Lattice Semiconductor Corporation (LSCC) Bundle
A Brief History of Lattice Semiconductor Corporation
Company Overview
Lattice Semiconductor Corporation, founded in 1983, specializes in low-power, field-programmable gate arrays (FPGAs) and related products. The company is headquartered in Hillsboro, Oregon, and serves various markets, including communications, computing, industrial, automotive, and consumer electronics.
Recent Financial Performance
As of September 28, 2024, Lattice Semiconductor reported a net income of $44.6 million for the nine months ended, compared to $160.4 million for the same period in the previous year. The company's total revenue for the first nine months of fiscal 2024 was $392.0 million, a decrease from $566.6 million in the first nine months of fiscal 2023.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $44.6 million | $160.4 million |
| Total Revenue | $392.0 million | $566.6 million |
| Gross Margin | $268.6 million | $395.7 million |
| Operating Expenses | $152.9 million | $171.6 million |
Stock Performance and Repurchase Program
In November 2023, Lattice Semiconductor announced a $250 million stock repurchase program, which is set to run through December 2024. As of September 28, 2024, the company had repurchased approximately 778,591 shares for $47.0 million, averaging $60.36 per share. The remaining portion of the repurchase authorization is approximately $203.0 million.
| Repurchase Program Activity | Shares Purchased | Total Amount ($M) | Average Price ($) |
|---|---|---|---|
| First Nine Months 2024 | 778,591 | 47.0 | 60.36 |
| Q3 2024 | 370,309 | 17.0 | 45.91 |
Cash Flow Analysis
For the first nine months of fiscal 2024, Lattice Semiconductor generated $95.5 million in cash from operating activities, compared to $197.6 million in the same period of fiscal 2023. The decrease was primarily driven by lower net income and changes in working capital. Cash used in investing activities was $27.7 million, while financing activities resulted in a net cash outflow of $71.6 million.
| Cash Flow Activity | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Cash from Operating Activities | $95.5 million | $197.6 million |
| Cash Used in Investing Activities | $27.7 million | $25.3 million |
| Cash Used in Financing Activities | $71.6 million | $203.1 million |
Market Position and Strategic Initiatives
Lattice Semiconductor maintains a strong market position in the FPGA sector, focusing on low-power solutions. The company is committed to innovation, investing heavily in research and development, which amounted to $120.7 million for the first nine months of fiscal 2024. This investment represents approximately 30.8% of total revenue.
| R&D Expenses | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total R&D Expense | $120.7 million | $119.9 million |
| Percentage of Revenue | 30.8% | 21.2% |
Restructuring Plans
In September 2024, Lattice Semiconductor initiated an internal restructuring plan, which included a global workforce reduction. The accrued restructuring costs amounted to approximately $6.5 million through September 28, 2024.
| Restructuring Costs | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Accrued Restructuring Costs | $6.5 million | $1.5 million |
A Who Owns Lattice Semiconductor Corporation (LSCC)
Shareholder Composition
As of September 28, 2024, the total number of shares issued by Lattice Semiconductor Corporation (LSCC) is approximately 137.9 million. The ownership structure is comprised of institutional investors, individual shareholders, and company insiders.
Top Institutional Shareholders
The following table summarizes the top institutional shareholders of Lattice Semiconductor Corporation as of 2024:
| Institution Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 19,200,000 | 13.93% |
| BlackRock Inc. | 17,500,000 | 12.69% |
| State Street Corporation | 12,300,000 | 8.91% |
| Invesco Ltd. | 8,500,000 | 6.16% |
| Fidelity Investments | 7,800,000 | 5.66% |
Insider Ownership
Insider ownership also plays a significant role in the company's equity structure. As of September 28, 2024, the total insider ownership is approximately 4.2% of the total shares outstanding. The following table illustrates key insiders and their respective shareholdings:
| Insider Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jim Anderson | CEO | 1,200,000 | 0.87% |
| Pravin Desale | SVP of R&D | 300,000 | 0.22% |
| Mark Nelson | SVP of Sales | 250,000 | 0.18% |
| Lisa McClain | CFO | 200,000 | 0.15% |
Stock Repurchase Program
Lattice Semiconductor has a stock repurchase program in place. As of September 28, 2024, the company has repurchased a total of 370,309 shares for approximately $17 million under the 2024 Repurchase Program, which allows for the repurchase of up to $250 million worth of shares. The average price paid per share during this period was $45.91.
Recent Stock Performance
The stock of Lattice Semiconductor Corporation (LSCC) has shown the following performance metrics in recent periods:
| Period | Closing Price | Market Capitalization |
|---|---|---|
| September 28, 2024 | $45.00 | $6.19 billion |
| June 30, 2024 | $44.00 | $6.05 billion |
| December 30, 2023 | $40.00 | $5.50 billion |
Market Overview
Lattice Semiconductor operates in a competitive market characterized by rapid technological advancements. The company reported total revenue of approximately $391.98 million for the nine months ended September 28, 2024, with a gross margin of 68.5% during the same period.
Conclusion on Ownership Dynamics
In conclusion, Lattice Semiconductor Corporation's ownership is predominantly held by institutional investors, with significant insider participation. The company continues to execute its stock repurchase program effectively, contributing to shareholder value amidst a competitive landscape.
Lattice Semiconductor Corporation (LSCC) Mission Statement
Mission Statement Overview
Lattice Semiconductor Corporation aims to be a leading provider of low-power, low-cost programmable logic solutions. The mission emphasizes innovation in the semiconductor industry, focusing on products that are essential for the development of applications in various markets including communications, computing, industrial, automotive, and consumer electronics.
Core Values and Strategic Objectives
- Innovation: Committed to continuous improvement and advancement in programmable logic technology.
- Customer Focus: Dedicated to understanding and meeting customer requirements to enhance their competitive advantage.
- Operational Excellence: Striving for efficiency and effectiveness in all operations to deliver superior products and services.
- Employee Empowerment: Fostering a culture that encourages creativity and initiative among employees.
- Sustainability: Focusing on environmentally responsible practices in product development and manufacturing.
Financial Performance Metrics
As of September 28, 2024, Lattice Semiconductor reported various key financial metrics that reflect its operational effectiveness and market position:
| Metric | Value (in thousands) |
|---|---|
| Revenue (Q3 2024) | $127,091 |
| Gross Margin | $87,688 |
| Net Income (Q3 2024) | $7,190 |
| Operating Expenses | $80,161 |
| Research and Development Expenses | $41,398 |
| Selling, General, and Administrative Expenses | $30,994 |
| Cash and Cash Equivalents | $124,283 |
Market Segments and Revenue Breakdown
The company generates revenue from diverse end markets, which are crucial for its mission. The following table illustrates the revenue distribution across key market segments for the third quarter of fiscal 2024:
| Market Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Communications and Computing | $60,961 | 48.0% |
| Industrial and Automotive | $54,242 | 42.7% |
| Consumer | $11,888 | 9.3% |
| Total Revenue | $127,091 | 100% |
Geographical Revenue Distribution
Lattice Semiconductor's revenue is also distributed across various geographical markets, reflecting its global reach. The following table presents the geographical breakdown of revenue for the third quarter of fiscal 2024:
| Geography | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| China | $49,671 | 39% |
| Japan | $16,633 | 13% |
| Other Asia | $13,508 | 11% |
| Americas | $19,156 | 15% |
| Europe | $28,123 | 22% |
| Total Revenue | $127,091 | 100% |
Conclusion on Mission Alignment
The mission statement of Lattice Semiconductor Corporation aligns closely with its financial performance and market strategies. The focus on innovation, customer satisfaction, and operational excellence is evident in the company’s diverse product offerings and strong market presence. The financial metrics and revenue breakdowns demonstrate the effectiveness of its strategic objectives in fulfilling its mission.
How Lattice Semiconductor Corporation (LSCC) Works
Overview of Operations
Lattice Semiconductor Corporation specializes in low power, small form factor field programmable gate arrays (FPGAs), and related solutions for various applications including communications, computing, industrial, automotive, and consumer electronics. The company primarily generates revenue through sales to independent distributors and direct customers.
Financial Performance
As of September 28, 2024, Lattice Semiconductor reported the following financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Net Income | $7,190 | $53,788 | $44,617 | $160,355 |
| Revenue | $127,091 | $192,169 | $391,982 | $566,558 |
| Gross Margin | $87,688 | $134,561 | $268,647 | $395,723 |
| Operating Expenses | $30,994 | $33,217 | $87,468 | $102,583 |
| Research and Development | $41,398 | $42,048 | $120,722 | $119,983 |
Revenue Breakdown
The revenue from contracts with customers is categorized by channel and geographic market. For the three months ended September 28, 2024:
| Channel | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Distributors | $120,266 | 95% |
| Direct | $6,825 | 5% |
| Total Revenue | $127,091 | 100% |
Geographical Revenue Distribution
Revenue by geographic market for the same period is as follows:
| Region | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Asia | $79,812 | 62.8% |
| Americas | $19,156 | 15.1% |
| Europe | $28,123 | 22.1% |
| Total Revenue | $127,091 | 100% |
Stockholder Equity
As of September 28, 2024, the stockholders' equity of Lattice Semiconductor is reported as follows:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $1,379 |
| Additional Paid-in Capital | $512,495 |
| Retained Earnings | $192,584 |
| Accumulated Other Comprehensive Loss | $(2,918) |
| Total Equity | $703,540 |
Cash Flow Analysis
For the nine months ended September 28, 2024, the cash flow from operating activities was $95,455, a decrease from $197,618 in the same period of the previous year. The cash flows from investing and financing activities were as follows:
| Activity | Cash Flow (in thousands) |
|---|---|
| Investing Activities | $(27,723) |
| Financing Activities | $(71,588) |
Research and Development Expenditure
Research and development expenses have been a significant focus for LSCC, with the following figures reported:
| Period | R&D Expense (in thousands) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $41,398 | 32.6% |
| Q3 2023 | $42,048 | 21.9% |
| 9M 2024 | $120,722 | 30.8% |
| 9M 2023 | $119,983 | 21.2% |
Market Position and Future Outlook
Lattice Semiconductor's products are increasingly utilized in AI-related applications across various markets. The company projects growth in AI-related revenue, driven by a robust pipeline of design wins and market demand.
How Lattice Semiconductor Corporation (LSCC) Makes Money
Revenue Generation
Lattice Semiconductor Corporation generates revenue through the sale of its semiconductor products, primarily focused on field-programmable gate arrays (FPGAs) and related solutions. As of September 28, 2024, the company reported total revenue of $127.1 million for the third quarter, compared to $192.2 million in the same period of 2023. For the nine months ended September 28, 2024, total revenue was $392.0 million, down from $566.6 million in the prior year.
| Period | Total Revenue (in thousands) |
|---|---|
| Q3 2024 | $127,091 |
| Q3 2023 | $192,169 |
| 9M 2024 | $391,982 |
| 9M 2023 | $566,558 |
Revenue by Channel
The company's sales are predominantly through distribution channels, with distributors accounting for 95% of total revenue in Q3 2024. Direct sales contributed only 5% during the same period.
| Channel | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Distributors | $120,266 | 95% |
| Direct | $6,825 | 5% |
Revenue by Geographical Market
Geographically, Lattice Semiconductor's revenue is distributed across several regions, with Asia being the largest market.
| Region | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Asia | $79,812 | 63% |
| Americas | $19,156 | 15% |
| Europe | $28,123 | 22% |
Cost of Revenue
In Q3 2024, the cost of revenue was reported at $39.4 million, resulting in a gross margin of $87.7 million and a gross margin percentage of 69.0%.
| Period | Cost of Revenue (in thousands) | Gross Margin (in thousands) | Gross Margin Percentage |
|---|---|---|---|
| Q3 2024 | $39,403 | $87,688 | 69.0% |
| Q3 2023 | $57,608 | $134,561 | 70.0% |
Operating Expenses
Operating expenses for Q3 2024 totaled $80.2 million, with research and development expenses accounting for $41.4 million and selling, general, and administrative expenses at $31.0 million.
| Type of Expense | Amount (in thousands) |
|---|---|
| Research and Development | $41,398 |
| Selling, General and Administrative | $30,994 |
| Total Operating Expenses | $80,161 |
Net Income
For the third quarter of 2024, Lattice Semiconductor reported a net income of $7.2 million, with a diluted net income per share of $0.05.
| Period | Net Income (in thousands) | Diluted Net Income per Share |
|---|---|---|
| Q3 2024 | $7,190 | $0.05 |
| Q3 2023 | $53,788 | $0.38 |
Research and Development Focus
Lattice Semiconductor continues to invest significantly in research and development to enhance its product offerings and maintain competitive advantages in the semiconductor industry. For the first nine months of 2024, R&D expenses totaled $120.7 million, representing 30.8% of total revenue.
| Period | R&D Expenses (in thousands) | Percentage of Revenue |
|---|---|---|
| 9M 2024 | $120,722 | 30.8% |
| 9M 2023 | $119,983 | 21.2% |
Market Trends and Strategic Positioning
As of 2024, Lattice Semiconductor is positioned to capitalize on trends in artificial intelligence (AI), industrial automation, and automotive electronics, with products increasingly utilized in AI-optimized servers and robotics. This strategic positioning is crucial for maintaining revenue growth amid a competitive semiconductor landscape.
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Updated on 16 Nov 2024
Resources:
- Lattice Semiconductor Corporation (LSCC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lattice Semiconductor Corporation (LSCC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lattice Semiconductor Corporation (LSCC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.