U.S. markets open in 3 hours 41 minutes
  • S&P Futures

    3,791.25
    -25.50 (-0.67%)
     
  • Dow Futures

    31,080.00
    -156.00 (-0.50%)
     
  • Nasdaq Futures

    12,579.75
    -102.00 (-0.80%)
     
  • Russell 2000 Futures

    2,182.20
    -23.60 (-1.07%)
     
  • Crude Oil

    60.79
    -0.49 (-0.80%)
     
  • Gold

    1,710.00
    -5.80 (-0.34%)
     
  • Silver

    25.92
    -0.47 (-1.77%)
     
  • EUR/USD

    1.2047
    -0.0020 (-0.17%)
     
  • 10-Yr Bond

    1.4700
    0.0000 (0.00%)
     
  • Vix

    27.42
    +3.32 (+13.78%)
     
  • GBP/USD

    1.3934
    -0.0018 (-0.13%)
     
  • USD/JPY

    107.3120
    +0.3100 (+0.29%)
     
  • BTC-USD

    49,308.97
    -1,983.48 (-3.87%)
     
  • CMC Crypto 200

    989.35
    +2.14 (+0.22%)
     
  • FTSE 100

    6,599.61
    -75.86 (-1.14%)
     
  • Nikkei 225

    28,930.11
    -628.99 (-2.13%)
     

Lattice Semiconductor Reports Fourth Quarter and Full Year 2020 Results

  • Oops!
    Something went wrong.
    Please try again later.
·11 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Revenue Growth of 6.9% in 4Q 2020 Compared to 4Q 2019

  • Gross Margin Expands to 60.5% / 61.6% in 4Q 2020 on a GAAP / Non-GAAP Basis, Compared to 59.2% / 59.6%, respectively, in 4Q 2019

  • Net Income Increases to $0.11 / $0.19 Per Diluted Share on a GAAP / Non-GAAP Basis for 4Q 2020, Compared to $0.10 / $0.17, respectively, for 4Q 2019

* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. Additional information relating to these measures is included below in "Non-GAAP Financial Measures." For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended January 2, 2021.

Jim Anderson, president and CEO, said, "Profitability increased significantly for the full year 2020, as we continued to execute on our strategy. We saw double-digit year-over-year revenue growth in our two largest markets, communications and computing, and industrial and automotive, which are long-term growth drivers. We executed well on our hardware and software roadmaps, with the successful launch of two new Nexus™ products and three new software products. We are pleased with the momentum we are building with our customers and look to accelerate the Company's growth moving forward."

Sherri Luther, CFO, said, "We expanded diluted earnings per share by 6.3% on a GAAP basis for the full year 2020 compared to the full year 2019, and 16.9% on a non-GAAP basis, as we continued to drive profit expansion. With approximately $92 million in cash generated from operations for the full year 2020, we further strengthened our balance sheet ending the year with a positive net cash position."

Selected Fourth Quarter and Full Year 2020 Financial Results and Comparisons (in thousands, except per share data)

GAAP Financial Results (unaudited)

Q4 2020

Q3 2020

Q4 2019

Q/Q

Y/Y

FY 2020

FY 2019

FY/FY

Revenue

$

107,173

$

103,042

$

100,237

4.0%

6.9%

$

408,120

$

404,093

1.0%

Gross Margin %

60.5

%

60.5

%

59.2

%

130 bps

60.1

%

59.0

%

110 bps

R&D Expense %

21.1

%

21.8

%

19.5

%

(70) bps

160 bps

21.9

%

19.5

%

240 bps

SG&A Expense %

22.9

%

23.1

%

20.9

%

(20) bps

200 bps

23.4

%

20.4

%

300 bps

Operating Expense

$

47,529

$

49,492

$

43,802

(4.0)%

8.5%

$

192,940

$

179,381

7.6%

Operating Income

$

17,332

$

12,814

$

15,491

35.3%

11.9%

$

52,366

$

59,041

(11.3)%

Net Income

$

15,989

$

12,607

$

13,987

26.8%

14.3%

$

47,392

$

43,493

9.0%

Net Income per Share - Basic

$

0.12

$

0.09

$

0.10

$0.03

$0.02

$

0.35

$

0.33

$0.02

Net Income per Share - Diluted

$

0.11

$

0.09

$

0.10

$0.02

$0.01

$

0.34

$

0.32

$0.02

Non-GAAP Financial Results (unaudited)

Q4 2020

Q3 2020

Q4 2019

Q/Q

Y/Y

FY 2020

FY 2019

FY/FY

Revenue

$

107,173

$

103,042

$

100,237

4.0%

6.9%

$

408,120

$

404,093

1.0%

Gross Margin %

61.6

%

61.5

%

59.6

%

10 bps

200 bps

61.0

%

59.3

%

170 bps

R&D Expense %

18.5

%

19.0

%

17.9

%

(50) bps

60 bps

19.2

%

18.1

%

110 bps

SG&A Expense %

16.5

%

16.0

%

17.4

%

50 bps

(90) bps

16.6

%

17.5

%

(90) bps

Operating Expense

$

37,475

$

36,008

$

35,343

4.1%

6.0%

$

146,230

$

144,705

1.1%

Operating Income

$

28,490

$

27,320

$

24,390

4.3%

16.8%

$

102,894

$

94,801

8.5%

Net Income

$

27,540

$

26,635

$

22,897

3.4%

20.3%

$

97,920

$

81,488

20.2%

Net Income per Share - Basic

$

0.20

$

0.20

$

0.17

$—

$0.03

$

0.72

$

0.62

$0.10

Net Income per Share - Diluted

$

0.19

$

0.19

$

0.17

$—

$0.02

$

0.69

$

0.59

$0.10

2020 Highlights:

Gross Margin and Profit Expansion: Gross margin increased 110 basis points on a GAAP basis and 170 basis points on a non-GAAP basis for the full year 2020 compared to the full year 2019. Net income on a GAAP basis increased from 10.8% to 11.6%, and increased from 20.2% to 24.0% on a non-GAAP basis.

Strengthened Balance Sheet: Lattice ended 2020 with a net cash balance for the first time in six years, while repurchasing approximately 400,000 of the company's common shares for approximately $15 million under its stock buyback program.

Launched Two New Lattice Nexus™ Devices: As promised and on schedule, the company launched the Lattice Certus™-NX, our general-purpose FPGA, and the Lattice Mach™-NX second-generation security FPGA.

Launched Three New Software Products: Expanded the company's software solutions portfolio with the introduction of the Lattice mVision™ solutions stack for low power embedded vision design, the Lattice Propel™ embedded system design environment, and the Lattice Sentry™ solution stack for Platform Firmware Resilience (PFR).

Recognized with 2020 Global Semiconductor Alliance Award: Lattice received the 2020 Global Semiconductor Alliance (GSA) Most Respected Public Semiconductor Company Award among peer companies with annual revenue of $100 million to $500 million.

Business Outlook - First Quarter of 2021:

Revenue for the first quarter of 2021 is expected to be between $106 million and $114 million.

Gross margin percentage for the first quarter of 2021 is expected to be 61.5% plus or minus 1% on a non-GAAP basis.

Total operating expenses for the first quarter of 2021 are expected to be between $38 million and $39 million on a non-GAAP basis.

Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the first quarter of 2021, certain items that affect GAAP measurement of financial measures are out of the Company’s control and/or cannot be reasonably predicted. Consequently, the Company is unable to provide a reasonable estimate of GAAP measurement for guidance or a corresponding reconciliation to GAAP for the quarter. Additional information regarding the reasons the Company uses non-GAAP measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below, following the GAAP financial information.

Investor Conference Call / Webcast Details:

Lattice Semiconductor will review the Company's financial results for the fiscal fourth quarter and full year 2020, and business outlook on Tuesday, February 16 at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-888-684-5603 or 1-918-398-4852 with conference identification number 4589457. A live webcast of the conference call will also be available on the investor relations section of www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to: our belief that we are building momentum with our customers and that we may accelerate the Company's growth moving forward; and the statements under the heading "Business Outlook - First Quarter of 2021." Other forward-looking statements may be indicated by words such as "will," "could," "should," "would," "may," "expect," "plan," "project," "anticipate," "intend," "forecast," "future," "believe," "estimate," "predict," "propose," "potential," "continue" or the negative of these terms or other comparable terminology.

Estimates of future revenue are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing pressures, competitive actions, and international trade disputes and sanctions. In addition, the COVID-19 pandemic has negatively impacted the overall economy and, as a result of the foregoing, may negatively impact our operating results for future periods. Actual gross margin percentage and operating expenses could vary from the estimates on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. Actual results may differ materially from our expectations and are subject to risks and uncertainties that relate more broadly to our overall business, including those risks more fully described in Lattice’s filings with the SEC including its Annual Report on Form 10-K for the fiscal year ended December 28, 2019, and Lattice’s quarterly reports filed on Form 10-Q. COVID-19 may increase or change the severity of our other risks reported in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019. Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. You should not unduly rely on forward-looking statements because actual results could differ materially from those expressed in any forward-looking statements. In addition, any forward-looking statement applies only as of the date on which it is made. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures:

Included within this press release and the accompanying tables and notes are certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with U.S. GAAP. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation and related tax effects, restructuring plans and related charges, amortization and impairment of acquired intangible assets, inventory adjustments related to restructured operations, loss on refinancing of long-term debt, and the estimated tax effect of these items. The non-GAAP net income for the third and fourth quarters of fiscal 2020 includes a change in the non-GAAP tax rate calculation to exclude profits from jurisdictions where there is a full valuation allowance on deferred tax assets to improve alignment of non-GAAP income tax expense to non-GAAP income before tax. These charges and adjustments are a result of periodic or non-core operating activities of the Company. The Company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.

The Company's management believes that these non-GAAP financial measures provide an additional and useful way of viewing aspects of our performance that, when viewed in conjunction with our GAAP results, provide a more comprehensive understanding of the various factors and trends affecting our ongoing financial performance and operating results than GAAP measures alone. Management also uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting, and resource allocation processes and believes that investors should have access to similar data.

These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP and should be considered together with the consolidated financial information located in the tables attached to this press release.

About Lattice Semiconductor Corporation:

Lattice Semiconductor (NASDAQ: LSCC) is the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support lets our customers quickly and easily unleash their innovation to create a smart, secure and connected world.

For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, Twitter, Facebook, YouTube, WeChat, Weibo or Youku.

Lattice Semiconductor Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

Year Ended

January 2,

September 26,

December 28,

January 2,

December 28,

2021

2020

2019

2021

2019

Revenue

$

107,173

$

103,042

$

100,237

$

408,120

$

404,093

Cost of sales

42,312

40,736

40,944

162,814

165,671

Gross margin

64,861

62,306

59,293

245,306

238,422

Operating expenses:

Research and development

22,633

22,439

19,543

89,223

78,617

Selling, general, and administrative

24,534

23,758

20,924

95,331

82,542

Amortization of acquired intangible assets

603

603

3,390

4,449

13,558

Restructuring

(241

)

2,692

(55

)

3,937

4,664

Total operating expenses

47,529

49,492

43,802

192,940

179,381

Income from operations

17,332

12,814

15,491

52,366

59,041

Interest expense

(788

)

(792

)

(1,184

)

(3,702

)

(11,731

)

Other expense, net

(125

)

(70

)

(228

)

(208

)

(2,245

)

Income before income taxes

16,419

11,952

...

14,079

48,456

45,065

Income tax expense (benefit)

430

(655

)

92

1,064

1,572

Net income

$

15,989

$

12,607

$

13,987

$

47,392

$

43,493

Net income per share:

Basic

$

0.12

$

0.09

$

0.10

$

0.35

$

0.33

Diluted

$

0.11

$

0.09

$

0.10

$

0.34

$

0.32

Shares used in per share calculations:

Basic

136,104

135,598

133,691

135,220

132,471

Diluted

141,713

141,524

138,196

141,276

137,274

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

January 2,

December 28,

2021

2019

Assets

Current assets:

Cash and cash equivalents

$

182,332

$

118,081

Accounts receivable, net

64,581

64,917

Inventories, net

64,599

54,980

Other current assets

22,331

24,452

Total current assets

333,843

262,430

Property and equipment, net

39,666

39,230

Operating lease right-of-use assets

22,178

23,591

Intangible assets, net

6,321

6,977

Goodwill

267,514

267,514

Deferred income taxes

577

478

Other long-term assets

9,968

11,796

$

680,067

$

612,016

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

27,530

$

44,350

Accrued expenses

21,411

20,591

Accrued payroll obligations

18,028

13,404

Current portion of long-term debt

12,762

21,474

Total current liabilities

79,731

99,819

Long-term debt, net of current portion

157,934

125,072

Long-term operating lease liabilities, net of current portion

18,906

21,438

Other long-term liabilities

39,069

38,028

Total liabilities

295,640

284,357

Stockholders' equity

384,427

327,659

$

680,067

$

612,016

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Year Ended

January 2,

December 28,

2021

2019

Cash flows from operating activities:

Net income

$

47,392

$

43,493

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

25,140

33,056

Stock-based compensation expense

40,372

18,899

Other non-cash adjustments

6,104

10,294

Net changes in assets and liabilities

(27,321

)

18,395

Net cash provided by operating activities

91,687

124,137

Cash flows from investing activities:

Capital expenditures

(12,121

)

(15,590

)

Other investing activities

(8,747

)

54

Net cash used in investing activities

(20,868

)

(15,536

)

Cash flows from financing activities:

Proceeds from long-term debt

50,000

206,500

Cash paid for debt issuance costs

(2,086

)

Repayment of long-term debt

(26,250

)

(321,408

)

Purchase of treasury stock

(14,989

)

Net cash flows related to stock compensation exercises

(16,862

)

7,082

Net cash used in financing activities

(8,101

)

(109,912

)

Effect of exchange rate change on cash

1,533

341

Net increase (decrease) in cash and cash equivalents

64,251

(970

)

Beginning cash and cash equivalents

118,081

119,051

Ending cash and cash equivalents

$

182,332

$

118,081

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

Interest paid

$

3,700

$

10,995

Income taxes paid, net of refunds

$

1,868

$

3,393

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

Three Months Ended

Year Ended

January 2,

September 26,

December 28,

January 2,

December 28,

2021

2020

2019

2021

2019

Balance Sheet Information

A/R Days Revenue Outstanding (DSO)

55

65

59

Inventory Days (DIO)

139

133

123

Revenue% (by Geography)

Asia

77

%

77

%

73

%

75

%

74

%

Americas

15

%

15

%

11

%

15

%

14

%

Europe (incl. Africa)

8

%

8

%

16

%

10

%

12

%

Revenue% (by End Market)

Communications and Computing

43

%

43

%

38

%

43

%

39

%

Industrial and Automotive

43

%

41

%

39

%

41

%

37

%

Consumer

10

%

10

%

18

%

11

%

19

%

Licensing and Services

4

%

6

%

5

%

5

%

5

%

Revenue% (by Channel)

Distribution

88

%

82

%

84

%

83

%

82

%

Direct

12

%

18

%

16

%

17

%

18

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended

Year Ended

January 2,

September 26,

December 28,

January 2,

December 28,

2021

2020

2019

2021

2019

Gross Margin Reconciliation

GAAP Gross margin

$

64,861

$

62,306

$

59,293

$

245,306

$

238,422

Stock-based compensation - gross margin (1)

1,104

1,022

440

3,818

1,422

Inventory adjustment related to restructured operations

(338

)

Non-GAAP Gross margin

$

65,965

$

63,328

$

59,733

$

249,124

$

239,506

Gross Margin % Reconciliation

GAAP Gross margin %

60.5

%

60.5

%

59.2

%

60.1

%

59.0

%

Cumulative effect of non-GAAP Gross Margin adjustments

1.1

%

1.0

%

0.4

%

0.9

%

0.3

%

Non-GAAP Gross margin %

61.6

%

61.5

%

59.6

%

61.0

%

59.3

%

Research and Development Expense % (R&D Expense %) Reconciliation

GAAP R&D Expense %

21.1

%

21.8

%

19.5

%

21.9

%

19.5

%

Stock-based compensation - R&D (1)

(2.6

)%

(2.8

)%

(1.6

)%

(2.7

)%

(1.4

)%

Non-GAAP R&D Expense %

18.5

%

19.0

%

17.9

%

19.2

%

18.1

%

Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation

GAAP SG&A Expense %

22.9

%

23.1

%

20.9

%

23.4

%

20.4

%

Stock-based compensation - SG&A (1)

(6.4

)%

(7.1

)%

(3.5

)%

(6.8

)%

(2.9

)%

Non-GAAP SG&A Expense %

16.5

%

16.0

%

17.4

%

16.6

%

17.5

%

Operating Expenses Reconciliation

GAAP Operating expenses

$

47,529

$

49,492

$

43,802

$

192,940

$

179,381

Stock-based compensation - operations (1)

(9,692

)

(10,189

)

(5,124

)

(38,324

)

(17,477

)

Amortization of acquired intangible assets

(603

)

(603

)

(3,390

)

(4,449

)

(13,558

)

Restructuring charges

241

(2,692

)

55

(3,937

)

(4,664

)

Impairment of acquired intangible assets

1,023

Non-GAAP Operating expenses

$

37,475

$

36,008

$

35,343

$

146,230

$

144,705

(1)

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended

Year Ended

January 2,

September 26,

December 28,

January 2,

December 28,

2021

2020

2019

2021

2019

Income from Operations Reconciliation

GAAP Income from operations

$

17,332

$

12,814

$

15,491

$

52,366

$

59,041

Stock-based compensation - gross margin (1)

1,104

1,022

440

3,818

1,422

Inventory adjustment related to restructured operations

(338

)

Stock-based compensation - operations (1)

9,692

10,189

5,124

38,324

17,477

Amortization of acquired intangible assets

603

603

3,390

4,449

13,558

Restructuring charges

(241

)

2,692

(55

)

3,937

4,664

Impairment of acquired intangible assets

(1,023

)

Non-GAAP Income from operations

$

28,490

$

27,320

$

24,390

$

102,894

$

94,801

Income from Operations % Reconciliation

GAAP Income from operations %

16.2

%

12.4

%

15.5

%

12.8

%

14.6

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

10.4

%

14.1

%

8.8

%

12.4

%

8.9

%

Non-GAAP Income from operations %

26.6

%

26.5

%

24.3

%

25.2

%

23.5

%

Other Expense Reconciliation

GAAP Other expense

$

(125

)

$

(70

)

$

(228

)

$

(208

)

$

(2,245

)

Loss on refinancing of long-term debt

2,235

Non-GAAP Other expense

$

(125

)

$

(70

)

$

(228

)

$

(208

)

$

(10

)

Income Tax Expense (Benefit) Reconciliation

GAAP Income tax expense (benefit)

$

430

$

(655

)

$

92

$

1,064

$

1,572

Estimated tax effect of non-GAAP adjustments (2)

(393

)

478

(11

)

Non-GAAP Income tax expense (benefit)

$

37

$

(177

)

$

81

$

1,064

$

1,572

(1)

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as the "Estimated tax effect of non-GAAP adjustments."

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended

Year Ended

January 2,

September 26,

December 28,

January 2,

December 28,

2021

2020

2019

2021

2019

Net Income Reconciliation

GAAP Net income

$

15,989

$

12,607

$

13,987

$

47,392

$

43,493

Stock-based compensation - gross margin (1)

1,104

1,022

440

3,818

1,422

Inventory adjustment related to restructured operations

(338

)

Stock-based compensation - operations (1)

9,692

10,189

5,124

38,324

17,477

Amortization of acquired intangible assets

603

603

3,390

4,449

13,558

Restructuring charges

(241

)

2,692

(55

)

3,937

4,664

Impairment of acquired intangible assets

(1,023

)

Loss on refinancing of long-term debt

2,235

Estimated tax effect of non-GAAP adjustments (2)

393

(478

)

11

Non-GAAP Net income

$

27,540

$

26,635

$

22,897

$

97,920

$

81,488

Net Income Per Share Reconciliation

GAAP Net income per share - basic

$

0.12

$

0.09

$

0.10

$

0.35

$

0.33

Cumulative effect of Non-GAAP adjustments

0.08

0.11

0.07

0.37

0.29

Non-GAAP Net income per share - basic

$

0.20

$

0.20

$

0.17

$

0.72

$

0.62

GAAP Net income per share - diluted

$

0.11

$

0.09

$

0.10

$

0.34

$

0.32

Cumulative effect of Non-GAAP adjustments

0.08

0.10

0.07

0.35

0.27

Non-GAAP Net income per share - diluted

$

0.19

$

0.19

$

0.17

$

0.69

$

0.59

Shares used in per share calculations:

Basic

136,104

135,598

133,691

135,220

132,471

Diluted

141,713

141,524

138,196

141,276

137,274

(1)

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(2)

We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as the "Estimated tax effect of non-GAAP adjustments."

View source version on businesswire.com: https://www.businesswire.com/news/home/20210216006137/en/

Contacts

MEDIA:
Bob Nelson
Lattice Semiconductor Corporation
408-826-6339
Bob.Nelson@latticesemi.com

INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com