Lattice Semiconductor(LSCC) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenue was $117.4 million, a decrease of 31.2$509.4 million, down 30.9% compared to 2023[5] - Revenue for the three months ended December 28, 2024, was $117.419 million, a decrease of 7.1$127.091 million in the previous quarter[24] - Net income for the year ended December 28, 2024, was $61.131 million, down from$259.061 million in the previous year, reflecting a significant decline[24] - GAAP net income for Q4 2024 was $16,514 thousand, compared to$7,190 thousand in Q3 2024, and $98,706 thousand for the year ended December 30, 2023[41] - Non-GAAP net income for Q4 2024 was$20,181 thousand, with a year-to-date total of $124,415 thousand, reflecting a significant increase from$62,801 thousand in the previous year[41] Margins and Expenses - GAAP gross margin for the fourth quarter was 61.1%, while non-GAAP gross margin was 62.1%[4] - Projected gross margin for Q1 2025 is expected to be 69.0% plus or minus 1% on a non-GAAP basis[13] - Gross margin for the same period was $71.753 million, resulting in a gross margin percentage of approximately 61$13.7 million in Q4 2024, impacting both gross and operating margins[36] - Total operating expenses for the year ended December 28, 2024, were $305.9 million, with non-GAAP operating expenses at$215.6 million[36] Cash Flow and Assets - The company achieved a free cash flow margin of 33.8% in the fourth quarter of 2024[6] - Cash and cash equivalents increased to $136.291 million from$128.317 million year-over-year, showing a positive cash flow trend[26] - The company reported a net cash provided by operating activities of $140.876 million for the year ended December 28, 2024, compared to$269.588 million in the previous year[29] - The company reported a GAAP net cash provided by operating activities of $45,421 thousand for Q4 2024, with an operating cash flow margin of 38.7$38.580 million, compared to 41.398 million in the previous quarter, indicating a reduction in R&D spending[24] - The company’s R&D expense as a percentage of revenue was 32.9% for Q4 2024, compared to 32.6% in Q3 2024[33] Shareholder Actions - The board authorized an additional 100 million for share repurchases, reducing dilution by over 4.3% since Q4 2020[8] Awards and Recognition - Lattice received over 20 industry awards in 2024, including recognition as the Most Respected Semiconductor Company for five consecutive years[8] Operational Metrics - The company reported a DSO (Days Sales Outstanding) of 63 days for Q4 2024, an improvement from 66 days in Q3 2024[33] - The company’s inventory days (DIO) decreased to 207 days in Q4 2024, down from 242 days in Q3 2024[33] - Revenue from the Communications and Computing segment was $58.0 million, accounting for 49$364.834 million, slightly down from $367.946 million as of December 30, 2023[26] - Total liabilities decreased to$132.971 million as of December 28, 2024, from $148.874 million a year earlier, indicating improved financial health[26] - The company incurred an impairment of acquired intangible assets amounting to$13.929 million during the year ended December 28, 2024[29] - The company recognized an impairment of acquired intangible assets of $13,929 thousand in Q4 2024[46] Future Outlook - The company expects first quarter 2025 revenue to be between$115 million and $125 million[13]