Lattice Semiconductor (LSCC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $124.1 million, down 12% sequentially and 35% year-over-year, reflecting industry headwinds, inventory normalization, and broad-based demand softness in key end markets.

• Gross margin remained strong at 69% non-GAAP and 68.3% GAAP, stable sequentially but down year-over-year due to product mix.

• EPS for Q2 2024 was $0.23 non-GAAP and $0.16 GAAP, both down sequentially and year-over-year.

• The company is expanding its product portfolio with new FPGA launches, security solutions, and record design activity.

• Fifteenth consecutive quarter of share repurchases, with $30 million repurchased in the first half of 2024.

Financial highlights

• Q2 2024 revenue was $124.1 million, down 12% sequentially and 35% year-over-year.

• Q2 2024 GAAP net income was $22.6 million, down 55% year-over-year; non-GAAP net income was $31.4 million, down 56.7%.

• Q2 2024 non-GAAP gross margin was 69%, and GAAP gross margin was 68.3%.

• Operating cash flow for the first half of 2024 was $51.4 million, down from $115.5 million in the prior year period.

• Cash and cash equivalents at quarter-end were $109.2 million, down from $128.3 million at year-end 2023.

Outlook and guidance

• Q3 2024 revenue expected between $117 million and $137 million.

• Q3 non-GAAP gross margin projected at 69% ±1%.

• Q3 non-GAAP operating expenses expected between $53 million and $55 million.

• Inventory normalization and industry softness expected to persist through 2024, but at a lesser extent in the second half.

• AI-related revenue is anticipated to increase over the next few years, supported by a growing pipeline of design wins.