Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter 2020 Conference Call. Please be advised that today's conference is being recorded. And without further delay, I would like to hand it over to your speaker today, Rick Moshe, Director of Investor Relations.
Thank you, operator, and good afternoon, everyone. With me today Jim Anderson, Lattice's President and CEO and Sherry Luther, Lattice's CFO. We'll provide a financial and business review of the third quarter of 2020 and the business outlook for the fourth quarter of 2020. If you have not obtained a copy of our earnings press release, it can be found at our company website the Investor Relations section at latticesemi.com. I would like to remind everyone that during our conference call today, we may make projections or other forward looking statements regarding future events or the future financial performance of the company.
Wish to caution you that such statements are predictions based on information that is currently available and that actual results may differ materially We refer you to documents that the company files with the SEC, including our 10 Ks, 10 Qs, and 8 Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward looking statements. This call includes and constitutes the company's official guidance for the fourth quarter of 2020. If at any time after this call, we communicate any material changes to this guidance. We intend that such updates will be done using a public forum such as a press release or publicly announced provided on both a GAAP and a non GAAP basis.
By disclosing certain non GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. Management uses non GAAP measures to better assess operating performance to establish operational goals. For historical periods, we provided reconciliations of these non GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at lattasenlight.com. Let me now turn the call over to Jim Anderson, our CEO.
Thank you, Rick, and thank you everyone for joining us on our call today. To start off, I'd like to once again thank our customers and partners for their support. And I'd especially like to thank the Lattice team for their continued dedication and in execution. While I'm pleased with our progress, I'm even more excited about the potential of the company moving forward. Let me cover a few in our 2 main segments of communications and computing and industrial and automotive.
We also expanded non GAAP gross margin by 170 basis points year over year, Non GAAP operating margin expanded to 26.5 percent and non GAAP net income increased 16% year over year. We launched our Century Solutions stack, which is focused on providing platform security in applications such as data center servers. This solution stack was the 3rd installment in our expanding portfolio of application specific software solutions. Finally, we remain on track to launch the 3rd product based on our neXus platform later this year. Let me now provide an overview of our business by end market.
In the communications and computing market, revenue was down 4% sequentially, but up 6% on a year over year basis. After a strong Q2, we saw a modest sequential decline in communications and computing due to a decline in units shipped for servers as well as a decline in communications. Year over year growth of 6% was driven by growth in servers and client computing. We continue to see this segment as a long term growth opportunity as we expand our business in computing as well as in 5G infrastructure deployments. Turning now to the industrial and automotive market.
Revenue increased 8 and improvement in end market demand and increased use of our products used in a broad range of applications, including industrial, automation, safety, robotics and embedded vision. Turning now to the consumer market, revenue declined 8% sequentially in Q3, and 45% us. We remain focused on securing design wins in consumer applications with multiyear revenue streams and higher margins and where our solutions are enabling customer to differentiate their products. I'll now provide some highlights of our recent product roadmap execution. As we discussed at our NexSys platform launch last December, we're investing in a portfolio of higher level software that enables our customers to adopt our solutions quickly and go to market faster.
The first installment in our software portfolio was our award winning sensai software stack, which is focused on low power inference processing at the edge of the network. Earlier this year, we launched Envision, our software stack focused on embedded vision applications, which was the 2nd installment in our portfolio. We built on this strong foundation with the launch of our 3rd installment in Q3, which is our security stack called Century. The Century Stack provides customers a comprehensive software solution to implement platform firmware resiliency and application such as servers, networking, and client computing. In parallel with the Century launch, we introduced Lattice supply guard service, SupplyGuard extends the system protection provided by Century throughout the supply chain.
This is accomplished by delivering factory lock devices to enable dynamic trust for our customers and the end users of their products. When we launched our NexusFPGA platform last December, We also launched our first product based on that platform called Crosslink Nx. At that time, we committed to releasing 2 additional NexSys based products in 2020. In June, we launched Certasenex as promised, and I'm pleased to report that we remain on track to launch our 3rd NexSys based product in Q4. We continue to be pleased with and systems.
In summary, we're pleased with our strong results in Q3 and we remain focused on executing our strategy for sustained long term revenue growth in profitability. I'll now turn the call over to our CFO, Sherry Luther.
3rd quarter revenue was $103,000,000, up 2.4% sequentially from the 2nd quarter and was roughly flat year over year. The sequential increase from Q2 was driven by the Industrial And Automotive segment and licensing. While partially offset by a decline was up 30 basis points to 60.5 percent in Q3 compared to the prior quarter and was up 110 basis points compared to the year ago quarter. Our non GAAP gross margin increased 20 basis points to 61.5% in Q3 compared to the prior quarter and was up 170 basis points compared to the year ago quarter. We continue to make steady progress on gross margin expansion, as we benefit from our ongoing pricing optimization strategy, product cost reductions and some mix.
Q3 GAAP operating expenses were $49,500,000 compared to $48,100,000 in the prior quarter and $44,800,000 in the year ago quarter. On a non GAAP prior quarter and $35,900,000 in the year ago quarter. We continue to invest in our product roadmap while at the same time, we remain committed to driving SG and A spending closer to our target model. Q3 GAAP earnings per basic and diluted share was $0.09 compared to $0.08 in the prior quarter and $0.10 in the year ago quarter. Q3 non GAAP earnings per basic share was $0.20 19 per diluted share compared to $0.17 in the prior quarter, and $0.17 in the year ago quarter.
We continue to strengthen our balance sheet and remain focused on cash generation. With our year to date cash from operations at approximately $69,000,000. A key driver for the healthy cash generation in 14 days in DSO compared to the prior quarter. Our ending cash resulting in a positive net cash position. Let me now review our outlook Revenue for the fourth quarter of 2020 is expected to be between 99,000,001 107,000,000 Gross margin is expected to be 61%, plus or minus 1% on a non GAAP basis.
Total operating expenses for the fourth quarter are expected to be between $36,500,000 $37,500,000 on a non GAAP basis. While COVID 19 continues to create some near term uncertainty, over the long term, we are focused on growth and profitability expansion driven by the strength and differentiation of our product roadmap.
Your first question comes from the line of Matt Ramsay from Cowen. Your line is now open.
Yes, thank you very much. Good afternoon, everybody. I guess for both of you, Jim and Sherry, if you could talk a little bit about the breakdown by segment of revenues in the guidance and how it might relate to gross margin being down slight sequentially. And Jim, as you guys talk about that, I've had a few questions until guided their DCG business down. I think 25% in the fourth quarter.
I know you guys have pretty broad exposure to the server market through all vendors, but that was a pretty alarming number for some. So if you could address that as you talk about mix in the fourth quarter, that would be really helpful. Thank you.
On the Q4 segment outlook. So what we're expecting at this point is for our communications and computing segment to be sequentially up. We're expecting the IP revenue to be down, to go back to sort of its more normal run rate to usually ranges within 3 to 5 $1,000,000. So that's where we expect it to go down to in Q4. And then for the other segments to remain roughly flat.
Sequentially. So it's a little bit more color by segment. And then in terms of sequential gross margin guidance, yes, you'll see that our sequential gross margin is down a little bit relative to Q3. And that really reflects, IP revenue being down sequentially from Q3 to Q4, which is clearly at a high gross margin. So And then on the last part of your question with respect to Intel and Server, what I would say is, I could just speak for our business, we're, we expect communications and computing overall to be up.
We are seeing good strength in computing in Q4. So we expect that overall segment to be up for us. And maybe just as a reminder, we're used in both intel servers as well as AMD servers. So our products are used in both types of X86 platforms. And so But back to the to your question, yeah, we expect, communications and computing to go up sequentially.
Thanks, Jim. That's really helpful. Just as a follow-up, you gave a number of milestones in the new product portfolio both on the hardware side and on the software side that you the company has hit some of those ahead of schedule and other ones that you intend to hit going forward. Just sort of stepping back, Jim, if you think about the design win traction that you're seeing for the new product portfolio. If you could help sort of characterize that where it is versus where maybe you expected to be 12 months ago and what that means for pace of revenue acceleration as those design wins come into revenue over the coming quarters?
Thank you.
Yes, thanks, Matt. Yes, and so on product milestones, specifically with respect to our neXus platform, if you recall, we launched the first neXus product across LincolnX in December of last year, we launched the 2nd in June of this year called CERTIS N X. And then we're on track to launch the 3rd before the end of this year. And so, yeah, execution remains on track. Design win traction, and I would say general customer engagement on neXus, but I would say across our entire portfolio is, quite healthy.
We're very pleased with the design win progress that we're making this year. The sales team has been doing a really good job on that. I think, the last part of your question was more towards revenue and revenue growth. I think maybe a couple 2 or 3 key milestones to point out on some of those new products If you recall, last year, when we launched KrauszLink Nx, we also said that we would expect to see initial revenue from Crosslink Nx, our first NexSys based product before the end of the year. We still expect to see that.
It'll be a small amount of revenue this quarter, but we expect to see production revenue this quarter. And then it would grow, obviously, next year. Then maybe a couple other products that we launched last year that are now in production that I'd point out is the CrossLink Plus product, which we launched in Q3 of last year. We saw revenue growth in that. This year, we expect revenue growth again next year from that product.
And then also the Mach X-three d product that we launched last year. That's our FPGA with specific security technology that makes it able to provide platform root of trust in lots of different types of systems such as servers. We saw 1st production revenue in Q3 of this year. So the most recent quarter, the production revenue will grow in Q4 and we expect it to again to grow next year. So that gives you a few proof points around some of the new products and how they're starting to get revenue and beginning to ramp.
Really appreciate all the color, Jim. Congrats on the results and I'll get back in the queue. Appreciate it.
Thanks, Matt.
Your next question is from
Yes, thanks for taking my questions and congrats on being a net cash position for the first time and awfully long time. Just to kind of hit on your prior answer about the segments. I think if I keep, consumer and industrial flat sequentially and punching $4,000,000 of short licensing implies something like 20% year over year growth for comms computing. So just want to make sure I'm getting that right. And if that's indeed the case, just kind of elaborate on some of the growth drivers underlying that coming off of the sort of mid single digit growth rate, year over year for that segment in Q3?
Yes, if I can, I'll speak kind of sequentially. So constant computing relative to Q3, First of all, one headwind that we have in that segment is, Huawei. Obviously, there were new U. S. Government restrictions put in place with respect to Huawei, earlier in Q3.
And so we stop shipment to Huawei for the new regulations ahead of that mid September deadline that have been put in place by the government. And so, in Q4, we're not we're assuming no contribution from Huawei in Q4. And so that's a little bit of a headwind in our communications and computing segment Q4, but we're seeing strength in other areas and in particular in our computing segment. And so we expect that to offset the headwind and actually that segment overall, we expect to grow sequentially. And then, yeah, you're right, that would give us a very healthy year over year growth as well.
Okay. Great. And then, Jim, I don't know if you wanted to wait at all on the the AMD Xilinx transaction. Obviously, Xilinx very, key competitor for you. You're very familiar with AMD members of your team familiar with Xilinx.
So just kind of curious how that over the long term, how you think that impacts strategic positioning of of their company and yours, as you have your various approaches to the market? Thanks.
Yes, thanks, Charlie. Yes, we don't see it changing the environment for the portion of the market that we're focused on. So just as a reminder of kind of where what is our strategy and where is our focus So Lattice is focused on being the absolute industry leader in small power efficient FPGAs. And so these are programmable devices that are used in a wide range of applications across Edge Computing, IoT, industrial IoT, control and security and all sorts of different types of systems. And, when we look at our product portfolio today, we're very happy with portfolio today.
We think it's very strong. We're very pleased with the NexSys platform and its adoption. And we're actually even more excited about the roadmap that we have in front of us. And when we look at the industry, we see that we're really the only FPGA company that's focused on investing in this part of the market small power efficient FPGAs. And, and I don't see that changing with this announcement.
And so, And certainly our customers, see our commitment to this space. The customer engagements are very strong, as I mentioned earlier. And there they see the new products that we're launching, the new roadmap that we have coming and they're pretty excited. And so we remain focused on our strategy and executing to our roadmap and continuing to deliver to our long term business goals.
Okay, great. Thank you so much.
Your next question is Tristan Guerra of Baird. Your line is now open.
Hi, good afternoon. Could you elaborate on your expectations for communication to be up sequentially in Q4. Is that 5G base station driven and also how sustainable is that trend into the first half of next year? And also, is it mostly outside of China? Any color you could provide would be helpful.
Yes. Tristan, my earlier comments were with or back to the overall segment of communications and computing. So we have that as a single segment. So I was saying that overall segment, we expect to be sequential up. And then, look, 5G is we see as a long term revenue growth driver for We're seeing good growth from 5G this year.
We certainly have more significantly more 5G infrastructure revenue this year than we had last year. And we still we believe we're still early in the 5G global deployments. And if you might recall at our investor presentation back in May of 2019, we shared that in a 5G base station, we have over 30% more content in a 5G base station relative to a similar 4G base station. So we see it as a long term growth vector for the entire industry, but also specifically for Lattice as well. So we expect it to contribute to growth next year as well.
Okay. And then as a follow-up, you talked last quarter about APC win that sounds like it with 1 OEM. And you've mentioned the opportunity that over time this could surpass the the time that you see in the data center given the PC units. What level of conviction do you have that you're going to win at this all PC OEMs? And secondly, what problem solving does your FPGA provide in PC that's unique enough to get other PC OEMs to use your products?
Yes. So in client computing, our last earnings call, we shared that we had a new program that started production that obviously that continued into Q3, it will continue into Q4 and into next year. We're quite pleased with the progress on that program and the revenue that we're seeing from that program. And we're also in more broadly in the industry to continue to win more business in the client computing space. We do believe we can bring some pretty unique value propositions to the client computing space.
One of the areas is around artificial intelligence processing, inference processing, particular where we can do things like human presence detection as one example, also video connectivity, video integration, overall connectivity integration within the PC platforms. So there's a number of different areas where we think we bring a pretty unique value prop positioned with our combination of, great power efficiency, programmability, flexibility Artificial intelligence algorithms as you know are constantly evolving. And so having a solution like ours that is reprogrammable and can adapt to changes in AI algorithms over time is a big plus for our customers. And so, yes, we see this as a good long term growth area for us in the computing segment. Thanks, Jason.
Your next question is from Mark Repas of Jefferies. Your line is now open.
Hi. Thanks for taking my question. Jim, you had mentioned, you mentioned kind of the answered of this, the software platform since II Envision And Century. Can you give us a sense of like where you think where you think you are in the deployment of these or where your customer base is embracing these products And to what extent, from your standpoint, are these, are these kinds of software help you to grow the market versus to help you kind of lock customers into more of a sticky longer term design wins because they get they kind of get entrenched in the software.
Yes, Mark, maybe I'll start with just a reminder of kind of what's our overall strategy with respect to software. So beyond the typical FPGA Development environment that we provide. What we've been investing in is a portfolio of higher level software solution stacks that are application specific. And what that does for our customers is that makes it very easy for our customers to design our product into their systems and then really speeds up the time to market for them to get those systems to market. The first one that we introduced was SenseAI and that was around inference processing.
The second one that we introduced was earlier this year in February, that was our envision stack around embedded vision processing. And then we just recently brought out our 3rd version which is Centuri, which is specifically around security and platform level security. And as you can imagine, we we have on our roadmap additional, additional software stacks that we're planning to bring out, for instance, next year as well. So we're going to continue to build out this this platform or this portfolio of software solution stacks. And the deployment, what we're seeing is actually, those being deployed across every market that we serve.
So, we're seeing, now it's over time depending on the market but for instance, SenseAI, we're seeing that software stack being used in computing applications be used in industrial applications. Obviously, there's consumer applications as well. We're seeing interest in Century across, certainly server applications, but there's other computing applications and industrial applications where that has relevance. And so it's pretty broad based deployment. And in terms of, yes, about, is it does it is it does it grow our market?
Yes, it does in the sense of that it makes it much easier for customers to adopt our product And so what we're seeing is some examples of where customers may not have a history using FPGAs and may not have a lot of comfort with FPGAs by providing them a complete solution stack. We're able to help those customers switch to our devices very easily. So for instance, switch from a microcontroller device over to our devices along with our software solution stack. So it helps, new customers make that transition more easy. And then also, as you mentioned, it does create a much more sticky sticking with our customers as they integrate that software into their system level software, that makes our solutions very sticky over a multi generational basis.
Great. That's really helpful. Thank you. And I had a question, follow-up question on the gross margins. If I may, as you kind of approach the low 60s and I apologize I forgot if you're target gross margin was 62% or 60% plus.
Maybe if you could just remind us, of that longer term gross margin target, is as you approach that, is that do you think about reevaluating that target? Is there a hard limit in the low 60 range or is other like Cylinx, I think, is in the high 60s for another FPGA benchmark there. Is that Is there like a physical limit to the gross margin here or is this kind of your initial target? Is that kind of like a a milestone that you work towards and then you reassess as you as you hit it? Thank you.
Yes, it's more as you just summarized. I think that's an initial milestone and we'll reassess once we've achieved that milestone. Just to be clear, And so was the target that we had put out was greater than 62%. So we had shared that at our investor day back in May of 2019. And clearly, we've made significant progress since then.
I mean, just this most recent quarter in Q3 gross margins went up. I think it was 170 basis points year over year. So, we remain focused on continuing to expand gross margins. Obviously, our first focus is to get to that greater than 62% targets. And I think once we get there, we'll reevaluate, what the target should be.
But I don't see, as you would call it, a hard limit at 62. I think there's room beyond that. But we'll share that once we get past the 62 milest1. And just as a reminder of the gross margin expansion, kind of where that's coming from, is part of it is our pricing optimization strategy. We built that strategy out in late 2018 and we started to implement that in 2019.
That continues to yield benefit and we continue to drive that strategy moving forward. And that strategy is really about making that our products are priced through for the right value in the market. They bring a significant amount of differentiation to our customers. So we want to make sure those products are priced correctly in the marketplace. And then the other part to the gross margin expansion has been the roadmap of product costs improvements that we've had.
So we've had a multiyear roadmap of product cost improvements we've been executing to. And that's the other portion or the other driver of the gross margin expansion. And then there's been some mix change as well, but the 2 main drivers of that pricing optimization and product cost improvements.
Your next question is from Christopher Rolland of Susquehanna. Your line is now open.
Hey, guys. Thanks for the question. I guess, first on the industrial and auto be, I was wondering if maybe we could isolate automotive more specifically here, how big is it? And then, perhaps if you could talk about the kind of sequential bounce back, we had for automotive more specifically here and what applications might be driving that?
Yes, thanks, Chris. So in industrial auto, so that segment for us is the vast majority of the revenue is industrial. Automotive is still a pretty small part of that segment. Although we do see Automotive as a long term growth driver for We have a healthy design win funnel in automotive electronics. We're getting designed into a number of different new types of applications in automotive electronics.
Of course, that part of the market ramps, slowly. Those are long, long time to revenue design win cycles. So it drives more long term growth, but we do see it as a good long term growth driver. But as for today, it's that segment is mostly industrial. So that sequential improvement that we saw from Q2 to Q3 of percent up sequentially or 14% up year over year.
That's, almost all driven by industrial. And I would say a couple of things going on there in terms sequential improvement. If you recall back in Q2, we did see some softness in industrial related to COVID-nineteen and the market impact of COVID-nineteen, we started to see that end market demand strengthen in Q3. So that was good to see industrial end market demand strength. But on top of that, there's lattice growth in the industrial segment in applications like industrial automation, robotic, industrial safety embedded vision that's growing on top of that, that end market improvement.
So we're quite pleased with overall progress that we've been making industrial and automotive. And I think our performance in this segment has been quite strong despite the COVID-nineteen backdrop this year.
Okay. And I guess one for Sherry too. For licensing, that one was kind of on expectedly strong. I'm assuming nothing's changed here, with, with licensing, if there has, I'd love to know about any updates there. But, I think it was 150 basis point benefit there to gross margin for the quarter.
Sherry, I don't know if you have any thoughts on that. And how gross margins kind of flowed here if you x out that benefit, maybe versus expectations?
Yeah, thank you, for the question. So in terms of the lower, or higher, rather, IP licensing revenue in Q3 versus what we had expected. It did come in higher than we expected This area can be difficult to forecast. When we look at Q4, we expect it to be more in the normal range of $3,000,000 to 5,000,000 versus the slightly higher amounts than it was in Q3. When you look at the credit gross margin, it was down about 60 basis point sequentially.
So when you exclude the IP component that you mentioned, it was down sequentially. But if you remember in our Q2 earnings call, we said that we anticipated that we would experience some gross margin headwinds within our market segments. And that's ultimately what happened. And so when you look at our product gross margin year over year, we saw an increase of 170 basis points. And that's really coming from our gross margin expansion strategy.
As Jim mentioned, with pricing optimization, product cost reductions and some mix. So as we continue to execute toward our long term model of greater than 60 percent, that we laid out in our Analyst Day next year. That's the way that you can kind of think about that.
Thanks, Sherry. Thanks, guys.
Sure.
Your next question is from Alessandra Vecchi of William Blair. Your line is now open.
Hey, everyone. Congratulations on a great quarter. Sherry, I have a question for you as well, if you can. It looks like your DSO decreased nicely this quarter from last quarter. If I recall, I believe last order, you had some one time things, like, due to supply constraints and mix and back end nature of the quarter.
But can you maybe remind us on how we should be thinking about the DSO target going forward?
Yes. Thank you for the question, Alex. So we did see DSO improvement in Q3. We had the improvement of 14 days. Achieved a 65 DSO at the end of the quarter.
And that was really due to improved shipment linearity. As you referenced in Q2, we did experience supplier constraints, within the supply chain due to COVID-nineteen restrictions. So our ops team work through those constraints last quarter and really enabling them to, generate an improvement in shipment linearity in Q3. And that's what generated the 14 day improvement during the quarter. So we're going to continue to work on improving our DSO.
But there can be fluctuations on a quarterly basis just due to the timing of when our customers want, they want the product. But we, you know, our goal is to generate further improvements there. And, but again, there could be some on a quarterly basis.
Tremendous job sort of keeping those in check and coming in sort of at the lower end or better than expected. As we look forward to next year in the continued new product introductions, tape outs, attempts at gaining traction in potentially new end markets and verticals. How should we think about OpEx growth relative to to maybe, revenue growth or some other metric?
Yeah. So the way the way I would look at OpEx, comment on the short term and then kind of direct you to our long term model that we laid out at our Analyst Day last year. So during the quarter, OpEx spending was down. We had some spending efficiencies as well as some benefits from lower payroll taxes. When we look to our Q4 guide, which is a slightly higher at the midpoint.
That's going to be due to primarily due to program costs. So higher program costs as we roll out our, you know, our nexus product in Q4 that Jim mentioned. And then when you look into, you know, further out beyond, beyond the quarter at our Analyst Day last year, we talked about our goal for OpEx to be at 35%. So we're actually at 35% in Q3, but What we are going to continue working on is sort of dialing in on the mix between R and D and SG and A. And so the goal that we laid out last year was a 15% target for SG and A and then for R&D to be around 20%.
And so we've got a little ways to go on SG and A to get further down to the 15% goal, but that's how you can think about overall OpEx, a target of 35%. And then within that, the R and D and SG and A composition.
Your next question is from Hans Mosesman of Rosenblatt.
Thanks. Good grass guys. Good execution. Hey, Jim, I don't know if you've ever kind of split out on the computing side of your data center specifically between your FPGAs that are aligned with the actual motherboard or server CPU and say acceleration ASICs or GPUs or network interface cards and storage. I'm not sure if if you've done that.
But if you could provide us some flavor of your exposure in those other markets that seem to be growing quite nicely.
Yes, Hans, yes, we haven't broken that out. I would say most of the revenue though is associated with FPGAs on the main CPU board, usually doing control or security type functionality on the main CPU motherboard, although we are used on other cards as well. We're used on daughter cards, accelerator cards and other type of sort of ancillary cards, ancillary to the main motherboard. But I would say that most of the revenue is from that part of the market is driven from the mean CPU motherboard.
Okay. On Huawei, can you give us a reference point since there's no part of Huawei included in your outlook for Q4? How much was it roughly in Q3 and also Q2 just as a reference point?
Yes, maybe I'll just give you the full year since, since we know what Huawei revenue is going to be at this point given that we haven't assumed any for Q4. Huawei revenue for this year would have been, let's say low single digits this year, kind of in the 2% maybe 2% to 3% range, low single digits.
Okay. That's helpful. And then the last question I have, On 5G, I don't know if you've I may have missed it. How is that particular end market doing for you guys? It's an area of penetration or market share gains.
So any updates there would be helpful.
Yes, Hans, on 5G, we were pleased again, in Q3, 5G grew from a year over year standpoint. We've seen really good growth in revenue for 5G through the 1st 3 quarters of this year to last year was a nice growth contributor this year. And we expect it to grow again next year. We're still early in the 5G rollout cycle, if you look at worldwide deployments, we're still early in that cycle. And again, we've got 30% more content in a 5G base station than we did in a 4G.
So we expect it to be a good long term growth driver, good multiyear growth driver for us. As deployments happen worldwide over the coming years.
Your next question is from Richard Shannon of Craig Hallum.
Richard, if you're speaking, you might be on mute tweaking anterior. So Richard, Richard Bicanteria.
Richard
Shannon, your line is now open. You may ask your question.
Operator, do you wanna go ahead and move to the next caller?
There's no further questions. And I would like to turn it back to Mr. Mr. Jim Anderson, CEO for any further comments.
Okay. Thank you, operator. And thanks everybody for being on the call today with us. We're pleased with our continued progress, but we have a lot more work to do as we unlock the full potential of Lattice. We're excited about the future us and we remain focused on consistent execution of both our business strategy and our product roadmaps.
Thanks everybody for joining us today. And operator, that concludes today's call.
Ladies and gentlemen, thank you for participating. You may now disconnect.