAP | 116,903 | 120,049 | 120,944 | 116,883 | 120,041 |