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Lattice Semiconductor Reports First Quarter ResultsHILLSBORO, OR. - April 19, 2001 - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the first quarter of 2001. Revenue for the quarter was $111.1 million, a decrease of 12 percent from the $126.1 million reported in the same quarter a year ago and down 26 percent from last quarter's revenue of $150.8 million. Earnings before goodwill ("EBG") for the quarter were $27.3 million ($0.24 per diluted share), a decrease of three percent from the $28.0 million ($0.26 per diluted share), excluding a one-time gain on foundry investments, reported in the same quarter last year and down 33 percent from last quarter's EBG of $40.4 million ($0.34 per diluted share). During the first quarter, Lattice added $14.0 million of cash to its balance sheet after routine capital expenditures of $3.9 million. Including March stock transactions that settled in April, Lattice repurchased 336,000 shares of common stock during the quarter for $6.2 million. Inventory, as of March 2001, increased to $70.2 million and represents 5 months of cost of goods sold. Total inventory, including inventory held at distributors, represents 7 months. "The March quarter was a sobering one for Lattice and the semiconductor industry", stated Cyrus Y. Tsui, president and chief executive officer. "Due to a rapid and steep decline in customer orders, we experienced the largest sequential quarterly revenue decline in our history. Revenue declined across all geographies and the communications end market was particularly weak." "On a more positive note, we are gratified by the high level of profitability we delivered in this challenging business environment", Tsui continued. "Due to rapid implementation of discretionary spending controls, March quarter operating profit, on a before goodwill basis, exceeded 30 percent of revenue. In conjunction with these cost controls, we are continuing to invest in new product development activities which we believe will pay off when the semiconductor cycle turns positive." "Looking forward, the semiconductor market and the general economy remain weak. We enter the June quarter with a depleted backlog and do not anticipate a significant rebound in business. Consequentially we anticipate another double digit sequential revenue decline. Although our short-term outlook is highly uncertain, we are prepared to manage through a challenging business environment in 2001", Tsui concluded. On April 20, 2001, Lattice will hold a telephone conference at 5:30 am (Pacific Daylight Time) with financial analysts and publish a "Business Outlook Statement" covering the June 2001 quarter. Both the conference call and our business outlook statement will be available on our website, http://www.latticesemi.com/investors through April 27, 2001. On June 7, 2001, we also plan to publish a "Business Update Statement" on our website for five calendar days. Our financial guidance will be limited to the comments on our public quarterly earnings call and these public business outlook statements. Additionally, during the June 2001 quarter, Lattice plans to participate in investor conferences sponsored by Merrill Lynch; ABN AMRO; Prudential Securities; and Bear Stearns. Specific presentation dates and times are posted at our investor relations section. 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. Oregon-based Lattice Semiconductor Corporation designs, develops and markets the broadest range of high-performance ISP" programmable logic devices (PLDs) and offers total solutions for today's advanced logic designs. 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 USA; Telephone (503) 268-8000; FAX (503) 268-8037. For more information access our web site at: www.latticesemi.com. # # # Lattice Semiconductor, L (& design), Lattice (& design), in-system programmable, ISP and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.
For more information contact: Roddy Sloss |