Lattice Semiconductor (LSCC) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $117.4M, in line with guidance, and full-year revenue was $509.4M, both reflecting inventory normalization and macroeconomic softness, with a 31% year-over-year decline from $737.2M in 2023.

• Achieved record design wins and double-digit revenue growth from new products (Nexus and Avant) in 2024, despite overall revenue decline.

• Strengthened executive team with new CFO, Chief People Officer, and SVP of Worldwide Sales.

• Opened a new R&D center in Pune, India, and held successful global sales and developer conferences.

• Won 5th consecutive GSA Most Respected Semiconductor Company Award and over 20 product and corporate awards in 2024.

Financial highlights

• Q4 2024 revenue down 8% sequentially and 31% year-over-year; full-year revenue down 31% from 2023.

• Q4 non-GAAP gross margin was 62.1%, including a $7M one-time charge; excluding the charge, margin would have been 68.1%.

• Q4 non-GAAP operating margin was 17.1% (26.4% excluding the charge); adjusted EBITDA margin was 24.9% (33.2% excluding the charge).

• Q4 non-GAAP EPS was $0.15 ($0.20 excluding the charge); full-year non-GAAP EPS was $0.90 ($0.95 excluding the charge), a 55% year-over-year decrease.

• Q4 cash flow from operations was $45.4M; free cash flow margin increased to 34%.

Outlook and guidance

• Q1 2025 revenue expected between $115M and $125M.

• Q1 non-GAAP gross margin expected at 69% ±1%; operating expenses between $50M and $52M.

• Q1 non-GAAP EPS expected in the range of $0.20 to $0.24.

• Full-year 2025 revenue anticipated to grow low single digits over 2024, with long-term revenue growth target of 15%-20% in 2026 and beyond.