- Record Full Year 2023 Revenue of $737 Million, up 12% Year Over Year
HILLSBORO, Ore. — (BUSINESS WIRE) — February 12, 2024 — Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended December 30, 2023.
Revenue for the fourth quarter of 2023 was $170.6 million, with GAAP gross margin of 69.7% and GAAP net income of $0.71 per diluted share, including a GAAP-only income tax benefit of $0.41 per diluted share associated with a valuation release. On a non-GAAP basis, gross margin was 70.4% with net income per diluted share of $0.45.
Revenue for the full year 2023 was $737.2 million, with GAAP gross margin of 69.8% and GAAP net income of $1.85 per diluted share, including a GAAP-only income tax benefit of $0.41 per diluted share associated with a valuation release. On a non-GAAP basis, gross margin was 70.4% with net income per diluted share of $2.01.
Jim Anderson, president and CEO, said, "We achieved double-digit annual revenue growth in 2023, with record gross margin and continued profit expansion. Despite near-term cyclical industry headwinds, we continue to be well positioned for the long-term with a rapidly expanding product portfolio and strong customer momentum."
Sherri Luther, CFO, said, "We achieved operating margin of 28.8% on a GAAP basis and a record 39.8% on a non-GAAP basis for the full year 2023, with gross margin expanding to 69.8% on a GAAP basis and 70.4% on a non-GAAP basis. We generated a record level of cash flow from operations in 2023, representing a 13% increase compared to the prior year, and exited the year with zero outstanding debt. In addition, in the fourth quarter, we repurchased approximately 900,000 shares, representing our thirteenth consecutive quarter of share repurchases."
Selected Fourth Quarter and Full Year 2023 Financial Results and Comparisons (in thousands, except per share data)
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|
GAAP Financial Results (unaudited) |
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|
Q4 2023 |
|
Q3 2023 |
|
Q4 2022 |
|
Q/Q |
|
Y/Y |
|
FY 2023 |
|
FY 2022 |
|
FY/FY |
Revenue |
|
$ 170,596 |
|
$ 192,169 |
|
$ 175,960 |
|
(11.2)% |
|
(3.0)% |
|
$ 737,154 |
|
$ 660,356 |
|
11.6% |
Gross Margin % |
|
69.7% |
|
70.0% |
|
69.4% |
|
(30) bps |
|
30 bps |
|
69.8% |
|
68.5% |
|
130 bps |
R&D Expense % |
|
23.3% |
|
21.9% |
|
19.8% |
|
140 bps |
|
350 bps |
|
21.7% |
|
20.6% |
|
110 bps |
| SG&A Expense % |
|
20.3% |
|
17.3% |
|
18.4% |
|
300 bps |
|
190 bps |
|
18.6% |
|
18.5% |
|
10 bps |
| Operating Expenses |
|
$ 75,798 |
|
$ 77,644 |
|
$ 68,050 |
|
(2.4)% |
|
11.4% |
|
$ 302,400 |
|
$ 264,683 |
|
14.2% |
| Income from Operations |
|
$ 43,149 |
|
$ 56,917 |
|
$ 54,016 |
|
(24.2)% |
|
(20.1)% |
|
$ 212,270 |
|
$ 187,367 |
|
13.3% |
| Net Income |
|
$ 98,706 |
|
$ 53,788 |
|
$ 51,913 |
|
83.5% |
|
90.1% |
|
$ 259,061 |
|
$ 178,882 |
|
44.8% |
| Net Income per Share - Basic |
|
$ 0.72 |
|
$ 0.39 |
|
$ 0.38 |
|
$ 0.33 |
|
$ 0.34 |
|
$ 1.88 |
|
$ 1.30 |
|
$ 0.58 |
| Net Income per Share - Diluted |
|
$ 0.71 |
|
$ 0.38 |
|
$ 0.37 |
|
$ 0.33 |
|
$ 0.34 |
|
$ 1.85 |
|
$ 1.27 |
|
$ 0.58 |
| Fourth quarter of 2023 GAAP net income includes an income tax benefit of $0.41 per diluted share associated with a valuation allowance release. Full year 2023 GAAP net income includes an income tax benefit of $0.41 per diluted share associated with a valuation allowance release. |
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|
|
Non-GAAP* Financial Results (unaudited) |
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|
|
|
Q4 2023 |
|
Q3 2023 |
|
Q4 2022 |
|
Q/Q |
|
Y/Y |
|
FY 2023 |
|
FY 2022 |
|
FY/FY |
| Revenue |
|
$ 170,596 |
|
$ 192,169 |
|
$ 175,960 |
|
(11.2)% |
|
(3.0)% |
|
$ 737,154 |
|
$ 660,356 |
|
11.6% |
| Gross Margin % |
|
70.4% |
|
70.6% |
|
70.0% |
|
(20) bps |
|
40 bps |
|
70.4% |
|
69.1% |
|
130 bps |
| R&D Expense % |
|
18.7% |
|
18.2% |
|
16.8% |
|
50 bps |
|
190 bps |
|
17.8% |
|
17.4% |
|
40 bps |
| SG&A Expense % |
|
13.8% |
|
12.1% |
|
13.1% |
|
170 bps |
|
70 bps |
|
12.8% |
|
13.0% |
|
(20) bps |
| Operating Expenses |
|
$ 55,495 |
|
$ 58,206 |
|
$ 52,469 |
|
(4.7)% |
|
5.8% |
|
$ 225,702 |
|
$ 200,997 |
|
12.3% |
| Income from Operations |
|
$ 64,563 |
|
$ 77,408 |
|
$ 70,653 |
|
(16.6)% |
|
(8.6)% |
|
$ 293,580 |
|
$ 255,363 |
|
15.0% |
| Net Income |
|
$ 62,801 |
|
$ 73,578 |
|
$ 68,367 |
|
(14.6)% |
|
(8.1)% |
|
$ 280,660 |
|
$ 246,679 |
|
13.8% |
| Net Income per Share - Basic |
|
$ 0.46 |
|
$ 0.53 |
|
$ 0.50 |
|
$ (0.07) |
|
$ (0.04) |
|
$ 2.04 |
|
$ 1.80 |
|
$ 0.24 |
| Net Income per Share - Diluted |
|
$ 0.45 |
|
$ 0.53 |
|
$ 0.49 |
|
$ (0.08) |
|
$ (0.04) |
|
$ 2.01 |
|
$ 1.75 |
|
$ 0.26 |
| 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." |
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