Headquartered in Hillsboro, Oregon, and established in 1983, Lattice Semiconductor Corporation, through its various entities, specializes in the global design and distribution ...
Lattice Semiconductor Corporation, headquartered in Hillsboro, Oregon, was founded in 1983 and has evolved into a global leader in low-power programmable logic devices. The company specializes in Field Programmable Gate Arrays (FPGAs), offering product families such as Certus-NX, ECP, Mach, i40, and CrossLink, as well as application-specific standard products (ASSPs) ...Lattice Semiconductor Corporation, headquartered in Hillsboro, Oregon, was founded in 1983 and has evolved into a global leader in low-power programmable logic devices. The company specializes in Field Programmable Gate Arrays (FPGAs), offering product families such as Certus-NX, ECP, Mach, i40, and CrossLink, as well as application-specific standard products (ASSPs) for video connectivity. Lattice's solutions are designed to enable secure, intelligent, and connected systems across various sectors including communications, computing, consumer electronics, industrial, and automotive. The company operates as a fabless semiconductor provider, focusing on low-power, small-form-factor devices that are essential for edge computing, AI, and network infrastructure. With a commitment to innovation, Lattice invests heavily in R&D (about 33.4% of revenue) and leverages its intellectual property through licensing and patent monetization. The company serves OEMs directly and through a network of distributors and representatives worldwide. Financially, Lattice has demonstrated strong gross margins (67.7%) and a solid balance sheet with no debt, but trades at high valuation multiples. Under the leadership of CEO Ford Tamer, appointed in September 2024, the company continues to drive growth through strategic initiatives targeting the expanding edge AI and low-power FPGA markets. With approximately 1,174 employees, Lattice fosters a culture of innovation and collaboration, aiming to enable designers to solve complex problems with its versatile product portfolio.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$523.3M
+2.7%
+17.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$3.1M
-95.0%
-11.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+68.2%
+2.1%
+2.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.9%
-56.8%
-28.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+0.6%
-95.1%
-24.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$132.6M
+10.6%
+104.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+25.3%
+7.7%
+73.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
11.0%
+410.7%
-10.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.09x
-15.6%
-13.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to Lattice Semiconductor Second Quarter 2026 Earnings Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Muscha, Vice President of Investor Relations. Thank you, Rick. You may begin.
Rick Muscha: Thank you, operator, and good afternoon, everyone. With me today are Fouad Tamer, Lattice's CEO; and Lorenzo Flores, Lattice's CFO. We will provide a financial and business review of the second quarter of 2026 and the outlook for the third quarter of 2026, followed by a brief overview of AMI and its business model. If you have not yet obtained a copy of our earnings press release, it can be found at our company website in the Investor Relations section at latticesemi.com. I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that is currently available and that actual results may differ materially. We refer you to the documents that the company files with the SEC, including our 10-Ks, 10-Qs and 8-Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This call includes and constitutes the company's official guidance for the third quarter of 2026. 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. We refer primarily to non-GAAP financial measures during this call. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. For historical periods, we provided reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com. With that, I'll turn the call over to our CEO, Fouad Tamer.
Fouad Tamer: Thank you, Rick, and welcome, everyone, to our Second Quarter Earnings Call. Lattice delivered exceptional financial results this quarter, reflecting a healthy market environment, compelling catalysts and our own strong execution. We have a focused and consistent strategy to create durable value by growing faster than the markets we serve. We do this by expanding into new applications, serving leadership customers, delivering differentiated innovation and driving sustainable shareholder value as a result. We are executing against each of these strategic elements and the results are increasingly visible across the business. Following last week's close of the AMI acquisition, Lattice is now positioned to deliver even greater value …