LSCC - Earnings call transcript Q3 2020 | Lattice Semiconductor Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2020 Conference Call. Please be advised that today’s conference is being recorded. And without further delay, I would like to hand it over to your speaker today, Mr. Rick Muscha, Director of Investor Relations.

Rick Muscha

Thank you, operator, and good afternoon, everyone. Jim CFO. President are Sherri CEO; today Lattice’s Luther, me Anderson, and Lattice’s and With a and for provide XXXX of We’ll financial and quarter the XXXX. the of third business outlook the quarter business fourth review of

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

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

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

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

Jim Anderson

everyone Thank the start To for thank and their I'd Lattice partners our for today. us thank our call you, and once on like and you, joining team off, like for especially and in execution. support again thank to Rick, to continued dedication customers I'd their

I'm company even I'm of While about the forward. more the progress, moving pleased our potential with excited

a cover me Let few from of XXXX. QX highlights

growth automotive. of revenue two and communications industrial segments computing year-over-year see our in to main continue and and We

We increased expanded also applications which expanding is portfolio expanded year-over-year. of non-GAAP center solutions. such third solutions data gross Non-GAAP non-GAAP margin a year-over-year. focused margin platform installment specific in points XX% net and XX.X% application security income Sentry our Solutions by launched This as stack XXX servers. providing We software was basis in Stack, on to operating our

on to our remain on platform the based product later third we Finally, this year. launch track Nexus

growth X% sequentially, an and end we down and modest client unit by in as decline decline servers due well and sequential communications driven or communications. in in servers as to decline growth in ship computing Year-over-year a X% a computing. of was strong on After a up market, our but In market. Let by overview the me revenue basis. communications provide now X% computing year-over-year of a was saw business QX,

opportunity a we in as We growth driven to see by computing. and client this long-term segment growth was continue as servers

business as XG as as We continue in long expand to see in our as this we infrastructure a deployments. well growth computing term segment opportunity

in increased it basis. and now end use improvement a reflects robotics up demand in used was in embedded year vision. range market an safety, a increased the of and in automation, sequentially Turning year on revenue over applications products including segment the broad industrial, to Industrial X% Automotive growth and and QX market, industrial of XX% our QX

focused QX our end where over multi-year recent business. solutions mix of as securing their sequentially design as the to revenue products. X% We customers declined demand XX% I'll shift wins and applications COVID now year market, year lower market some enabling provide are our remain on higher by expected and now year. well consumer due execution. roadmap been consumer product margins streams in and an differentiate revenue This and highlights Turning with XX our to to in impacted segment this has

to that we launch faster. discussed we're go our platform investing a higher our market solutions at customers adapt quickly last December, and As enables software our in to of level Nexus portfolio

at supply we provided based end locked for our also chain. our called When trust and delivering remain to in system QX. we QX promised Nexus service, in The a platform SupplyGuard installment servers, XXXX. we award Sentry stack products. Earlier based on built platform our first applications as to our software mVision, and applications network. stack protection on sensAI power we to client last Nexus software computing. is stack installment customers strong third of is focused in the our June devices throughout was this committed launched we factory users extends security Sentry comprehensive processing low product product Edge and This that of our based second in and At Certus-NX dynamic with launch on inference Sentry pleased launched the launch we launch parallel, our vision our networking The winning enable the year which software Sentry. accomplished platform which on a software launched additional our report FPGA this their of portfolio. by stack SupplyGuard solution Nexus to In track in that I'm that foundation as called Lattice such December which implement embedded the customers CrossLink-NX. introduced two We on was by time In focused portfolio the third provides we resiliency is launch, first installment firmware to products the releasing the our with

their are We customer continue summary customers on with helping our pleased Nexus be with to performance we our and In the strategy the in pleased over profitability. engagement our differentiate applications we're power where and sustained term platform systems. faster results the turn Luther. for growth QX executing I'll long now and on our and CFO, our remain to revenue efficiency call strong focused Sherri

Sherri Luther

Thank you, Jim.

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

the Our basis increased was margin to points and compared points up quarter ago non-GAAP XX to basis XX.X% gross prior XXX QX quarter. the in to year compared

steady quarter. and in were basis, $XX.X and continue to the expenses compared pricing mix. $XX.X on On ongoing in We some cost QX the prior to ago $XX.X ago quarter to in million million optimization from prior product expenses margin year $XX GAAP $XX.X quarter. year gross expansion make operating million the progress quarter in compared reduction million operating a as strategy benefit we our the non-GAAP were $XX.X million and million

quarter time spending invest We our was driving at quarter. the product was earnings share non-GAAP and SG&A to to GAAP $X.XX the prior diluted committed as we QX and year earnings $X.XX our same and per year roadmap per the basic to while closer the compared to ago target per the in diluted remain in prior quarter ago QX in $X.XX share in continue compared basic share and in $X.XX $X.XX to quarter. model. $X.XX $X.XX

cash sheet an driver with strengthen generation in XX of our balance our on cash and continue compared A quarter. year-to-date the focused operations the generation million. at in to QX was for to prior days key approximately remain improvement DSO We from $XX cash healthy

resulting cash ending position. increased cash to $XXX net a Our positive million in balance approximately

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

While on roadmap. product the focused COVID-XX are strength the continues and to growth we can term, our create uncertainty expansion now for over call some the long profitability questions. by differentiation of driven near-term Operator, and open you

Operator

line the Matt first of Cowen. from Ramsay Your question comes Instructions] [Operator from

open. now is line Your

Matt Ramsay

their being are down you and few as was guided Yes. that I have And Thank business DCG breakdown and I've about all market in down in that Jim Sherri sequentially? the for a Jim vendors. afternoon, you XX% by relate And very bit questions had guys for think how you about through quarter. a alarming to you talk pretty everybody. might both guess talk the the exposure But revenues some. a of guidance fourth Intel number the I margin little if broad gross you to it could of much. server segment pretty guys slightly Good

in be you quarter as that So really talk about address mix fourth you Thank the would if could helpful? that you.

Jim Anderson

Yeah. it. Thanks Got Matt.

segment first of your the question on part QX So the on outlook.

of be million. We're So revenue down our sequentially expecting go $X to this to Communications up. to expecting for run million sort we're at Computing ranges usually its more IP rate within normal segment is and point what be back to to the $X

to in QX. segments to sequentially. flat for we the that's remain down go it expect roughly So other to then where And

sequential the guidance, relative margin being yeah is last Intel for we a server to color your more little I to what reflects overall of see bit expect then respect is down at gross little could QX. speak communications IP that high And to would just to segment. sequential up. and on in a it's our margin business. And bit you clearly We're which know gross a revenue is sequentially really question you the margin. part down QX terms then So computing be say our will And with by I and from QX of gross that

seeing in are good in We QX. computing strength

AMD expect as both overall maybe for reminder we're well a be as that And segment So we in servers. just to up servers Intel as us. used

and are computing xXX communications your So so of we But types both expect yeah used in up and back the to to our to sequentially. on. go question platforms products

Matt Ramsay

helpful. really That's Jim. Thanks,

schedule. Just as that has on company the the intend just portfolio. product you side forward. that other hardware sort Jim portfolio you of ones of I'm you're of you win some a and And milestones those think the gave design of new to about both going stepping new if hit traction a on product hit the back that side the for software then you follow-up in the seeing number ahead

characterize that months means where maybe come of sort to revenue ago of what it help and expected where it be If Thank XX the design as wins pace is revenue could acceleration you over you. coming versus quarters? you that into those for

Jim Anderson

Thanks, Yeah. Yeah. Matt.

And so launch of the December launched last you We specifically on before third product of respect the product June end Nexus And and Certus-NX. of platform milestones our to if in Nexus year. second this this then the you in called the first we're recall CrossLink-NX on we year. to launched with year know track

The would been is so year. And engagement design pleased very that really entire win traction I good win would portfolio progress track we're our job We're a on remains say on say has the I across healthy. Nexus sales execution but design general yeah with doing customer that. making on this team quite and

the question was your more last towards revenue part revenue and of growth. think I

a I maybe new couple of those some think milestones three out point key to products. two or on

would of expect is last which then year products next We amount revenue year. the product from We if of saw we specific this out growth we that product we we be technology And servers. year see see a production We a the it still to recall also such As year production from but product we root said to last our that's we that last QX MachXOXD expect cross now that we quarter launched with before to of And couple we revenue revenue that it this in the also of again quarter CrossLink-NX CrossLink initial launched the launched saw see would that are security expect that production Nexus growth our lots QX I'd expect launched next in you product. in able trust FPGA based small that platform CrossLink-NX end revenue of of that year first This first to when that. year. it'll last systems year this provide of year. types to makes revenue and grow different and other in as then revenue point in year. see obviously maybe then

grow again we So this most will revenue to quarter QX and next recent grow the in production year. expect it

proof gives and revenue the to that a new points beginning how ramp. and you products So get around few of starting they're some to

Matt Ramsay

color all queue. and I the get really back results Jim. the Congrats appreciate in Appreciate it. I'll on

Jim Anderson

Thanks, Matt.

Operator

Charlie question Anderson from Securities. is from Your next Colliers

now Your line open. is

Charlie Anderson

questions, position for for a on Yeah. an time. taking cash and Thanks congrats time awfully my the being first long net in

So, on just to your kind about the of hit answer prior segments.

and like think implies in XX% growth I year-over-year keep year $X Computing. industrial Coms million flat consumer a something it punch if and for sequentially and for I licensing

underlying on of getting coming right. mid-single digit for drivers of sure make in So that's just of growth QX? of growth off want rate that segment sort this elaborate that kind the if And that the I'm indeed just case some year-over-year to

Jim Anderson

can. of I and Computing kind speak to I'll so Coms sequentially QX. Yeah. relative

that all in You US respect Huawei were know first place of in government to one segment Huawei. have Obviously that in with new QX. put is we headwind earlier restrictions there

per to put been mid-September stopped ahead the place in by that we shipment the government. so, of Huawei had regulations that And deadline new

we're And so, not assuming contribution in -- QX, Huawei from in QX. we're no

segment of and seeing so, strength in But in in little headwind areas our we're Computing in bit a Communications segment. And Computing and our that's a in particular other QX.

that expect would segment offset And a And to And as very to right yeah growth so, well. overall headwind. us then that you're we year-over-year actually expect give sequentially. grow the we healthy that

Charlie Anderson

don't you. in at transaction. for know AMND Great. you And I on all mean Xilinx then to if Jim key Okay. wanted weigh the I competitor very

your familiar familiar Xilinx. team with members You're very with AMD,

the to So the Over you that of long-term do think the positioning positioning just and kind that yours I curious company term of impacts market. of you long think impacts Thanks. how [ph] their strategic strategic how know the over that emergence

Jim Anderson

don't environment we Yeah on. market Charlie. portion Thanks, the changing the of Yeah. for focused the see that we're it

what and a as of where just where's is So our reminder kind of our focus. strategy

focused So the in on absolute FPGAs. efficient small Lattice industry is power being leader

edge look and these across And strong. we're it's are and in used product our all we range look adoption. power pleased the of with focused happy platform devices the on small a this And this portfolio We're that's with applications FPGA really that And so computing, excited investing we're are wide control portfolio. at Today different more industrial only of and systems. us. look announcement. in company programmable don't see And today its actually we're about when see of with very sorts security IoT, I very market front even roadmap we the changing types industry that part we the Nexus in very that FPGAs. of have that And think efficient at the of IoT, when the we we

this see to very new excited. as coming The And earlier. the new strong we you they see that mentioned launching roadmap I that know customers commitment customer And the we're have they're our our and there pretty so space. are products certainly engagements

we our remain strategy and to to our term so business and on executing goals. to our And roadmap continuing long deliver focused

Operator

Your Gerra next of Tristan question is Baird. from

line open. is now Your

Tristan Gerra

you And first driven? afternoon. China color that be year is base would Good of also communication half or in to into Is on be expectations sequentially any provide helpful? trend QX? Could also station it that XG your next is Hi. could mostly sustainable up you and any, elaborate for outside the how of

Jim Anderson

and of respect Computing. Tristan, overall with earlier the to my on Yeah, Communications comments segment were

a that single we So have segment. as

up. in to XG as a, if XG in over be presentation sequentially XG. XXXX deployments. that So our to we we significantly infrastructure you shared look in a have year station is revenue you see then long-term global more This of last in base us. the early from relative And we we're more have May station. base year. certainly XG have We saying growth overall And similar I driver -- recall content we for XG a at growth base good segment XG a than might still revenue XG XX% back we We're station we expect believe that investor was this seeing more year

growth for So as well as we entire also growth Lattice next we it but to for see it specifically a expect vector well. the long-term industry as year as to contribute

Tristan Gerra

Okay. that sounds units. PC problem enough you've OEM. the PC you that And additional a with that serve what does in labeless it's other one provide then you And get this What follow-up secondly your have data about the you win as talked the PC unique solving going And center your last mentioned see that opportunity could best over products? PC TAM win to time conviction FPGA PC for use you're OEMs? quarter a to given OEMS to that's like

Jim Anderson

Yeah.

So, last obviously that in QX next year. program client into know had you earnings started continued computing call it’ll that we shared know know we new continue into that a you QX you our and production into that on

pretty We’re broadly in computing space. the on program progress the to from business also the quite the unique more to with continue to can the that that do client computing space. you industry believe know win revenue pleased And we're we program. and value We that more in engaged we're propositions bring seeing some client

artificial processing the video example, PC within intelligence like of areas connectivity inference human in around connectivity, detection integration video One things platform. also presence, we as do where one particular the processing, is can overall integration

efficiency, power Artificial are number a pretty algorithms ability, program we proposition know where you value constantly unique bring great a of So our as different we there's intelligence combination evolving. of think with areas flexibility.

in like a AI and solution customers. changes a is can is adapt plus for big over having time that algorithms ours so our to reprogrammable And

see so, good And yeah, as long-term growth segment. us area the computing we this for a in

Operator

from is Lipacis question next Mark Your Jefferies. of

open. Your line is now

Mark Lipacis

products? for -- you you these where of customer you question. in mentioned kind think embracing platform Sentry. this in -- Can base Thanks Hi. like software deployment our of had to mentioned wins in And you you know versus of these term lock market know lock kind of standpoint a entrenched your are or kind introduction your longer because you you kinds Jim, to where give more the sense us software my customers what the get help of you extent since to software? a you of design of AI is the taking the they envision are grow you get sticky these to help know in of from

Jim Anderson

Yeah, just a strategy overall Mark our what's with of with maybe I'll software. of respect to reminder start kind

customers is to systems into it beyond that are those So development that to in specific. customers software the speeds FPGA very products higher market then our what up environment investing for time the market. application been provide that stacks solution design our really for our to typical get makes portfolio we level to a we've that their And easy of them that and does as systems what for

was The and that that around we sensAI first was one introduced inference processing.

version The And that we're additional to security which we And as on as better that for out software well. is recently you instance have just level year can a our bring you've out next earlier imagine third security. vision second and February brought around then processing. and mVision planning that was our we stack roadmap one was Sentry introduced specifically stacks as is platform this year we our which in around

the we deployed going what to stacks. deployment every to those of platform actually is So being build that or portfolio serve. software seeing solutions market this we're And across we're this out continue

sense and on in sensAI as applications certainly stack seeing the be Obviously our you it's over deployment. seeing based to but does that but it much applications We're applications. interest -- broad does software it of does is crossed asked industrial it market? customers in Yeah it's applications. market is that we're the easier used in -- So instance we're used know computing it industrial it, of for can being depending other there's for about, and It relevance seeing that it there now has time computing applications well. adopt grow in applications pretty in so products. terms And Century makes where our is it server consumer you

seeing with our have not may have easily. we're of stack is complete by so solution of very may to to not we're customers devices some providing comfort and using a able them help And customers what a examples where history those FPGAs a lot FPGAs switch

So microcontroller from for devices software a stack. instance along solution device to over our with switch our

it system integrate customers and helps that also multi-generational stickiness does easy a our make create over their then that as sticky transition very as sticky our software customers -- mentioned into that you it new much software they So more basis. with more makes solutions level

Mark Lipacis

thank Great. I And had margins That's question question a really on the follow-up may. helpful gross if you. I

know plus target the benchmark margin you there, you is the remind know as of you. approach of and As could another kind target is to reevaluating is towards XX% a was just think or XXs gross as XXs other there and kind is this that that I you gross you low physical margin there initial us the it? worked reassess your I approach margin Thank XX FPGA range do is is you your XX% of that, -- you or low you milestone the it, think forgot the then you Xilinx gross maybe limit a target. about hit kind is target if hard or apologize here you of I that Is -- like in is that that high like in is for like limit that longer-term you as

Jim Anderson

you more It's Yeah. as just Mark. summarized. Thanks

And that's milestone. we've once milestone. reassess achieved an initial think that we’ll I

greater put be than target had to so clear out XX%. was the and Just we that was

know in we our XXXX. And Investor So progress shared made we've at since back then. you of that Day had May clearly significant

QX in went gross quarter recent most this margins Just up.

it was XXX year-over-year. basis think I points

amount what We focus continue right out see as it is strategy. that late yield I and that That strategy greater to think that started our continues are expand our would I bring I we had. to to XX% don't really that products continuing on focused target be. roadmap we target. remain make in there those we'll for the than are that a strategy get They benefit about gross our you products first strategy get XXXX market. margins. the or reevaluate we product once And we drive should improvements marketplace. that part in expansion the and we've then the built to is is, sure Obviously But the And the limit where milestone. So priced significant been it call a get think part We room And margin to in gross coming to share implementing to XXXX. the of once that's priced moving is that correctly the value has cost there as of our gross to margin that. of forward. And there differentiation But past of other the customers. pricing that want that XX%, is expansion just from beyond we'll in as hard that we kind optimization sure XX% reminder making

had we've product improvements had. So cost roadmap multi-year a we’ve that of

that And then, product improvement cost and the pricing product expansion. well. we've as a to margin of drivers optimization cost been some of been the So, or other gross change had multiyear portion executing we’ve other But the and the two improvements. there has mix roadmap driver main of that's

Mark Lipacis

very much. Got you. Thank you

Operator

is from of Rolland Your Susquehanna. Christopher question next

open. is line now Your

Christopher Rolland

here. I talk be, could had we driving automotive, for Thanks you sequential if was wondering question. might could first bounce and here the be it? the big maybe And specifically kind I specifically the would guess we Hey, perhaps industrial How then, applications of more more back on guys. Thanks. for about automotive isolate what if that? auto is

Jim Anderson

Thanks Yeah. Chris.

that So, revenue see so of the majority us is that as for still in for industrial. is is small pretty segment, although segment vast growth automotive the do Automotive long-term us. industrial a a we driver auto of part

getting electronics. win into of design types a and number healthy designed have automotive in new a automotive We're of We electronics. different applications funnel

market that long revenue are course, cycles. design to of the Those Of part slowly. ramps win time

we But more it a that industrial. mostly as driver. for drives do growth. as it So today long-term see long-term growth But segment good is

of terms sequential couple we QX in year-over-year. improvement we to that's and XX% up of the industrial. I And sequentially demand things you from to strengthened If up started that impact end by softness So improvement see back almost going that QX COVID-XX did industrial X% some or sequential on That's to a all QX. COVID-XX in would recall market saw QX, in driven market see the say there of in related we

to automation, industrial So market in of see segment that market end growth industrial was But good on growing industrial that's strengthened. the vision demand safety, applications in top industrial there's of on Lattice top that embedded like robotics end that improvement.

think the has COVID-XX our we've strong been and industrial I segment this been performance despite automotive this year. So we're progress backdrop in making quite pleased and that in overall with quite

Christopher Rolland

Sherri kind on thoughts know point benefit know there that nothing's there. any I was don't here for was how if one gross think strong. Okay. versus there and have any I I'm quarter. licensing it And of out if maybe one margin with XXX you guess for too, kind changed to I about you to But of you that has benefit that expectations? love unexpectedly know the X assuming updates I'd basis flowed gross for if margins Sherri here licensing

Sherri Luther

Thank for Yeah. the you question.

expect in than QX QX. what we had expected. that XX be the the we licensing of the slightly higher the amount come range sequentially. normal was be in So million more gross to did million it forecast, difficult IP This to product higher or $X in in other points basis margin at versus to you about it When we was down terms look look it versus revenue $X of expected can it higher QX at area lower when we in

our So when we was that we headwinds experience anticipated that remember exclude ultimately the we you gross QX component what and segments IP within that it if that's our would market happened. call you in some you earnings said But mentioned down sequentially margin

you year-over-year we margin XXX when our that's a at so from of really strategy. And increase points. an expansion gross basis saw margin our gross And product look coming

mentioned As product reductions some cost and optimization, pricing mix. with Jim

So continue model laid we that the kind can you year our that. XX% of about that's as way to out our think Day execute in we toward than that of long-term that next Analyst greater

Operator

of William Your next is Vecchi question from Alessandra Blair.

Your now is open. line

Alessandra Vecchi

you decreased Hey I remind a thing quarter. a to be have I can supply and nicely everyone If but quarter mix I DSO how looks target well had last and like us great DSO But one-time quarter last believe nature you recall constraints forward? you congratulations should the as due Sherri about question quarter. we if your of It can. the some on maybe quarter. for you this thinking going and back-end from

Jim Anderson

you for Alex. thank the Yeah question

we the We So DSO the QX a achieved end linearity. to the see due was XX that really we DSO didn't improvements of improved quarter. of in had And improvement XX shipment days.

As you the referenced COVID-XX chain experienced due in supply QX constraints supplier to restrictions. we within did

and so on XX-day when our shipment there can improvements those team generate could but to due continue on a timing quarterly our DSO, a to during there quarterly So basis but to some the of on generate QX again -- is an in to product customers goal basis. linearity going want, the to and there they fluctuations the work we improvement be quarter, further through would in we’re just constraints last work fluctuations be generate want our but really them enabling our the quarter to ops improvement that improving

Alessandra Vecchi

coming those then expense tremendous sort the expected. the on done in at and in has Lattice than And or end similarly a of of lower better job line keeping sort operating check

forward how markets and and next we at tape look continued end year metric? traction growth gaining outs, and some revenue to product potentially As introductions new we think growth about the to new OpEx attempts or verticals, maybe should other relative

Jim Anderson

that our on model short-term way so laid of kind direct OpEx, so at I'll the long-term then Yes would our I we to Day Analyst and you year. at comment the last out

due guide When which that's spending so is to benefits looked some during had program slightly due OpEx efficiencies lower as midpoint and some QX to at spending higher be well We to quarter the payroll down. taxes. the primarily from to costs. our going we as And

program higher talked Analyst Day that then as for mentioned. Jim further at year next product Nexus goal in at be about into So XX%. look out roll to our we last OpEx beyond quarter you our out And we costs when our QX the

R&D So we're out be a are on actually target what at XX%. on was and XX% we goal in then for we around that so dialing to QX. in between sort is the and SG&A XX% But of SG&A R&D laid last mix continue to going for the year and working

and further we so a XX% ways the go in think composition. down SG&A of got that can that’s OpEx overall to about you but And to we've within to SG&A on target goal get the little XX% how are

Operator

of is Hans question Rosenblatt. next Mosesmann from Your

is line open. Your now

Hans Mosesmann

with provide FPGAs the network say card Good Yeah. Thanks. ever and that nicely. be that are side GPUs not flavor markets Congrats, and that server the could your you've I'm execution. exposure guys. on aligned motherboard growing other some of seem or data of business AX computing you storage. don't quite but Hey, if know us sure out CPU to if of you your you and between actual your I if done specifically acceleration know center or Jim split kind those or interface

Jim Anderson

broken it's with though revenue control the type CPU would Hans out. of is say FPGA security that in a motherboard. functionality on main I Yeah, is board usually the doing CPU or yeah most on we associated main haven't

so cards of of used I motherboard. market that revenue the part and motherboard. ancillary well is from of cards main the cards cards most the on driven sort used other But mean data to as are from is we type are the would CPU that say ancillary Although accelerator of other on

Hans Mosesmann

Okay. can outlook also for On Huawei it a point a QX in roughly though you QX. part give much point? there's How reference us QX was in your just Huawei included reference as and of since

Sherri Luther

to maybe this would Yeah single digit. any be since that kind say let's low in we at low X% the maybe point given is have Huawei going range we give for just this for revenue digits X% know I'll full X% and you Huawei of to year been this the QX. haven't single assumed year revenue year what

Hans Mosesmann

guys, doing have question the may on XG, end And Okay. I missed you’ve know or of I I market share I penetration an have How gains. - it’s you then don't for is market That’s helpful. last area if it. that particular

be there updates any would So helpful? Thanks.

Jim Anderson

Yeah.

this from again still this was next the So XG expect of year year the year. on quarters last first through in grew contributor cycle. nice a year really early good QX XG growth it growth in pleased were we We've seen we XG a and rollout to grow again to year-over-year standpoint. three XG revenue in relative We're for

worldwide XX% a did at content in look in early cycle got we've we're still again XG. that a XG than and base you we station If deployments more in

growth years. a we term over driver expect for driver worldwide multi-year good coming long us deployments growth happen good as So to be the it

Hans Mosesmann

Okay. a Thanks lot.

Operator

Your of next Hallum. Craig from question Shannon Richard is

Your line is open.

Jim Anderson

if you. We can’t speaking, might Hi, be mute. you're Richard, you hear on

Richard, can't So hear you. we

Operator

line your Shannon open. Richard is now

You may ask question. your

Operator

Instructions] [Operator

Jim Anderson

and want you move ahead to to do Operator, caller. go the next

Operator

turn would no Jim and to There questions comments. Anderson, any back CEO Mr. are to further it I further for like

Jim Anderson

of we about our excited both everybody you the the us. everybody and concludes business lot that Thank We're consistent being roadmaps. with We're we product for have potential on call. and for work the Lattice. our continued today focused and remain a to and operator with operator full future as more on do unlock progress of on our today Thanks Okay. call but execution we us strategy pleased thanks Lattice today's joining

Operator

you thank gentlemen and for participating. Ladies

may now You disconnect.

Lattice Semiconductor (LSCC) 27 Oct 202020 Q3 Earnings call transcript