Lattice's CEO Present At 2012 Citi Technology Conference (Transcript)

Lattice Semiconductor Corporation (LSCC)

2012 Citi Technology Conference Transcript

September 5, 2012 3:00 PM ET


Darin Billerbeck - President and CEO



Unidentified Analyst

With us from the company we have Darin Billerbeck presenting today. So let’s get started.

Darin Billerbeck

Okay. Thanks [Sandra]. Thanks everybody for listening in. We are going to (inaudible). Here is our forward to the next page. Okay. So I’m going to go with the Lattice corporate update first, Lattice is (inaudible) in the wrong place, so if you can.

Okay. Normal Safe Harbor which discuss if we make any forward-looking statements and all other things we discuss, be careful about what we do with information today.

I’m going to talk a little bit about who we are? Obviously, our programmable devices allow customers to do a lot of things. Some of the marketplace that we’re focus on little bit different. We look at ourselves if not really competitive, with some of the people, everybody think we are competitive with, we kind of strike out really on all the areas where we can win, we define, and we can profitably grow.

So we want to lead with lower power, we want lead with low cost, no matter what we call a portable innovation. So we don’t want to just innovate to sake of innovating it, because we are solving problem for the customers that we support.

Also we always want to grow new product, specifically in the areas that we feel not been a problem as of late. And then the healthy balance sheet and financial strength we want to obtain, which is also fair healthy. In the last 10 years we sold a lot of these things. So billions about anything, I know that, McDonald probably sold the most billion of anything, that’s pretty big.

If you look what we’ve done in the last 12 months essentially, when I came to work at Lattice, they ask me to really help revamp the R&D structure. We hadn’t got the product out. We haven’t been able to take products out or sample products in a timely manner at multiple sites.

So the first thing we did was, we really discontinued some of the operations, some of the companies have already offshore a lot of operations Lattice and now we are still doing toward test technology development and a lot of manufacturing in Oregon.

Since we’ve move that over to the Philippines, we discontinued the Allentown silicon development site, we opened obviously the Philippines to support some of the initiatives we have and then we repurposed our Shanghai facility to support primarily on user interface and software. We do some hardware support for them, just a validation and verification, but primarily focused on R&D.

And then we acquired Silicon, also we strengthen the product line and channel market for two new ECP3, those derivatives were fairly new with high speed, low power and a lot of miniature versions for small firm factors, things video, cameras or collision of VoIP.

And then finally, we strengthened our distribution network through new hope, which was important for us. Because again, it seems like a lot of distributor network line cards have everybody in their brother on it and we really wanted to be the number one focus and at NuHo we -- we handle NuHo both from a American standpoint and also from Asia, so we are biggest line card that they have.

Finally, we acquired SiliconBlue, a lot of people thought that we acquired SiliconBlue just for comp, not comp but for consumer. That’s not really true. We acquired them because we felt SiliconBlue technology can able us to growth both through distribution and all of our market segments. So even though we primarily target at a few key OEMs for consumer, it can go just about everywhere and our data really prove that as we want to.

It also provided a scalable month, non-volatile memory technology which today we are the only one that had pursued that. What that means is we can scale all the way to 28-nanometer through high-K metal gate on an OTV or we can make up few more cycles if we want to depending on the architecture.

And then, last year we grew the topline revenue about 7%. I don’t want to compare that to anyone, but that’s pretty good for the environment we are in.

Our environment, realistically there is a big huge comp infrastructure, a lot of people see us just playing in that last inch if you will of the infrastructure which is really the Access portion of it. If you look at long-haul moving all the way over to the enterprise, the speed of the long-haul is obviously much higher than what we in pursue or what we are capable of delivering.

As you move in more towards the Access which is residential enterprise, you can start to see our capability is matching. We don’t just sell our ECP330 family into that market, we sell majority of our XO product also. So our biggest product today is our XO product which does sell into comp. So, XO, XO2, iCE and ECP3 will all be sold into that infrastructure.

If you look at, how we look, as the Internet, we call the Internet a things, if you haven’t seen that, if all appliances is connected, whether it would be LTE or 3G or even 802.11. But from car to tablets, the refrigerators, the smartphones, everything is connected and we are really trying to focus on is the areas that we think will provide unique capability to our customer, but also the right product feature set that enable them to succeed.

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