Lattice Semiconductor Says It Will Match Estimates

If nothing else, Lattice Semiconductor's (LSCC Quote) fourth quarter isn't getting worse.

The chipmaker reiterated its guidance for the fourth quarter after the market's close Wednesday. Lattice makes programmable logic devices for the distressed telecom, datacom and PC markets and it forecast Oct. 22 that revenues would fall 10% to $52.2 million from the third to the fourth quarter. Given the past six weeks' of performance, Lattice believes those estimates are still appropriate. Last year, Lattice earned 34 cents a share on $150.79 million in sales in the December quarter.

The Street was expecting as much from Lattice; consensus estimates called for a $52.26 million fourth quarter. On the profit front, Lattice re-emphasized its projected 40% sequential decline in earnings before the amortization of goodwill in Wednesday's announcement. The chipmaker continues to anticipate $4.2 million in earnings before goodwill during the quarter, a penny below Street estimates of 5 cents a share. Lattice shares climbed almost 3% in Wednesday trading to $21.93.

In the third quarter, Lattice suffered sequential decline of 21% in revenue to $58 million and 42% in earnings before goodwill to 7 cents a share, with gross margins of 68.1%. The year-over-year declines were even more telling, with revenue falling 62%, and earnings before goodwill plummeting 80% compared to the third quarter of 2000.

Earlier in the week, Lattice announced its intention to purchase Agere's field programmable gate array business for $250 million in cash. The company counted $540 million in cash and short-term investments as of Sept. 30, 2001.