The News: Lattice Semiconductor’s revenue for the fourth quarter of 2022 reached $175.9 million, up 24 percent from $141.8 million one year ago, as the low-power programmable FPGA maker reported its latest earnings figures on February 13. Lattice also reported its earnings for its full fiscal year of 2022, including revenue of $660.3 million, up 28 percent from $515.3 million one year ago. Read the full Press Release from the Lattice Semiconductor website.
Lattice Semiconductor Revenue in Q4 2022 Hits $175.9M, Up 24% YoY
Analyst Take: Lattice Semiconductor’s revenue increase of 24 percent in Q4 is impressive for the company as it continued to see healthy growth in its most important industrial, automotive, communications, and computing segments.
And Lattice is set for further growth, we believe, due to its innovative and useful Field-Programmable Gate Array (FPGA) product line that is seeing sustained growth in a still difficult macroeconomic environment around the world.
Here are Lattice Semiconductor’s Q4 and full FY2022 earnings results by the numbers:
- Q4 2022 revenue of $175.9 million, up 24 percent from $141.8 million one year ago. The Q4 revenue figure topped analyst consensus estimates of $175.2 million from Investing.com.
- Q4 2022 non-GAAP net income of $68.4 million, up 50.8 percent from $45.4 million one year ago.
- Q4 2022 non-GAAP earnings per diluted share (EPS) of $0.49 per share, up from $0.32 per share one year ago. The EPS beat analyst consensus estimates of $0.48 per diluted share from Investing.com.
- Q4 2022 non-GAAP gross margin of $123 million, up 33 percent from $92 million one year ago.
- Q4 2022 non-GAAP gross margin by percentage of 70 percent, up from 65.1 percent one year ago.
- Full FY2022 revenue of $660.3 million, up 28 percent from $515.3 million one year ago.
- Full FY2022 non-GAAP net income of $246.6 million, up 63.5 percent from $150.8 million one year ago.
- Full FY2022 non-GAAP EPS of $1.75 per share, up from $1.06 per share one year ago.
- Full FY2022 non-GAAP gross margin of $456.3 million, up 40 percent from $325.7 million one year ago.
- Full FY2022 non-GAAP gross margin by percentage of 69.1 percent, up from 63.2 percent one year ago.
This was another great quarter from Lattice Semiconductor, especially because it occurred during the tough macroeconomic conditions that are affecting many other companies across the tech and consumer markets. Despite those challenges, though, those macroeconomic conditions are a non-factor for Lattice’s fast growth. For Lattice so far, market taking, strong positioning, and in-demand products are all drivers of this growth for the company.
Lattice Semiconductor’s market focus is on the low- to mid-tier FPGA business segment, and it continued to target this market in December of 2022 with the launch of its new Lattice Avant FPGA products. The Avant FPGAs will help double its addressable market and give it products that can be used in markets where it does not have a major sales presence, according to the company. This, we believe, was a great move to bolster its future sales and performance. New products to generate new ideas and creativity for manufacturers is always a solid investment that can pay future rewards.
The company also continues to gain sales because its highly programmable FPGAs give critical flexibility to device manufacturers by being usable in a wide range of products for businesses and consumer markets. The affordable pricing of the company’s FPGAs, as well as the software portfolio Lattice makes available for their efficient and broad use, also help the company increase its sales in the marketplace.
These Q4 and FY2022 earnings results show us that again Lattice is doing everything right to perform well and carve out an important niche in the low-power FPGA space.
Lattice Semiconductor Revenue by Markets
In Q4, 65 percent of the company’s business was in Asia, down from 71 percent one year ago. Nineteen percent of the company’s business was in the Americas, unchanged from one year ago, while 16 percent of its business was in Europe and Africa, up from 10 percent one year ago.
Lattice Semiconductor’s Q4 2022 revenue by end market was 40 percent in communications and computing, down from 43 percent one year ago, and 51 percent in industrial and automotive, up from 42 percent one year ago. The company’s revenue in the consumer market totaled six percent in Q4, down from nine percent one year ago, and totaled three percent in the licensing and services market, down from six percent one year ago.
For the full FY2022, 71 percent of the company’s business was in Asia, down from 74 percent one year ago. Fifteen percent of the company’s business was in the Americas, down from 16 percent one year ago, while 14 percent of its business was in Europe and Africa, down from 10 percent one year ago.
And for the full FY2022, Lattice Semiconductor’s revenue by end market was 42 percent in communications and computing, unchanged from one year ago, and 48 percent in industrial and automotive, up from 44 percent one year ago. The company’s revenue in the consumer market totaled seven percent in FY2022, down from 10 percent one year ago, and totaled three percent in the licensing and services market, down from four percent one year ago.
Lattice Semiconductor Revenue Guidance for Q1 FY2023
As part of its Q4 earnings report, Lattice Semiconductor provided earnings guidance for the first quarter of FY2023.
Lattice said it expects Q1 2023 revenue to be between $175 million to $185 million, with a non-GAAP gross margin percentage of 70 percent, plus or minus one percent. The company said it also expects Q1 2023 non-GAAP total operating expenses between $53 million to $55 million.
Lattice Semiconductor Revenue Overview
It was a great Q4 and FY2022 for Lattice Semiconductor, positioning this experienced FPGA maker in a good place for the future, even amid the tough markets being experienced by many other technology and consumer companies today.
Jim Anderson, Lattice’s president and CEO, and the rest of his leadership team are responding well to the market and are taking this company to a great position with diversification, a broad product line, and engineering prowess.
And as the number of semiconductors being integrated into the newest cars and trucks – gasoline-powered and EVs – continues to skyrocket, we see this segment as growing even more in importance and market share for Lattice. The company’s FPGAs are seeing growing in-vehicle markets for systems including autonomous driving components, infotainment, telematics, and sensing equipment in the automotive space. It is an exciting time for Lattice to be in these markets, and it will be interesting to watch the company’s progress as it responds to the challenges.
We continue to be bullish on Lattice, its technologies, its products and its outlook for the future.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
Other insights from Futurum Research:
Lattice Semiconductor Delivers Excellent Q3 2022 Growth
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Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
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