LSCC - Earnings call transcript Q3 2021 | Lattice Semiconductor Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, welcome to the Lattice Semiconductor's Third Quarter 2021 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Mr. Rick Muscha, Lattice's Director of Investor Relations. Please go ahead.

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

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

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

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

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. provided be

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

Jim Anderson

everyone, Thank multiple pleased I'm for as double-digit our our growth year-over-year we across today. us thank our call you, in on strong and you, joining vectors with product revenue expanding by driven QX and portfolio Rick, results end-markets. delivered our growth,

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

net expand in income. year-over-year non-GAAP we hardware new software In with capabilities increase our we XX% to continue addition, and drove And product enhancements.

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

into is last year with increase Computing In started server segment have that the this in our Servers, rate dollar Client both Servers, and continue per expansion in growth programs our driven server customer as generation. Data Center Computing previously, drive we've As infrastructure. long-term each new to year. highlighted Client by of In drivers in XG ASP to this key driven we continues be content growth ramp and are growth attach and an continued by

quarters. in we're the that will addition, coming generate customers new revenue with engaged on programs In

Lastly, our we Infrastructure growth XG in worldwide. were with be as in QX XG to deployed pleased continues

provide and QX a of segment and in reflects was robotics, customer revenue natural for in fit of market, Combination industrial solutions a power devices industrial XX% up customers. broad makes market. our adoption in and where the the to seen to software basis. Lattice efficiency, range year-over-year Lattice adoption devices We've content of this recently strong rate for used a significant now automation competitive increased Industrial Turning accelerated Automotive growth sequentially advantages customer conversion segment. on performance, Industrial the our and applications, an flexibility X% including and

As industrial continues, transformation long-term of digital applications product and portfolio well sustained growth. positioned the automotive is our for

up X% now sequentially revenue to consumer, year-over-year. Turning was XX% up and was

customers streams map. discussed As I'll launch provide their products. multi-year with the our with Nexus, on higher revenue our the road device solutions is team's are be we've continue our where platform. highlights. map and based on product X Lattice now launched we've on road product Since applications pleased some execution enabling previously, our to margins, I to focus families differentiate of

X The CrossLink-NX with in are production customers. ramping Certus-NX families, and already first device and

next efficiency, Our power family, family, this go Mach-NX, track launched bandwidth device and than third generate of CertusPro-NX, remains fourth much device was footprint a towards on year. Nexus significantly has June the CertusPro-NX best-in-class production end competition. revenue to better smaller year. and is to the into system expected our in

our engagement broad Lattice all be that we May. platform in continue our our adoption with Avant Avant We pleased our Nexus excited market Investor upcoming across to Day about segments. platform for us will on of the We're to allow announced also at going second well. half mid-range track the double of in year. continues address and launch market to FPGA is momentum grow, Customer next our and addressable and execution remain We will applications.

our is well. As our We've in of key stacks been years, increasing over organic just software but increasing past few solution our the we've investment investment development component environment, portfolio, strategy. not software as discussed a the in application-specific the

For strong solid Sherri I'll In Luther. mVision, we and get make for on products expanding and are making on on focused applications. vision call of focused our growth to enhanced with to embedded example, our performance it capabilities These the market over stack we solution adopt to CFO, our to easier quickly. we're now our profit revenue investments the Lattice during award-winning product and customers further summary, the QX, continue pleased and progress expansion, portfolio. turn

Sherri Luther

Thank you, Jim.

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

me now Let our provide a of results. summary QX

growth was all $XXX.X up points Third from quarter year-ago with compared sequential up but the well. X% revenue year-over-year. XX% quarter of in points quarter. compared end-markets sequentially quarter XXX up was revenue to to digits million, was Revenue a basis QX was year-over-year our year-over-year X XX.X% double down the sequential and prior up IP basis. grew as basis second Gross the up on on was basis and a XXX GAAP margin to in

million basis, in $XX.X year-ago also year-ago QX prior basis the increases quarter. GAAP XXX million the expenses record a higher to were prior strategy. margin $XX.X a to sequential sequential QX Our quarter compared benefited points IP year-over-year we million non-GAAP margin the expenses to continued the the quarter the were a the XX.X% year-ago basis, $XX.X and million was and driven from up quarter. gross to compared On $XX.X compared operating increased in in points in revenue. $XX to in $XX.X operating Both On million million expansion XXX and margin quarter be non-GAAP quarter. basis and to prior our gross by compared in

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

Finally, our million. balance cash $XXX ending QX was

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

revenue leadership product call questions. the continuing led my growth our sustained profit open and road Operator, now that can strength on focused concludes comments. are We map. the We to expansion, for of and formal drive differentiation by

Operator

Blair. instructions] your Alex from [Operator William the first And from line question Vecchi of comes

is open. Your line

Alessandra Vecchi

you out quarter. end that raise there? -- products maybe gross there constraints relatively the I'm guys the looked it we of more Congratulations out some markets push results, that give given hit of start, stable? on been percentage maybe everyone. used on within impressive overall impressive not on from increased any the certain you into really or little the or each costs as comment color end were margin another hit if of Hi, to maybe prices Can park market, sort revenue, guess to I sure mix there. the a gross same able I'll lifted you've through but of a the margin, the And margin,

Sherri Luther

Thanks, Alex.

QX the execute XX.X%, all margin sequential saw quarter, really benefit really XXX towards XXX from basis point driving the improvement Investor when pricing long-term improvement margin reflects, margin margin year-over-year. It's target sequential gross perspective, that actually in improvement. that strength strategy. a the we laid put in year, record with results XX%. is we out points for actually as And drive midpoint, gross a the from as from lot we that a to And pleased our this again, gross margin at the in where from expansion coming gross optimization back Day our guide, and basis place gross we're of we improvement the look of model markets So that about our at had our QX earlier we primarily coming really strategy XXXX to you on and in you continue expansion and our in of talked

Alessandra Vecchi

you April looks Perfect. sort in growth building unable to customer and of roughly That's in flat. really on I any know in of Or there also sort maybe days inventory that a it inventory were like demand? seeing could were comment guys slower just industry back of did sort But of Can front little of on dollars helpful. constraints, a because supply if terms COVID. if And maybe roughly job then flat you're of you you meet touch good bit. up you're

Jim Anderson

Yes, thanks, Alex.

supply the I doing support you remember QX do there's to navigate But inventory wide, of of environment inventory year, last year on well in last chain tightness. year, started certainly really not this build grew we QX, last supporting immune potential actually certainly, certainly a inventory think been year. of proactively customers last our of our job that team course, tightness. and we're and strategic constraints, that built our we Lattice QX has year, that. navigating current ahead customers. doing and supply in So And yes, get chain and our QX good helped the us supply environment and We the if to industry chain supply And

tight a us. for there in particular terms may again, I of general, team good be that job our think, But supply customers. silicon to do our supporting are package Now continues in combinations

a color, I agree of with as Alex. that's that But think our hopefully, customers well. would bit little

Alessandra Vecchi

that's very back I'll in that With queue. go helpful. Yes,

Operator

And Gerra our from the Tristan Baird. comes question from line next of

open. is line Your

Tristan Gerra

follow-up Hi, on good question afternoon. A gross quick margin.

thinking that longer-term Is of margin in So continues, gross separate? for consider help about high-density it similar helping? could you. FPGAs? finally, is stop a And Or also legacy either to should Thank your environment de-emphasizing be low-margin that product supply price completely the that supply? given mix? or is you current current tightness any if in potential And the the benefiting the it from to optimization you are strategy tightness your we

Jim Anderson

Tristan. thanks, Yes,

back all, at of Remember, had we of we've So XXXX. first place put that a pricing strategy optimization beginning the in on pricing. the

differentiation marketplace So makes to been even strategy. had that of and kind that strategy. they our pricing really constraints, easier, certainly, making that's for products almost again, that's we environment, it the a customers. And I And that value the the the current view driving supply on in we're we've X current the would bit that But in focused years now, irregardless optimization chain correctly no say it -- that, bring pricing we've our sure little of doubt. it as

part second your of target at over question getting around, margin the gross time. I On think you're

target, As that now this we'll in margin can. on take Day the you new we're look our out target a XX% that to for focused gross put a get set we ourselves. Investor we towards remember from did the us at there's year, gross making as May towards we target. for a progress as target earlier we of But focused margin meantime, quickly XX%. Certainly, target that When on if we're to

margin was are Yes, of we're of supporting our to trying across your of part of our lower -- we that not our What that's the sure make case. we're making we're meeting the On sure all any third think end do demand product? customers customers and all markets. I question for de-emphasizing the around is all

So particular any yes, de-emphasizing products. not

Tristan Gerra

that's great, very useful. Okay,

percent from us on you're Just exiting the a seeing any is coming that could you a revenue give revenue How year? quick touch Nexus? where much point be follow-up. next could And of momentum as of

Jim Anderson

Yes, thanks, Tristan.

a So first our year. to X we're to being Nexus seeing that. a And year, growth We're contributor XX% for certainly this the QX. here quite is quarter of this with contributor pleased is in revenue certainly quarters Nexus year-over-year that growth the the

products Nexus well. as growth are pre driving our Although

Just reminder launched we're in we've on ramp where of a the X is Nexus at device as kind families. Nexus

And year. then we a which Mach-NX. device third we that year, have and into this will have X, first that generate production. launched production fourth entered production to then CrossLink-NX end That's been device year. And the is already The this next Certus-NX, those of nicely production goes have start towards the ramping earlier into revenue

contribute track. of the growth We're to products those to they're would year. on growth year expect revenue next to executing all certainly well. yes, contributing So pleased And as we ramp, them with

Tristan Gerra

again. thanks Great,

Operator

our And - question Q of Hans for from comes the Rosenblatt. next Mosesmann line

is line Your open.

Hans Mosesmann

team. Sherry, raising to side you up, costs correct? the guys going prices. business, not input are I'm not your that Thanks. customers. on are on but of Congratulations that passing that you're assuming Is

Sherri Luther

thanks question. for the Hans, Yes, so

then pass But for pricing have at it will. we on it, if since strategy margin it makes you underway the XXXX. that way looking So we're our if gross recall, sense optimization. that us expansion to customers, to we for We've had

underway at So where products. to our initiatives we've number in value the points in a got get -- that various of for time kick really

customers. So the from really focused we're products what for getting value that's on, our our

Jim Anderson

thing And seek only if along Yes. that certainly the is higher we'll costs, well. certainly, add, product customers I to Hans, we pass to as our see would

Hans Mosesmann

past to is product? one the at way look a as previous over kind us on can that on Nexus Okay. would activity Is that helpful. can the us And granularity products, give Thanks. then than if Avant, of better level some And generation interest if it give then quarter? follow-on, just subjective you hey commentary, the incremental -- new Is these Jim, the what's you be design it?

Jim Anderson

Hans. Yes. Thanks,

on Nexus, design is So than the generations. stronger definitely, product prior much momentum

market and team, They're sales In new launched, very certainly of win And that. seeing about I execution next then engagement multiple design The actually really target FPGA the -- families customer last then momentum ever, right a for customer execute asked very you strong. well. across strongest very launch the we've just strong happy engagement, And is decade think as launch our progress the company. platform terms imagine, towards fact, very we're on can Avant, within Customer probably to one the and continuing that We're of of well. our about with Nexus, year. now. you there we're momentum And design in excited going segments. as too. in second our each win on half

this XXX earlier over shared customers in we year, engaged As Avant.

since Avant. many our of large of customers -- Some inception the strategic engaged very

the The engineering many well, design team customers on excited executing so is with we're many and and different that. is team busy, very working engaged really And yes, about sales wins.

Hans Mosesmann

Thank Okay. you

Operator

of comes line from question Ramsay the from next your Cowen. Matt And

Your line is open.

Matthew Ramsay

guess, you ask Thank in wanted questions I I much. that afternoon. couple particular guys driving you model. are about you're to Good are some of to growth Jim, of the very end-markets and a the some exposed seeing no doubt

from computing talked up a it Data the I'm the The year-over-year, and content Intel times you on which expansion and Intel know, to And number. we coming is from like looks one Eagle the expected is the have were Sapphire going I business comms quarters. space. that of up, in the of Genoa years And about don't Center I is when a Whitley at the over Grantley Rapids guys the bringing is majority first stream don't reason market. they and the know, or in you great Partly XX% It several in number so next, to A&B the platform

big both the upgrading vendors same time. systems So at

little could give Lattice from on you're a you color If opportunity what expecting standpoint. us there Thanks a

Jim Anderson

really contributor this year-over-year now. server Yes, definitely in And several in sure, been Matt. recent growth. growth for strong thanks, the a most we saw data or to the for Yes, a area strong general, the years the space quarter, us actually center, has XX% growth

our server. our dollars quickly, what in to which our with servers, grew not new to as revenue, But Although QX, per each increase -- I servers generation fall revenue on has did for of XG focus really is us as client in will just note also server been so well always but content category. that

on to And been of do certainly on got that on generation, generations multiple new the server that and well. So our each that we've across that more able as we've over all with dollar next-generation footprint server focused customers.

that next Investor In XX% at rates device our of a take steadily each if Xx, server. that increase And back attach the dollars and global average, we server. ASP. average, our there's seen Day rates attach on generation, And shared we're X fact, exceeds increase in in the in on we've rate, than on the and main attach of servers, targeting on as Lattice you servers on drivers meaning the the are number that used per now attach more rate X May, content of ship

so generation, content and each increase. into And the continues those translated to you additional capability our and And new dollar we to X ASPs. generation. content rate then together, you server increase in factors a strong brought higher And with multiply attach servers, that's each when see

And focused our just customers. server key multiple what that's on, with generations over so this not but near-term certainly we're for generation strategic

Matthew Ramsay

super I agree win it. next I topical, question, design for you think but the years? But helpful, would of electrification and which about talk what automotive might of of vectors going et drivers, many Thanks. can be intelligence/autonomy, lot company in wonder over content in how that Jim. a parallel semiconductor have sort of you're a a investors different from perspective. much are these seeing Got guess And the if market supply your opportunities. Very space, driving you similar driver constraints, automotive a couple on, end-market there's cetera. I the

Jim Anderson

strong QX Thanks, through the growth X year-over-year. most quarters Matt. the the seen growth a of in quarter, see Even for this Definitely, first or this really great we year, driver recent company. as long-term

great a for us been engine it's so year. this growth And

portion There's relatively Although into we us. for as the and pipeline, designed larger can Industrial design move still we definitely getting that is across that still get But future in we industrial market a different applications. number have ways wins automotive percentage. full auto, win industrial and a a that of ADAS of it's automotive design segment into. years, that in used of electronics very infotainment small we're

years it's come but that an expecting growth good to area So certainly growth well. today, in see of as that we we're years the good multiple

Matthew Ramsay

Jim. Thanks,

in, one squeeze So Sherri. a to quick for

so in If breakdown you on fourth helpful. the guide by much. you would color segment -- have that Thank any be quarter, the the really for

Sherri Luther

Yes.

But we -- that segment expecting the actually the up it breakdown provide end-markets. detail. flat pretty what to So is I sequentially the all by to say but much will don't be in we're for

can the probably it. you best So way look at that's

Matthew Ramsay

right, thanks All so much.

Operator

come from Your Instructions] from of line the Williams Benchmark. question [Operator next David will

Your open. line is

David Williams

the But Hey, just I to good in that a perhaps do And wanted that on think has think in mix ask industrial about maybe an very content, the transition of make to kind the kind benefit of especially letting over you just and over afternoon. and been anything on of quarter. time, as to opportunity future. FPGAs. how in some space, grow me automotive Thanks MCU question especially for mix could given strong. touch the you to congrats there's you your the think of you automotive there maybe terms progress the

Jim Anderson

Yes.

as I think that within I we do one company level, the higher at and segment, Automotive Industrial think in think, over automotive, compute segments, when time, At over combined become a percentage over segment large a XX% segments over level, I in look represent time, those and segment, other industrial bigger our fact time. large within that yes, to at automotive of revenue. X expect of a our comms of as you

a healthy coming years. very both expect segments over grow at we to the that clip those think I

not I'm automotive the so automotive segment, But of bigger between could a change sure time. there'll those much And larger X segments. within be become over that so portion industrial mix

David Williams

maybe the intermediate how kind do of term range, on Or where growth the thinking about the looks like -- the growth for on momentum the Okay. tracking have, about If think Great. of basis? you maybe an continue design today, in kind here? trajectory high-teens that the annual over XX%, growth next we guidance, we given should And you. the you you products Sherri, you're and we're -- think new trajectory the revenue then, about for win X maybe can next that this year, maybe

Sherri Luther

Yes.

our to May -- this low that in we growth until talked when the So revenue if we'll we platform term. about our sort you in get Day double-digit we targets, to growth year, our where will drive double-digit longer go really that Avant of said the Investor back the

the And perspective. way can that driving kind the and really trajectory to so of the about short-term double-digit you long-term longer-term that's think Avant

David Williams

fair. maybe then last you. That's one Thank And Okay. one. just

Just the stack to thinking about O-RAN. XG solution the

feedback how been It's track and for still next on has that's the what progressing. release year. wondering Just

Jim Anderson

David, Yes. the release next on for track in of year. first half

has I details think feedback on our very XG customer the we're Customers forward that, feature we'll track, customers working as fine-tuning and that and provide launch. positive. with looking make O-RAN the the more closer we're need. set so and remains But been sure them we certainly to on it's exactly to what get that stack yes,

David Williams

so much. Thanks Fantastic.

Jim Anderson

Thanks, David.

Operator

question Christopher line your And Susquehanna. next the from come from will Rolland of

line is open. Your

Christopher Rolland

Hey, that by but around ASIC FPGA out it's it don't ASIC stories? much about seen time? FPGA? Have have imagine I to thought there of you here. guys, team of And with a by guys of over you and lot there revenue, for my these de-commits. mix if how substitution contemplated of any? substitution the lot is we've large was the guess how the thanks is what your is I I guys question that out had or was And kind a question. wondering a And happens you heard

Jim Anderson

-- very ASIC. part it's see typically our see an substituting very that smaller we easy we we rare our It's don't Remember, FPGAs, not for on focused substitution. devices, don't to -- for we're out Yes, ASIC power use. the customers Chris, efficient,

our of actually are reconfigurability most of in FPGAs customers the I because chips designing in them. or think general

a intelligence to of So customers for They want capability. decision-making lot are their systems. to designing capability in artificial add instance, our more

for FPGAs And just algorithms in are are those or programmed do going And processing. can parallel time. incredibly inherently it parallel AI algorithms. artificial a They change processing know or inference great are be AI over designing match algorithms they're because So to they that inference intelligence our a processor. efficiently as that.

so And want of flexibility the reprogram able being to FPGA. they the

ASIC yes, don't typically So we substitution. see

Christopher Rolland

replace you ASICs aren't of ASICs was, they what because was saying other when FPGAs have because available way guess the I can't I be de-commits around. seen

Jim Anderson

Okay.

you I misunderstanding. instance, is, the Industrial. give would guess I I'll in say it our the Sorry for Yes, -- what -- example for way an

we're the of working already move road the were forward. to that number map customers product us to the Lattice aligned in a there's strategically Lattice with moving road So industrial map, towards the portfolio and space

for -- are And switch they flexibility artificial so cases, we're that and very that already I the reasons say we intelligence Lattice accelerating chain in were catalyzing about, providing. content customer the talked planning some just the would the already processing, or constraints to I devices some were to really, software that that of the supply transition.

already much than the we've customers, acceleration that through suppliers those planning So the timeline of transitions customers chain do, were other because their to some we've seen them an many with their in supply supported of better constraints.

to a from mean most the is a FPGA. And cases, common they've a a And to switching microcontroller so Lattice. in or number microcontroller that switching -- convert accelerated switching Lattice FPGA FPGA their from plans a Lattice from or to competitor's to switch ASIC can of

seeing are an we yes, activity. So that acceleration in

Christopher Rolland

fungibility high-density now times competitors space you up, just Avant's guess lead of have -- long you can't right Have And but a there X incredibly I service is the that between I And I yet, bring not Yes. think, in your do any They guys, people platforms? out know products. some moved? the think just you're have now. beneficiary you it there?

Jim Anderson

we've that a that the our and the good to our really they've And customers, supporting generally, launched well device that that multiple strong products, that new, fact we've road Avant portfolio to with families us with Yes. from accelerated competitors' of job see the X of software Nexus map. product that cases, from a I very we've and We I of Lattice well. as you fact The that customers strong content. devices. customers or set we're as definitely see believe have microcontroller we think brand then of fresh as our believe, combine to FPGA fresh the we the very done And a a number as transition benefiting in got mentioned,

we So yes, from believe certainly, that. we're benefiting

Christopher Rolland

guys. Thanks back in I'll queue. get Great.

Operator

next question from Soderberg Derek Instructions] of [Operator Colliers. the line Your from comes

is open. Your line

Derek Soderberg

taking for And front. Hi of to commitments you today comfortable more guys, if meet wondering, beyond than than executed more next that, where to on service feel been the question. fiscal with just I your today, revenue that start for additional -- sort trends, I'm bit It year. like commitments with demand servicing environment. demand my to sort supply thanks seems supply first, targets secure well you've you quite a wanted guys guys supply given of case. to long-term your growth need you that's are have the the if

So top then And you that. your on to of start online? that we'll Are And just so, adding would capacity? if when one come suppliers there. expect

Jim Anderson

first in suppliers capacity. So question, as beginning the back certainly not the on cost next of multiple capacity, multi-year just working on of years our to year's on suppliers maps out. but XXXX, fact, well the we're our And we with working both the were always product as part with all way road on

with always the So in make that sure place. that it's to long-term our over the suppliers is we're engaged capacity something

that. we suppliers our so yes, are And with on very actively engaged

years capacity general. the we're future certainly, growth just all continuing from to in but the the of from in question, from seeing yes, of demand, second from of add not On part suppliers us, our your industry growth anticipation

So yes, capacity pretty a rate. we're add at seeing our fast suppliers

Derek Soderberg

a there guidance we range there's really read wider it revenue guidance than the to historically contributing that revenue there you're bit wider little anything -- into as it. Or not curious been, that? by has to my that's there Is then think Just a should seeing $X out anything granted was I slightly guidance Got -- revenue if million. range? follow-up, And out only range? wider my led

Jim Anderson

anything Thanks, No, I Derek. that. into wouldn't read

-- actually, pretty I range done you actually as look of percentage the we've at I think baseline if think revenue, the past. with it's a it's what in consistent

revenue and the I little range the the widened our has bit about percentage grown, so kind of think a kept but same. we've range

Derek Soderberg

you. thank Great,

Operator

Shannon question the next And from comes Craig-Hallum. your from of Richard line

open. Your line is

Richard Shannon

put this to all questions, love and Thanks for may competition, here. on got of the of I've slightly taking but question overlap my question. a together with of kind X-part it previous some Jim, kind

well? last product you've the then with of introducing and in mid-range So and space. years, in clearly their base from you if increased dynamics competition at is. legacy recently any companies alternatively you of seeing look focus microcontrollers, lines in -- emerging fast coming this, you've competitor the in kind the the any here. that's add of to in they new competitive competitors whether are competitive when X here change of FPGA kind more in as their been few increased announced even dynamics of decreased or level this global not seen And set space, And really then Wondering aggressive in where kind that your to

Jim Anderson

Richard. Thanks,

ground, -- platform, And you strategic in is we Avant optimized -- So seen very in again, competitors see then And is spectrum, of focus. large is competitive we've on significant focused X targeted our on And landscape FPGAs a focused any focused FPGAs, content Lattice data to small, and with don't to our the get first significant platform, today seen center, lots our haven't complex change our either. customers. where of small kind we Nexus power offload. I use, in end Where we're seen quickly very certainly at traditional on instance, mid-range as think FPGA executing competitive set, a for at where other traditional change that change our which significant And compute efficient, is new targeted mentioned, the to haven't really there, the easy software competitors, Avant of market of is the really the is FPGAs. making really environment. the on for we

makes look doing number earlier, systems. about in if and means fact is of MCU just for be great they're more processing, very FPGA those the their a -- good competition, the algorithm it that they're in customers a of would to to intelligence, their design parts to at programmed of general, And certain applications on applications. system because cases, parallel competitive a position trying against with And capability what with more a say I In that And what add is has MCU good in at number in can terms and FPGAS, of the are adding algorithms, we're the market. talked that do FPGAs, that's changes, I of really as particular, it AI what inference the it you nature is processing. but more good match of reprogrammed in the -- in and a Lattice for fit doing FPGAs especially and really edge inference decision-making

intelligence to their capability and are to add FPGAs we systems. those a want from as seeing So AI to more microcontrollers customers conversion good

Richard Shannon

great, for Okay, all me. my for question. answering thanks That's

Operator

line comes question next from Christopher of your Susquehanna. And Rolland the from

Your line is open.

Christopher Rolland

It's what talked of see doing into an about your maybe while whether about follow the talk could more a you centric of out out that there and next for there, the maybe interested category? the pursuing your that up, kind FPGA guys. be story I M&A, in M&A as kind interest for could more in guess, been broad well. technology IP leg since fold Thanks and you're you something or and we've FPGA

Jim Anderson

Christ. Thanks,

really would environment, we're we're things the But we're that The scanning M&A, complementary, about said, way options. landscape for I always our grow very organic business adjacent product looking actively on is. is existing is by it sure and job portfolio make as fast confused our though, start that always for that are very look possible. the looking So technology think we're growing for could our looking to as that X at at. is X to saying, strategy, we inorganic particular will or related, access one of customer to you be into, accelerate as they fall product-related really access, or piece our inorganic strategy. for be one be those would organic technology And -- be, I would we customers for of and would think, mentioned, things hardware-centric be And market or buckets. in could more One new that software-centric. looking a be those markets. could X acquisitions, X that future, things options, the where important type something never organic we're be business, what Job could could to certainly more

those kind think in yes, something at looking that we it we that But the it's about of actively are parallel. So categories are X in.

Christopher Rolland

guys. Thanks

Operator

Hans line Rosenblatt. And your comes from the of Mosesmann last from question

open. line Your is

Hans Mosesmann

or you Jim, data sockets? expect we plane those at FPGA to can offering, mid-tier applications products and Avant look control Hey, as a address if plane both type

Jim Anderson

It Yes. applications, Good open up address not control the Whereas are would both. Avant data well. Hans, our yes. is definitely applications plane but question, mostly products plane as and today, Yes. answer control applications. would just plane

Hans Mosesmann

like mix would over estimate time? can you If the that? What look

Jim Anderson

question. Yes. Good

about in will see launch to cetera. we'll we the features, surety, the both And as because plane. talk the to easier data speed, of speeds, then explain it think be closer when probably we'll Avant launch, I we capabilities, we and get the the the to terms get control about potential where that talk Avant the et communication

Hans Mosesmann

lot. thanks a Excellent,

Operator

And question-and-answer to that for Lattice's will the CEO, Jim Mr. closing concludes turn call our back session. Anderson, I now remarks.

Jim Anderson

look right. expand All Operator, updates we product joining for our and concludes at Operator, call with pleased we you, to today. and QX and portfolio, in earnings call. everybody, execute our us continue We're that forward providing our as Thank and call. the profit to on strategy thanks, more revenue today's next our to growth

Operator

today's participating. conference you Thank concludes And for call. that

You may disconnect. now

Lattice Semiconductor (LSCC) 3 Nov 212021 Q3 Earnings call transcript