Lattice Semiconductor Earnings Call Transcripts
Fiscal Year 2026
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Server and AI demand are driving strong FPGA attach rates and ASP growth, with integrated AMI solutions opening new high-value opportunities. Supply chain visibility and capacity have improved, supporting a business that has doubled year-over-year and is poised for continued expansion.
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Record Q2 revenue and EPS growth were driven by robust AI and industrial demand, with strong operating leverage and cash flow. The AMI acquisition expands the addressable market and is expected to be EPS accretive, supporting a multi-year growth outlook.
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Management outlined a strategic shift to small and mid-range FPGAs, rapid data center growth, and normalization in industrial and embedded segments. The AMI acquisition adds foundational firmware capabilities, with integration expected by July and strong financial outlooks. Open source and supply chain resilience are emphasized.
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Q1 2026 saw 42% revenue growth and 80%+ EPS growth, driven by strong AI and server demand. The AMI acquisition is expected to double the addressable market and be immediately accretive to margins and EPS. Guidance for Q2 implies continued robust growth.
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Directors and executive officers convened virtually, with all proposals—including director elections, auditor ratification, and executive compensation—receiving majority approval. Final voting results will be filed with the SEC.
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Management highlighted a successful transition to a solutions provider, strong growth in AI and industrial markets, and robust partnerships with major tech firms. Revenue is outpacing hyperscaler CapEx, with new products and applications driving future expansion. Inventory and supply chain rigor, along with disciplined pricing and M&A, support sustained profitability.
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Strong growth is driven by rapid expansion in data center and communications, with small and mid-range FPGAs at the core. Inventory normalization in industrial/auto is expected by end of 2025, setting up robust growth for 2026–2027. AI and new product revenue are accelerating.
Fiscal Year 2025
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Delivered strong Q4 and full year 2025 results with robust growth in data center and physical AI, record design wins, and expanding margins. 2026 guidance points to at least 20% revenue growth, with continued investment in R&D and shareholder returns.
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Q3 revenue rose 7.6% sequentially to $133.3M, with record growth in communications and computing. Q4 guidance implies 22% year-over-year growth, led by accelerating AI and data center demand, while industrial and auto segments are set to recover as inventory normalizes.
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Q2 2025 saw 3% sequential revenue growth to $124M, with strong gross margin and record design wins. Communications and compute led growth, while industrial and auto are set to rebound as inventory normalizes. Q3 guidance projects further revenue and margin expansion.
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The company is focused on leading the small and mid-range FPGA market, with new product lines Nexus and Avant expected to drive significant growth through 2026. Strategic investments in software, solutions, and supply chain diversification support resilience, while strong gross margins and disciplined execution underpin long-term value creation.
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Q1 2025 results were in line with guidance, with revenue up 2% sequentially and strong gross margins despite a 15% YoY decline. Design win momentum and new product growth remain robust, while channel inventory is declining but will take a few more quarters to normalize. Cautious outlook for the second half due to tariff uncertainties.
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Management highlighted strong growth in core markets, a robust product roadmap, and expanding AI and security applications. Recent cost actions and leadership changes aim to drive efficiency, while new products like Nexus and Avant are fueling double-digit revenue growth.
Fiscal Year 2024
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Q4 2024 revenue met guidance at $117.4M, with full-year revenue down 31% due to inventory normalization and macro softness. New products drove double-digit growth, and the company expects low single-digit revenue growth in 2025, with a long-term target of 15%-20% growth by 2026.
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Q3 2024 revenue was $127.1M, up 2% sequentially but down 34% year-over-year, with gross margin stable at 69%. A 14% OpEx reduction was implemented, and Q4 revenue is guided at $112M–$122M. Long-term growth targets remain at 15%-20% for 2026.
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New product ramps and robust design momentum are driving year-over-year revenue growth, with mid-range FPGAs expected to contribute significantly in coming years. Inventory normalization is progressing, and higher attach rates in servers and AI are supporting strong margins, with a long-term target in the low 70s%.
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Q2 2024 saw revenue decline 12% sequentially and 35% year-over-year due to ongoing inventory normalization, but gross margin remained strong at 69%. New product ramps and robust design activity support a positive long-term outlook, with Q3 revenue guidance of $117–$137 million.