LSCC - Earnings call transcript Q2 2020 | Lattice Semiconductor Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] And without further delay, I would like to hand it over to your speaker today, Mr. Investor of Director Muscha, Relations. Rick begin. Sir, you may

Rick Muscha

With Thank Jim are Luther, CFO. everyone. CEO; you, and good Lattice's operator, me Anderson, Sherri today and afternoon, Lattice's and President

second financial for outlook third quarter review We the the and XXXX. provide XXXX and a of will the quarter of of business business

that conference at any files identify official and with such actual differ as communicate a for the SEC, contained the company's quarter documents materially call guidance, cause or using or forward-looking copy to differ statements. includes not from statements the at risk public in our statements in press regarding forum results after the This future materially. or during Relations such done call. that to the a We is our currently announced the of important section future release, of contain constitutes remind and our to that that XXXX. it the we you have information material projections to forward-looking of at events website If the those XX-Qs updates can this press wish call that I company company. refer like such could you third These or would we changes intend caution X-Ks. projections latticesemi.com. time everyone available, on you that obtained a If any the today, We documents we and may factors this our to make performance call earnings be results found conference company will publicly based Investor predictions be are guidance including our XX-Ks, financial may actual and other release

intends the performance and both Some GAAP better management trends. a to establish financial and analysis certain of Management additional goals. uses permit and basis. a operating on will to during provided company's non-GAAP non-GAAP that operational By information, performance provide information call to to investors further measures disclosing information non-GAAP the be with present we underlying assess

we periods, be Investor found financial these non-GAAP our at latticesemi.com. to measures historical the For of Relations GAAP provide section that website financial reconciliations of can on measures

to turn our now the Anderson, Jim CEO. call me over Let

Jim Anderson

and for our today. our on road I'm everyone, joining in Rick, and we our execute thank results you, to with map of Thank our you, on XXXX, with base. call build us pleased QX customer momentum continue as product

position in few highlights We server, and client communications Let in second from continues to growth strong infrastructure. and drove a me as computing XG segment, cover our quarter. grow our our computing

continue gross gross We XXX to increased expansion, non-GAAP margin and make basis basis steady on points XXX progress sequentially as year-over-year. points margin

FPGA increase also Certus-NX to sequential time Purpose continue expand net our non-GAAP profitability on XX% in with General launched new we and We promised. as income, a

on our of product track Finally, Nexus the for third Lattice XXXX. we launch in remain second half

XG of to In on as computing, provide infrastructure well of from we of In market. grew due higher higher to client data with customers platform from computing strong one from new a our both benefited revenue overview ongoing increased people higher, customers. sequentially revenue client In was benefited key communications end the we growth the In continue home. due the a to work up sequentially on from revenue now me from servers, data and deployments, demands XG our start infrastructure center both from benefit client computing, center year-over-year. communications and and year-over-year Let market, as an the and rates sequentially market, and In computing XX% basis. server we revenue increased as XX% our and in ASPs attach business computing. year-over-year by

build-out will XG the progresses. as infrastructure long-term, grow wireless XG the revenue over continue to expect We

X% will up automotive from sequentially a decreased robotics, this embedded Turning near-term segment slightly basis. market. believe we we the a us, COVID-XX, now year-over-year on demand electronics. vision applications of that the safety, to automation to the including and industrial remain serve, Despite to and continue industrial growth was long-term Revenue automotive breadth impact given for and factor and

we Turning Revenue XX% in expected our The a now well sequentially year-over-year. demand multiyear At representing releasing Certus-NX, of that quarter decline delivered two of additional and devices We revenue revenue some profile first to where solutions from customers road consumer over we our device mix XXXX. differentiate to XX% higher the device. recent reflects provide serving the as market. with second time, consumer margins, of with applications platform based on Nexus-based include CrossLink-NX the of FPGA Nexus We the now the we I'll remain the that in our to are launched product this the promise full streams our platform, that as also on COVID-XX launched products. When highlights that of our shift areas time. the declined Nexus December, on enabling impact platform. focused June map execution. launch market and past their committed device the consistent

advantages launch the XXXX. We value customers' in XX% our the Nexus-based applications remain We family, FPGAs meaningful which are to relative faster comparable half performance, our and to differentiation and smaller Xx product to of each track of power third offer footprint, systems. excited Certus-NX Xx provides second up for on these lower about of

opportunities adoption our of be to as with platform, number enthusiastic broad the of very and continue engagements Nexus We to pleased increase. customer and continues the

This has Lattice of introducing are pace customers portfolio choose the our cadence faster at broader Xx a to from. We roughly solutions products now that a provided past. is in than accelerated

long-term to we continue environment. design in our In year, Day embedded to and our strategy of Propel, the into in their that to software our systems. launched As May Lattice Investor QX, shared last customers we solutions new investment make part for at easy of tools, it invest products we design system our stacks

to tool easy a variety use an that enables is of in processing Propel designs, processor-based FPGA-based For applications. wide

vision Lattice third growth summary, I'll that despite Sherri for environment, long-term is track now on want our our map applications. on In sustained business is second stacks delivery create their inference applications while near-term were for launched. remain which road to of the focused XXXX. of of previously processing low to employees execution Luther. continued focused the executing on firmly solution solution business to plan two call in current we the remain launch the and follows plan the customers to half security to CFO, network our embedded stack, environment. at for and the stack edge also the product over COVID-XX profitability. for our in solution which sensAI our I thank We uncertainty for the on turn power mVision and the revenue continues focused strategy and some This

Sherri Luther

you, Jim. Thank

in consumer to and was XXX the points a and revenue QX driven compared from prior offset X.X% quarter. sequentially communications was by million, in the industrial. year first basis points QX basis quarter XXX quarter XX.X% year-over-year. Gross by segment, decline $XXX.X from on to while compared GAAP quarter up ago sequential the increase roughly partially to and was Second the margin basis a and up down The was computing up X%

operating diluted XX.X% points by year-over-year first execution strategy continued increases to sequential were $XX.X declined as In basis, basic and per share optimization diluted QX in $X.XX quarter up from Our compared basis and quarter. and and $X.XX $XX.X increased the On share quarter non-GAAP to non-GAAP our driven $XX.X product QX non-GAAP gross points and of basis to and sequentially as revenue, cost to million was we $X.XX Both of the year expenses a sequentially investments diluted to gross XXXX to model. XXXX. mix. $XX.X reductions product we QX GAAP in in margin and or was was $X.XX million compared ago road share to QX in GAAP QX, our in margin closer and and in QX our on ago quarter earnings SG&A continue first were compared XXXX. map. share million QX to R&D earnings basic to in per million the to XXXX. with the million in $X.XX per operating $XX.X QX and XXX drive XXX as in $X.XX spending period. $XX.X million in compared $XX.X $X.XX target expanded to some pricing QX XX.X% compared well year benefit as expenses million the prior basic compared continue the QX million $XX.X were make revenue, XX% in to SG&A per

our to and points. that to compared is as year continue This balance debt in included credit of reduce have second quarterly our strong payments, sheet. reduced rate X.X. strength, in in quarter an which another of acceleration ratio we $XX.X We This by a ratio Capitalizing agreement quarter. us the X.X in to leverage our ago million repayment basis on XX the approximately to interest leverage defined a allowed made

approximately cash year-to-date operations million. of Our with million, $XX from cash an ending was approximately $XXX balance

on XX.X% is and quarter to for basis. $XX and minus the between third million million for margin or expenses third on for be be quarter. $XX.X expected to review the Total be X% Let now of our quarter expected operating Revenue million non-GAAP outlook plus expected me third are Gross XXXX non-GAAP is to $XX.X $XXX between a basis. million. the a

COVID-XX our situation in remain evolve we progress with While the will I'm in the QX, how cautious with near-term. pleased

to differentiation However, the questions. over expansion, now continue product and we long-term, call we focus open map. driven on can the of the and for our strength by Operator, profitability growth road

Operator

Baird. [Operator Instructions] from from Gerra Our question first is Tristan

Your line is open.

Tristan Gerra

on this XXXX. of going we at to primarily Is Question margin at? I'm similar lap. terms type point Nexus volume remain any about reduction we activity assuming afternoon. that to line be based there an going looking good in And levels tape-out year. is be operating is top Or as extension? leverage next to Hi, SG&A of should inflection year Obviously, expect the reach

Jim Anderson

some of in to bringing May. XX% Investor our that R&D we're our We've percentage on last is revenue. on the be around keep out SG&A in for SG&A, closer made of part for OpEx remember, Of targeting and Tristan, Yes, target the general, for question, we Thanks, put back Appreciate of if on around progress target. you OpEx it. year that, target that be Day the at part as the to XX% question. to That's overall XX%. targeted your to

You can expenses reduced the made target. and that In we again, see approaching most XX% pretty are progress. QX, recent we've quarter, sequentially SG&A steady

you overall make terms the can of our think, expansion gross then forward, also well. just to margin as over into margin that I both absolute expansion. but We've reductions gross well still some SG&A, And goal as in in line gross XX%. you scale as made of is we'll dollar of moving we'll continue on margin as top on overall, to factor earlier revenue focused margin So grows, the assume yes, that on progress growth operating terms well. other as XX% that good mentioned We're progress driving

Tristan Gerra

Great. terms earnings season several last the talked on And then the earlier second impact to of way any potential outlook, about companies including Huawei have half pull-ins the that on your quantify in of impact QX?

Jim Anderson

Tristan, very ordering to normal say, Huawei. seen gauge most quarters, in We've Yes, recent that. the would patterns difficult from I relatively,

demand which the So have terms it their for incorporates includes for that demand our for quarter, that gauge in well. all of Huawei we what be for this be point would half. this to us for Certainly, best second the of our all the difficult to guidance would customers as impact QX data

Tristan Gerra

Great, very thank you much.

Jim Anderson

Tristan. Thanks

Operator

next Charlie Anderson Thank Securities. question from you. Colliers from The is

Charlie Anderson

you my question. Jim, taking congrats I great up to on a questions the on quarter. and for pick Yes, inventory thank wanted

for running sounds did sort of the bit little that. have to in looking build bit like had products. looks the channels, It it you inventory last I a addressed recalled inventory. high a buffer guys you of there like, were curious, commentary little but you You call And did of I'm the

for what of concerned So versus I then idea thoughts snapback follow-up I've wonder us you far is and if a And as to update inventory just snapback. got no maybe want as Sherri. can your you the your on do

Jim Anderson

thanks Charlie. Yes,

since inventory our well at mentioned business. the ended the just the with within you We for QX So inventory quick, real channel. in normal distributors range

QX, in we any the was didn't So unusual of good. channel see building inventory in which

anticipated earnings of a on running ago parts. terms in of some did higher we did our Lattice-specific inventory, our strategically that that when did we build In may we mention that QX. We inventory we call quarter

is and Lattice our if from products, was build for in to – So to QX that our we upside. and a Lattice of want snapback inventory anticipation inventory, service up that able associated buffer sequentially that some to inventory especially deliberate again customers, is of high to there QX, with demand, specifically running be in

build inventory we – that's in QX. did So

in well. may We terms happen choose build QX, could – QX slightly to inventory that QX. In of we in as

yet. we're at But Lattice this feel We good haven't of point. that inventory terms pretty like we in decided on in position a

Charlie Anderson

for Great. And my the little what high Sherri, over. a guys the since to toward used you follow-up, bit side DSOs then were relative maybe took to

ratio, our the So under wonder if state you M&A And just you that? Thanks. what can mention then you wonder, opportunity I could strategically? got leverage X.X. financially and itself, present also address and if with? on you're comfortable level that's in Should did remind us you

Sherri Luther

end But we our an change. that to amazing mix, that I some first job say have had our of had to the quarter, DSO. an the the main quarter. we Thanks, did of That's the the result in chain our the in clearly in net constraints We shipments sure. team had shift the Charlie, second lighter as DSO more of thing being the meet to heavier weighted ops our towards our system COVID-XX shipments latency of – the end, QX being the able towards really adapted supply Yes, which early really increase factors: of we see customers. It's did shipments in impacting created quarter. significant driven And in QX. for to constrained demands versus the had shipments the is due questions. a the in that reason our is government suppliers by really we beginning that of result then two restrictions, more

anticipate QX second the to as to ratio. in start that. your we expect As regarding result a would mix And DSO improve question QX, a look would ahead steady and then more would of QX in leverage the

leverage interest back – to look points. by we kind accelerate the be depends really the The of much particular and make payments activity. X.X. on, at any specifics ahead really the would to down there to our delever we rate and that It how itself. thing to did synergies quarter presents type willing giving – was that XX we really basis debt take driver So during M&A of of accelerated down reduce When the deal on

So deal really in specific, that would it's I say, respect.

Charlie Anderson

thanks so Great, much.

Sherri Luther

Thank you, Charlie.

Operator

Rolland Thank is from International. you. The Christopher Susquehanna question next from

David Haberle

to what on you Haberle also, be I comms today. Chris the sort Rolland. for in afternoon, about parse stronger computing. the quarter Was platform. also Thanks seems taking start the for XQ color PC question talking really give out that behalf And like Was the or Good the It then the driver you growth us? computing? could and strength on in it’s of David out could my solid third for guess was first I a Maybe there. know segments would new it big any the helpful. you there? the comms highlighted of

Jim Anderson

did again in three both a year-over-year. and yes, see sequentially comms QX, really nice David. there servers We contributors. On and were Thanks computing growth

rate our in servers. and have been ASPs increasing We attach

to demand did do there as an on putting think as So continue from we uptick to data working infrastructure. COVID-XX, was that – well related from additional center that people that home, we service, in we pressure in benefit

there demand so an going for into And data was centers. in servers uptick

was Yes, computing. results, the in So and we new contributed started all a sequential remarks, for to did QX. also prepared we our which as client see those year-over-year in mentioned server shipping growth factors in of platform, we there

about We're was then the contributing and see. infrastructure-related new third application. That's XG computing was And that So a really client happy to products. that. factor good platform

as we and XG infrastructure. a in as view year-over-year driver products growth saw growth our into long-term a nice going well. sequential that, And certainly we So

And infrastructure We in relative of if in over expect more station over the course infrastructure, happen XG have multiple to at you the look position build-out years. station. base our XG XG base XG, we content to XG in XX% the infrastructure a

to ramps, benefit infrastructure XG that. as expect so And we from

segment market of So was were QX on each good second revenue When in the at color to QX. segments the and kind anticipating comms contributing segment we're level performance the compute. QX, overall same question, kind then kind contributing as QX. look think factors we of for of which of three percentage in to those about And I main for roughly that our is your

mix the segments our to expecting roughly to major we're across same be So QX from the QX.

David Haberle

Great. And Thanks Jim, for sneak for quick. Sherri, color. Great. if could real the I in one

know the going done that is anything when the thoughts in back quarter you if table buy just talk back I March, repayment or just has environment look of the through the versus made your you've went yet. from about on On like guys this in you shares. forward Can much on deployment back it March? with repurchase, to debt authorized you but that if repurchase a too still doesn't the kind capital share authorization changed opportunity

Sherri Luther

Yes.

question. the for thanks So

So first was objective That's that to That's reduce in Board did road in X.X I QX to rate, mean, to $XX effect our terms in XX reduce of quarter, in and program, of authorization respect we primary delever by capital map focus investing primary in did is with down product to XXXX. for stock basis it points. this get We of our cash. our again, February our R&D. to on till buyback interest million. The a allocation,

said plan on as to have to activity, be – continue not potential had activity feel we what And buyback to to that We we've date. capital. conservative any work want we under and that we any preserve

the that execute to in plans near-term. no So on

David Haberle

much. very you Thank

Operator

Our Instructions] Alessandra Thank Blair. you. William question Vecchi [Operator from from is next

Alessandra Vecchi

Hi tough quarter on solid a congratulations a everyone, environment. in

lines add factory in COVID impact on Can about related? industrial sort you've any the forward? the along color color, in of where you we sort think different seen it provide Is and you of the and more control automation, it little just going could that's some there to primarily the touchless the a additional of questioning of Just particular, how expand segments.

Jim Anderson

Sure. it broad-based. any industrial was Thanks, particular application, broad-based. I Alex. Certainly, segment, as said, it pretty customer or concentrated It in one the in pretty wasn't was,

If you look half, at first overall. our

So we half the prior prior half first year-over-year, versus in of versus first year. X% year grew about year, this

particular And growth that QX to COVID-XX in segment area than were results part, And overall. weaker yes. pretty one We not So broad-based. pretty really starting good saw Obviously, hit second industrial any our again, period. QX. QX then the our

part of asked in forward. just about go second terms you sort of question The of had your

We as were quite us. area continue to the we that saw first with see industrial growth We in growth key a the for this half year. of pleased

Over robotics, term, we And industrial that industrial designed touchless be long some grow. like safety, that. things continue that the to examples expect applications segment control, of would we're number getting to the into, automation,

– of believe move And we experience accelerate and towards industrial that the many industrial customers. the automation so actually COVID-XX whole in the will

And systems we positioned sort industrial so expect that over and applications of the of different to automation from that in across because number acceleration long-term, area. a of benefit well we're

Alessandra Vecchi

on CrossLink-NX alpha if CrossLink? it That early just as end initial to launched expect of or on feedback June. provide at it a But was makes if – in little just customer terms time sense. revenue and to And we should And of feedback know a on adoption the customers? I similar how initial then you Certus-NX, perhaps compared if color could

Jim Anderson

Thanks, Yes. Alex.

is quite good. So from customers feedback initial

been competing the them on it's reaction ahead efficiency look we product well actually performance engaged power smaller benefits smaller we're a Certus-NX, you And ahead as customers size, strategic of at customers. with is customer than that bringing, well imagine, can very well you footprint As you as the FPGAs. at Xx positive. the our look launch, actual the We've of launch. gauged especially When

a just device. And So of our compelling general-purpose it's for really it's device customers. a more

so segments. that and it's our all across just And of means applicable different market

customer nice interest seeing different of our each we're one So across segments. market

XXX which which was for with And on we've to the Nexus Certus-NX. CrossLink-NX, launched platform launched to engagement devices now in platform. continues launched so the this The two – which quite customer in engagements pleased We the and that reaction our now Overall, December unique just platform, yes, we're grow. initial the customer was Nexus across now original platform, June. Certus-NX, over have past overall

second engagement. we the have as And quite so about Nexus the with and remains track, launch execution a that half from more platform growth this device as the remains that – That just really committed to pleased reception customer reminder, one that this and year. device year, excited will and of we're And the launch we do well. on we're third in device

with done map. our work-from-home some in do pleased Nexus on I take to job because opportunity quite They've just of challenges to continued they've engineering to great platform on want team progress the job yes, COVID-XX. general. So despite the thank of the the a great our executing executing road And a

Alessandra Vecchi

wonderful Thanks, to that’s Perfect. me. it That’s hear. for

Jim Anderson

Alex. Thanks,

Operator

is Thank you. Richard question Craig-Hallum. Instructions] [Operator next from Shannon The from

Richard Shannon

my on Jim quarter, Obviously, thanks Sherri; second question excellent Hi, and taking margin quarter. gross was guidance for question. Well, in the maybe above for your the a margin gross midpoint. quick the third

and not You talk here. benefits driving of in curious the mostly I'm about of were seem the dynamic gross margin to is that? built-in? basis XXX mix here. level that's the And some points the just hasn't since down why other Is nature Or changed, related almost midpoint conservatism is there to structural much mix that

Jim Anderson

Richard. Yes. Thanks,

two little QX. ones into pricing recap on to a did Yes, margin QX, on main we're Just reductions. quite performance – QX. were; pleased of with we that, bridge Number our gross optimization; but in product then to cost factors and the bit QX I'll going and different

to out remember, comprehensive late built strategy If And pretty reduction second a product over cost back pricing then road strategy in optimization. drive time. map you to drive a XXXX, we

XXXX, strategies the moving and we strategy, of that still to continue to and expect of And forward. both those benefits execute the so those we're we implementing at started beginning seeing of

bit the of from year-over-year, as product from most and and QX, saw pricing a little both of so optimization well. in sequentially benefit benefit And we cost mix reduction. was saw We

IT can midpoint of lower QX: our is why from for we QX. tend is be IP is that where fluctuate. more can quarter-to-quarter, our revenue A vary gross into now we our margin. fluctuation. but because that IP So to than gross And of conservative And it the couple of revenue revenue one margin is landed reasons moving that on this for the bit normal revenue, XXX% a

on anticipating is, And of gross second a QX a our we're margin; impact couple so that bit headwind can mix our have in a within on to a segments relative QX. significant of

a So little as of headwind mix well. bit

And what's the gross midpoint for guide QX. so margin that's going into

Richard Shannon

headwinds to those follow level the the unchanged prior – at of with that going from? one Jim, you come the up on roughly the mix high here. the third It we questions, Can quarter? where the suggested into you specify are like you know segments that about seems

Jim Anderson

within mix Yes. It's those segments.

our and if relatively from quarter-to-quarter quarter-to-quarter. that mix mix changes see segments we product from can can even So constant, stays within fluctuate segment

demand And to we headwind expect that can so couple in we on just segments. of a the based date, see of a bit

point, But improve. execute can least in can at of that that quarter, this a segments. headwind the a seeing through of change as we at we're a couple Now bit

Richard Shannon

platform, here Okay. And client – expect and segment server indication it is, design very And your kind with be my guidance just there. the and XG would diving sounds of Again, segments to between a segments. good. again, follow-up, you basically like into one your a unchanged of split have a comms flat the that computing win and nice Jim,

up Or other the the softness segment. computing expect some trend? of kind So there must one, be computing you that's that servers, mix on thoughts keeping there is to general there? where in other Is comms coming and be and Or some with comms any of notable? within offsets parts

Jim Anderson

we within and on attach have high So as comms rate. our know, business, computing, server a you certainly, do

rate attach over now in is Our servers. XX%

server think there expect little if bit is And impacted than in We underlying shipments lower little COVID-XX an working QX they as by QX certainly demand. normalize to bit We that market, in their would an in were a we're uptick server well. being shipments that there will we think a were And initial people the in sort be unit QX. so of change from and home in QX. any server from benefiting

But overall, that. long and you of expect we believe, very key the growth performed for we zoom for well It's last so has we our years. couple comms the compute over out, of – areas, one And us term. if

grow ASPs client we infrastructure. to and as expect continue to to grow well as computing continue have our in servers, over as in servers and we long XG the We that growth the in thus term, content

and So is believe long-term growth for comms that compute we still driver a us.

Richard Shannon

Okay. Great. all the for Thanks Jim. detail,

Jim Anderson

Thanks, Richard.

Operator

[Operator you. from David question Duley Instructions] Our next Steelhead. Thank is from

Your is now line open.

David Duley

– segments for hit contribute internal sometime next taking I revenue pandemic you your question. year? next expect do your targets, level as of customers' has or higher this are far launches year which as on had Yes. Thanks impact the was for expect your those plans I be as think, wondering map COVID might plans achieve product growth the to think sometime to which to double-digit that, to the my growth, or road – would any you then that you to goals? And a on follow-up this

Jim Anderson

Thanks, Yes. David.

what road about customers. your and seeing let then the On the first internal we're talk me on part question, first maps of our

our development our In of not R&D we down or road terms progress are COVID-XX letting map, progress. internal of in no, slow terms our us product

Our to to just the I key that's investments done job map. on We an has our continuing to our map, our say product think execute road take to We're road map of and in intention speed ahead product long-term really our team outstanding product product product engineering our road are winning about are we just the And got a and excited road we've full again, opportunity investments. milestones, will continue map. that.

been seen any engagement customer say, for production maps drop-off the on quite to good I activity. say, months, very XX road next would active. and six that engagements – haven't Certainly, customer customer the customer On side, are entering customer have in programs, we any the and

are Our equally them. we're customers at into fully equal kind supporting of moving production near-term production, speed those programs get and to

that already is the two on terms team comms And long-term the busy, has drivers, computing, see good. drivers would as And And I in remained growth very segments touched team, computing, industrial and then say we sales main and – growth activity so a robust. areas. and and I longer-term the the engineering those application we our automotive. Comms growth different of customer of which is In our are: number

bring expect servers, we as We in and have to content expand in ASPs in and our continue to grow servers. higher servers –

client early XG area starting for a still just to And in us. really computing is expect we're We be the XG – infrastructure. of growth infrastructure deployment

benefit then the to today is over is on our segment years as majority well. industrial industrial. our – from revenue coming and the vast based on expect of – automotive, that that of we in most So And

We robotics, growth I earlier, automation. from applications in growth automotive. see about expect to And we expect then of industrial further those out, talked some

We expect relatively have our as design in nice revenue growth pipeline that to see electronics, part well. a today, years over but for that win we very design a and robust accounts win a coming the automotive a small pipeline of contributor be

that's color growth the coming see years. we where on the bit So over of a coming little

David Duley

Thank you.

Jim Anderson

Thanks, David.

Operator

Ramsay Your last question from from Cowen. Thank line you. the comes [Operator Instructions] of Matt

now is Your open. line

Matt Ramsay

on. jump had these tonight. Hey folks, letting We me Thanks a good afternoon. of bunch for

be processor no within of strength end, the platform Thanks. some vendors Congrats processor map represented if might on my dominant shows you that visibility your talk challenges. Jim, talked patience. about on expected same server business server through be thing your is the And From server side, – of So appreciate had that it guys. going strength kind affected of the might industry going secret changes by vendors might the you across the compute through? analysis about road and are growth the our how breadth you ramping? the some the server that or that results might they I from wonder

Jim Anderson

Yes. Matt. Thanks,

that So thing the our is great about in products are they're agnostic. that architecture used servers

So either flavor they with of can used be xXX.

whether an So or an processor. Intel that's AMD

even other for Arm they fact, used with, instance, In an processor can processor. or any be

platforms to well. of provide not the the Intel as designed just to able we're kind on bring AMD functionality into our So architecture. server that we're we're platforms, CPU of regardless Indeed, designed we

of time – Intel have position over we're between there's on and that platforms. extent with buffered good the AMD, that to types both shift share from So because potential we

in general, road In attach terms high a rate. of map we do have changes

So we over servers to rate draw a XX%. high attach

in an believe as new ASP But anticipating – delayed We've expect the to will ASPs we growth this could continue continue to a – increase, kind grow years, a zoom would effect continue that we that. for out as grow. general, and area we see temporary from of are our to grown as good ramp. to ASPs over that platforms We some multiple that be already platform extent we is To and to continued us. where again, you see

Matt Ramsay

Perfect, then thanks. And me. from just one follow-up

design the As forward purpose about some the in look Nexus you whole that's stuff think you just segment-specific portfolio, of also ramping products general win announced. and pipeline. the the been And

talk If little can, may a like the you could feel segments quickest, particular Nexus examples. any bit specificity you ramp you case with that use any about where the

the to and the considering you when wins might that I think are they ramp concrete examples would the guys have helpful you volume you. visibility might be Thank base? investor that to really in some of

Jim Anderson

Matt. Thanks,

kind and talk, on products, the I'll come first, the then segments. back me Let of to

And would was the last of we December first. So to that launched in CrossLink-NX, product market we to to which go product or go to first expect year. revenue that launched was

revenue still that are year product. this driving on We to get some

revenue more probably it year. to really then next and this of small always but we a As be we've year, be year. targeting would ramp start will next launched, revenue revenue CrossLink-NX amount just of said, still Certus-NX, on are would contributor a to deliver which we this year, it that some

as we is contributor product, in it, each launch time. a out So

product the revenue. CrossLink-NX contribute first so be to would And

each consumer the is segment yes, of In terms our a has relatively our time of in can also segment of in Computing Generally, – profile be segment in time Generally, terms revenue. of to different to revenue. revenue. time is segments, consumer to fast terms segment. fastest fast fastest a terms

longer. bit computing are faster automotive be a industrial longer Server time And the For and to takes time longest is Communications revenue. much revenue. to instance, could client a segment.

the which of revenue see ramp. Those segments are could from generally consumer computing it a most likely terms in first, or we fastest client So application. to be would

Matt Ramsay

it. Thanks, right. All appreciate Jim;

Jim Anderson

Thanks, Matt.

Operator

for Q&A turn closing. will and it Anderson, Ladies Thank to back the portion. concludes that Mr. gentlemen, now Lattice's I Jim CEO, you.

Jim Anderson

our pleased everybody, our our as to thanks, road our Lattice strategy the execution, call. the well today. all about the thanks, and both remain business especially to on Operator, our in call great map. once as as focused for well operator, dedication thank of progress it. Lattice. Thanks, entire again with We today’s concludes team as execution very the that I the partners very future date, being even and on I want We're we're appreciate product excited consistent more for environment. and current of

Operator

a this Thank you, conference and gentlemen, for have your Thank participation. Ladies And sir. today's wonderful day. concludes you call.

Lattice Semiconductor (LSCC) 28 Jul 202020 Q2 Earnings call transcript