Lattice Semiconductor Corp. (LSCC) released its third-quarter financial results after the market closed on Monday, revealing a mixed performance that included a revenue miss and a strategic move to streamline operations.
While the company managed to meet analysts’ expectations for earnings per share, coming in at 24 cents per share, its quarterly revenue fell short of forecasts at $127.091 million. This represents a significant decrease from the $192.169 million generated in the same period last year. The shortfall in revenue can be attributed to ongoing challenges in the semiconductor industry.
To address these headwinds, Lattice Semiconductor took decisive action during the quarter, implementing a comprehensive cost reduction plan. This plan involves a 14% reduction in its workforce and a similar reduction in non-headcount operating expenses. The company expects these measures to generate significant savings and drive annual earnings expansion in the low double-digit range by 2025.
In a statement accompanying the earnings release, Ford Tamer, CEO of Lattice Semiconductor, expressed confidence in the company’s long-term strategy and its ability to gain market share. He emphasized that the third-quarter results were in line with the company’s expectations, highlighting a commitment to operational efficiency and disciplined execution. Tamer acknowledged the current industry challenges but emphasized the company’s proactive approach to resource allocation while maintaining the integrity of its product roadmap and customer support. He further assured that the company does not anticipate any further workforce reductions.
Looking ahead, Lattice Semiconductor forecasts fourth-quarter revenue to be in the range of $112 million to $122 million. This projection falls short of the $132.03 million analysts currently anticipate. In response to the earnings announcement, Lattice Semiconductor shares experienced a sharp decline of 8.94% in after-hours trading, closing at $47.25.
The company’s efforts to enhance efficiency through workforce reductions highlight the ongoing challenges faced by the semiconductor industry. Despite these challenges, Lattice Semiconductor’s optimistic outlook and its commitment to strategic execution position it for long-term growth and market share expansion.
