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Lattice Semi Cuts Sales Outlook

The company cites 'less-than-seasonal' demand.

Updated from 4:50 p.m. EDT


Lattice Semiconductor

(LSCC) - Get Free Report

trimmed its sales expectations for the current quarter, blaming less-than-seasonal demand from North American distributors.

But the Hillsboro, Oregon, programmable chip maker said it will incur a smaller-than-expected restructuring charge from layoffs in the third quarter.

After initially tumbling nearly 10% in extended trading, Lattice shares were up a penny at $5.57.

Lattice said it now expects revenue in the third quarter to be flat to down 2% sequentially, vs. its previous forecast of a flat-to-4% increase in sales.

The new guidance suggests a range of $58 million to $59.2 million. Analysts polled by Thomson Financial were expecting $60.7 million in third-quarter revenue.

Lattice said that its new products continue to grow strongly in the third quarter, but that sales of mature products are experiencing a greater-than-expected decline.

The sales guidance is being reduced "primarily because of weakness in North American distribution resale, which has not shown an expected seasonal increase thus far during the month of September," the company said in a press release.

Lattice also said Thursday that it will take a one-time charge between $1.4 million and $1.7 million in the third quarter as a result of recently announced plans to lay off 7% of its workforce.

The restructuring cost is less than Lattice's initial expectation of $1.8 million to $3 million charge.

The company said it expects the move to lower its operating expenses by $1.4 million and $1.6 million beginning in the fourth quarter.