Lattice Semiconductor (LSCC) Q4 2023 earnings summary

Executive summary

• FY23 record revenue of $737.2M, up 12% YoY, with expanding margins and continued profit growth.

• Q4 revenue fell 3% YoY and 11% sequentially as cyclical headwinds softened near-term demand.

• Portfolio expansion and customer momentum supported long-term positioning despite near-term industry pressure.

Financial highlights

• FY23 revenue was $737.2M vs. $660.4M in FY22; Q4 revenue was $170.6M vs. $176.0M a year earlier.

• FY GAAP net income was $259.1M with diluted EPS of $1.85; non-GAAP net income was $280.7M with diluted EPS of $2.01.

• Q4 GAAP diluted EPS was $0.71, including a $0.41 tax benefit; non-GAAP diluted EPS was $0.45.

• FY GAAP operating income was $212.3M vs. $187.4M; non-GAAP operating income was $225.7M vs. $201.0M in FY22.

Outlook and guidance

• Q1 2024 revenue guidance: $130M–$150M; non-GAAP gross margin 69% ±1%; non-GAAP operating expenses $54M–$56M.

• Product roadmap included Avant #4, Avant #5, Avant #6, and Nexus #8 in development.

• Forward results exposed to changes in demand, pricing, product mix, manufacturing costs and yields, and stock-based compensation charges.