Lattice expands stock buyback program by $100 million

Published 09/12/2024, 13:14
Lattice expands stock buyback program by $100 million

HILLSBORO, Ore. - Lattice (OTC:LTTC) Semiconductor Corporation (NASDAQ:LSCC), known for its low power programmable solutions, has announced the authorization of an additional $100 million for its common stock repurchase program, extending through December 2025. Since the fourth quarter of 2020, the company has bought back approximately 6 million shares, resulting in a 4.3% reduction in dilution. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 3.98, indicating ample liquidity to support this initiative.

Interim Chief Financial Officer Tonya Stevens stated, "Our 2025 share repurchase program reflects our confidence in Lattice's financial performance and continued strong cash flow." She emphasized the company's commitment to shareholder returns while investing in strategic growth initiatives to enhance long-term shareholder value. InvestingPro analysis reveals that while the company trades at a relatively high P/E ratio of 55.29, it maintains strong cash flows sufficient to cover interest payments. Subscribers can access 14 additional ProTips and comprehensive financial metrics through InvestingPro's detailed research reports.

The repurchase program is in effect immediately, allowing Lattice to acquire shares via open market or privately negotiated transactions at management's discretion. The program's execution will be subject to market conditions, stock price, and other considerations, and will adhere to Rule 10b-18 of the Securities Exchange Act of 1934. While the company has the option to suspend or discontinue the program, no advance notice is required.

This announcement contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual outcomes to differ from those projected. These statements are not guarantees of future performance and are predicated on current expectations and assumptions.

Lattice Semiconductor operates within the communications, computing, industrial, automotive, and consumer markets, providing technology solutions from the network edge to the cloud. The company's focus on innovation aims to deliver smart, secure, and connected technologies.

The expansion of the stock repurchase program is based on a press release statement from Lattice Semiconductor Corporation.

In other recent news, Lattice Semiconductor has been the subject of significant developments. Following third-quarter results that met expectations, the company's fourth-quarter guidance was set lower due to ongoing challenges in the industrial sector. KeyBanc Capital Markets, TD Cowen, CFRA, Needham, and Baird have all adjusted their price targets for Lattice Semiconductor, reflecting the company's current market conditions and future growth projections.

In response to these challenges, Lattice Semiconductor has initiated a significant reduction in workforce and operating expenses, aiming to streamline operations. The company's management anticipates the industrial correction and inventory reduction to continue through the first half of 2025, followed by a U-shaped recovery.

Lattice Semiconductor's third-quarter earnings per share (EPS) was $0.24 with revenue of $127.1 million, marking a 34% decrease from the previous year due to inventory normalization. The company's guidance for the forthcoming quarters suggests further declines, attributed mainly to a 51% decrease in the industrial and automotive sectors.

Despite the near-term headwinds and the consequent adjustments to estimates and price targets, several analyst firms including KeyBanc, TD Cowen, CFRA, Needham, and Baird expressed a long-term positive outlook for Lattice Semiconductor. They highlighted the potential for revenue and earnings per share growth driven by market share gains and total addressable market expansion, particularly through the company's Avant product line. These are among the recent developments for the company.

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