LSCC - Earnings call transcript Q2 2021 | Lattice Semiconductor Corporation

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Operator

Welcome everyone to the Lattice Semiconductor Second Quarter 2021 Conference Call. I will now turn the call over to Mr. Rick Muscha, Director of Investor Relations. Please go ahead, Mr. Muscha.

Rick Muscha

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

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

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

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

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

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

Jim Anderson

Thank everyone you, thank and joining call you on Rick, us our for today.

be Lattice, markets. We expanded end fueled for beginning product excited vectors are and growth new phase to multiple at growth by a an the our portfolio across of key

We margin gross by each with XX achieved increased on year-over-year. QX continue of XX.X%, XX%, our record XX% Let me growth year-over-year basis operating We grew margin in start by execute double-digit expansion net to year-over-year from highlights to non-GAAP XX% profit covering few we of XXXX. as gross while X% and non-GAAP strategy. key of our We market a sequentially, income revenue points year-over-year segments. non-GAAP expanded

We also advanced our of general-purpose expanded our FPGA. new product leadership CertusPro-NX, with the June launch

Let year-over-year me XX% now Computing increased basis. overview and business Communications and market. the In our sequentially X% by an revenue on end provide market, a of

to ways systems the versus opportunity be growth the opportunity our by in greenfield XG our long-term segment this our Investor server we as to we new Computing new and key in ramping multiple bring servers, worldwide Communications build-out customers. with a is significant computing to XG In server long-term rate servers, generation. systems and As for to an is multiple both continue XG by Day, higher of driven of increase drive infrastructure. and a XG company. content each driven ASPs, Client in for was drivers growth data are at infrastructure our recent expansion innovation discussed center a with per and continued content XG programs in attach us, infrastructure. growth continues client growth dollar computing

Industrial revenue the up increased to XX% basis. market, year-over-year and now and XX% on Turning sequentially a was Automotive

grew applications robotics, advantage and solutions significant as Lattice where differentiation competitive multiple for provide Our automation across and industrial such business our customers.

continue our is portfolio in long-term to to drive sustained deliver industrial the product growth. well-positioned We segment strong and growth

I Consumer, our was up long-term. the revenue has stabilized of our growth designs Consumer better past now and I’ll XX% the was value, improved FPGA product the higher two now roadmap as Consumer the flat and leverage Turning year-over-year. revenue sequentially be quality years portfolio. We targeted pleased provide to overall execution. we’ve very over with over for our modest highlights. believe has is and continue potential to some The that stream team’s multigenerational revenue

based launch XXXX. launched was late have of the platform Nexus Lattice June CertusPro-NX, on now since we introduced in families With the platform four device the

excited value for are our customers’ offers about to of relative system the the We industry-leading which reliability. and family, provides and best-in-class Xx Each advantages bandwidth CertusPro-NX lower power, and meaningful these competition differentiation systems. applications

with ramping first Our families and device are customers. in Certus-NX two production and CrossLink-NX

revenue The track the end generate is on year. by third this Mach-NX family to device of

to to be adoption with Nexus to make very On to Lattice to our easy make our to it we software tools, segments. easy platform roadmap, of software continue We adopt invest our market for stacks the it our continue and products quickly. pleased in customers market broad across get solutions and

key on and in We’ve momentum. Day, call solution and continued Sherri robotics our fourth end we stack the the installment our and Lattice markets. our which we on focused During the market over Avant will applications. QX to lastly, new are start next in well across growth leadership, to Automate, XXX Execution in I’ll factory phase for our roadmap double pleased track product driven solutions of FPGA now is customer growth be Lattice we a continued new recent proof multiple our address the half well are of Luther. turn announced engaged for second and launch with stack CFO, addressable and Investor on allow execute Lattice, platform, to vectors us at mid-range applications. reception application-specific will portfolio and at remain launched to our Automate execution. going our quarter portfolio customers and our of another summary, Avant is And point we excited with by we year. the automation of over In our

Sherri Luther

Thank you, Jim.

QX delivered drove our with cash execute in are as our We cash cash financial to to our position we sequential product results, expand continue increased net our continued generation, pleased model. to financial shareholders. strong positive to revenue roadmap. return and drove continuing to to continued growth, year-over-year while gross We and strong margin invest record leadership profitability, We and

our summary provide me a Let now of results.

well. a year-over-year basis XXX was Non-GAAP margin XX.X% the XX% the from increased on in both year-over-year and and our Computing expenses the the sequential basis. gross operating was QX prior points $XX.X market X% to basis grew driven million on up cost compared up and compared non-GAAP $XX.X pricing Communications double-digit up as first quarter. quarter. our compared up Automotive was was flat were Revenue XX in sequential in XX.X% revenue Second margin sequential continue segments sequentially. up quarter to a basis digits points quarter million, year GAAP by expansion a ago year-over-year. the quarter was from market points basis to QX segment up and margin in Revenue quarter we quarter to margin in XX revenue was On growth compared ago increases from compared double XX the gross to and year-over-year the $XXX.X IT Gross prior were quarter. to million, our and reductions. Consumer strong and GAAP also million, $XX.X was Industrial and sequentially and the ago down with year to as operating and in QX benefit to points $XX.X the and basis, be optimization expenses $XX.X Both strategy, in million to prior million million basis compared year prior quarter. and year-over-year $XX.X in quarter year product the ago

expenses operations year-over-year a operations the below basis, key increased model. diluted our half This for growth in product earnings focus portfolio. quarter. in to XX.X% a and continues share Our slightly basic our $X.XX in per GAAP in the quarter the from cash the share. is $X.XX flow share approximately to stock be of $XX prior XXX,XXX in QX, diluted target diluted to of QX cash $XX and per first basic declining XXXX. was invest million revenue, per over earnings diluted XX% QX share, the on $X.XX increased per to first the per diluted non-GAAP quarter. $X.XX share up million $X.XX non-GAAP or to compared our brings year in expenses R&D repurchased we as total share, XXXX. cash we $X.XX of repurchased generated per company. We generated in increased is compared quarter represents our $X.XX which approximately earnings was in area under This from generation This and prior half sequentially and buyback $X.XX to share for $XX $X.XX ago year $X.XX SG&A stock XX% from program. the continue which million. and ago while of Driving shares the in per sequential and year-to-date from increased In

our increased positive to our we net increased cash million as further Finally, $XXX cash balance position.

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

my the Operator, We profitability open product continuing revenue the comments. and for questions. and that through leadership our growth We differentiation to call drive are strength on of focused now concludes roadmap. expansion can formal

Operator

Instructions] Your from is first Ramsay Cowen. you. Thank [Operator from Matt question

Matt Ramsay

of into initial meeting there. what and know the And the products afternoon. of FPGA so it’s think those and questions. into like things revisit competitors over for guess, at customer your And higher see potentially moving receptions had see been It’s guys the couple Good progress I the I program. some mid-tier of that the time, you restriction challenges second congratulations. since the wanted Avant Jim, you is, thoughts I tier to part mentioned like. you been the announced engagements my in great have to to taking about on script, markets of months Yeah. as question or any China? now you Investor shipping a sensitivity some that as have in your a the business, Thank -- guys the couple

tiers market. You to those lower immune of guys have challenges some of in largely been the the

feedback go markets those you. in of that initial have regulators you might competitors to any flexibility how those mid-tiers much some from can’t? So your as to after Thank

Jim Anderson

Yeah. Matt. Thanks,

really are on to Avant. momentum, with about we but all, of for customer our to great first -- pleased the me that Avant you job asked out a on give So, let engineering I continuing program. executing know on progress shout a do team

are progress device we Then year. We pleased really I with half on second really on for that. momentum well, remain on with sampling next and track the in pleased and on customer as the launching am of the the progress execution

on Day, at we Investor had with customers Avant. the As engaged we shared over XXX

to your the build customer’s us, Avant in to portfolio? on strong we and started growing us can introduced Avant. more? recall that momentum. the customers it great Nexus so expand got behest architecture you ahead also to was that to really power-efficient the have We that, mid-range? at you was back XXXX. customer ask but bring the from Nexus, you hey, continue shared very customers, Can And I we the went Investor on reception Also you do engagement, it customers working we actually When Can Day, our if encouraged

customer yeah, so, And good. to be momentum continues

is very happy with discussions sales our Avant having now sorts customers. all Our team with of right

so, those your always do Avant. question controls, of all course, are export we that On the adhere or for to we of new on part of would products Nexus U.S. second export regulations controls whether course and any on

addressable product. be it’ll $X extensive for launches. believe will We that we market, market very will opportunity done double competitive which billion a we’ve additional up Investor And believe Avant. at market Day, We market of as roughly Avant Now, when there’s for SAM our shared we additional a open believe research. addressable that tremendous us about

progress year. with and next it again Avant just excited once yeah, really to really So, launch pleased on

Matt Ramsay

Thanks for the Jim. there, color

right is? that gap are supply you industry at to given a As have demand platforms question, about you that Maybe that guys that up that follow there’s sourcing are bulk CMOS better the what now semiconductor they companies of demand SOI-based secret of from position more no bit extent. a have to the I a And could talk most foundry? more lot my position you supply. than supply the would a -- are tight versus some assume maybe some demand, are in in Thanks. lot is in you more

Jim Anderson

Yeah. Thanks, Matt.

So, chain year past seeing definitely, done a supply team the overall I tightness navigating the in we of has think, industry. the are great our over supply the that that job chain semiconductor across

team proactively our figuring good a I supply of has think done to chain out really how job navigate.

just position. to of years customers their their of last then products and year mention multi-quarter two closely the in in QX -- strategic and inventory supply then long-term a We that we’ve very and very We very on most especially to last year sort built Number sequentially with That’s inventory a turning built forecasts, year and in back inventory in last we -- quarter. things built course, they good inventory program So will year. QX key we more and working QX QX and that is, recent high inventory working of one. our for proactively around started of really done a to XXXX volume inventory years. one, in built we’ve we’ve strategically ended forecasts. and is couple QX what again, the that this from of in in suppliers been good exactly QX, needs beginning that understand understand number building inventory with is number We And our strategic sure make place. and need

bit customers. at just I customers -- great job demand. us want think, our our we’ve -- inventory be we’ve a thank thing. that benefit good be executing. good done they we’ve and really customers think that so customers do I or our the But, might yeah, And of doing think say the job of think, forward, same moving are certainly you certainly whole, We customers think supply There would exactly supporting meeting good a their combinations there to a that for recognize a job see our the I that, because job And will we that new team we’ve done certainly they I terms and a executed into packaging chain on decide I benefit here can there. as new But they new systems help getting designs a and because right are I localized to some to and of additional do silicon as support we really on that in of for chain. take the well account seeing now designs, supply tight

answers Matt? that question, So I hope the

Matt Ramsay

guys. No. back it. jump Thanks very queue. much I’ll in Jim congrats, the Appreciate and

Jim Anderson

Thanks.

Operator

Vecchi Alessandra Your next William from Blair. question is from

open. is line Your

Alessandra Vecchi

everyone for Thanks I and look and all congratulations the us also another good. great extend on quarter make helping

But you neglected how your how hone green an customers of been gain particular? coming acceleration in robotics and And there’s industrial those internal expectations little market end have in of about out more maybe COVID. on maybe into a little by quarter? early it us much bit really revenue talk tracked then that market automation on can some Maybe the Obviously, is bit maybe you segments the a the the growth on going a incumbents the breakout. versus share can more to industrial on versus of Jim, if little just side. Just versus

Jim Anderson

Thanks, Sure. Alex.

by. on sequentially and So, certainly and first which But was XX% saw XX% we than had revenue are in QX end in Computing up Automotive, which the quite and our was also strength topline, of year-over-year. that Industrial we Communications particular, the we question and X% up XX% part on by pleased sequentially In came the better expected market, year-over-year.

And and and of in lead Auto, Industrial have performed two to been are in much expected. both majority the the Compute And segments the the year kind double had as grew driving particular than moving those digits Industrial and Automotive segments our came those the Certainly, and look thought stronger So, had of segments segments. of in that forward. future company’s Comps strategic last we really those Consumer in and we we growth growth really quarter. those

sources you market, We and then really where one Automotive. asked XG Industrial servers, automation, growth in and Comps and of those growth in have of strength then, and that automotive client of growth we industrial In multiple some well. particular what’s vectors each Automotive places of infrastructure Compute, around have the new new around design markets. electronics think it’s robotics of And in Industrial and of as computing kind in programs number wins, industrial course, in as well. a I

automotive a small relatively is that still segment. Although part of

The a of products applications. specifically design to which stack, solid And is, in help their quickly, certainly the flexibility, see industrial demand. that automation software there customers products just design just our industrial we content are is tremendous accelerating efficiency, Lattice and automation products strength we what and just greatest kind of wins really the applications. robotics those So And great market to growth match software, really for area for to helped and amount around our And and types seeing get industrial really customer software easily are stronger for those provide, our new robotics launched of lead a our we to is in power us. our robotics. Automated we automation that’s for so plans of and the

certainly Automotive segment of share would how that there market Industrial opportunity? that have But Certainly contributor good sources gain, of end is a significantly and that’s I to it big a of terms portion say In say, as well. gain portion of new is certainly some that also last is is I share a recovered year. end since would much of revenue versus of QX the it market.

pleased we that a be the continue yeah, growth So, expect quite Industrial long-term area and to are segment Auto to us. with and for

Alessandra Vecchi

the Great. That helpful front. extremely color on was

Just going sort as spend follow-up, my think forward. one of as about R&D we

and an It’s bit timing of for of revenue. we little a or Is guys up? been a tape-outs the bit I new the about launches internal think Avant that. you all that a target think how have about that last the coming should XX% of just just function quarters. given tracking few product little surprising It’s of below

Sherri Luther

Thank Yeah. you, for Alex, the question.

you Investor May of at we spend did was target R&D year in this are as our Day that our put back target. So, out right, XX% our

we in During the XX.X% revenues. came quarter, at about of

our to the but I that will below So, company long-term our we as focus that out products an portfolio -- in your really increase increase continue over R&D point of the target, did point that. to dollar we’ll on and to our investments absolute growth our perspective spend

that’s If we Day, you guide as reflection CertusPro-NX, for also and look and of up make talked we at our product At Investor portfolio. as midpoint our our a well QX, that’s investments you about our launched. product that Avant that we want that guide our see a of continuing to platform, our the in

So we’ll continue investing for in to that our the long-term growth and you’ll see continue financials.

Jim Anderson

the in a investment. additional products disciplined -- we portfolio, that And know is, market. way controlled certainly, and add look Alex on great I we to one to to we in the way, when expand to that portfolio, we get product said, Yeah. do also that continuing a Sherri ROI we are disciplined in to continuing are thing continuing invest But want getting would also invest, to we the as

and pace way. we’ll to do right the And rate and continue at invest, so disciplined we’ll a in that but

Alessandra Vecchi

With jump ton of queue. that, in makes a I’ll That sense. back

Operator

Tristan question Gerra from next Your Baird.

is line Your open.

Tristan Gerra

hear you Can Hi. me?

Jim Anderson

you, Tristan. Yeah. We hear can

Tristan Gerra

Okay. Oh!

Sorry.

question Just are chain you mentioned win some actually a and in the helping customers you qualification. well shortages design that new that know you’ve about supply managing the of follow-up quick as earlier on it’s terms

improved acceleration forward Given gain. time acceleration of the is not the for be terms you redesign seeing that’s you to or it extension your design really that microcontrollers architecture your from the they you qualify. of it yet the share or in really But seeing away an of designs TAM product the MCU notable that Are and terms because the of expansion are targeting case takes of of scheme of MCUs? product against because times an lead customers, to are type going have shift availability in in in obviously supply to the shortage,

Jim Anderson

we would are we’ve microcontrollers. we new seeing against Tristan. are accelerated quite a parts opportunities say Thanks, definitely that also that of clear Certainly, there’s and on market. shortage microcontroller opportunities no the supply and targeting I secret microcontrollers been

market, microcontrollers a are obviously parallel content we portions much flexibility FPGA of well. efficiency, the are also and intelligence the processing displace competing good nature already of power than competitors to our performance watt traditional that we all of performance, artificial We in for higher a our with market the products, to but going as FPGA and the position in after are per the And microcontroller ability the algorithms better much do software microcontrollers at bring. we because

I redesign And industrial systems, would that are we taken market already as market microcontrollers have are we the possible right to Lattice one FPGAs. segments, support that But do to seeing well, the we seeing their certainly we and quickly supply something customers, examples motivated we are little to device. noticed, take into shortage but being seeing have do plans bit a of to and of of that’s as that customers they’ve fact accelerating you across of instances. are time particular customers different that does very in been seeing to it a the are our and our a segments some able couple of that So customers account very that switch that the to say we’ve conversions

are So, certainly benefiting that, Tristan. from we yeah,

Tristan Gerra

XX% continue And next we going margin kind margin target, think great longer for question few the comment up gross to key on near-term, a obviously, it pillars from the few term well. next if in we quarters, you the you as Okay. should stepping is for levels? be That’s to were something gross expect what then Sherri, of to quarters current your feedback. know margin gross is for tabulation the And

Sherri Luther

you, Thank Yeah. Tristan, question. for the

gross I’ll improved margin point nearly to-date. has though XXXX our out points basis XXX that from So,

we year-over-year, really gross key again with you out product sequentially our and as kicking that -- strategy margin look of pleased -- on made current our to at as raised expansion our and we’ve reductions basis past May, the the can gross a this XX cost there. target. points our exceeded of are out XX pointed then we part target optimization, we -- for two out we’ve QX we that XXXX Investor And elements see so points Day that than in exceeded XX%, that at strategy. So, are XX%. in optimization in XXXX you margin that quarter, When pricing that point improving target at strategy X also improvement basis progress Investor our greater I and the our put pricing you XX that shown Day the improvement

continue expansion be reductions. margin So pricing optimization the gross elements that of cost strategy product to and

have number that in to execute continue We target our we of of expect on initiatives term. able are place that some near-term are put to be a to some strategy and to XX%. continue on get to and to work But we longer model long-term and

Tristan Gerra

you. Thank useful. very That’s

Operator

Chris from is from next [Operator Instructions] Your question Susquehanna. Rolland

Your line is open.

Chris Rolland

for Thanks question. guys. the Hey,

is expect seasonality in seem just ramps the a sequentially and you huge guys the more been back Given that flat to to would have back supply typical a you driver constraint in grow your mean bigger be traditionally here, you that? half that product strong given through Thanks. guys. half or there doesn’t for Would

Jim Anderson

Consumer the patterns part the seasonality of haven’t other for strong Yeah. we we we revenue. segment, relatively that overall Chris, consumer see Certainly, think, kind still the remains But I our a Consumer normal cycle The QX. couple last of guidance provided patterns. years. seen over than segment now small

forward do having certainly But continue throughout first we We we as this now to as guidance product and ramps half second believe new really providing of a had are beyond through good just strong have we well. second a number year a we -- look the half QX. half that

Chris Rolland

percent? you. a shorting I given have in actually not report percent their as Okay. there, of case think for constraints Why there. and noticed was there Thank your would a have DIST up to Great And are total these then how DIST a vendors lot channel? inventories expect One any But color supply you. that thing continue? the be you robust you up. know you [ph] was been I those updates Thanks Yeah. the that DIST of going may is as on trends

Jim Anderson

Chris. sequential that Thanks, much into increase. wouldn’t too I Yeah. read Yeah.

that prefer direct because go reason, makes, do direct whatever of large customers quarter-to-quarter. Our to we to a percentage to are prefer can of mode, but large actually DIST have also fluctuate we versus through distribution. a for then customers number easier And it go although happy our strategic distribution, of support note our large customers in either that number or through operationally distribution through it

of terms the say and our DIST of we’ve levels level visibility historically into very we we inventory, of good do what side I seen. certainly leaner of finished QX, inventory would In on have distribution DIST

So, customers out inventory ships of of then visibility into DIST would DIST we have course lean. as call, I into And very what well. our good end

And so, into the DIST. too of but first again, your to wouldn’t of read back the I percent fluctuation in question, sequential part much

Chris Rolland

and Jim, Thanks, nice quarter. Great.

Jim Anderson

Chris. Thanks,

Operator

is Your Rosenblatt. next from question Hans from Mosesmann

line open. Your is

Hans Mosesmann

Hey, Jim. guys. Thanks, Congratulations.

on question seeing the design shortening? or design you accelerating a activity are some in cycles Just cycle, the customer

Jim Anderson

wins, would new market-dependent. a design say customer we is, customer certainly are say seeing I of that high terms level design-ins. would little I bit What a activity of very it’s engagement, in in general

engagement been seeing are at level a of the tremendous you and if highest I’ve the I would think certainly customer Lattice. of And say We amount I activity activity. is since the it’s our for say, employees their in seen at at ask been highest years many many -- have a would in number of Lattice. who the years, they sales Lattice they’ve

the and Nexus of fourth And launched now the June portfolio. family. we’ve testament The of -- to so I think platform, the really family on devices in Nexus that’s our strength based product a

that’s So are customers’ our in families four device that hands.

already first and two are The production ramping. in

production The we ramp end see Mach-NX, is third -- expect this we at of fourth, which year. start would to into expect is launched, to revenue the we just to which the And year. next

we and too. customer you Investor activity course, momentum. so at of well, new platform second great Nexus. And around half of customer launch the amount in Avant imagine, amount would seeing activity we our definitely There’s the of that that, as Day of around tremendous May in announced next And can are then, year. as tremendous say that’ll a I

the there design switch cycle reasons. In some cycles. existing driving for It’s pace design are we’ve they in they microcontroller of or where instance, faster are for customer-specific some shortening with customers, to industrial customer customers more some a and accelerated having it’s cases, terms their so instances issues supply are In to their of our accelerating, accelerating seen device.

are seeing But of good driving that constrained driven in to that’s general, transition are again, we instances now. a supply Lattice. faster kind So activity very right customer

Hans Mosesmann

and it clear. make I just Great. got follow-up a have And just to quick sure

not have lead Your changed, right? times

Jim Anderson

there lead have relatively package have -- generally a one have stable. of normal may across we of look have our been our range are Yeah. as and a than time. that tight products, -- that a lead across stable. generally may may longer products, the broad supply There When been you But some device particular our particular silicon times general relatively Lattice combination like of instances, full set be the lead times whole

Hans Mosesmann

you. Thank Great. Congratulations.

Jim Anderson

Hans. Thanks,

Operator

from next Capital. Craig-Hallum question Sam Peterman from is Your

is Your line open.

Sam Peterman

by question. is channel up for This talk guess, could Richard. levels of in inventory. Sherri. in the Hi, are on guess your taking or my Sam to first, you Jim. than Thanks to on I spots others? questions kind those I you want were the compare first asked I Hi, channel follow distributors more there lean quarter said saw they lean. across how are that Is that segments inventories you for certain and about

Jim Anderson

Yeah.

in -- to so within inventory seen so four QX we ended certainly QX QX. sequentially at of time look it’s that see three lower last where I of channel look inventory distributor what lean of think, in at distributors. It’s we’ve very years we Sam, And the and if levels terms down level years, at we over the the in of versus our span. was say we inventory channel end the

inventory to also tried said Lattice. have of within good maintain We very level as a we

So and allow the to or parts customers well. distributors is to about, sure different Lattice inventory the we think, strategically very levels the build the not the then, any it variance to at your in And right variance also allocate across a differences different segment? seeing are we built inventory significant No. inventory part say, level levels parts make across question inventory any inventory are -- would is, of we supporting healthy I we’ve allocate segments. I us that and and very the -- seeing in markets are was market markets

Sam Peterman

X% about Industrial helpful. rates growth just that more the strong Thanks think color. That’s as one year of four quickly, last been curious start Then quarters tick the Auto Okay. up. has on higher for been obviously QX to the or segment, quarter-over-quarter. I pretty have last

you do slow a growth little in as head change expect wondering half, the the back the think there or you rate to bit? of kind of rate should we if Just

Jim Anderson

Yeah.

QX. and and track to Auto to those of Comms Computing and up of would QX, we -- talk from For to can if be sequentially look look midpoint point, segments our as at our the you and that up guide QX, I sequentially QX, of you for it’s see two would QX growth that both Industrial expect at our if expect well. our you guidance about We midpoint big

So, yeah, up in Auto be we sequentially to are certainly expecting QX. Industrial

Sam Peterman

Thanks, Okay. guys. Great.

Jim Anderson

Thanks, Sam.

Operator

question next Collier Soderberg from [Operator Securities. Your from Instructions] is Derek

open. Your is line

Derek Soderberg

my markets, quarter you seeing directional progression unpacking any would to Hey, end on QX, kind various if from QX be the curious what sort everyone. taking just questions. on of you are just the for third that, provide could guidance on commentary revenue I it was of helpful? a Jim, Thanks from perspective,

Jim Anderson

Derek. Certainly, Yeah.

be So QX QX QX, we to expect to up. sequentially

drivers segment. within Computing sequentially we that have We expect Comms and and three be good to growth Computing, Within up. really Comms

new Investor are each shared data server dollars through continue per expanding one saw the as quarter had to well. Lattice as strong attach in have center Compute. in of in and significant driven are attach servers our ramping, at Comms we then the per expecting of expect one, a meaning computing, by one expand that’s And QX. server which that, for server, dollars servers, -- client generation device Day now of higher And we with higher than that platform a Industrial a in ASPs bring driving per and We things very XG that’s certainly our are we we content are exceed more we we of combination we us we is increase rates also value infrastructure, to server, rates content and growth of Auto, areas that that to shipping more our

as of We in had are that are good ramping earlier. new industrial seeing some robotics, in programs I very mentioned strength automation, our just

So there from well. be slightly flat QX Consumer, we up to expect QX. see to sequential we as expect to growth would to

for a that’s you, of additional bit hopefully, So, color little Derek.

Derek Soderberg

anything power, the incremental new listing great. And on build follow up, you guys interesting seeing competition, and out to any there market, platforms? just maybe companies then, there competition think, your of or Thanks. That’s there software as my I to FPGA curious some buy Yeah. in low on are hardware players incremental any about for terms there’s

Jim Anderson

Thanks, Derek. Yeah.

landscape with competitive the part market competitive stable. for on think think today I the that are products, we been of has our the landscape the pretty addressing I

terms definitely easy small we We haven’t flexible portfolio leading at leading FPGAs of think and market. for we our the are very seen very we market are changes. believe use to efficient product any absolutely power a dramatic in and We the

a a quite data our We in if bit And devices. with remember, significant have of at comparisons and you comparisons, advantage May, of shown Investor number we’ve Nexus competitive competitive especially we Day our there. back guided a

mind we complementary we to we So landscape to options to a one existing question and for our I still in any job second But, inorganic our with adjacent very of would I and drive would that’s potential top scanning in about portfolio in are is confused respect competitive the that first, business very is landscape what priority spot opportunities. very product market. certainly, always always And potential and of good growth parallel, be one. be about either that was a would start again, accelerate by are or way part we the organic a perspective. job M&A they and our strategy, a never would are very from additive think be hardware one positioning your saying, organic and think could be the so in that always in very software a that’s But our complementary.

approach we options. at inorganic of kind way that’s So the looking

Derek Soderberg

Thanks detail. the Perfect. for

Jim Anderson

Thanks, Derek.

Operator

And question time. to the turn for am comments. no showing I further Mr. I like CEO, back at this Anderson, Lattice closing to Semiconductor’s would call Jim

Jim Anderson

for thanks And Operator. everybody on for you, Thank the call joining again Yeah. today. us

for a at So leadership key vectors phase product we our be our again, really end driven multiple new portfolio start to across growth really and by the are excited of growth markets. Lattice, and

So we our look earnings updating progress concludes on on call. forward That our Thanks, Operator. to you continued call. today’s next

Operator

and call. does this great gentlemen, have day. a and your Ladies Thank conclude conference for today’s you participation

Lattice Semiconductor (LSCC) 4 Aug 212021 Q2 Earnings call transcript