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Lattice Posts Loss

Chipmaker vows to cut costs amid sales slowdown.


Lattice Semiconductor

(LSCC) - Get Lattice Semiconductor Corporation Report

swung to a loss in the third quarter, as sales of one the company's main chip lines slowed.

And with the outlook for the current quarter lagging Wall Street estimates, the company vowed to cut costs.

The Hillsboro, Or., maker of programmable chips said Thursday that revenue in the three months ended Sept. 29 slipped 8% year over year to $58.3 million.

That was at the low end of the trimmed forecast Lattice provided in September, and just shy of the $58.8 million expected by analysts.

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Lattice said that revenue for new products were up 73% year over year. However, mature products, which account for 33% of total revenue, suffered a "substantial" decline, which the company did not specify.

"This decline negatively impacted both our revenue and gross margin for the quarter," said CEO Steve Skaggs in a statement.

Lattice posted a net loss of $4.4 million, or 4 cents a share, vs. net income of $0.9 million, or 1 penny a share, at this time last year. The company said the figure includes $5.5 million in restructuring charges, amortization charges and stock compensation expenses.

Analysts polled by Thomson Financial were looking for EPS of 1 penny, excluding stock compensation charges. It was not immediately clear how the other charges compared with The Street's EPS estimate.

"As our current financial results are below expectations, we will continue to seek opportunities to minimize operating expenses in the short term," said Skaggs.

The company said operating expenses in the current quarter will range between $33 million and $33.5 million, compared with $35.2 million in the third quarter.

Lattice projected revenue between $57 million and $59 million in the current quarter, compared with the $61.1 million expected by analysts.

The company's stock was unchanged in extended trading Thursday.