Lattice Semiconductor Corporation (LSCC) reported its fiscal third-quarter 2024 results on November 4, showing a revenue of $127.1 million, a 33.9% year-over-year decline. The company achieved a GAAP gross margin of 69%, with a net income of $0.05 per diluted share and a non-GAAP net income per share of $0.24.
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The results aligned with company expectations, demonstrating disciplined strategy execution and a focus on operational efficiency despite challenging industry conditions. A one-time GAAP charge of $6.5 million was recorded, primarily due to a 14% workforce and operational expense reduction aimed at supporting long-term business alignment.
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Management Discussion and Analysis:
CEO Dr. Ford Tamer expressed confidence in Lattice’s market positioning and strategic roadmap. Since taking office, he has reinforced the company’s commitment to efficiency while maintaining product development stability. This quarter’s proactive cost-cutting measures, including the 14% workforce reduction, were designed to streamline operations without impacting the company’s leadership roadmap, especially in light of near-term market headwinds.
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CFO Tonya Stevens noted that the quarter’s solid 69% gross margin, coupled with a free cash flow margin improvement to 31%, highlighted the resilience of Lattice’s model. She emphasized that these efficiency improvements are expected to drive earnings growth in 2025. Key highlights included the launch of new AI-PC capabilities in collaboration with Dell, and ongoing developments in Lattice’s FPGA Nexus™ portfolio.
Stock Target Advisor’s Analysis on Lattice Semiconductor:
Stock Target Advisor has issued a “Slightly Bullish” rating for Lattice Semiconductor, citing 9 positive signals and 5 negative ones. The stock is currently trading at $51.89, with a 12-month target price of $70, as projected by 8 analysts. Lattice has shown strong financial metrics, including a high return on assets, equity, and capital utilization.
However, the stock is viewed as overpriced based on earnings, book value, and free cash flow ratios. Despite its volatility, Lattice is expected to grow, with a projected price increase of approximately 31.3% over the next year.
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Conclusion:
Lattice Semiconductor’s Q3 2024 earnings report reflects a commitment to operational efficiency and a strategic alignment for sustainable growth. The market’s slight bullish outlook, supported by strong fundamentals and an ambitious target price, underscores confidence in Lattice’s resilience and growth potential.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
