Lattice Semiconductor (NASDAQ: LSCC) reported Q4 EPS of $0.17, $0.02 better than the analyst estimate of $0.15. Revenue for the quarter came in at $100.24 million versus the consensus estimate of $100.06 million.

• Gross Margin Expands to 59.2% for 4Q 2019 on a GAAP Basis and 59.6% on a Non-GAAP Basis from 56.6% and 56.7%, respectively, for 4Q 2018
• Operating Margin Increases to 15.5% of revenue for 4Q 2019 on a GAAP Basis and 24.3% on a Non-GAAP Basis from (1.8)% and 17.3%, respectively, for 4Q 2018
• Net Income Improves to $0.10 / $0.17 Per Diluted Share for 4Q 2019 on a GAAP / Non-GAAP Basis, from ($0.05) / $0.08, respectively, for 4Q 2018

Jim Anderson, President and Chief Executive Officer, said, "We made solid progress in 2019, as we drove a 210 basis point improvement in gross margin on a non-GAAP basis, and an 88% increase in non-GAAP net income for the full year. We are seeing the benefits of our business and product strategy, which is aligned with our customers and 100% focused on power efficient FPGAs. We remain focused on driving further improvements as we increase our cadence of new hardware products, solutions, and software stacks, including the launch of Nexus, our next-generation FPGA platform. The launch was ahead of schedule and serves as a testament to the execution of our product roadmap."

Sherri Luther, Chief Financial Officer, said, "We achieved significant improvements across our key financial metrics in 2019. For the full year 2019, GAAP diluted EPS increased 252% compared to the full year 2018 and improved 300% in Q4 2019 as compared to Q4 2018. We increased cash flow from operations by 141% for the full year 2019, continuing our focus on cash generation. Our improved financial performance allowed us to significantly reduce our leverage ratio to 1.3, as defined in our credit agreement, compared to a leverage ratio of 3.0 in the year ago fourth quarter. We remain focused on profitability and cash generation as we drive additional progress towards our target model."

GUIDANCE:

Lattice Semiconductor sees Q1 2020 revenue of $96-104 million, versus the consensus of $99.7 million.

Business Outlook - First Quarter of 2020:

• Revenue for the first quarter of 2020 is expected to be between $96 million and $104 million.
• Gross margin percentage for the first quarter of 2020 is expected to be 59.5% plus or minus 1% on a non-GAAP basis.
• Total operating expenses for the first quarter of 2020 are expected to be between $36 million and $37 million on a non-GAAP basis.

For earnings history and earnings-related data on Lattice Semiconductor (LSCC) click here.