Lattice Semiconductor Misses Analyst Expectations in Q4 FY2023, Revenue Down 3%
Lattice Semiconductor (NASDAQ:LSCC) reported disappointing results for the fourth quarter of FY2023, falling short of analysts’ expectations. The company’s revenue declined by 3% year on year to $170.6 million. Additionally, the revenue guidance for the next quarter also underwhelmed, coming in 19.7% below analysts’ estimates at $140 million.
The company’s non-GAAP profit per share stood at $0.45, a decrease from the $0.49 per share recorded in the same quarter last year.
Key Highlights from Lattice Semiconductor’s Q4 FY2023 Results
Here are the key highlights from Lattice Semiconductor’s Q4 FY2023 results:
– Revenue: $170.6 million, missing analyst estimates by 3.3%.
– EPS (non-GAAP): $0.45, slightly beating analyst estimates.
– Revenue guidance for Q1 2024: $140 million at the midpoint, falling short of analyst estimates of $174.4 million.
– Free Cash Flow: $68.24 million, down 12.2% from the previous quarter.
– Inventory Days Outstanding: 174, up from 164 in the previous quarter.
– Gross Margin (GAAP): 69.7%, in line with the same quarter last year.
– Market Capitalization: $9.63 billion.
Commenting on the results, Jim Anderson, the president and CEO of Lattice Semiconductor, highlighted the company’s double-digit annual revenue growth in 2023 and record gross margin. He also mentioned the company’s strong customer momentum and expanding product portfolio, which positions them well for the long-term, despite the near-term cyclical headwinds the industry is facing.
Concerns Over Revenue Growth and Inventory Levels
Although Lattice Semiconductor has demonstrated strong revenue growth over the past three years, averaging 22.2% annually, its revenue declined from $176 million in the same quarter last year to $170.6 million. Looking ahead to the next quarter, the company’s management team is forecasting a 24% year-on-year revenue decline. However, analysts expect revenue to rebound over the next 12 months, with average estimates of 1.1% growth.
One area of concern highlighted in the report is the company’s Days Inventory Outstanding (DIO), which came in at 174. This figure is 31 days above its five-year average, suggesting that Lattice Semiconductor’s inventory levels are higher than in previous periods.
Conclusion: Mediocre Quarter for Lattice Semiconductor
In summary, Lattice Semiconductor’s Q4 FY2023 results fell short of analysts’ expectations, with both revenue and revenue guidance coming in below estimates. Despite a strong revenue growth track record, the company experienced a decline this quarter. Concerns were also raised regarding the company’s high inventory levels. As a result of these disappointing numbers, Lattice Semiconductor’s stock took a hit, with a 7% decrease in value, currently trading at $66 per share.
Analyst comment
This news can be evaluated as negative. Lattice Semiconductor’s Q4 FY2023 results missed analyst expectations, with revenue down 3% and revenue guidance for the next quarter falling short of estimates. Concerns were raised over the company’s high inventory levels. As an analyst, it is expected that the market will react negatively, with a decrease in Lattice Semiconductor’s stock value.
