SAN JOSE – Lattice (OTC:) Semiconductor Corporation (NASDAQ:LSCC) reported third-quarter earnings that met analyst expectations, but shares tumbled 5.5% in after-hours trading due to disappointing fourth-quarter guidance.
The low power programmable leader announced Q3 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% YoY.
However, Lattice’s outlook for the fourth quarter fell short of expectations. The company forecasts Q4 revenue between $112 million and $122 million, below the 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.
CEO Ford (NYSE:) Tamer commented on the results, stating, “Third quarter 2024 results were inline with the Company’s prior expectations, which reflects the disciplined execution of our strategy and a continued focus on operational efficiency.”
The company also announced a one-time GAAP-only charge of $6.5 million related to cost-cutting measures, including a 14% workforce reduction and a 14% reduction in non-headcount operating expenses. These actions are expected to drive annual earnings expansion in the low double-digit range in 2025.
Lattice maintained a solid gross margin of 69.0% on both a GAAP and non-GAAP basis in Q3. 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 continued near-term industry headwinds, I am excited about the opportunity to build on Lattice’s strong foundation.”
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