Education
About Us
Working with TipRanks
Follow Us
Lattice Semiconductor (LSCC)
NASDAQ:LSCC
Top Page
Lattice Semiconductor
(NASDAQ:LSCC)72Outperform
Positive Factors
Management Changes
The appointment of Lorenzo Flores as the firm’s new CFO and Nicole Singer as Chief People Officer is seen as a positive development.
Market Trends
Bookings entering positive territory over the last few weeks, consumption trends improving, and inventory digestion progressing.
Product Growth
Revenue from new products grew double digits YOY in 2024 as Nexus/Avant now represent mid-teens % of revenue, up from single-digit % in 2023.
Negative Factors
Expense Impact
4Q GMs were significantly worse than expected as a result of a $7M one-time charge related to previously purchased materials.
Financial Performance
4Q24 PF EPS of $0.15 was below consensus expectations.
Gross Margin Impact
4Q24 PF gross margin was well below guidance range due to a one-time charge, impacting financial performance.
Lattice Semiconductor (LSCC) vs. S&P 500 (SPY)
Market Cap
$8.40B
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)141.7
Beta (1Y)1.51
Revenue Growth-30.90%
EPS Growth-76.39%
CountryUS
Employees1,110
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)0.44
Shares Outstanding137,830,610
10 Day Avg. Volume2,768,067
30 Day Avg. Volume2,729,314
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)16.49
Price to Cash Flow (P/CF)46.30
P/FCF Ratio45.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$69.00Price Target Upside13.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Lattice Semiconductor Business Overview & Revenue Model
Company DescriptionLattice Semiconductor Corporation is a leading provider of low power, field-programmable gate arrays (FPGAs), which are used in a variety of end markets including communications, computing, industrial, automotive, and consumer electronics. The company's core products focus on delivering power-efficient solutions that enable innovation across a range of applications, from edge computing and artificial intelligence to 5G infrastructure and industrial automation.
How the Company Makes MoneyLattice Semiconductor makes money primarily through the sale of its FPGA products and related software solutions. The company's revenue model is centered around designing and manufacturing these programmable semiconductors, which are then sold to original equipment manufacturers (OEMs) and other tech companies. Lattice also generates revenue from licensing its intellectual property and providing software development tools that help customers leverage their FPGAs for various applications. Key factors contributing to its earnings include the growing demand for low-power computing solutions, strategic partnerships with leading technology firms, and its ability to adapt to evolving market needs, particularly in the areas of 5G, AI, and IoT (Internet of Things).
Lattice Semiconductor Financial Statement Overview
Summary
Lattice Semiconductor demonstrates strong profitability with consistent gross profit margins and improving net profit margins. While revenue growth has been fluctuating, effective cost management and low financial leverage provide a solid foundation for future growth.Income Statement
Lattice Semiconductor shows strong profitability with a consistent gross profit margin and improving net profit margin over the years. Despite a recent decline in total revenue, the company has maintained solid EBIT and EBITDA margins, indicating effective cost management. However, the revenue growth rate has been fluctuating, which could be a concern for sustaining future growth.78
Positive
Balance Sheet
The company's balance sheet is robust with a healthy equity ratio, indicating strong asset financing from equity. The debt-to-equity ratio is low, suggesting low financial leverage, and the return on equity is solid, reflecting efficient use of shareholders' funds. However, fluctuations in total liabilities need monitoring.75
Positive
Cash Flow
Lattice Semiconductor excels in cash flow management with a high operating cash flow to net income ratio, suggesting strong cash generation relative to profit. The free cash flow to net income ratio is favorable, supporting future investments and debt repayment. Although there is a decline in free cash flow growth, the overall cash flow position remains strong.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 509.40M | 737.15M | 660.36M | 515.33M | 408.12M | Gross Profit |
| 340.40M | 514.67M | 452.05M | 321.68M | 245.31M | EBIT |
| 34.46M | 214.18M | 187.37M | 100.82M | 52.37M | EBITDA |
| 106.94M | 255.37M | 222.09M | 131.38M | 83.26M | Net Income Common Stockholders |
| 61.13M | 259.06M | 178.88M | 95.92M | 47.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 136.29M | 128.32M | 145.72M | 131.57M | 182.33M | Total Assets |
| 843.90M | 840.89M | 798.71M | 726.49M | 680.07M | Total Debt |
| 9.43M | 16.31M | 148.82M | 177.18M | 189.60M | Net Debt |
| -126.86M | -112.01M | 3.10M | 45.61M | 7.27M | Total Liabilities |
| 132.97M | 148.87M | 311.55M | 314.86M | 295.64M | Stockholders Equity |
| 710.93M | 692.02M | 487.16M | 411.63M | 384.43M |
| Cash Flow | Free Cash Flow | |||
| 119.89M | 236.34M | 215.47M | 157.89M | 79.57M | Operating Cash Flow |
| 140.88M | 269.59M | 238.81M | 167.72M | 91.69M | Investing Cash Flow |
| -37.69M | -33.25M | -34.93M | -89.80M | -20.87M | Financing Cash Flow |
| -94.46M | -253.72M | -188.07M | -128.61M | -8.10M |
Lattice Semiconductor Technical Analysis
Neutral
60.98
Price Trends
59.15
Positive
56.96
Positive
56.15
Positive
Market Momentum
0.92
Positive
49.18
Neutral
25.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSCC, the sentiment is Neutral. The current price of 60.98 is below the 20-day moving average (MA) of 62.22, above the 50-day MA of 59.15, and above the 200-day MA of 56.15, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LSCC.
Lattice Semiconductor Risk Analysis
Lattice Semiconductor disclosed 28 risk factors in its most recent earnings report. Lattice Semiconductor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lattice Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $163.26B | 101.35 | 2.89% | ― | 13.69% | 91.75% | |
72 Outperform | $8.40B | 141.74 | 8.71% | ― | -30.90% | -76.39% | |
71 Outperform | $178.03B | 37.64 | 28.25% | 2.72% | -10.72% | -26.60% | |
67 Neutral | $19.59B | 12.08 | 18.97% | ― | -14.19% | -27.42% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $78.00B | ― | -6.26% | 0.27% | -2.24% | -164.09% | |
48 Neutral | $90.11B | ― | -18.31% | 2.40% | -2.08% | -1212.72% |
* Technology Sector Average
Performance Comparison
LSCC
Lattice Semiconductor
60.98
-19.47
-24.20%
AMD
Advanced Micro Devices
98.85
-108.54
-52.34%
INTC
Intel
20.75
-22.79
-52.34%
MRVL
Marvell
72.28
-2.91
-3.87%
ON
ON Semiconductor
43.88
-35.07
-44.42%
TXN
Texas Instruments
189.34
21.73
12.96%
Lattice Semiconductor Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: 11.95% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
Lattice Semiconductor demonstrated resilience with strong new product growth, executive team enhancements, and signs of market recovery. However, significant revenue declines and challenges with inventory normalization and one-time charges presented substantial hurdles.Highlights
Successful Leadership and Team Expansion
Lattice Semiconductor strengthened its executive team with the appointment of Lorenzo Flores as CFO, Nicole Singer as Chief People Officer, and the promotion of Erhaan Shaikh to Senior Vice President of Worldwide Sales. This expansion is expected to contribute significantly to the company's growth.
New Product Momentum with Nexus and Avant
Revenue from new products, including Nexus and Avant, grew double digits in 2024 compared to 2023. These products are contributing more significantly to overall revenue, moving from single-digit to mid-teens percentage of total revenue.
Growth in Computing Segment
The computing subsegment showed growth in 2024, with design wins reaching record levels. This was driven by strong demand in the server market, particularly in AI and general-purpose servers.
Positive Financial Metrics
Lattice achieved a strong EBITDA margin of 31.8% for the full year 2024, and Q4 adjusted EBITDA margin was 24.9%. The company also announced a $100 million share buyback for 2025.
Encouraging Signs of Market Recovery
For the first time in six quarters, the book-to-bill ratio exceeded one, indicating a positive trend in orders exceeding shipments. This suggests a potential recovery in the market.
Lowlights
Decline in Revenue
Revenue for Q4 2024 was $117.4 million, down 8% sequentially and 31% year-over-year. Full year 2024 revenue was $509.4 million, also down 31% from 2023.
Inventory Normalization Challenges
Both communications and computing and industrial and automotive segments experienced declines, with communications and computing down 5% sequentially and industrial automotive down 9% due to inventory normalization.
One-Time Financial Charges
A $7 million one-time charge impacted the non-GAAP gross margin, resulting from materials purchased during supply constraints that are no longer expected to be used before expiration.
Workforce Reduction
Lattice implemented a 14% workforce reduction to align resources with the current business level, aiming to drive double-digit earnings expansion in 2025.
Company Guidance
During the Lattice Semiconductor Fourth Quarter Fiscal Year 2024 earnings call, the company provided guidance for the first quarter of 2025. Revenue is expected to be between $115 million and $125 million, with a non-GAAP gross margin of 69% ± 1%. Operating expenses are projected to be between $50 million and $52 million, and the non-GAAP EPS is anticipated to range from $0.20 to $0.24 per share. The company highlighted a positive book-to-bill ratio exceeding one for several weeks, indicating improved customer demand and a stronger backlog. Lattice aims to achieve low single-digit revenue growth for the full year 2025, targeting a return to a 15% to 20% long-term revenue growth rate by 2026. The company also expects channel inventory to normalize by mid-2025, aligning with its strategic goal to support long-term growth.Lattice Semiconductor Corporate Events
Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
Lattice Semiconductor Announces New Leadership Appointments
Positive
Feb 10, 2025
On February 10, 2025, Lattice Semiconductor announced key leadership changes with the appointment of Lorenzo A. Flores as Senior Vice President and Chief Financial Officer, and Tonya Stevens as Corporate Vice President and Chief Accounting Officer. The company also reported its fourth quarter and full year 2024 financial results, showing a GAAP revenue of $117.4 million for Q4 and $509.4 million for the year, with significant achievements in operational efficiency and strategic product development. Key highlights included record design wins, the expansion of the Avant and Nexus product lines, and the extension of a stock repurchase program. The company’s strategic realignment and product roadmap enhancements signal confidence in future growth and market opportunities.
Private Placements and FinancingBusiness Operations and Strategy
Lattice Semiconductor Adopts 2025 Equity Incentive Plan
Positive
Jan 10, 2025
Lattice Semiconductor’s board of directors has adopted the 2025 Inducement Equity Incentive Plan, reserving 2,000,000 shares of common stock for equity awards. This plan allows for the issuance of equity-based awards to new employees as an incentive for joining the company, aligning with Nasdaq’s rules and potentially enhancing Lattice’s attractiveness as an employer.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.