Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Lattice Semiconductor shares fall on weak Q4 guidance

EditorSenad Karaahmetovic
Published 04/11/2024, 22:06
© Reuters.

SAN JOSE - Lattice (OTC:LTTC) Semiconductor Corporation (NASDAQ:LSCC) reported third-quarter earnings that met analyst expectations, but shares tumbled 5.5% in after-hours trading due to disappointing fourth-quarter guidance.

The low power programmable leader announced Q3 adjusted earnings per share of $0.24, in line with analyst estimates. Revenue for the quarter came in at $127.1 million, slightly above the consensus estimate of $127.06 million and down 20.6% YoY.

However, Lattice's outlook for the fourth quarter fell short of expectations. The company forecasts Q4 revenue between $112 million and $122 million, below the analyst consensus of $132.1 million. Adjusted EPS is expected to be between $0.15 and $0.23, compared to the $0.25 analysts were expecting.

CEO Ford (NYSE:F) Tamer commented on the results, stating, "Third quarter 2024 results were inline with the Company's prior expectations, which reflects the disciplined execution of our strategy and a continued focus on operational efficiency."

The company also announced a one-time GAAP-only charge of $6.5 million related to cost-cutting measures, including a 14% workforce reduction and a 14% reduction in non-headcount operating expenses. These actions are expected to drive annual earnings expansion in the low double-digit range in 2025.

Lattice maintained a solid gross margin of 69.0% on both a GAAP and non-GAAP basis in Q3. The company's free cash flow margin more than doubled sequentially to 31%.

Despite the near-term headwinds, Tamer expressed optimism about Lattice's long-term prospects, saying, "While we expect continued near-term industry headwinds, I am excited about the opportunity to build on Lattice's strong foundation."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.