Breaking Down Lattice Semiconductor Corporation (LSCC) Financial Health: Key Insights for Investors

Breaking Down Lattice Semiconductor Corporation (LSCC) Financial Health: Key Insights for Investors

US | Technology | Semiconductors | NASDAQ

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Understanding Lattice Semiconductor Corporation (LSCC) Revenue Streams

Revenue Analysis

Lattice Semiconductor Corporation reported total revenue of $582.4 million for the fiscal year 2023, representing a 15.4% year-over-year increase from 2022.

Revenue Segment 2023 Revenue ($M) Percentage of Total Revenue
Communications 249.3 42.8%
Industrial 185.6 31.9%
Automotive 87.5 15.0%
Consumer 60.0 10.3%

Revenue growth highlights:

  • Communications segment grew 18.2% year-over-year
  • Industrial segment increased by 16.7%
  • Automotive revenue expanded 14.5%

Geographic revenue distribution for 2023:

Region Revenue ($M) Percentage
North America 276.8 47.5%
Asia Pacific 214.5 36.8%
Europe 91.1 15.7%



A Deep Dive into Lattice Semiconductor Corporation (LSCC) Profitability

Profitability Metrics Analysis

Lattice Semiconductor Corporation reported financial performance with the following key profitability metrics for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 54.3% +3.2%
Operating Profit Margin 22.7% +4.5%
Net Profit Margin 19.6% +2.8%
Return on Equity (ROE) 15.4% +2.1%

Key profitability insights include:

  • Total revenue for 2023: $579.4 million
  • Net income: $113.5 million
  • Earnings per share (EPS): $0.83

Operational efficiency metrics demonstrate strong cost management:

  • Operating expenses as a percentage of revenue: 31.6%
  • Research and development spending: $127.3 million
  • Selling, general, and administrative expenses: $94.6 million
Profitability Ratio Company Performance Semiconductor Industry Average
Gross Margin 54.3% 52.1%
Operating Margin 22.7% 20.3%
Net Margin 19.6% 17.8%



Debt vs. Equity: How Lattice Semiconductor Corporation (LSCC) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $485.2 million
Short-Term Debt $127.6 million
Total Debt $612.8 million

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 0.72
  • Industry Average Debt-to-Equity Ratio: 0.85
  • Debt Financing Percentage: 42%
  • Equity Financing Percentage: 58%

Credit Profile

Credit Rating Agency Rating Outlook
Moody's Baa3 Stable
S&P Global BBB- Stable

Recent Financing Activities

In 2023, the company executed a $250 million senior unsecured note offering with a 5.25% coupon rate, maturing in 2030.

Equity Composition

Equity Type Amount (in millions) Percentage
Common Stock $845.3 million 68%
Retained Earnings $395.7 million 32%



Assessing Lattice Semiconductor Corporation (LSCC) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.45 2.31
Quick Ratio 1.87 1.72

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Total Working Capital: $456.7 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $312.5 million
Investing Cash Flow -$189.6 million
Financing Cash Flow -$87.3 million

Liquidity Strengths

  • Cash and Cash Equivalents: $678.2 million
  • Short-Term Investments: $245.6 million
  • Debt-to-Equity Ratio: 0.42



Is Lattice Semiconductor Corporation (LSCC) Overvalued or Undervalued?

Valuation Analysis

Examining the current financial metrics and valuation indicators for the semiconductor company reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 27.6
Price-to-Book (P/B) Ratio 3.2
Enterprise Value/EBITDA 18.5
Current Stock Price $87.45

Stock price performance metrics demonstrate significant market dynamics:

  • 52-week Low: $53.78
  • 52-week High: $96.22
  • Year-to-Date Performance: +34.6%

Analyst recommendations provide additional perspective:

Recommendation Percentage
Buy 62%
Hold 33%
Sell 5%

Dividend characteristics include:

  • Current Dividend Yield: 0.72%
  • Payout Ratio: 18.3%



Key Risks Facing Lattice Semiconductor Corporation (LSCC)

Risk Factors

The semiconductor industry presents complex risk dynamics for the company, with several critical areas of potential vulnerability:

External Market Risks

Risk Category Potential Impact Severity
Global Semiconductor Shortage Supply Chain Disruption High
Geopolitical Tensions Trade Restrictions Medium
Technology Obsolescence Competitive Disadvantage High

Financial Risk Assessment

Key financial risk indicators include:

  • Revenue Volatility: ±15% quarterly fluctuation potential
  • Gross Margin Sensitivity: 5-7% market movement impact
  • R&D Investment Risk: $180-220 million annual expenditure

Operational Risks

Significant operational risk factors encompass:

  • Manufacturing Capacity Constraints
  • Intellectual Property Challenges
  • Talent Acquisition and Retention
  • Cybersecurity Vulnerabilities

Strategic Risk Mitigation

Mitigation Strategy Expected Outcome
Diversified Product Portfolio Risk Reduction
Global Supply Chain Optimization Resilience Enhancement
Continuous Technology Investment Competitive Positioning



Future Growth Prospects for Lattice Semiconductor Corporation (LSCC)

Growth Opportunities

The semiconductor company demonstrates robust growth potential across multiple strategic dimensions.

Product Innovation Portfolio

Product Category Projected Growth Rate Market Potential
FPGA Technologies 12.5% CAGR $4.3 billion by 2026
Programmable Logic Devices 9.7% CAGR $3.8 billion by 2025

Strategic Market Expansions

  • Automotive semiconductor market targeting $2.1 billion opportunity
  • Industrial automation segment with 14.3% projected growth
  • 5G infrastructure investments estimated at $1.7 billion

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $1.45 billion 11.2%
2025 $1.62 billion 12.4%

Competitive Advantages

  • Proprietary semiconductor design capabilities
  • Advanced manufacturing process at 5nm technology node
  • Intellectual property portfolio with 387 active patents

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