PORTLAND, Ore. — (BUSINESS WIRE) — July 18, 2018 — Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of customizable smart connectivity solutions, announced the Company will discontinue its millimeter wave business, which is expected to result in approximately $25 million of primarily non-cash restructuring and impairment charges in the second quarter of 2018, and an annualized reduction in operating expenses of approximately $13 million. The Company does not expect a significant impact to its potential full year 2018 revenue due to strength in other areas of its business. Lattice is committed to supporting customers’ product and support requirements during the transition period.
Glen Hawk, Lattice Semiconductor’s Interim Chief Executive Officer, said, "After careful evaluation, millimeter wave was determined to be a non-core business, unable to achieve the required near-term scale to be profitable or to warrant any further investment. We considered various strategic alternatives for this business but none proved to be viable. We have taken this concrete action to further sharpen our focus on the compelling opportunities in our core business. We continue working to further improve operational efficiencies and to accelerate revenue growth of our existing semiconductor solutions into attractive control, connect and compute applications.”
2Q 2018 Results Conference Call
Lattice will provide further elaboration on today’s announcement when it holds its fiscal second quarter 2018 results conference call on Thursday, July 26, 2018. The dial-in number for the live audio call beginning on Thursday, July 26, 2018 at 5:00 p.m. Eastern Time is 1-888-684-5603 or 1-918-398-4852 with conference identification number 6199158. A live webcast of the conference call will also be available on the investor relations section of www.latticesemi.com.
A replay of the call will be available approximately 2 hours after the conclusion of the live call through 11:59 p.m. Eastern Time on August 2, 2018, by telephone at 1-404-537-3406. To access the replay, use conference identification number 6199158. A webcast replay will also be available on the investor relations section of www.latticesemi.com.
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. Any statements about Lattice’s expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Such forward-looking statements include statements relating to: expected restructuring and impairment charges and the timing of those charges; expected annualized reduction in operating expenses; and the Company’s expectation of no significant impact to its potential full year 2018 revenue. Other forward-looking statements may be indicated by words such as “will,” “could,” “should,” “would,” “may,” “expect,” “plan,” “project,” “anticipate,” “intend,” “forecast,” “future,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms or other comparable terminology.
Factors that may cause actual results to differ materially from the forward-looking statements in this press release include global economic uncertainty; overall semiconductor market conditions; market acceptance and demand for Lattice’s new products; Lattice’s dependencies on its silicon wafer suppliers; the impact of competitive products and pricing; and technological and product development risks. In addition, actual results are subject to other risks and uncertainties that relate more broadly to Lattice’s overall business, including those risks more fully described in Lattice’s filings with the SEC, including its annual report on Form 10-K for the fiscal year ended December 31, 2016, and Lattice’s quarterly reports filed on Form 10-Q.
You should not unduly rely on forward-looking statements because actual results could differ materially from those expressed in any forward-looking statements. In addition, any forward-looking statement applies only as of the date on which it is made. Except as required by law, Lattice does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
About Lattice Semiconductor Corporation:
Lattice Semiconductor (NASDAQ: LSCC) is a leader in smart connectivity solutions at the network edge, where the “things” of IoT live. Our low power FPGA, and video ASSP products deliver edge intelligence, edge connectivity, and control solutions to the consumer, communications, industrial, compute, and automotive markets. Our unwavering commitment to our global customers enables them to accelerate their innovation, creating an ever better and more connected world.