In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements in this press release include global economic uncertainty, overall semiconductor market conditions, market acceptance and demand for our new products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, the failure to achieve the anticipated benefits and synergies of the Silicon Image transaction. In addition, actual results are subject to other 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 January 2, 2016, and Lattice’s quarterly reports filed on Form 10-Q.

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 non-GAAP financial measures that supplement the Company's consolidated financial information prepared under GAAP. 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 measures provide a more meaningful representation of the Company’s ongoing financial performance than GAAP measures alone. In addition, the Company uses Adjusted EBITDA to measure compliance with certain of its debt covenants. 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:

Lattice Semiconductor (NASDAQ: LSCC) provides smart connectivity solutions powered by our low power FPGA, video ASSP, 60 GHz millimeter wave, and IP products to the consumer, communications, industrial, computing, and automotive markets worldwide. Our unwavering commitment to our customers enables them to accelerate their innovation, creating an ever better and more connected world.

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

# # #

Lattice Semiconductor Corporation, Lattice (& design), L (& design), iCE40 and MachXO3L, 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.

GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.

Lattice Semiconductor Corporation Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
		Three Months Ended
		April 2, 2016				January 2, 2016				April 4, 2015
Revenue		$	96,512			$	101,194			$	88,597
Costs and expenses:
Cost of sales		39,408				47,092				40,765
Research and development		32,608				32,055				27,642
Selling, general and administrative		23,608				24,253				21,088
Amortization of acquired intangible assets		8,721				8,756				2,942
Restructuring charges		5,431				3,459				4,894
Acquisition related charges		94				372				18,198
Impairment of goodwill and intangible assets		—				21,655				—
		109,870				137,642				115,529
Loss from operations		(13,358		)		(36,448		)		(26,932		)
Interest expense		(4,960		)		(5,519		)		(1,611		)
Other income (expense), net		817				515				(139		)
Loss before income taxes and equity in net loss of an unconsolidated affiliate		(17,501		)		(41,452		)		(28,682		)
Income tax expense		1,900				3,510				24,665
Equity in net loss of an unconsolidated affiliate, net of tax		(310		)		(492		)		—
Net loss		$	(19,711	)		$	(45,454	)		$	(53,347	)
Net loss per share:
Basic		$	(0.17	)		$	(0.38	)		$	(0.46	)
Diluted		$	(0.17	)		$	(0.38	)		$	(0.46	)
Shares used in per share calculations:
Basic		118,833				118,095				116,863
Diluted		118,833				118,095				116,863

Lattice Semiconductor Corporation Consolidated Balance Sheets (in thousands) (unaudited)
		April 2, 2016				January 2, 2016
Assets
Current assets:
Cash, cash equivalents and short-term marketable securities		$	116,474			$	102,574
Accounts receivable, net		84,399				88,471
Inventories		82,598				75,896
Other current assets		17,030				18,922
Total current assets		300,501				285,863
Property and equipment, net		53,318				51,852
Intangible assets, net of amortization		153,675				162,583
Goodwill		269,766				267,549
Deferred income taxes		578				578
Other long-term assets		15,791				17,495
		$	793,629			$	785,920
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities		$	96,835			$	83,761
Current portion of long-term debt		2,308				7,557
Deferred income and allowances on sales to sell-through distributors and deferred licensing and services revenue		26,607				19,859
Total current liabilities		125,750				111,177
Long-term debt		335,485				330,870
Other long-term liabilities		41,226				38,353
Total liabilities		502,461				480,400
Stockholders' equity		291,168				305,520
		$	793,629			$	785,920

Lattice Semiconductor Corporation - Supplemental Historical Financial Information - (unaudited)
		Three Months Ended
		April 2, 2016			January 2, 2016			April 4, 2015
Operations Information
Percent of Revenue
Gross Margin		59.2	%		53.5	%		54.0	%
R&D Expense		33.8	%		31.7	%		31.2	%
SG&A Expense		24.5	%		24.0	%		23.8	%
Depreciation and amortization (in thousands)		17,331			17,892			7,904
Capital expenditures (in thousands)		5,700			6,624			2,878
Stock-based compensation (in thousands)		4,556			4,788			3,384
Stock-based compensation included in acquisition related charges (in thousands)		—			—			3,891
Restructuring and severance related charges (in thousands)		5,431			3,459			4,894
Severance costs included in acquisition related charges (in thousands)		—			—			4,017
Taxes paid (cash, in thousands)		2,496			2,936			1,063
Balance Sheet Information
Current Ratio		2.4			2.6			2.9
A/R Days Revenue Outstanding		80			80			82
Inventory Months		6.3			4.8			5.9
Revenue% (by Geography)
Asia		68	%		75	%		70	%
Europe (incl. Africa)		17	%		12	%		19	%
Americas		15	%		13	%		11	%
Revenue% (by End Market) (1)
Communications and Computing		34	%		35	%		45	%
Mobile and Consumer		26	%		30	%		22	%
Industrial and Automotive		31	%		23	%		30	%
Licensing and Services		9	%		12	%		3	%
Revenue% (by Channel)
Sell-through distribution		53	%		44	%		48	%
Direct		47	%		56	%		52	%

(1) During the first quarter of fiscal 2016, the Company realigned its End Market categories; prior periods have been reclassified to match current period presentation.