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Lattice Semiconductor Corporation (LSCC - Free Report) delivered fourth-quarter 2023 non-GAAP earnings of 45 cents per share, in line with the Zacks Consensus Estimate. The bottom line declined 8.2% on a year-over-year basis.
Revenues of $170.6 million missed the Zacks Consensus Estimate of $176.3 million. The top line decreased 3% year over year.
Weakness in the communications and computing end-market led to a year-over-year decline in the top line. The sluggish consumer market was another concern.
Nevertheless, strong momentum across the industrial and automotive end market was a positive.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Communications and Computing: Revenues generated from the market fell 19.8% year over year to $58.7 million (34% of the total revenues).
Industrial and Automotive: Revenues from the market grew 11.4% year over year to $99.8 million (59% of the total revenues) in the reported quarter.
Consumer: Revenues from the market were $12.1 million (7% of the total revenues), down 8.4% from the year-ago quarter.
By Geography & Channel:
Asia, Americas and Europe contributed 60%, 22% and 18% to the total revenues in the reported quarter, respectively.
Revenues from distribution accounted for 82%, whereas direct revenues accounted for 18% of the total revenues.
Operating Results
In the fourth quarter, the GAAP gross margin was 69.7%, which expanded 30 basis points (bps) year over year.
Non-GAAP operating expenses were $55.5 million, up 5.8% year over year. As a percentage of revenues, the figure expanded 270 bps year over year to 32.5% in the reported quarter.
Non-GAAP Research & development, and selling, general & administrative expenses expanded 190 bps and 70 bps year over year, respectively.
The non-GAAP operating margin was 37.8%, contracting 240 bps from the prior-year quarter.
Balance Sheet
As of Dec 30, 2023, cash and cash equivalents were $128.3 million, up from $114.4 million as of Sep 30, 2023.
Accounts receivable was $104.4 million at the end of the fourth quarter, down from $105.9 million at the third-quarter end.
Guidance
For first-quarter 2024, Lattice Semiconductor expects revenues between $130 million and $150 million. The Zacks Consensus Estimate for the same is pegged at $175.13 million.
The company anticipates a non-GAAP gross margin of 69% (+/-1%). Also, operating expenses are expected to be $54-$56 million on a non-GAAP basis.
Zacks Rank & Stocks to Consider
Currently, Lattice Semiconductor has a Zacks Rank #4 (Sell).
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Lattice Semiconductor (LSCC) Q4 Earnings Meet, Revenues Dip Y/Y
Lattice Semiconductor Corporation (LSCC - Free Report) delivered fourth-quarter 2023 non-GAAP earnings of 45 cents per share, in line with the Zacks Consensus Estimate. The bottom line declined 8.2% on a year-over-year basis.
Revenues of $170.6 million missed the Zacks Consensus Estimate of $176.3 million. The top line decreased 3% year over year.
Weakness in the communications and computing end-market led to a year-over-year decline in the top line. The sluggish consumer market was another concern.
Nevertheless, strong momentum across the industrial and automotive end market was a positive.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Lattice Semiconductor Corporation price-consensus-eps-surprise-chart | Lattice Semiconductor Corporation Quote
Revenue Details
By End Market:
Communications and Computing: Revenues generated from the market fell 19.8% year over year to $58.7 million (34% of the total revenues).
Industrial and Automotive: Revenues from the market grew 11.4% year over year to $99.8 million (59% of the total revenues) in the reported quarter.
Consumer: Revenues from the market were $12.1 million (7% of the total revenues), down 8.4% from the year-ago quarter.
By Geography & Channel:
Asia, Americas and Europe contributed 60%, 22% and 18% to the total revenues in the reported quarter, respectively.
Revenues from distribution accounted for 82%, whereas direct revenues accounted for 18% of the total revenues.
Operating Results
In the fourth quarter, the GAAP gross margin was 69.7%, which expanded 30 basis points (bps) year over year.
Non-GAAP operating expenses were $55.5 million, up 5.8% year over year. As a percentage of revenues, the figure expanded 270 bps year over year to 32.5% in the reported quarter.
Non-GAAP Research & development, and selling, general & administrative expenses expanded 190 bps and 70 bps year over year, respectively.
The non-GAAP operating margin was 37.8%, contracting 240 bps from the prior-year quarter.
Balance Sheet
As of Dec 30, 2023, cash and cash equivalents were $128.3 million, up from $114.4 million as of Sep 30, 2023.
Accounts receivable was $104.4 million at the end of the fourth quarter, down from $105.9 million at the third-quarter end.
Guidance
For first-quarter 2024, Lattice Semiconductor expects revenues between $130 million and $150 million. The Zacks Consensus Estimate for the same is pegged at $175.13 million.
The company anticipates a non-GAAP gross margin of 69% (+/-1%). Also, operating expenses are expected to be $54-$56 million on a non-GAAP basis.
Zacks Rank & Stocks to Consider
Currently, Lattice Semiconductor has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) and Badger Meter (BMI - Free Report) . BlackLine sports a Zacks Rank #1 (Strong Buy) while Arista Networks and Badger Meter carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine shares have lost 3.5% in the year-to-date period. The long-term earnings growth rate for BL is projected at 50.56%.
Arista Networks shares have gained 13.7% in the year-to-date period. The long-term earnings growth rate for ANET is projected at 20.15%.
Badger Meter shares have lost 7.3% in the year-to-date period. The long-term earnings growth rate for BMI is projected at 12.27%.