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Lattice Semiconductor Reports First Quarter ResultsHILLSBORO, Ore. - July 19, 1999 -Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for its first fiscal quarter ended July 3, 1999. Consolidated financial results reflect the previously announced acquisition of Vantis Corporation, accounted for under the purchase method, effective as of June 16, 1999. Beginning this period, Lattice will report, on a supplemental basis, earnings before goodwill ("EBG") to allow investors to analyze the Company's cash earnings. Revenue for the quarter was $59.7 million, including $3.1 million in post-acquisition Vantis revenue, an increase of 24 percent from the $48.0 million reported in the same quarter a year ago and up 11 percent from last quarter's revenue of $53.8 million. Earnings before goodwill ("EBG") for the quarter was $12.8 million ($0.53 per share), an increase of 30 percent from the $9.8 million ($0.41 per share) reported in the same quarter last year and up eight percent from last quarter's earnings of $11.8 million ($0.49 per share). "We are extremely pleased that we were able to announce and close the Vantis acquisition within a single quarter," stated Cyrus Y. Tsui, president and chief executive officer. "Integration activities are well under way and to date have been concentrated on unifying our customer interface. The cornerstone of this effort, the integration and reorganization of our direct sales force and the realignment of our North American sales representative network is already complete. Customer response to our acquisition continues to be strongly positive." "Moving forward, integration efforts will focus on our operations and on our product portfolio and development roadmap," Tsui stated. "The objective of the former is profit improvement, with a goal of returning to our historic operating margin level. The objective of the latter is to leverage the strength and breadth of our combined 3.3-volt PLD product portfolio, with a goal of achieving leadership in the market segments in which we compete." "Currently, with over twenty 3.3-volt products in our combined MACH and ispLSI BFW product families, we have an undisputed product leadership position," Tsui continued. "We remain pleased with strong ongoing customer design activity and look for these products to drive our future revenue growth." "Looking forward to our first full quarter of combined operations, accounting conventions associated with the purchase method will impair comparability of our financial results. Additionally, our continued dependence on "turns" bookings and the traditional seasonal slowness of the summer quarter combine to add uncertainty to our short-term outlook. Nonetheless, the strong momentum of our new 3.3-volt products and steady progress in our integration efforts allow us to be optimistic about realizing the long-term potential of the Vantis acquisition," Tsui concluded. The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws including statements about future quarterly financial results, revenues, customers, product offerings and our ability to compete. Investors are cautioned that actual events and results could differ materially from these statements as a result of a number of factors, including overall semiconductor market conditions, market acceptance and demand for our new products, our dependencies on our foundry suppliers, the impact of competitive products and pricing, technological and product development risks, potential SEC review of our accounting treatment of the Vantis acquisition as well as our ability to successfully integrate Vantis into our operations, retain key employees of Vantis, retain key customers and suppliers and successfully increase our combined revenue and profitability. Oregon-based Lattice Semiconductor Corporation designs, develops and markets the broadest range of high-performance ISPTM programmable logic devices (PLDs). Lattice introduced ISP devices to the industry in 1992. Lattice acquired Vantis, the Corporation that invented the PLD, in June 1999. With greater engineering and sales resources, the combined Company will focus on developing and delivering innovative programmable products to a complementary customer base. Lattice/Vantis products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in the communication, computing, industrial and military end markets. Company headquarters are located at 5555 N.E. Moore Court, Hillsboro, Oregon 97124 U.S.A.; Telephone (503) 268-8000; FAX (503) 268-8037. For more information access our web sites at: www.latticesemi.com and www.vantis.com. # # # MACH and ispLSI are registered trademarks of Lattice Semiconductor Corporation. ISP and in-system programmable are trademarks of Lattice Semiconductor Corporation. For more information contact: Rodney Sloss |