Lattice Semiconductor Reports Fourth Quarter and Full Year 2021 Results

  • Revenue increases 26.3% for the full year 2021 compared to the full year 2020; Q4 2021 revenue increases 32.3% compared to Q4 2020 and 7.5% compared to Q3 2021
  • Gross Margin Expands to 64.2% / 65.1% for Q4 2021 on a GAAP / Non-GAAP Basis, from 60.5% / 61.6%, respectively, for Q4 2020
  • Net Income Improves to $0.20 / $0.32 Per Diluted Share for Q4 2021 on a GAAP / Non-GAAP Basis, Compared to $0.11 / $0.19, respectively, for Q4 2020

* 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. Additional information relating to these measures is included below in “Non-GAAP Financial Measures.” For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

HILLSBORO, Ore.--()--Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended January 1, 2022.

Jim Anderson, president and CEO, said, "We grew annual revenue 26% in 2021 and we grew fourth quarter revenue 32% year-over-year. We’re excited to have entered a new growth phase for the Company in 2021 driven by our leadership product portfolio, and growth in our key end market segments. And we're excited about the year ahead as we continue to execute to our long-term strategy and build momentum across our customer base."

Sherri Luther, CFO, said, "In Q4 2021, we achieved record operating profit of 21.0% on a GAAP basis and 32.9% on a non-GAAP basis, while driving gross margin expansion of 370 basis points on a GAAP basis and 350 basis points on a non-GAAP basis compared to Q4 2020. For the full year, we generated 83% higher cash flow from operations than in the prior year and we repurchased $70 million of the Company's shares. We are pleased with our strong revenue growth and profit expansion, as we remain focused on executing to our financial model."

Selected Fourth Quarter and Full Year 2021 Financial Results and Comparisons (in thousands, except per share data)

 

 

GAAP Financial Results (unaudited)

 

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

Q/Q

 

Y/Y

 

FY 2021

 

FY 2020

 

FY/FY

Revenue

 

$ 141,795

 

$ 131,911

 

$ 107,173

 

7.5%

 

32.3%

 

$ 515,327

 

$ 408,120

 

26.3%

Gross Margin %

 

64.2%

 

62.8%

 

60.5%

 

140 bps

 

370 bps

 

62.4%

 

60.1%

 

230 bps

R&D Expense %

 

21.3%

 

21.8%

 

21.1%

 

(50) bps

 

20 bps

 

21.4%

 

21.9%

 

(50) bps

SG&A Expense %

 

20.2%

 

19.9%

 

22.9%

 

30 bps

 

(270) bps

 

20.5%

 

23.4%

 

(290) bps

Operating Expense

 

$ 61,244

 

$ 55,810

 

$ 47,529

 

9.7%

 

28.9%

 

$ 220,859

 

$ 192,940

 

14.5%

Operating Income

 

$ 29,836

 

$ 27,015

 

$ 17,332

 

10.4%

 

72.1%

 

$ 100,816

 

$ 52,366

 

92.5%

Net Income

 

$ 28,532

 

$ 26,739

 

$ 15,989

 

6.7%

 

78.4%

 

$ 95,922

 

$ 47,392

 

102.4%

Net Income per Share - Basic

 

$ 0.21

 

$ 0.20

 

$ 0.12

 

$ 0.01

 

$ 0.09

 

$ 0.70

 

$ 0.35

 

$ 0.35

Net Income per Share - Diluted

 

$ 0.20

 

$ 0.19

 

$ 0.11

 

$ 0.01

 

$ 0.09

 

$ 0.67

 

$ 0.34

 

$ 0.33

 

 

Non-GAAP* Financial Results (unaudited)

 

 

Q4 2021

 

Q3 2021

 

Q4 2020

 

Q/Q

 

Y/Y

 

FY 2021

 

FY 2020

 

FY/FY

Revenue

 

$ 141,795

 

$ 131,911

 

$ 107,173

 

7.5%

 

32.3%

 

$ 515,327

 

$ 408,120

 

26.3%

Gross Margin %

 

65.1%

 

63.6%

 

61.6%

 

150 bps

 

350 bps

 

63.2%

 

61.0%

 

220 bps

R&D Expense %

 

18.0%

 

18.8%

 

18.5%

 

(80) bps

 

(50) bps

 

18.4%

 

19.2%

 

(80) bps

SG&A Expense %

 

13.9%

 

14.8%

 

16.5%

 

(90) bps

 

(260) bps

 

14.6%

 

16.6%

 

(200) bps

Operating Expense

 

$ 45,752

 

$ 43,802

 

$ 37,475

 

4.5%

 

22.1%

 

$ 170,022

 

$ 146,230

 

16.3%

Operating Income

 

$ 46,609

 

$ 40,079

 

$ 28,490

 

16.3%

 

63.6%

 

$ 155,758

 

$ 102,894

 

51.4%

Net Income

 

$ 45,345

 

$ 39,620

 

$ 27,540

 

14.4%

 

64.7%

 

$ 150,864

 

$ 97,920

 

54.1%

Net Income per Share - Basic

 

$ 0.33

 

$ 0.29

 

$ 0.20

 

$ 0.04

 

$ 0.13

 

$ 1.10

 

$ 0.72

 

$ 0.38

Net Income per Share - Diluted

 

$ 0.32

 

$ 0.28

 

$ 0.19

 

$ 0.04

 

$ 0.13

 

$ 1.06

 

$ 0.69

 

$ 0.37

Fourth Quarter 2021 Highlights:

  • Revenue Growth: Fourth consecutive quarter of double-digit growth year-over-year, with revenue increasing 32.3% in Q4 2021 compared to Q4 2020 and 7.5% compared to Q3 2021.
  • Profit Expansion: Gross margin expanded 370 basis points on a GAAP basis and 350 basis points on a non-GAAP basis compared to Q4 2020, with net income increasing 78% on a GAAP basis and 65% on a non-GAAP basis compared to Q4 2020.
  • Lattice Acquires Mirametrix: The all cash acquisition of Mirametrix, an immediately accretive transaction, combines its expertise with Lattice’s innovative hardware and software solution stacks to create an end-to-end AI and computer vision solution that spans from the hardware to the application layer.
  • New Lattice sensAI™ Solution Stack: The award-winning Lattice sensAI™ solution stack running on low power Lattice Nexus™ FPGAs added new capabilities to accelerate next-generation devices with expanded AI/ML-enabled features.
  • Lenovo Selects Lattice FPGAs for Next-Generation Edge/AI: The new Lenovo ThinkPad X1 portfolio uses an integrated hardware and software solution from Lattice to deliver advanced user experiences including immersive engagement, privacy, and collaboration without sacrificing performance or battery life. Lattice's solution integrates Lattice Nexus FPGAs and our software portfolio.
  • Lattice Receives Multiple Industry Awards: For the second year in a row, Lattice received the Global Semiconductor Alliance (GSA) Most Respected Public Semiconductor Award. Additionally, Lattice was named a CES® 2022 Innovation Awards Honoree. Finally, Lattice won its second sustainability award, the 2021 SEAL Sustainability Award.

Business Outlook - First Quarter of 2022:

  • Revenue for the first quarter of 2022 is expected to be between $141 million and $151 million.
  • Gross margin percentage for the first quarter of 2022 is expected to be 66% plus or minus 1% on a non-GAAP basis.
  • Total operating expenses for the first quarter of 2022 are expected to be between $46 million and $48 million on a non-GAAP basis.

Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the first quarter of 2022, certain items that affect GAAP measurement of financial measures are out of the Company’s control and/or cannot be reasonably predicted. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for guidance or a corresponding reconciliation to GAAP for the quarter. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below, following the GAAP financial information.

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the fiscal fourth quarter and full year 2021, and business outlook on Tuesday, February 15 at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-888-684-5603 or 1-918-398-4852 with conference identification number 3164269. A live webcast of the conference call will also be available on the investor relations section of www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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, but are not limited to, statements relating to our belief that we are in a new growth phase for the Company; our ability to execute on our long-term strategy and financial model; and the statements under the heading “Business Outlook - First Quarter of 2022.” 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.

Estimates of future revenue are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing pressures, competitive actions, and international trade disputes and sanctions. In addition, the COVID-19 pandemic continues to impact the overall economy and, as a result of the foregoing, may negatively impact our operating results for future periods. 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, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. Actual results may differ materially from our expectations and are subject to risks and uncertainties that relate more broadly to our overall business, including those described in Item 1A in Lattice’s most recent Annual Report on Form 10-K and as may be supplemented from time-to-time in Lattice’s other filings with the Securities and Exchange Commission, all of which are expressly incorporated herein by reference. Further economic and market disruptions from COVID-19 may increase or change the severity of our other risks reported in Item 1A in Lattice’s most recent Annual Report on Form 10-K. Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. New risk factors emerge from time to time and it is not possible for Lattice’s management to predict all risk factors. 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.

Non-GAAP Financial Measures:

Included within this press release and the accompanying tables and notes are certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with U.S. GAAP. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation and related tax effects, amortization of acquired intangible assets, restructuring plans and other charges, and the estimated tax effect of these items. These charges and adjustments are a result of periodic or non-core operating activities of the Company. The Company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.

The Company's management believes that these non-GAAP financial measures provide an additional and useful way of viewing aspects of our performance that, when viewed in conjunction with our GAAP results, provide a more comprehensive understanding of the various factors and trends affecting our ongoing financial performance and operating results than GAAP measures alone. Management also uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting, and resource allocation processes and believes that investors should have access to similar data.

These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP and should be considered together with the consolidated financial information located in the tables attached to this press release.

About Lattice Semiconductor Corporation:

Lattice Semiconductor (NASDAQ: LSCC) is the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support let our customers quickly and easily unleash their innovation to create a smart, secure, and 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.

Lattice Semiconductor Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

Year Ended

 

 

January 1,

 

October 2,

 

January 2,

 

January 1,

 

January 2,

 

 

2022

 

2021

 

2021

 

2022

 

2021

Revenue

 

$

141,795

 

$

131,911

 

$

107,173

 

$

515,327

 

$

408,120

Cost of sales

 

50,715

 

49,086

 

42,312

 

193,652

 

162,814

Gross margin

 

91,080

 

82,825

 

64,861

 

321,675

 

245,306

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

30,229

 

28,769

 

22,633

 

110,518

 

89,223

Selling, general, and administrative

 

28,646

 

26,272

 

24,534

 

105,617

 

95,331

Amortization of acquired intangible assets

 

804

 

603

 

603

 

2,613

 

4,449

Restructuring

 

394

 

166

 

(241

)

 

940

 

3,937

Acquisition related charges

 

1,171

 

 

 

1,171

 

Total operating expenses

 

61,244

 

55,810

 

47,529

 

220,859

 

192,940

Income from operations

 

29,836

 

27,015

 

17,332

 

100,816

 

52,366

Interest expense

 

(657

)

 

(661

)

 

(788

)

 

(2,738

)

 

(3,702

)

Other (expense) income, net

 

(68

)

 

(87

)

 

(125

)

 

(452

)

 

(208

)

Income before income taxes

 

29,111

 

26,267

 

16,419

 

97,626

 

48,456

Income tax expense (benefit)

 

579

 

(472

)

 

430

 

1,704

 

1,064

Net income

 

$

28,532

 

$

26,739

 

$

15,989

 

$

95,922

 

$

47,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.20

 

$

0.12

 

$

0.70

 

$

0.35

Diluted

 

$

0.20

 

$

0.19

 

$

0.11

 

$

0.67

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

137,048

 

136,638

 

136,104

 

136,619

 

135,220

Diluted

 

141,587

 

141,632

 

141,713

 

142,143

 

141,276

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

January 1,

 

January 2,

 

 

2022

 

2021

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

131,570

 

$

182,332

Accounts receivable, net

 

79,859

 

64,581

Inventories, net

 

67,594

 

64,599

Other current assets

 

22,328

 

22,331

Total current assets

 

301,351

 

333,843

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

38,094

 

39,666

Operating lease right-of-use assets

 

23,818

 

22,178

Intangible assets, net

 

29,782

 

6,321

Goodwill

 

315,358

 

267,514

Other long-term assets

 

18,091

 

10,545

 

 

$

726,494

 

$

680,067

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

34,597

 

$

27,530

Accrued expenses

 

26,444

 

21,411

Accrued payroll obligations

 

27,967

 

18,028

Current portion of long-term debt

 

17,173

 

12,762

Total current liabilities

 

106,181

 

79,731

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

140,760

 

157,934

Long-term operating lease liabilities, net of current portion

 

19,248

 

18,906

Other long-term liabilities

 

48,672

 

39,069

Total liabilities

 

314,861

 

295,640

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

411,633

 

384,427

 

 

$

726,494

 

$

680,067

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Year Ended

 

 

January 1,

 

January 2,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

95,922

 

$

47,392

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

46,475

 

40,372

Depreciation and amortization

 

24,429

 

25,140

Other non-cash adjustments

 

6,348

 

6,104

Net changes in assets and liabilities

 

(5,452

)

 

(27,321

)

Net cash provided by (used in) operating activities

 

167,722

 

91,687

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for business acquisition, net of cash acquired

 

(68,099

)

 

Capital expenditures

 

(9,835

)

 

(12,121

)

Other investing activities

 

(11,862

)

 

(8,747

)

Net cash provided by (used in) investing activities

 

(89,796

)

 

(20,868

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

50,000

Repayment of long-term debt

 

(13,125

)

 

(26,250

)

Repurchase of common stock

 

(70,124

)

 

(14,989

)

Net cash flows related to stock compensation exercises

 

(45,364

)

 

(16,862

)

Net cash provided by (used in) financing activities

 

(128,613

)

 

(8,101

)

Effect of exchange rate change on cash

 

(75

)

 

1,533

Net increase (decrease) in cash and cash equivalents

 

(50,762

)

 

64,251

Beginning cash and cash equivalents

 

182,332

 

118,081

Ending cash and cash equivalents

 

$

131,570

 

$

182,332

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Interest paid

 

$

2,313

 

$

3,700

Income taxes paid, net of refunds

 

$

3,304

 

$

1,868

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

 

 

 

Three Months Ended

 

Year Ended

 

 

January 1,

 

October 2,

 

January 2,

 

January 1,

 

January 2,

 

 

2022

 

2021

 

2021

 

2022

 

2021

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A/R Days Revenue Outstanding (DSO)

 

51

 

55

 

55

 

 

 

 

 

 

 

 

Inventory Days (DIO)

 

122

 

123

 

139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Geography)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

71

%

 

75

%

 

77

%

 

74

%

 

75

%

Americas

 

19

%

 

15

%

 

15

%

 

16

%

 

15

%

Europe (incl. Africa)

 

10

%

 

10

%

 

8

%

 

10

%

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by End Market)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications and Computing

 

43

%

 

42

%

 

43

%

 

42

%

 

43

%

Industrial and Automotive

 

42

%

 

45

%

 

43

%

 

44

%

 

41

%

Consumer

 

9

%

 

10

%

 

10

%

 

10

%

 

11

%

Licensing and Services

 

6

%

 

3

%

 

4

%

 

4

%

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Channel)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

86

%

 

90

%

 

88

%

 

87

%

 

83

%

Direct

 

14

%

 

10

%

 

12

%

 

13

%

 

17

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

Year Ended

 

 

January 1,

 

October 2,

 

January 2,

 

January 1,

 

January 2,

 

 

2022

 

2021

 

2021

 

2022

 

2021

Gross Margin Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin

 

$

91,080

 

$

82,825

 

$

64,861

 

$

321,675

 

$

245,306

Stock-based compensation - gross margin (1)

 

1,281

 

1,056

 

1,104

 

4,105

 

3,818

Non-GAAP Gross margin

 

$

92,361

 

$

83,881

 

$

65,965

 

$

325,780

 

$

249,124

Gross Margin % Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin %

 

64.2

%

 

62.8

%

 

60.5

%

 

62.4

%

 

60.1

%

Cumulative effect of non-GAAP Gross Margin adjustments

 

0.9

%

 

0.8

%

 

1.1

%

 

0.8

%

 

0.9

%

Non-GAAP Gross margin %

 

65.1

%

 

63.6

%

 

61.6

%

 

63.2

%

 

61.0

%

Research and Development Expense % (R&D Expense %) Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP R&D Expense %

 

21.3

%

 

21.8

%

 

21.1

%

 

21.4

%

 

21.9

%

Stock-based compensation - R&D (1)

 

(3.3

)%

 

(3.0

)%

 

(2.6

)%

 

(3.0

)%

 

(2.7

)%

Non-GAAP R&D Expense %

 

18.0

%

 

18.8

%

 

18.5

%

 

18.4

%

 

19.2

%

Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP SG&A Expense %

 

20.2

%

 

19.9

%

 

22.9

%

 

20.5

%

 

23.4

%

Stock-based compensation - SG&A (1)

 

(6.3

)%

 

(5.1

)%

 

(6.4

)%

 

(5.9

)%

 

(6.8

)%

Non-GAAP SG&A Expense %

 

13.9

%

 

14.8

%

 

16.5

%

 

14.6

%

 

16.6

%

Operating Expenses Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating expenses

 

$

61,244

 

$

55,810

 

$

47,529

 

$

220,859

 

$

192,940

Stock-based compensation - operations (1)

 

(13,658

)

 

(10,704

)

 

(9,692

)

 

(46,113

)

 

(38,324

)

Amortization of acquired intangible assets

 

(804

)

 

(603

)

 

(603

)

 

(2,613

)

 

(4,449

)

Restructuring and other charges (2)

 

(1,030

)

 

(701

)

 

241

 

(2,111

)

 

(3,937

)

Non-GAAP Operating expenses

 

$

45,752

 

$

43,802

 

$

37,475

 

$

170,022

 

$

146,230

Income from Operations Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income from operations

 

$

29,836

 

$

27,015

 

$

17,332

 

$

100,816

 

$

52,366

Stock-based compensation - gross margin (1)

 

1,281

 

1,056

 

1,104

 

4,105

 

3,818

Stock-based compensation - operations (1)

 

13,658

 

10,704

 

9,692

 

46,113

 

38,324

Amortization of acquired intangible assets

 

804

 

603

 

603

 

2,613

 

4,449

Restructuring and other charges (2)

 

1,030

 

701

 

(241

)

 

2,111

 

3,937

Non-GAAP Income from operations

 

$

46,609

 

$

40,079

 

$

28,490

 

$

155,758

 

$

102,894

Income from Operations % Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income from operations %

 

21.0

%

 

20.5

%

 

16.2

%

 

19.6

%

 

12.8

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

 

11.9

%

 

9.9

%

 

10.4

%

 

10.6

%

 

12.4

%

Non-GAAP Income from operations %

 

32.9

%

 

30.4

%

 

26.6

%

 

30.2

%

 

25.2

%

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Other charges includes Acquisition related charges in 2021 YTD of $1.2 million.

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

Year Ended

 

 

January 1,

 

October 2,

 

January 2,

 

January 1,

 

January 2,

 

 

2022

 

2021

 

2021

 

2022

 

2021

Income Tax Expense (Benefit) Reconciliation

 

 

 

 

 

 

 

 

GAAP Income tax expense (benefit)

 

$

579

 

 

$

(472

)

$

430

 

 

$

1,704

 

$

1,064

Estimated tax effect of non-GAAP adjustments (3)

 

 

(40

)

 

 

183

 

 

(393

)

 

 

 

 

 

 

Non-GAAP Income tax expense (benefit)

 

$

539

 

 

$

(289

)

$

37

 

 

$

1,704

 

 

$

1,064

 

 

Net Income Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Net income

 

$

28,532

 

 

$

26,739

 

$

15,989

 

 

$

95,922

 

 

$

47,392

 

Stock-based compensation - gross margin (1)

 

 

1,281

 

 

 

1,056

 

 

1,104

 

 

 

4,105

 

 

 

3,818

 

Stock-based compensation - operations (1)

 

 

13,658

 

 

 

10,704

 

 

9,692

 

 

 

46,113

 

 

 

38,324

 

Amortization of acquired intangible assets

 

 

804

 

 

 

603

 

 

603

 

 

 

2,613

 

 

 

4,449

 

Restructuring and other charges (2)

 

 

1,030

 

 

 

701

 

 

(241

)

 

 

2,111

 

 

 

3,937

 

Estimated tax effect of non-GAAP adjustments (3)

 

 

40

 

 

 

(183

)

 

393

 

 

 

 

 

 

 

Non-GAAP Net income

 

$

45,345

 

 

$

39,620

 

$

27,540

 

 

$

150,864

 

 

$

97,920

 

 

Net Income Per Share Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Net income per share - basic

 

$

0.21

 

 

$

0.20

 

$

0.12

 

 

$

0.70

 

 

$

0.35

 

Cumulative effect of Non-GAAP adjustments

 

 

0.12

 

 

 

0.09

 

 

0.08

 

 

 

0.40

 

 

 

0.37

 

Non-GAAP Net income per share - basic

 

$

0.33

 

 

$

0.29

 

$

0.20

 

 

$

1.10

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share - diluted

 

$

0.20

 

 

$

0.19

 

$

0.11

 

 

$

0.67

 

 

$

0.34

 

Cumulative effect of Non-GAAP adjustments

 

 

0.12

 

 

 

0.09

 

 

0.08

 

 

 

0.39

 

 

 

0.35

 

Non-GAAP Net income per share - diluted

 

$

0.32

 

 

$

0.28

 

$

0.19

 

 

$

1.06

 

 

$

0.69

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

Basic

 

 

137,048

 

 

 

136,638

 

 

136,104

 

 

 

136,619

 

 

 

135,220

 

Diluted

 

 

141,587

 

 

 

141,632

 

 

141,713

 

 

 

142,143

 

 

 

141,276

 

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

 

Other charges includes Acquisition related charges in 2021 YTD of $1.2 million.

(3)

 

We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as the “Estimated tax effect of non-GAAP adjustments.”

 

Contacts

MEDIA:
Sophia Hong
Lattice Semiconductor Corporation
503-268-8786
Sophia.Hong@latticesemi.com

INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com

Contacts

MEDIA:
Sophia Hong
Lattice Semiconductor Corporation
503-268-8786
Sophia.Hong@latticesemi.com

INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com