Ladies and gentlemen, thank you for standing by and welcome to the Second Quarter 20 20 Conference Call. At this to ask a question during the session. 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, Mr. Rick Muche, Director of Investor Relations.
Sir, you may begin.
Thank you, operator, and good afternoon, everyone. With me today are Jim Anderson, Madison's President and CEO, and Sherry Luther, Lattice's CFO. We'll provide a financial and business review of the second quarter of 2020 and the business outlook for the third quarter of 2020. If you have not obtained a copy of our earnings press release, it can be found at our company website in the Investor Relations section atlatassemi.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.
We 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 third 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 form, such as a press release or publicly announced conference call.
Some financial information that we present during the call will be provided on 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 and 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 latticesemi.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. I'm pleased with our results in Q2 of 2020 as we continue to execute on our product roadmap and build momentum with our customer base. Let me cover a few highlights from our second quarter. We drove strong growth in our communications and computing segment as our position continues to grow in server client computing and 5G infrastructure. We continue to make steady progress on gross margin expansion as non GAAP gross margin increased 150 basis points sequentially and 230 basis points year over year.
We also continue to expand profitability, with a 17% sequential increase in non GAAP net income. And we launched our new Certasen X general purpose at PGA on time as promised. Finally, we remain on track for market. In the communications and computing market, revenue was up 19% sequentially and 15% on a year over year basis. In computing, our revenue grew sequentially and year over year due to strong growth in both server and client computing.
In servers, we benefited from increased attach rates and higher ASPs, as well as higher revenue from data center customers due to the increased demands on data center infrastructure as people work from home. In client computing, we benefited from the start of a new client computing platform from one of our key customers. The communications market, we continue to benefit from ongoing 5G infrastructure deployments, with 5G revenue higher, both sequentially and year over year. We expect 5G revenue will continue to grow over the long term as the 5G wireless infrastructure build out progresses. Turning now to the industrial and automotive market, Revenue decreased 6% sequentially and was up slightly on a year over year basis.
Despite the impact to near term demand from COVID-nineteen, We continue to believe this segment will remain a long term growth vector for us, given the breadth of applications that we serve, including robotic industrial automation and safety, embedded vision and automotive electronics. Turning now to the consumer market, revenue declined 17% sequentially and 43% year over year. Expected shift in the mix of our revenue profile over time. We remain focused on serving the areas of the consumer market that include application with consistent multi year revenue streams and higher margins, where our solutions are enabling customers to differentiate their products. I'll now provide some highlights of our recent product road map execution.
When we launched our NexSys FPGA platform this past December, We also launched our first device based on that platform, the crosslink Nx device. At that time, we committed to releasing 2 additional NexSys based devices in 20 20. We delivered on that promise with the June launch of Service Nx, representing the second device from the neXus platform. We're excited about the Certus Cenex family, which relative to comparable FPGAs, offers 70% faster performance, 4x lower power and up to 3x smaller footprint. Each of these advantages provides meaningful differentiation of value for our customers' applications and systems.
We remain on track to launch our 3rd NexSys based product in the second half of twenty twenty. We continue to be very pleased with the enthusiastic and broad adoption of our NexSys platform as a number of customer engagements and opportunities continues to increase. We are now introducing products at a pace that is roughly 3 times faster than in the past. This accelerated cadence has provided our customers broader portfolio of Lattice solutions to choose from. As part of the long term investment strategy that we shared at our Investor Day in May of last year, We continue to invest in tools, solutions and software stacks to make it easy for our customers to design our products into their systems.
In Q2, we launched Lattice Propel, our new embedded system design environment. For processor based designs, Propel is an easy to use tool that FPGA based processing in a wide variety of applications. We also remain firmly on track for the launch of our 3rd solution stack, which is focused security applications and plan for delivery to customers in the second half of twenty twenty. This follows the 2 solution stacks that were previously launched. Senseai, which is focused on low power inference processing at the edge of the network, and Envision, our solution stack for embedded vision applications.
In summary, while COVID 19 continues to create some uncertainty in the near term business environment, we remain focused on executing our business strategy and product roadmap for sustained long term revenue growth and profitability. Want to thank Filatus employees for their continued execution to our plan, despite the current environment. I'll now turn the call over to our CFO, Sherry Luther.
Thank you, Jim. 2nd quarter revenue was $100,600,000, up 3.4% sequentially from the 1st quarter. And down roughly 2% year over year. The sequential increase from Q1 was driven by the Communications And Computing segment, while partially offset by a decline in Consumer And Industrial. Gross margin on a GAAP basis was up 110 points compared to the year ago quarter.
To 61.3% in Q2 compared to the prior quarter and was up 230 basis points compared to the year ago quarter. Both the sequential and year over year increases in gross margin were driven by execution on our pricing optimization strategy. As well as continued product cost reductions with some benefit from NICS. Q2 GAAP operating expenses were $48,100,000, compared to $47,800,000 On a non GAAP basis, operating expenses were $36,600,000 compared to $36,100,000 in the first quarter and $35,500,000 in Q2 2019. In Q2, R and D increased sequentially to $20,100,000 or 20 percent of revenue as we continue to make investments in our product roadmap.
SG and A declined sequentially to $16,600,000 16.5 percent of revenue as we continue to drive SG and A spending closer to our target model. Q2 GAAP earnings per basic and diluted share was 0 point 0 $8 compared to 0 point 06 dollars in Q1, twenty twenty and six cents in Q2, twenty nineteen. Q2 non GAAP earnings per basic and diluted share was $0.17 compared to $0.15 in Q1 and $0.16 per basic share and $0.15 per diluted share in the year ago period. We continue to have a This included an acceleration of quarterly payments, which reduced our leverage ratio, as defined in our credit agreement, to approximately 1.5. This is compared to a leverage ratio of 1.9 in the year ago quarter and allowed us to reduce our interest rate by another 25 basis points.
Our year to date cash from operations was approximately $37,000,000 with an ending cash balance of approximately 165,000,000 Let me now review our outlook for is expected to be between $96,000,000 $106,000,000. Gross margin is expected to be 60.5%, plus or minus 1% on a non GAAP basis. Total operating expenses for the 3rd quarter are expected to be between 36,500,000 While I'm pleased with our progress in Q2, we remain cautious with how the COVID 19 situation will evolve in the near term. However, over the long term, Operator, we can now open the call
Our first question is from Kristin Guerra from Baird. Your line is open.
Question about 2021, obviously, we expect neXus to reach an infection point in terms of volume or WAP, is the operating margin leverage going to be primarily based on top line extension Or is there any type of SG and A reduction that we should be looking at? And I'm assuming tape out activity is going to re main next year at similar levels as this year?
Thanks, Chris. Or Tristan for the question. Appreciate it. Yeah, on the OpEx part of your question, in general, if you remember our overall target, for OpEx is to be around 35 percent of revenue. That's the target that we put out last year as part of our Investor Day back in May.
Of that, we're targeting to keep R and D around 20% and for SG and A, to be targeted at 15%. We've made some progress on SG And A on bringing that percentage closer to the target. You can see we've made pretty steady progress in most recent quarter Q2. Again, we sequentially reduced SG and A expenses and are approaching that 15% target. So I think moving forward, you can assume that we'll continue to make progress on SG And A both in terms of absolute dollar reductions, but I'll so, as revenue grows, we'll scale into that 15%.
And then in terms of just operating margin overall. The other factor is gross margin expansion as well. We've made some good progress on gross margin expansion, we're still focused on driving to our overall gross margin goal of over 62% as well as the top line growth that you mentioned year as well.
Great. And then, any way to quantify the impact of the earlier Huawei pull ins that several companies have talked about on the last earnings season in terms of potential impact on your second half outlook including Q3?
Yes, Tristan, very difficult to gauge that, we've seen, in the most recent quarters, relatively, I would say, normal ordering patterns from from Huawei. So it would be difficult for us to gauge what impact that would be for the second half. Certainly, our guidance for Q3 incorporates all the best data that we have to this point for all of our customers in terms of their demand for this quarter, which includes the Huawei demand as well.
Great. Thank you very much.
Thank you. The next question is from Harley Anderson from Collier Securities.
Thank you for taking my questions and congrats on a great quarter. Jim, I want to pick up on the inventory question. You addressed inventory in the channel, it sounds like, but I'm curious you guys did build a little bit of inventory. I know you called the commentary last call. You were sort of looking to have a little bit of buffer there for the high running products.
It looks like you did that. So I wonder if maybe you can just update us your thoughts on what you want to do as far as your inventory is concerned and the idea of snapback versus no snapback. And then I've got a follow-up for Sherry.
Yes, thanks, Charlie. So just real quick since you mentioned inventory in the channel, we ended Q2 with inventory at our distributors, well within the normal range for the business. So we didn't see any unusual building of inventory in the channel. Q2, which was good. In terms of lattice specific inventory, we did mention a quarter ago when we did our earnings call that We anticipated that we may build inventory strategically on some of our higher running parts.
We did that in Q2. So our inventory, our lattice inventory is up sequentially from Q1 to Q2. And that was deliberate to build, some buffer of lattice inventory, again, for high running products, especially associated with customers that, and in anticipation of if there is a snapback in demand, we want to be able to service that upside. So that's, we did build inventory in Q2. In terms of Q3, we may choose to build inventory slightly in Q3 as well.
We that could happen in Q3. We haven't decided on that yet, but we feel like we're in a pretty good position in terms of Lattice inventory at this point.
Great. And then for my follow-up, Sherry, the DSOs were maybe a little bit toward the high side relative to what we're used to since you guys took over. So wonder if you could address that. And then also on the leverage ratio, you did mention you got under 1.5%. I wonder if you can just remind us what level you're comfortable with should say an M and A opportunity present itself?
That's interesting financially and strategically. Thanks.
Yeah, sure. Thanks. Thanks, Charlie, for the questions. We did see an increase in our DSO in Q2 versus Q1. That's really the result of our shipments being weighted more towards the end of the quarter.
It's really driven by 2 main factors The first being we had our suppliers had supply chain constraints due to COVID-nineteen government restrictions, which constrained shipments early in the quarter. And then the second reason is we had more of a significant shift in our mix created some latency in the system as we adapt it to that change. I have to say though the ops team did an amazing job being able to meet the demands of our customers. But net result of that is really that we had lighter shipments in the beginning of the quarter, heavier shipments toward the end, clearly impacting our DSO. As we look ahead to Q3, it anticipate more a more steady mix in Q3, and would expect the DSO would start to improve improve in Q3 as a result of that.
And then your second question regarding the leverage ratio. So we did accelerate accelerated debt payments during the quarter to de lever down, back down to 1.5. The driver there was really to reduce our interest rate by 25 basis points. When we look ahead at how much leverage we would be willing to take on giving any kind of M and A activity, it really depends on the specifics of of the particular deal and the synergies and that type of thing that really presents itself. So it's really deal specific, I would say, in that respect.
Great. Thanks so much.
Thank you, Charlie. Thank
you. The next question is from Christopher Rolland from Susquehanna International.
Good afternoon. It's David Haberley on behalf of Chris Rowland. Thanks for taking our questions today. I guess first to start out, talking about the strength in comps and computing, it seems like a really solid 2Q there. Maybe you could sort of parse out what was stronger for us the comps or the computing?
I know you highlighted the new PC platform. Was that the big driver and the growth there? And then also any color you could give on the segments for the third quarter would also be helpful. Thanks, David.
On comps and compute in Q2, yes, there were really 3 contributors, we did see a nice growth again in servers, both sequentially and year over year. We have been increasing our attach rate and ASPs in servers. So we continue to benefit from that as well as in servers, we did. We do think that there was an uptick in demand related to COVID-nineteen, people working from home, they're putting additional pressure on data center infrastructure. And so there was an uptick in demand for servers going into data centers.
So all of those has contributed to our server results. We did also see, sequential year over year growth in client computing Yes, as we mentioned in the prepared remarks, there was a new platform, which we started shipping for in Q2. So that was good to see That's a new client computing platform and application. We're really happy about that. And then the 3rd contributing factor was 5g Infrastructure related product.
So we saw a nice sequential year over year growth in our products going into 5G infrastructure. And that we view as certainly a long term growth driver as well. We expect the 5G infrastructure build out to happen over the course of multiple years. And our position in 5G infrastructure if you look at a base station and 5G infrastructure relative to 4G, we have over 30% more content in the 5G base station. And so as 5G infrastructure ramps, we expect to benefit from that.
So those were kind of the 3 main factors contributing to the good performance in comps and compute. And then on your second question, which I think was about a kind of segment level color for Q3, when we look at our market segments for Q3, we're anticipating that kind of a percentage of each segment contributing to overall revenues roughly the same in Q3 as Q2. So we're expecting the mix across our major segments to be roughly the same from Q2 to Q3. Great.
Thanks for the color there, Jim. And if I can sneak in one for Sherry real quick. On the debt repayment you made this quarter versus the opportunity to buy back shares. I know back in March, you guys authorized the repurchase that doesn't look like you've done anything with that yet. Can you just talk about kind of your thoughts going forward on capital deployment if the share repurchase is still on the table or if the environment is just changed too much from when that authorization went through back in March?
Yes. So thanks for the question. So in terms of capital allocation, I mean, our first first and primary focus is on, investing in our product roadmap in R&D. That's our primary objective with respect to cash. We did de lever down to 1.5 this quarter.
Again, that was to reduce our interest rate, to reduce it by 25 basis points The stock buyback program, we did to get a board authorization in Q1 of $40,000,000. That's in effect for till February of 2021. We have not had any activity under that plan to date. And what we've said and we continue to feel that we want to be conservative on any potential buyback activity as we work to preserve capital. So no plans to execute on that in the near term.
Got it. Thank you very
Our next question is from Alessandra Vecchi from William Blair.
Hi, everyone. Congratulations on a solid quarter and a tough environment. Just to sort of expand the questioning along the lines of the different segments. Can you add a little more color in particular just on industrial and and where you've primarily seen, the impact that's COVID related? Is it in factory automation?
Some of the touchless control sort of any additional color you can provide there and how we think about it going forward.
Sure. Thanks, Alex. So in the Industrial segment, it was pretty broad based. It wasn't concentrated in any one particular customer application, it was, as I said, pretty broad based. If you look at our first half overall So first half of this year versus prior year, year over year, we grew about 7% in the first half versus prior year.
So pretty good growth overall. Obviously, our Q2 results were weaker than Q1. We saw COVID-nineteen starting to hit our Industrial segment. In that Q2 period. And again, really not any one particular area pretty broad based.
Okay. That's perfect. And then the second part, yes, the second part of your question in terms of, in terms of you had asked about just sort of go forward we continue to see Industrial as a key growth area for us. We were quite pleased with the growth that we saw in the first half of this year. Over the long term, we expect that segment to continue to grow.
And number of applications that we're getting designed into, some examples would be robotics, industrial automation, industrial safety, touchless control, things like that. And so and we actually believe that the whole COVID-nineteen experience will accelerate the move towards industrial automation in many of the industrial customers. And so over the long term, we expect to benefit from that that sort of acceleration of industrial automation because we're well positioned across a number of different systems and applications in that area.
That makes sense. And then just on Certus, Nx, if I know it was just launched at the end of June, but if you could provide a little color on, initial customer feedback and perhaps how it compared to initial feedback on CrossLink Nx, in terms of early adoption or or alpha customers, and if we should expect a similar, time to revenue as crosslink?
Yes. Thanks, Alex. So initial feedback from customers is quite good. As you can imagine, we actually gave customers well ahead of the launch, especially our strategic customers. We've been engaged with them on Cirdisconnects well ahead of the actual product launch.
And Customer reaction is very positive. When you look at the performance benefits that we're bringing, you look at the power of efficiency as well as a smaller size. It's 3x smaller footprint than competing FPGAs. It's just it's a really compelling device for our customers. And it's more of a general purpose device.
And so that means it's applicable and just across all of our different segment. So we're seeing nice customer interest across each one of our different market segments. And so, yes, we're quite pleased with the initial reaction to Sertosenex. Overall for the NexSys platform, which now we've launched 2 devices, on the NexSys platform, our original Crosslink Nx, which was launched in December and now Certasenex, which was launched just this past June. Overall, customer engagement in the platform continues to grow.
We now have over 150 unique customer engagements across the across that platform. And so we're quite pleased with the customer reception and the growth and engagement And just as a reminder, we do have one more device, that we committed to launch from the next platform this year. That device will launch in the second half of this year. That remains execution remains on track and we're really excited about that third device as well. So yes, quite pleased with the progress on on the NexSys platform in general.
And I want to take the opportunity to thank our engineering team because they've continued to do just a great job executing despite some of the work from home challenges of COVID 19, they've done a great job executing on our roadmap.
Perfect. That's wonderful to hear. I think that's it for me.
Thank
The next question is from Richard Shannon from Craig Hallum. Your line is open.
Hi, Jim and Terry. Thanks for taking my questions. Well, maybe a quick question on gross margin guides for the third quarter. Obviously, you're Gross margin was excellent in the 2nd quarter above the midpoint. You seem to talk about benefits that were mostly structural in nature and not much related to mix here.
And since the mix hasn't changed, I'm curious why the is down almost 100 basis points here. Is there some other dynamic that's driving that or is just a level of conservatism built in?
Yes. Thanks, Richard. Just to recap a little bit on Q2 and then I'll bridge to Q3 as Yes, Q2, we did we were quite pleased with our performance at gross margin in Q2. Number of different factors going into that, but the 2 main ones were, pricing optimization and product cost reductions. If you remember back in late 2018, we built out a pretty comprehensive strategy to drive pricing optimization And then a second strategy to drive product cost reduction roadmap over time.
And so we started implementing those at the beginning of 2019 And we're still seeing the benefits of that strategy and we expect to continue to execute both of those strategies moving forward. And so most of the benefit we saw in Q2, both sequentially and year over year was from pricing optimization and product cost reduction. We saw a little bit of from mix as well. So now moving into Q3, a couple of reasons why the midpoint of our gross margin is lower than where we landed for Q2. 1 is that our IP revenue, can vary from quarter to quarter it can fluctuate and see this is normal for our IP revenue, but we tend to be a bit more conservative on the IP revenue because of that fluctuation.
And that revenue is 100% gross margin. And so that can have a significant impact on our gross margin. 2nd is we are anticipating a bit of a headwind on mix within a couple of our segments in Q3 relative to Q2. So a little bit of mix headwind as well. So that's what's going into the gross margin midpoint guide for Q3.
Jim, to follow that up, the headwinds on the mix here, can you Can you specify where those come from? It seemed like one of the prior questions you suggested the segments at the high level that we know about are roughly unchanged going into the 3rd quarter.
Yes, it's mix within those segments. So even if our segment mix stays relatively constant, we can see product mix changes within segments from quarter to quarter and that can fluctuate from quarter to quarter. And so just based on the demand that we can see to date, We expect a bit of headwind in a couple segments. Now that can change as we execute through the quarter. That can improve.
But at least at this point, we're seeing a bit of headwind in a couple of segments.
Okay. And my follow-up, Jim, is, again, diving into the comps and competing segments. Again, your guidance here and your indication of kind of unchanged split between the segments just basically flat segment there in that it sounds like they have a very nice design win with a client server platform and one would expect 5G to be good. And so there must be some some offsets in other parts of that comps and competing segments. Is servers 1 where you expect to be keeping up with a general trend or is there some softness coming there or any other thoughts on kind of the mix within comms and computing that's notable.
So within comms and computing, certainly, as you know, on our server business, we do have a high attach rate. Our attach rate is now over 80% in in servers. And so if there is any change in the underlying server market, we're certainly impacted by that as well. We would expect server unit shipments to be a little bit lower in Q3 than they were in Q2. We think Q2 server shipments were benefiting from an initial, initial COVID-nineteen people working from home and they're being an uptick in server demand.
And we think that will normalize a little bit in Q3. And so we expect that. But overall, if you zoom out We, comps in compute has performed very well for us over the last couple of years. It's one of our key growth areas, we believe, for the long term We expect to continue to grow in servers over the long term as we continue to grow the content that we have in servers. And thus our ASPs as well as growth in client computing and 5G infrastructure.
So we still believe that comes in compute as a long term growth driver for us.
Okay, great. Thanks all for all the details.
Thank Our next question is from David Dley from Steelhead. Your line is open.
Yes, thanks for taking my question. I was wondering as far as your targets, I think, which are sometime next year to hit double digit revenue growth, do you think this the COVID or the pandemic has had any impact on your customer road map plans or on your internal plans for product launches to achieve those goals? And then as a follow-up to that, which segments would you expect to be the contribute to this higher level of growth that you might expect sometime next year? Yes. Thanks, David.
On the first part of your question, let me first talk about our internal roadmaps and then what we're seeing on the customers. In terms of our internal road map, no, we are not letting COVID nineteen slow us down in terms of our R and D progress or our product development progress. Our investments in our product roadmap are long term investments. We're really excited about our product roadmap. We think we've got a winning product roadmap.
And we are full speed ahead on our product roadmap. And I will just take the opportunity to say again, our engineering team has done just an outstanding job of continuing to execute to the key product milestones. And that's our intention to continue that. On the customer roadmaps, on the customer engagement side, customer engagements have been quite good and very active Certainly, for any customer programs, I would say that are entering production in, say, the next 6 to 12 months, we haven't seen any drop off in customer activity. Our customers are equally kind of moving at equal speed to get those near term production programs into production and we're fully supporting them.
And so I would say the customer activity has remained robust. And our sales team, our application engineering team is very busy, which is good. And then In terms of the longer term growth drivers, we the two main segments that we see as the long term growth drivers are comms and computing and industrial and auto of. In comps and computing, I already touched on a number of those different growth areas. We expect to continue to grow in servers as we expand our content in servers.
And bring, and have higher ASPs in servers. We expect client computing to be a growth area for us. And 5G infrastructure is is really just starting. We're still early in the deployment of 5G infrastructure. So we expect to benefit from that, over the coming years as well.
And then, on industrial and automotive, most of our, the vast majority of our revenue today is based on, in that segment is industrial. We expect to see growth in some of those applications I talked about earlier robotics, industrial automation. And then further out, we expect growth from automotive. We have a very robust design win pipeline in automotive electronics that accounts for relatively small part of our revenue today, but we see a nice, design win pipeline and expect that to be a growth contributor over the coming years as well. So that's a little bit of color on where we see the growth coming over the coming years.
Thanks David.
Your last question comes from the line of Matt Ramsay from Cowen. Your line is open.
Hey folks, good afternoon. Thanks for letting me jump on. We had bunch of these tonight. So, appreciate the patience. Congrats on the results guys.
From my end, Jim, you had talked about strength and our analysis kind of shows the same thing that the expected strength from your compute platform on the server side no secret within the industry that the dominant server processor vendors going through some challenges. I'm wondering if you might talk about how the visibility of your server changes that they might be going through and are you represented across the breadth of server processor vendors that might be ramping Thanks.
Yes. Thanks, Matt. So the great thing about our products that are used in servers is that they're, they're architecture agnostic. So they can be used with either flavor of X86. So whether that's an Intel or an EMD process or In fact, they can even be used with, for instance, an ARM processor or any other processor.
So we're able to provide our functionality that we bring to server kind of regardless of the CPU architecture. Indeed, we're not just designed into Intel platforms. We're designed on A And D Platform forms as well. So to the extent that there's potential share shift over time between Intel and AMD, We're buffered from that because we have good position with on both types of platforms. In terms of roadmap changes in general, We do have a high attach rate.
So we draw a high attach rate to servers today over 80%. We are anticipating ASPs to continue to grow. We've already grown our ASPs and continued, and we expect that to continue to grow as new platforms ramp. To the extent that a platform is delayed where we would see an ASP increase. We could see some temporary effect from that.
But in general, as again, as you kind of zoom out over multiple years, we believe that this will continue to be a good growth area for us.
Perfect. Thanks. And then just one follow-up from me. As you think about ramping the whole NexSys portfolio, some of the vector, some of the segment specific products and also the general purpose that's just been announced. And you look forward in the design win pipeline.
If you could talk a little bit about with any specificity that you can the segments where you feel like NexSys may ramp the quickest, any particular use case examples? I think some some concrete examples of the wins that you guys are considering and the visibility that you might have to when they might ramp in volume would be really helpful to the investor base.
Thanks, Matt. Let me talk first kind of on the products and then I'll come back to the segments. So the first product that was launched was Crosslinkinx, which we launched in December of last year. And we would expect that to go to market or to go to revenue first. We are still driving to get some revenue this year on that product.
As we've always said, it will probably be a small amount of revenue this year, but we are still targeting to deliver some revenue on Cross Link Nx this year. And then it would start to really ramp next year. Cirrusenex, which we just launched, that would be more of a revenue contributor next year. So each product, as we launch it, is, a contributor out in time. And so Crosslinkenex would be the first product to contribute revenue.
In terms of the segments, yeah, each segment has different, a different profile in terms of time to revenue. Generally, consumer is our fastest segment in terms attigned to revenue. Computing can also be a fast, relatively fast segment. For instance, client computing could be a faster segment. Server takes a bit longer.
Communications And Industrial are much longer time to revenue and automotive is the longest time to revenue. So in terms of which segments could we see revenue from 1st, it would most likely be a client computing or a consumer those are generally the fastest to ramp.
Thank
you. Ladies and gentlemen, that concludes the Q And A portion. I'll now turn it back to Lattice's CEO, Mr. Jim Anderson, for closing.
Thanks, operator, and thanks everybody for being on our call today. I appreciate it. I want to once again thank the entire team as well as our partners, for all the dedication and the great execution, especially in the current environment. We're very pleased with our progress to date and we're even more excited about the future of Lattice. We remain very focused on consistent execution of both our business strategy as well as our product roadmap.
Operator, thanks. That concludes today's call.
Thank you, sir. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation and have a wonderful day.