Lattice Semi Delays Results

A possible overstatement of deferred income its cited for the delay.
Author:
Publish date:

Shares of chipmaker

Lattice Semiconductor

(LSCC) - Get Report

traded down Friday after the company said it's delaying the release of fourth-quarter financial results because it may have made an accounting error.

Around 1:30 p.m. EST, the stock was off 66 cents, or 5.3%, to $11.70.

Hillsboro, Ore.-based Lattice had planned to issue its latest business report on Jan. 28, but has now delayed the release until the second half of February.

In a statement, the company said management had become aware of a possible overstatement of deferred income. Deferred income is a balance sheet account that reflects Lattice's estimate of the potential gross margin on inventory held by distributors. Lattice has to estimate the balance of deferred income because its policy is to delay recognizing sales to distributors until the product is resold to end customers.

As of Sept. 30, 2003, Lattice said the reported balance in the account was $6.4 million.

Lattice said it's too early to say if it will need to restate any of its financial results, or whether such adjustments would be material in size.