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Ticonderoga Securities Maintains a 'Neutral' on Lattice Semi (LSCC); Weak Sales Trends, Lowering Estimates

October 22, 2010 1:05 PM EDT
LSCC Hot Sheet
Rating Summary:
    3 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 6 | New: 17
Ticonderoga Securities maintains a 'Neutral' on Lattice Semi (Nasdaq: LSCC).

Ticonderoga analyst says, "We are lowering our (Q4) sales estimate to $73.5 million from $82.5 million and pro forma EPS to $0.08 from $0.10. Our 2010 sales estimate is now $298.4 million (prior $309.7 million) and pro forma EPS is $0.44 (prior $0.50). As highlighted above, we are assuming weak sales due to a possible inventory correction. Therefore, our 2011 sales estimate is now $298.4 million (prior $350.3 million) and pro forma EPS is $0.40 (prior $0.50)."

"Following a strong 1Q10 in which Lattice gained significant market share, we believe Lattice will actually end the year with a net gain in market share despite losing share over the last three quarters (including 4Q10). We believe Lattice's wireless products are targeting OEMs that are under-served by Xilinx (Nasdaq: XLNX) and Altera (Nasdaq: ALTR), leading to some market share gains for Lattice. For CY2010, we believe Altera's strong product cycles will lead to ~4% market share gains, while Xilinx will lose ~3% and Lattice will gain 26 bps. Our market share is based on four PLD suppliers (Xilinx, Altera, Lattice and Actel (Nasdaq: ACTL)). While the communications market remains the top-end market for PLD companies, we believe diversification of end-markets is beginning to deliver dividends."

To see all the upgrades/downgrades on shares of LSCC, visit our Analyst Ratings page.

Shares are trading down $0.01 to $4.45 today.



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