Core Insights - SEALSQ Corp has announced a collaboration with Lattice Semiconductor to integrate TPM-based advanced post-quantum security capabilities into select Lattice FPGA solutions, addressing the growing need for quantum-resistant technologies in mission-critical applications [1][2] Company Overview - SEALSQ is focused on developing and selling semiconductors, PKI, and post-quantum technology hardware and software products, aiming to provide robust protection against quantum threats [7][9] - The company is pioneering the development of post-quantum semiconductors designed to safeguard sensitive data across various applications, including multi-factor authentication, smart energy, medical systems, defense, and industrial automation [8][9] Collaboration Details - The collaboration with Lattice Semiconductor aims to enhance the security of FPGA platforms by embedding SEALSQ's post-quantum capabilities, specifically the QS7001 and QVault TPM, into Lattice's secure FPGA architecture [2][3][4] - This partnership is expected to accelerate the transition to quantum-resistant systems for high-performance applications, demonstrating technical interoperability and supporting broader industry efforts toward next-generation quantum-secure hardware [4][5] Industry Context - The initiative aligns with the launch of the Year of Quantum Security 2026, emphasizing that quantum security is now an infrastructure and governance imperative, with both companies supporting the advancement of post-quantum standards recommended by organizations like NIST [5]

Core Viewpoint - Lattice Semiconductor (LSCC) reported strong financial results for Q4 FY2025, with revenue of $145.8 million, exceeding market expectations, and provided a robust guidance for Q1 FY2026, projecting revenue between $158 million and $172 million [1] Financial Performance - The specific release date for Q1 FY2026 financial results has not been announced, but company guidance indicates revenue could significantly exceed analyst expectations of $148.2 million, marking a key observation point [2] - The company achieved a six-quarter high in order volume, with the book-to-bill ratio reaching its highest point in nearly a year and a half, indicating strong short-term visibility for performance [2] AI Business Development - Management anticipates that the revenue contribution from AI-related products will increase to "the twenties" percentage range by 2026, highlighting the accelerated adoption of low-power FPGA in AI servers as a trend to monitor [2]

Revenue Performance - Revenue for fiscal 2025 increased by $13.9 million, or 2.7%, to $523.3 million compared to fiscal 2024, driven by stronger demand in data center applications [193]. - Revenue from the Communications and Computing end market rose by 28% in fiscal 2025 compared to fiscal 2024, primarily due to increased demand for AI-specific servers and wireline networking components [198]. - Revenue from the Industrial and Automotive end market decreased by 18% in fiscal 2025 compared to fiscal 2024, attributed to softer end market demand and ongoing inventory normalization [199]. - Revenue from Asia accounted for 67.6% of total revenue in fiscal 2025, with a 6.3% increase compared to fiscal 2024 [201]. - Total revenue from the Americas was $102.8 million, representing 19.6% of total revenue, with a 1.5% increase from fiscal 2024 [201]. - The overall revenue decline of 30.9% from fiscal 2023 to fiscal 2024 was primarily due to market conditions and inventory adjustments by customers [193]. - Revenue from distributors accounted for 83.8% of total revenue in fiscal 2026, a decrease from 89.4% in fiscal 2024 [203]. Gross Margin and Expenses - Gross margin for fiscal 2025 was 68.2%, an increase from 66.8% in fiscal 2024 [192]. - Gross margin increased to 68.2% in fiscal 2026, up 140 basis points from 66.8% in fiscal 2024, primarily due to the non-recurrence of a $7.0 million one-time charge [204]. - Research and development expenses increased to $188.0 million, representing 35.9% of revenue in fiscal 2025, up from 31.3% in fiscal 2024 [192]. - Research and development expenses rose to $187,983,000 in fiscal 2026, representing 35.9% of total revenue, an increase from 31.3% in fiscal 2024 [206]. - Selling, general and administrative expenses rose to $153.6 million, accounting for 29.4% of revenue in fiscal 2025, compared to 23.0% in fiscal 2024 [192]. - Selling, general, and administrative expenses increased to $153,632,000 in fiscal 2026, accounting for 29.4% of total revenue, up from 23.0% in fiscal 2024 [209]. Income and Cash Flow - GAAP Net income for the year ended January 3, 2026, was $3.1 million, with a margin of 0.6%, compared to $61.1 million (12.0% margin) in 2024 and $259.1 million (35.1% margin) in 2023 [223]. - Adjusted EBITDA for fiscal 2025 was $183.0 million, representing a margin of 35.0%, an increase from $162.0 million (31.8% margin) in fiscal 2024 [225]. - Cash provided by operating activities increased to $175.1 million in fiscal 2025 from $140.9 million in fiscal 2024, a rise of $34.2 million [232]. - Net cash used in financing activities rose to $115.7 million in fiscal 2025 from $94.5 million in fiscal 2024, primarily due to stock repurchases [234]. - The company had cash and cash equivalents of $133.9 million as of January 3, 2026, with approximately $73.6 million held by foreign subsidiaries [231]. Future Outlook - The company expects AI-related revenue to grow over the next few years based on a growing pipeline of AI-related design wins across all end market segments [199]. - The company expects research and development expenses to increase in the future but to decline as a percentage of revenue [208]. - The company may consider acquisition opportunities to expand its product or technology portfolios and may seek additional equity or debt financing for this purpose [229]. Other Financial Metrics - Interest income (expense), net decreased to $2,896,000 in fiscal 2026, representing 0.6% of total revenue, down from 0.8% in fiscal 2024 [214]. - Other income (expense), net improved to $(751,000) in fiscal 2026, a decrease of 65.5% compared to $(2,176,000) in fiscal 2024 [215]. - Income tax expense for fiscal 2026 was $10,293,000, a significant increase from a benefit of $(24,902,000) in fiscal 2024 [216]. - Restructuring costs decreased to $4,044,000 in fiscal 2026, down 67.1% from $12,291,000 in fiscal 2024 [212]. - A hypothetical 100 basis point change in interest rates would have resulted in less than $1.5 million change in interest income as of January 3, 2026 [243]. - The company entered into a 2022 Credit Agreement on September 1, 2022, with no significant long-term commitments for capital expenditures as of January 3, 2026 [228].

Core Viewpoint - Lattice Semiconductor (LSCC) is experiencing solid improvements in earnings estimates, which may lead to continued short-term price momentum and a favorable earnings outlook [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Lattice Semiconductor's earnings prospects, driving higher estimates that are expected to reflect positively in the stock price [2]. - The current quarter's earnings estimate is projected at $0.35 per share, representing a 59.1% increase from the previous year, with an 8.66% rise in consensus estimates over the last 30 days [6]. - For the full year, the earnings estimate is expected to be $1.53 per share, indicating a 45.7% increase from the prior year, with four estimates moving higher and a 7.54% boost in consensus estimates [7][8]. Zacks Rank - Lattice Semiconductor has achieved a Zacks Rank 1 (Strong Buy) due to strong agreement among analysts in revising earnings estimates upward, which has historically led to significant outperformance [3][9]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have been shown to significantly outperform the S&P 500 [9]. Stock Performance - Lattice shares have increased by 17.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Lattice Semiconductor (LSCC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a chan ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Viewpoint - Lattice Semiconductor (LSCC) has not effectively leveraged the current AI market trends despite being a semiconductor company, which raises questions about its growth potential in this sector [1]. Company Analysis - Lattice Semiconductor was previously rated as a 'Hold' more than two years ago, indicating a lack of significant changes in its investment outlook since then [1]. - The company operates within the semiconductor industry, which is currently experiencing a surge in interest due to advancements in AI technology [1]. Industry Context - The semiconductor industry is witnessing a frenzy driven by AI developments, yet LSCC has not capitalized on this opportunity, suggesting potential challenges in its strategic positioning [1].

Core Viewpoint - Lattice Semiconductor Corp. (NASDAQ: LSCC) has shown strong revenue performance, reaching an all-time high stock price, and is targeting double-digit growth by 2026 [1][7]. Financial Performance - The company reported a revenue increase of 2.7% year-on-year, growing from $509 million in 2024 to $523 million [2]. - In the fourth quarter, revenues rose by 9.3% to $145.8 million compared to $117 million in the same period last year, although the company experienced a net loss of $7.6 million, an improvement from a loss of $16.5 million [3]. - For the first quarter of the upcoming year, Lattice Semiconductor aims for revenue growth of 31% to 43%, projecting revenues between $158 million and $172 million, up from $120.1 million in the same quarter last year [4]. Earnings Outlook - Non-GAAP earnings per share for the first quarter are expected to be between $0.34 and $0.38, representing a significant increase of 54% to 72% from the $0.22 reported in the first quarter of 2025 [4]. Stock Performance - During intra-day trading, the stock reached a peak price of $107.73 before closing at $105.77, reflecting a 16.29% increase [2].

Core Viewpoint - Lattice Semiconductor's stock surged 12.2% following strong fourth-quarter earnings and optimistic first-quarter revenue guidance, driven primarily by growth in its data center business [1][2][4]. Financial Performance - In the fourth quarter, Lattice reported a revenue increase of 24.2% to $145.8 million, surpassing analyst expectations, while adjusted earnings per share (EPS) rose 116% to $0.32, meeting forecasts [3]. - The company's first-quarter guidance projects revenue between $158 million and $172 million, indicating over 37% year-over-year growth, with adjusted EPS expected to be $0.36 at the midpoint, reflecting a 64% year-over-year increase [4]. Business Segments - The data center segment has become a significant driver of revenue, increasing from 49% in the previous year to 64% in the fourth quarter [5]. - Despite challenges in the industrial and automotive segments, which saw a year-over-year decline, management anticipates stabilization and recovery in these areas in the upcoming year [5]. Market Valuation - Lattice's stock has appreciated approximately 150% since April 2025, currently trading at 64 times this year's adjusted earnings estimates, factoring in a projected 50% earnings growth [6]. - While the AI revolution and recovery in industrial and automotive sectors are expected to boost earnings, much of this potential upside appears to be already reflected in the stock price [7].

Core Insights - Lattice Semiconductor Corporation (LSCC) reported modest fourth-quarter 2025 results, with revenues exceeding estimates and adjusted earnings meeting expectations, driven by AI and data center demand [1][10] Financial Performance - The company reported a GAAP net loss of $7.6 million or 6 cents per share, compared to a net income of $16.5 million or 12 cents per share in the same quarter last year, primarily due to higher operating costs and tax expenses [2] - Non-GAAP net income for the quarter was $43.7 million or 32 cents per share, up from $20.2 million or 15 cents per share in the prior year, aligning with consensus estimates [3] - For the full year 2025, GAAP net income was $3.1 million or 2 cents per share, down from $61.1 million or 44 cents per share in 2024, while non-GAAP net income increased to $145.2 million or $1.05 per share from $124.4 million or 90 cents per share in 2024 [3] Revenue Breakdown - Net sales for the fourth quarter rose to $145.8 million from $117.4 million year-over-year, driven by growth in the Communications & Computing segment, surpassing the Zacks Consensus Estimate of $143.5 million [4][10] - Communications and Computing revenues increased significantly to $92.6 million from $58 million, while revenues from Industrial and Automotive declined to $44.1 million from $49.2 million, and Consumer revenues fell to $9.1 million from $10.2 million [5] Geographic Distribution - In Q4 2025, 73% of revenues were generated from Asia, 14% from the Americas, and 13% from Europe and Africa [6] Profitability Metrics - Non-GAAP gross profit for the quarter was $101.2 million, up from $72.9 million in the prior year, with margins improving to 69.4% from 62.1% [7] - Non-GAAP operating expenses increased to $56.4 million from $52.8 million year-over-year, while adjusted EBITDA rose to $53.2 million from $29.1 million, with respective margins of 36.5% and 24.8% [8] Cash Flow and Liquidity - The company generated $57.6 million in cash from operations in Q4, compared to $45.4 million in the same quarter last year, and for 2025, cash from operating activities totaled $175.1 million, up from $140.9 million in 2024 [11] Future Outlook - For Q1 2026, Lattice expects revenues between $158 million and $172 million, with non-GAAP gross margins projected to be between 68.5% and 70.5%, and non-GAAP earnings anticipated to be in the range of 34-38 cents per share [12]