SAN JOSE – Lattice (OTC:) Semiconductor Corporation (NASDAQ:LSCC) reported third-quarter earnings that met analyst expectations, but shares fell 5.5% in after-hours trading due to disappointing forecasts for the fourth quarter.
The low-power programmable leader announced third-quarter adjusted earnings per share of $0.24, in line with analyst estimates. Revenue for the quarter came in at $127.1 million, slightly above the consensus estimate of $127.06 million and down 20.6% year-over-year.
However, Lattice's outlook for the fourth quarter fell short of expectations. The company forecast fourth-quarter revenue between $112 million and $122 million, missing analyst consensus of $132.1 million. Adjusted EPS is expected to be between $0.15 and $0.23, compared to the $0.25 analysts were expecting.
Commenting on the results, Ford (NYSE Tamer) CEO stated: “Third-quarter 2024 results were in line with the company's previous expectations, reflecting the disciplined execution of our strategy and a continued focus on operational efficiency”.
The company also announced a one-time GAAP charge of $6.5 million related to cost reduction measures, including a 14% reduction in workforce and a 14% reduction in non-headcount operating expenses. These stocks are expected to drive annual earnings expansion in the low double-digit range in 2025.
Lattice maintained a strong gross margin of 69.0% on both a GAAP and GAAP basis in the third quarter. The company's free cash flow margin more than doubled sequentially to 31%.
Despite the near-term headwinds, Tamer expressed optimism about Lattice's long-term prospects, saying: “While we expect near-term headwinds in the industry to continue, I am excited about the opportunity to take advantage of the strong Lattice base”.
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