Lattice Semiconductor (LSCC)
Q4 2012 Results Earnings Call
January 24, 2013 5:00 PM ET
David Pasquale - Global IR Partners
Darin Billerbeck - President and CEO
Joe Bedewi - Corporate Vice President and CFO
Tristan Gerra - Baird
Ian Ing - Lazard Capital Markets
Sundeep Bajikar - Jefferies & Company
Richard Shannon - Craig-Hallum
David Duley - Steelhead Securities
Bill Dezellem - Tieton Capital
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Thank you. I'll now turn the call over to Mr. David Pasquale, of Global IR Partners. Sir, the floor is yours.
Thank you, operator. Welcome everyone to Lattice Semiconductor's fourth quarter 2012 results conference call. Joining us from the Company today are Mr. Darin Billerbeck, the Company's President and CEO; and Mr. Joe Bedewi, Lattice's Chief Financial Officer. Both executives will be available for Q&A after the prepared comments.
If you have not yet received a copy of today's results release, please e-mail Global IR Partners using email@example.com or you can get a copy of the release off of the Investor Relations section of Lattice Semiconductor's website.
Before we begin the formal remarks, I'll review the Safe Harbor statements. It is our intention that this call will comply with the requirements of SEC Regulation FD. This call includes and constitutes the Company's official guidance for the first quarter of fiscal 2013. If at any time after this call, we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly-announced conference call.
The matters that we discuss today, other than historical information, include 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 2011 Form 10-K and our quarterly reports on Form 10-Q. The Company disclaims any obligation to publicly update or revise any such forward-looking statements to reflect events or circumstances that occur after this call. Our prepared remarks will also be presented within the requirements of SEC Regulation G regarding Generally Accepted Accounting Principles or GAAP.
I would like to now turn the call over to Mr. Darin Billerbeck. Please go ahead, sir.
Thank you, David, and thanks to everyone for joining us on the call today. In terms of Q4, revenue was $65.9 million. This was in line with our revised guidance for revenue to decline 6% to 8% compared to Q3. Our results reflect to continue challenging macro environment with broad based weakness across nearly all market segments, geographies, except for consumer. We do not expect positive macroeconomic improvements in the short term; we are seeing some encouraging signs in the first half of 2013. We are cautiously optimistic based on channel feedback, inventory reports and forecast from the comms market segment.
As we move through 2013, we expect to benefit from attraction in the consumer market segment. With the iCE40 family, we were successful on our efforts to penetrate the consumer market in 2012. We shipped more than 15 million iCE40 devices over the past year making iCE40, one of our fastest ramping product families ever.
We see more room for growth given the size of the consumer mobile market, low cost, low density and affordable innovation from our OTP technology makes iCE40 family a winner for us. We are also benefitting from aggressively and targeted sales and marketing efforts.
As part of our corporate restructuring we took the opportunity to add several new senior managers with highly proven industry background. They're excited by our market position, our market strategy and the strength of our product line up.
We continue to up level Lattice talent to better align our capabilities with our market growth opportunities. In terms of added color for the fourth quarter, the revenue mix of new, mainstream and mature was 29%, 53% and 18% of the revenue respectively in Q4.
On a full year basis the revenue mix was new 22%, main 56% and mature 22%. Revenue from our new product was up 1.7% quarter-on-quarter. For the full year 2012 compared to 2011 new product revenue increased approximately, 80% reflecting strength in our ECP3 and iCE40 product shipments. This is in line with our comments in prior calls and continue to reflect our momentum in both consumer and non-consumer areas. 2012 was clearly a transition year for Lattice. We expect to see continued growth in our product segments with a focus on accelerating both low density and ultra low-density design win.
Mainstream products were down approximately 9% quarter-on-quarter. On a full yea basis mainstream products were down about 18%. This reflects general macro economic weakness that is impacted 2012.
Revenue from our mature product was down about 14% when compared to the prior quarter, revenue from our mature product was down about 35% on a full year basis. While we anticipate declining revenues in mature market segment, these products move to the lifecycles, in 2012, the decline was further impacted by overall market condition and weakness in the comp segment.