Lattice Semiconductor Corporation (LSCC) Q1 2012 Earnings Call April 19, 2012 6:00 PM ET Executives David Pasquale – Global IR Partners Darin Billerbeck – President and CEO Joseph Bedewi – Corporate VP and CFO Analysts Tristan Gerra – Tristan Gerra Ian Ing Richard Shannon Sundeep Bajikar Ruben Roy Nathan Johnsen Bill Dezellem David Duley Brad Rosenbaum Darin Billerbeck Presentation Operator
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The matters that we discuss today, other than historical information, including forward-looking statements relating to our future financial performance and other performance expectations. Investors are cautioned that forward-looking statements are neither promises nor guarantees. They involve risks and uncertainties that may cause actual results to differ materially from those projected in the forward-looking statements.Some of those risks and uncertainties are detailed in our filings with the Securities and Exchange Commission including our fiscal year 2010 Form 10-K filled on March 11 in our quarterly reports on Form 10-Q. The company disclaims any obligation of publicly update or revised any such forward-looking statements to reflects events or circumstances that occur after this call. Our prepared remarks also will be presented within the requirement of SEC Regulation G regarding generally accepted accounting principles for GAAP. I would like to now turn the call over to Mr. Darin Billerbeck. Please go ahead, sir. Darin Billerbeck Thank you, David. And thanks to everybody for joining us on the call today. The first quarter developed generally as we expected to. There were no major surprises in our core market or geographies although distribution continues to be weak. We saw varying degrees of order strength on customer by customer basis. All the inventory level and those of our distributors remained healthy. Our backlog improved through the quarter as we began to see increased sales activities for Q2 and beyond. The backlog improvement aligned with the industry expectation for a stronger second half of the year. In terms of Q1 revenue was $71.7 million of 2.2% of Q4. This is in line with our prior guidance reflecting a softening of demand and worldwide distribution. Gross margin was at the low end of our guidance reflecting customer mixture, lower revenue and SiliconBlue acquisition cost, which combined offset our prior restructuring effort.
In terms of key accomplishments in the quarter we substantially completed the integration of our SiliconBlue acquisition. We began marketing our new latest ECT4 and ice product line and expanded our traction of ECP3, which added support for video cameras and 3G applications. In addition we attained meaningful traction with market shipment.With regards SiliconBlue we now have innovative sales operations and R&D teams. Customers can (inaudible) order iCE products through any later sales person rep or distribution channel. Culturally, the integration process has been a very positive experience for our employees as everyone has worked together to take the best from both companies. Overall, we are highly pleased with our progress of our integration team and their ability to execute to our 100-day integration plan. On the new product front, we are excited about our ECP4 launch. Given the success of our award winning ECP3 product, we have high expectations for ECP4. ECP4 is our new low cost, low power 6 gig SERDES product for the wireless LTE comms market. We also announced a series of important milestone achievements and new developments in Q1. These included reaching our $20 million programmable mixed signal product shipment, extending the power, package size and performance of our popular ECP3 SPJ family, continuing to expand support for the consumer segment including several advances for 3D and video camera application. We are currently shipping production on our iCE40 product to our mobile consumer customers. This is significant as we’re driving to complete the transition from iCE65 to iCE40 by the end of Q3. Finally, we announced our first MIPI BIF solution in support of the mobile product chipset standard. In terms of adding color for the quarter, the revenue mix of New, Mainstream and Mature was 16%, 53% and 31% of revenue respectively in Q1. These lifecycle categories reflect updated classifications. Revenue from our new products were up 38% quarter-on-quarter, reflecting strength in our ECP3 product shipments in the communications market. Read the rest of this transcript for free on seekingalpha.com