LATTICE SEMICONDUCTOR REPORTS FIRST QUARTER RESULTS; REVENUE UP 7%, NET INCOME UP 18%
HILLSBORO, Ore. - July 15, 1996 - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for its first fiscal quarter ended June 29, 1996. Consistent with the Company's earnings prerelease last month, revenue for the quarter was $48.2 million, an increase of seven percent over the $45.0 million reported in the same quarter a year ago, but down nine percent from last quarter's revenue of $53.0 million.
Net income for the quarter was $10.4 million, or $0.46 per share, an increase of 18 percent from the $8.8 million ($0.45 per share) reported in the same quarter last year, but a decrease of 14 percent from last quarter's earnings of $12.1 million ($0.54 per share).
"The sequential quarterly revenue decline was due to a shortfall in low-density GAL(R) products, which we believe was a result of price erosion and end customer inventory overstocking, primarily in the domestic OEM channel", stated Cyrus Y. Tsui, president and chief executive officer. "Quarterly revenue from commodity low-density GAL products declined over $5 million."
"On a positive note," Tsui continued, "Proprietary products established record revenue and now account for over 60 percent
of total quarterly revenue. Quarterly high-density ispLSI(R) and pLSI(R) product revenue grew over 3 percent sequentially to a record $24 million. High-density revenue now accounts for 50 percent of total revenue. We remain pleased with customer acceptance of our industry leading in-system programmable (ISP(tm)) products and ongoing design-in activity. During the quarter we again sold in excess of 1,000 seats of software design tools, the sixth consecutive quarter we have exceeded this benchmark."
"We enter the second fiscal quarter with limited visibility and a continued dependence on "turns" bookings. Current overall industry conditions and the historic seasonality of the summer quarter give us some cause for concern. Accordingly we have adopted a cautious near-term outlook," Tsui concluded.
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The positive from this report is that the company continues on their plan to generate a larger percentage of product revenues from "Proprietary products" which now account for over 60 percent
of total quarterly revenue.
Stock still consolidating from last month's profit taking and is currently trying to retest $30-$35 price level. The next two quarterly reports are critical as investors are waiting to see if last quarter's 'slow down' continues or if it was a one time event. Long term stock still attractive IMO.
EKS |
