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Lattice Semiconductor Reports Record Results
HILLSBORO, OR - January 20, 2000 - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced record financial results for the quarter ended December 31, 1999. Consolidated financial results reflect the acquisition of Vantis Corporation, accounted for under the purchase method, as of June 16, 1999. The Company also announced that, effective beginning with the March 2000 quarter it has changed its fiscal year to conform to the calendar year. Revenue for the quarter was a record $115.0 million, an increase of 129 percent from the $50.2 million reported in the same quarter a year ago and up 21 percent from last quarter's revenue of $95.0 million. Earnings before goodwill ("EBG") for the quarter was a record $21.6 million ($0.42 per share), an increase of 105 percent from the $10.5 million ($0.22 per share) reported in the same quarter last year and up 87 percent from last quarter's EBG of $11.6 million ($0.23 per share). "We are extremely pleased with these quarterly results," stated Cyrus Y. Tsui, president and chief executive officer. "Revenue grew strongly in all geographies, led by Asia as that region continued its economic recovery. Last quarter also marked the successful return to our historic business model of a 60 percent gross margin and a 27 percent operating margin. The reestablishment of this profit level just six months after our acquisition is a tremendous achievement and demonstrates that we have successfully integrated Vantis substantially ahead of schedule." "Turning to our product development activities, last quarter marked the completion of the roll-out of our Operation BFW CPLD product families," continued Tsui. "Additionally, as we are now shipping our integrated software design tool, ispDesignEXPERTTM, our customer base can easily access the full breadth of our combined leadership product portfolio. Customer reception for our new products is positive and we remain pleased with design activity with our 3.3-volt ispLSI BFW and MACH 4A product families. The recent introduction of our highly innovative ispPAC, the "PLD of analog chips," brings the power of programmable technology to the analog market for the first time and opens new avenues for Lattice. Going forward, we will leverage our greatly expanded research & development resources to continue to bring our customers new and innovative programmable products and technologies." "The acquisition of Vantis was a major strategic move for Lattice. In six short months, we have successfully doubled the size of our company, integrated Vantis and Lattice and achieved the benefits. Looking forward, strong momentum in our business and a successful conclusion to our integration activities allow us to enter the coming year with an optimistic outlook," 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 silicon wafer 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 double the engineering and sales resources, the combined Company will focus on developing and delivering innovative programmable products to a complementary customer base. Lattice 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 site at: www.latticesemi.com. # # # Vantis, MACH, ispLSI and ispPAC are registered trademarks of Lattice Semiconductor Corporation. For more information contact: Roddy Sloss |