LSCC - Earnings call transcript Q2 2022 | Lattice Semiconductor Corporation

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

Operator

Greetings. Welcome to the Lattice Semiconductor Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. the begin. to turn Muscha, host, now may you will conference your over Rick I

Rick Muscha

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

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

further financial information, investors analysis management additional information this disclosing intends measures permit We to call. to with performance underlying company's will during and By provide to refer trends. non-GAAP of primarily the certain non-GAAP

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

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

Jim Anderson

our Thank everyone delivered of and to record you, our and grew growth in be XX% We us continues results strong and quarterly markets on Rick, and thank non-GAAP with today. computing net QX, by revenue, for Growth call communications of automotive. joining XX% you which and led largest end year-over-year year-over-year. industrial income

product customer strategic fueled growing Our expanding momentum. markets and continued growth rapidly in is strong by these portfolio for our demand

QX. Let few on highlights me a additional from touch

In addition achieved to a points non-GAAP year-over-year. we ORAN XX.X%. an the strong increase to We margin XG basis record solution by our revenue with product expanded our launches the growth, further gross basis portfolio of XX.X%, device record of which we And was profit expanded Lattice of MachXOX-NX XXX operating our year-over-year points non-GAAP XXX stack. and

fourth production In platforms opportunity, In now on sequentially the our attach communications which consecutive in that overview basis. market, quarter. a our is with client well due Xx We're new growing announced this rate increase our increasing customer year and where to over track were LG a me dollars past new to the systems by In data growth greenfield now on to Lenovo XX% year-over-year server market. double-digit end large including Let and per increased for revenue an computing business and center, of over continues provide our deliver QX, of growth have content and segment. XX% ASPs. the we computing, of began

sequentially with strong ongoing and benefiting growth, revenue from we're Lastly, in XG year-over-year. deployments both infrastructure, global

platforms, Revenue growth where the been competitors combination sequentially Lattice was driver a new customer in that capabilities with and X% provide, new the software and automotive has products. for up system. displaced or year-over-year content customers driven efficiency, to we XX% Turning to the on either power market-leading industrial key a brought Revenue Lattice's increased Lattice functionality has basis. now by and market. was adopting

We very opportunities, and the customer excited for growing Industrial be the Lattice continue to in about segment. products Automotive

to now We're declined across continue Lattice to XX% revenue, less reliability. down applications, sequentially our monitoring in Because with XX% and and be Nexus macroeconomic our strategic reflecting Nexus product Nexus also segments. Turning of was the Revenue multiple our expect with all softness market. family consumer class-leading pleased control This consumer electronics to represents our system overall X% in the consumer. efficiency than year-over-year, end of with our road consumer the to pleased MachXOX-NX, fifth built enhances core markets, demand the across on We multiple by power and growth introduced provide platform. now offset I'll was more other markets. the ramp device of ramp map device revenue platform, in softness which family than over we strategic Overall, market products, highlights. continue our some broad years. we the adoption

engagement year our launch on to an event QX continues when very And launch, of in In half excited Avant grow. and mentioned, expanding mid-range new create of and our second into FPGA is Nexus, year. in public we this and of remains bond to believe of expect year. addition, Execution this for the portfolio ramps expansion our this we Lattice Avant further our hold it customers we will stream address track double as important previously addressable healthy momentum market to platform. will revenue will Nexus, Avant allow for product and production. will applications. partners, capacity launch And for Lattice, the Xx to portfolio, be the which to we're Customer have continued us of with the a

strategy. our to now Turning software

quickly. years, focused customers portfolio. As market software easy are making to products, increasing been investments we've Lattice and we've get discussed to few it in for investment over past These the on our our adopt

first strong results, which turn and rapidly software pleased solutions. long-term to in solution and half XG of accelerating the to a portfolio we expect we're ORAN our have in In Lattice quarter, XG Luther. wins, CFO, to now strategic momentum. five over customer stickiness the secure provides half our to least launched We're our increases ability solution of with portfolio growth now positioned and customers silicon the The stacks, software the product that half summary, by is right the functions. stack, stack customers well. we value second fifth as I'll Sherri solution stack, During our ORAN call new software well solution our a the are products. Lattice design with enabled our and network of at data delivering our we markets, believe with is expanding the which accelerate Over one of the

Sherri Luther

Thank you, Jim.

pleased while strong profitability. our and our results product free with We deliver flow We in strong long-term as significant continued QX, cash map. to record we double-digit revenue generated are investing financial margin expansion gross road growth, in

We also returned cash to our shareholders, through share buybacks.

of me our provide results. now Let summary a

reflecting X% segment was automotive sequential in digits quarter from the Revenue Revenue weakness, $XXX.X XX% and million, and market. from up quarter and market was strong as first our and segments, up a Second the well. industrial consumer year-over-year sequentially revenue macroeconomic computing communications consumer market double year-over-year with sequentially record year-over-year. and growth down electronics in our grew

prior which the record in sequential up began was in invest of Our gross quarter execute prior of expenses ago to the to the sequentially $XX.X XX.X% early to declined we sequentially QX our both a Non-GAAP quarter growth year XXX $XX.X margin expansion in driven and by gross compared million strategy, in to percentage non-GAAP and points to execution expenses compared gross increased to XXXX. the quarter. Both ago year-over-year long-term strong revenue. and margin business, increases margin to points compared Both increased million quarter. million as in basis in continued continue operating and our a we the year XXX basis of R&D were the as be $XX.X however, SG&A

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

the company strategy in XX% our we of year-over-year a shares was XXXX, year driven quarter, operating generation flow focus margin we a quarter continues program. share first from We ended cash which gross of be began to Driving of buyback benefit existing have repurchasing and growth. XX% million diluted increase at a $X.XX represents flow. the under approximately through per executing buybacks. $XX compared with or consecutive earnings quarter non-GAAP in the key our executing We share continue strong seventh ago QX cash million QX beginning the of expansion year-over-year to $XXX in $X.XX stock area cash the to half XXXX. that the for XXX,XXX was after

driving $XXX to be plus third margin the for third XXXX outlook expenses me be million. and million for and the review Gross $XXX are non-GAAP between $XX profit closing, quarter half of XX%, second on sustained expected minus year. Revenue Let quarter and a roadmap. million a results between of to is expected third expected now operating on our the our now basis. on growth with expansion first In non-GAAP strong We and a differentiation for $XX we product Operator, the revenue focused strong open basis. million pleased can and the questions. are we strength call remain through expect half our the Total quarter. X% for to be or leadership is of

Operator

line we'll time, question-and-answer be your Hans with question session. question Our Please Rosenblatt. comes with line with sorry Please our [Operator proceed this conducting first from first proceed the Jefferies. of you. a Mosesmann Thank you from I'm Lipacis Mark At with your Instructions] the are question. comes there? Hans of question.

Hans Mosesmann

Jim the just I Besides of for stacks congratulations strength What this in midst impressive. the to in the environment? pretty you've several team in the execution. that. and software past what muted. strategy years is to over terms was a of done about margins, gross driving is terms the new But products Sorry of execution tough great very and

Jim Anderson

this question. the standpoint both for segments product automotive. but that half and We are as computing a big a QX in market we and by standpoint, Thanks overall, And the strategic quite first communications in growth well. driven industrial pleased year has our market in standpoint which and from a really growth from of market Yeah. were saw been from with

growth in in new in data our industrial in really QX growth, infrastructure to displacing as of look PC's QX in a for expansion strong And compute comms If But large quite some over Xx with wireless we design rate expansion continues in with remain really market, growth with that to grew attach where growth pleased computing instance things We're XG for competitors QX. strong year-over-year we're you client for that continued continue servers, a pleased Industrial industrial center us opportunity to in and we QX well or XX% the wins we ASPs customers. the that now continue electronics. and in in automotive, robotics, results at to see nice growth year-over-year. also We capabilities automotive. well in and either had XX% like Automotive. We're see good automation, bringing new followed Greenfield

So, softness there. in But We saw quite in We in growth which of our pleased electronics. bit X% softness smallest a consumer market. consumer represents some about did end-market see with little QX is our that revenue. market of

the from our XX% pleased strategic growth And I then, with we're ramp. those of product revenue other perspective, a talked segments is So in about. that Nexus

of QX, lot we cycles fifth just next launched in will which Nexus now. Nexus right we five that we now our year. fifth new a production, four launched have new of are product are that in production have enter our device device happening the We

expect of ramp over continue So the of we a ramp years, layering to products into so they as have growth from market a And effect revenue. standpoint product in also standpoint. from course both -- to multiple a of we but Nexus new kind good

or cautious growth macroeconomic cycle. whether the growth we're have the the the we're around that some drivers I certainly of talked very of just product cognizant market recessionary we bullish pressures signals closely. the there certainly are new very latter that exist We And drivers about out monitoring specific But that's demand on climate.

looking strong a half to So And half well. as again, pleased we with forward are first results. second

Hans Mosesmann

Hey the FPGA -- Jim share non-traditional all and/or I just and coming understand FPGA just very small is from taking that's competitors small -- of great your that from traditional quickly, maybe from much players, taking microcontrollers. execution. momentum players share like what But

Jim Anderson

Yeah.

traditional over our also I certainly combination sockets We FPGA the well. a we as it's of FPGAs versus that are definitely those. are can both microcontroller we're share the FPGAs certainly think taking see share there -- We're competitors. in converting space. gaining we But small

as in well as functionality before. two, and those of existed bringing just are combination there platforms a cases really it's So that we're brand-new capability where hasn't

functionality platform that's that really in completely the announced that year exist earlier platform this didn't instance new in we had before. Lenovo For that

all those it's So, combination really factors. of a

growth look driven at last the I just it's source that instance driving think by when that -- created majority in interesting, months. growth. of this I for been half look and you new first we've that the that's at we've is XX well that the to of within streams what growth the is Vast revenue XX year been say, of

bringing So customers, the new new that existing customers so footprint customers means have to on Lattice platforms or at our expanding family. existing

revenue -- cycles in pleased growth revenue that quite that the we're multiple of for So new at terms of growth last with beginning freshness should of we're the years.

Hans Mosesmann

Very Congrats. Great. helpful.

Jim Anderson

Thanks.

Operator

proceed your line comes Lipacis of from question. with Please with Jefferies. now question, Our next Mark the

Mark Lipacis

question for on taking margins, the one I driving the may. Jim then Sherri about for been question. thanks for the a you gross expansion. had programs and that have Hi, Sherri I if talked my

look your that? target of if of point -- so And you. many row quarters at follow-up have for a a higher may? guess, longer you're review margin after gross quarter target next margins. maybe I And you at kind hit kind think have just flattish an As level revenues, are? operating then Jim I above of higher I term open-ended target and into what you you're reassessing -- in puts takes about kind you you a the Thank had do some you above gross but Could expecting you

Sherri Luther

Thanks question. Mark, for the

driving four So, laid points our actually of driven gross you margin sequential, strategy nearly we as for may elements XXXX us as that with basis products that's we year-over-year out been our the our well the record points. as in the of margin described some at gross as expansion XXXX. that, from pleased XXX-basis our executing we're year-over-year. margin we've QX optimization newer end that, higher of a recall for really for of increase another basis point And margins sequential it really representing and XXXX results on and XX.X%, it we've now XXXX, pricing and gross And XXX an years gross Since -- in increase. of improvement

focus when So, area and our look we'll be gross at just we're drive And for how pleased progress. that we're thinking to -- to really margin continuing been gross of that really the company. to to about that And now mentioned margin. focus target for on with the and kind expansion We've focus continues profitability you a you it gross it's company. doing continue four years for on and margin

Mark Lipacis

had don't seems companies. you're a of that your Fair aware pressures calls follow-up lot to other a the may? Jim, semiconductor of manifesting the for mentioned be if to enough. Jim, me these they you that on I previous question seem for it And earnings macro And business. in to

people reporting of concern nice there, about to continue really here out do be like there. companies odd and but with seem seems lot what You exception the it a to hear talk the results -- is

couple of the I over hit last not last the over the you to your right -- wondering terms -- -- even the like given hasn't and happened you if your semiconductor the be as of I'm or years middle. in risk the If your previous end that And in an operations guidance, executive industry? of yet well in anticipated it is giving manage top slightly if how were six of the your So, guidance. change you of six business does I in the quarters, look kind end Jim most this downturn quarters above the managing kind seem in career top

as there's So, cautionary what more it seems a for bit like angle, little there macro of pressures out a perhaps, a be. respect of might

just share think I could be Thank on you If that you. helpful. that thoughts your would

Jim Anderson

inflationary moving look the pressures, to those Thanks thinking next certainly. as cautionary as look climate we just at year. be into about Yes, on especially about at I just go influences Yes, the business business. forward potential potential we Yes, and Mark. or we economy we're macro that of think macro cognizant cautious the and recessionary we want pressures, when

We're so front carefully. demand mind. of that's our And signals something in watching very is that very, our

have carefully. latter are careful drivers we we always are specific that that of -- being backdrop, monitoring But and growth drivers we course, we've I growth about quite that robotics to signals. that unique our about it's greenfield all we're with watch whether little where or said, sort automotive some But, quite rates, whether with Of servers growth of the our whether sort good industrial cautionary very to are demand of those ASPs; we feel that market-specific PC quite have growth Lattice, seen that's we like like that talked attach still we about automation the that in electronics. things expand new in areas growth a great earlier; the believe opportunity in strongly and

And in see different new cycles a then, simply we're lot going product we of opportunity well. markets. So, the through as

creates then, you company. now And the of of multiple of ramp. second of an in new launch this see in We're have And only beginning which year stream We If as entirely Avant the the second the we we're as at well. revenue full growth for in Nexus revenue we'll future just product in enters for half Avant, production Lattice, years, line. the that years Nexus. the at look Nexus year

macro but in front that latter would us. on say, on bullish see the I of the So, drivers climate, we cautionary we're growth specific

Mark Lipacis

Thank Jim. helpful. Very you,

Jim Anderson

Thanks Mark.

Operator

the with comes with question. Vecchi Blair. William of next question The Alessandra line your from proceed Please

Alessandra Vecchi

And talking driving we sockets which opportunities, been for results quarters, year? again into announcements with of the mentioned some microcontrollers, I how then, the quarter if about the about a few a been total Lenovo. a similarly of we we Jim, content you've revenue forward? look be against talk there? strong bit the back little just delve could and opportunities bit the thinking the LG percentage and the can we and with on some had if little if tough PC, gains be I really nice as a well couple into two maybe mean out are those greenfield half the echo in you gains congratulations should ramps deeper also, what's as should the going years greenfield last And about automotive, thinking about on in of then next how as this as you environment.

Jim Anderson

Yes. Thanks Ales.

So, maybe you and mentioned those. of on I'll both touch PCs, both automotive

Let company. me forward, the great a moving for start auto electronic growth participating certainly with in see automotive. and Automotive No we average that. long-term continue electronics, just doubt, to the we're for area rise as content will

Our number for automotive a power fit flexibility, the that infotainment The it's are content a we of there's systems, Lattice designed where places, the just products electronics. in. efficiency, great different just are products or ADAS, whether provide, software getting

We well, very as grew very robust and continues have grow QX in revenue well. design strong automotive and a to win our pipeline again,

quite look we're in with to forward segment. we that. And pleased so And good that long-term growth

So you today, then potential one at time. amount to the market, end market we can growth for that's over TAM. that growth experience. us a that of user PC look tremendous there That's there opportunity a there's over new new because a a relatively bring to contributor PC portion large But value area see relatively a features our that's small. electronics greenfield add a the system but given the of capabilities today the opportunity revenue overall area, to expect automotive PC very one relative our of in if we is time. be And that revenue -- lot realty is a we a as And that's small good

And with of as in announced ThinkPad year. so new couple of now LG we've which a system Lenovo well. now at we recently Chromebook announced different beginning a the with We systems we system, are announced that system, production, announced the

TAM, And time. system so tremendous great us large this just unit of area for growth represents a amount greenfield and over

in expect to year. the continue And -- not second of contribute will grow, so to to half we and just these this growth

expect said, first, coming in I but a As strong the half years a we well. to as second second continue to to -- to grow relative that we have expect

Alessandra Vecchi

sort they not if think been Great. How we really product last to gross underlying gross standpoint, gross how on quarters. the of we've tremendously harp alluded gross the royalty but do I the And the That's back helpful. pure has of margin structural about secular to. a a do years margin, acquired like approach be an similarly, from should by couple revenue these me strong, margin fair From -- we AMD, achievable then margin margin Is as out, over do your levels. out? downturn that go even Xilinx a at starting your to gross we it a levels You're And seems given statement? got which then before even into seems relatively few robust if level. elevated to like drivers,

Jim Anderson

believe the We on as and good in our look of there's just gross kind well. we based Yeah. drivers as margin, durability forward underneath,

comments her just expansion the gross mentioned we earlier, of our in all, began so as beginning a reminder, first at XXXX. Sherri margin of strategy As

in So we're pricing made years. three We're then we've had pleased, margin and our on improvement different had fourth know expansion pleased that. in at product strategy the time. it. executing over that Sherri's It in business past that I improvements, Certainly, the of cost over progress mix elements the optimization gross year

opportunity it margin. gross And -- continued be focus in so do to moving continues And we a forward. see us but area for

One that of new was to alluded the areas ramps. Sherri product

company accretive to overall Our are new products be margin. designed to the

seen we've software see Nexus in of to we're new a that months rate the wins. design so forward company would high the X XX or ramping over whether And to our as that that the also last is the we hardware months another Avant then solutions say attach in to business it's our beneficial thing future. I And seeing moving

meaning, software last the sale too. ASPs wins we if when majority Silicon some our see they're enabled five by And generally, So way to look of stacks. you months, attach the Lattice a software at in design attach, we say solution the that for over silicon one have of and our solution software in XX those design wins higher

And another that's or so margin. tailwind our on gross upward

So see moving in opportunity additional forward durability the gross we do and margin.

Alessandra Vecchi

much. you back helpful. extremely Thank was queue. jump That I’ll so into

Jim Anderson

Alex. Thanks,

Operator

Please Our with question comes the Matt question. next your of proceed Cowen. from with line Ramsey

Matt Ramsay

other Good in gap to I if relative might of you think, all semis to is started at you very industry market consensus demand Thanks. out I And just in few feel kind gap Jim, the in to pretty don't much. wide? that wide Thank in and happening the I comments that it's the a on FPGA afternoon. give parts is a you general -- Yes. obviously how consistently starting and supply-demand in we gaps a see supply where there? the But smartphone know And of FPGAs. see market are things PC still digital of market close of it's markets? the I your areas pretty shrink supply/demand bit. one has still Or with some some wonder those in of the

Jim Anderson

Thanks, Matt.

Certainly, say You our I supply supporting tight. chain And overall comment know, done can that I job we've on of the supply semiconductor our what the mostly a like I business. would chain good just feel is remains customers.

this year through signs I some the remain next think tight end But it seeing we to are of continue of year. into will improvement.

committed year. us incremental suppliers, from this beyond capacity some supply recently our the have or for two incremental they have We over to quarter see what last

to a our this a and as our think and see job our good into sign the transitions supporting that customers in accelerate And from competitors year of So we've Lattice. relative I We helped of positive as that second a year. some done cases think that's like recognize next for towards I customers. feel do some we competitors half our

customers chain helpful. not supporting Certainly, and that to that done that we're navigating And But tightness. the by a job I the all. our chain overall has supply supply so we're affected crisis at immune we've think good been overall. It's same

and see supply over some but to I of -- do the improvement of good to like said we next into -- last continue expect quarters And so signs improve year. couple over the we

Matt Ramsay

for that Jim. Thanks. Thanks

a question for a bit you comments costs as have us remains I know Jim you just I guys the about Just some supply chain peer Obviously, and to about of as with inflationary follow-up mentioned aren't talk little companies Sherri. tight OpEx in on immune. conversations could growth. your Maybe wages. his

making sort investments just of, you're that or should a you're OpEx, just how revenue? we wages kind the within about in just of hiring So Thanks. as think trending staying band of percentage

Sherri Luther

Thanks Yes. Matt.

So at our from came in grew OpEx that and when you -- where we if year-over-year, majority R&D. XX% look actually was

we're in our growth So year-over-year company. investing XX% our long-term growth map for of R&D the and product road

so the controlled growth disciplined way, doing have company. to we And and time but very long-term you've investing seen and definitely for and been our of we've some for a that that a for bias investing, now in we want do it

as Jim fifth You've in the as stack that half, our our our announced solution mentioned. well XG seen QX. launches, second product Avant ORAN device out coming as in we

when our inflation priorities. you of our in a mentioned product look separate you our but little some to continuing -- -- bit then So we continue to map. invest And that's out, that's top of hard at we one are kind of to road That's hire.

think have. of products to of focus in right we on see you all make there's R&D. and again, that And the developing hiring got that in LinkedIn social the going lot of I profiles, our to a that see continue right sure a we've you lot that's

as investing within that very That's continue customer you where well. see to bias important to as investing That's can there. creation. our support there in we're that and is well, you So our see SG&A increase we're a demand sequential

the So we are continuing in to company. invest

Matt Ramsay

on you much results. the Thank very both. Congrats you

Sherri Luther

you. Thank

Jim Anderson

Thanks, Matt. again,

Operator

of Our next question. with comes with SIG. proceed Rolland your Please from question Chris the line

Chris Rolland

I any a quite -- question people bit, I what that your as is to the what a what kind rough percentage congrats. Is percentage know guys. launched been love point? are under of might of sales products would from of there investors have and And as management And my this be at products -- guess are get Hey, the I split this products idea the legacy of echo were sales? a kind of tenure?

Jim Anderson

for Thanks the Yes. question, Chris.

break out line products. Nexus revenue, we of what specific it both have pre-Nexus say but continued grow. to product can don't products is can we And we say think categories as So we about and is kind

You are to to products Nexus grow, continue products ramp and would those expect new.

we've As And the getting that Nexus designed into very products may to go even fifth years. to are particular stacks which products new four multiple continue year. over will moving into growth pre-Nexus the will have those course applications software in we've production helpful pre-Nexus able you solution forward. mentioned, to five past. design seen And of wins, products products, that pre-Nexus believe not additional production. just of have been launched But getting products our into. next been we've in products, in us are that five good our we ramp We new in support the can new the The in the launched we designed those applications expect

mid-range will and to add FPGA address additive FPGA that launch bring second a moving market Nexus continue And we're it's quarters both half different addresses grow. seeing in the frankly, part it this want a stream completely we to of of out company, areas. the products And don't year so revenue to growth further then that production both application. as we in into in And of Avant today, additional little future in those pre-Nexus we that an because and that's the

create So revenue the a Avant time. company will double in market new out stream our addressable for

those of And categories moving kind we about of of feel so, growth good the forward. all

Chris Rolland

between next for even And well? the terms of could beyond, segments as maybe quarter or even Great. know guess it the three broad back a continue if comms growth get just you compute something then do don't Sherri, And or those do some think we Or in out, us Thank that? breaking Jim looking or or I also, you, in force Jim. strokes rank consumer? segments, I like you trends but into bounce either, versus down

Jim Anderson

Chris. of Yes. give I'll little QX. Thanks, a the on color bit

QX, QX to growth be guide computing of growth we're industrial at and up expect to guiding from we in sequentially and the consumer, our and look So We -- relative if sequential in On QX flat you QX. midpoint QX. to roughly do in for automotive. communications consumer expect

of growth We kind given compute consumer industrial has little strategic electronics the seen. and do softness and cautious that that auto. But about are we again expect large sequential a of segments comms segment, the bit industry market our more broader in

Chris Rolland

congrats Thanks, Perfect. guys. and again

Jim Anderson

Thanks, Chris.

Operator

the with Baird. [Operator Please next with from Gerra question. of Instructions] proceed question Our Tristan your line comes

Tristan Gerra

afternoon. question and backlog is Hi. Good first about My pricing.

through every rising able the semis, last done bit year extending this of a also, stable expectation mentioned end as as are down type And let's for the you've price quarters far you How products. provide saw And this of overall part year? not a start earlier next, to your some pricing of market does we're but we next So times over optimization seeing backlog couple is seeing like in what say and for still past you've quarter tight to year. remain the that in generally, coming currently? we year. of And your the how compare same lead

on you pricing? commentary on existing accretive. you mentioned have not ability going to products, your path to continue higher But on new any so product, ASP your may what's your So, the much be of are basically which

Jim Anderson

Yes. Thanks, Tristan.

versus question backlog stable the said have Obviously, bookings I same we've versus been the has now. now say been servicing I of new our on have the backlog, backlog year this pretty think earlier healthy. around we you're first sort but would this and So total that think that our earlier I at backlog backlog, in remained had time, part asking year. of you your

healthy to of levels bookings. see We continue

backlog XXXX. over stable healthy levels remember, say. is would booking so, think strategy I back next of you and optimization what of quarters, we -- pricing, And on back, if pricing then, And our the look levels started yes couple I in

So our fourth of that. we're year in

kind beyond a do gained kind of rest system our there continues be we've just understanding pretty So market. optimize think I business new there's pricing pretty product good ramps, of our of to to do good and how opportunities pricing irrespective in of of optimization. the the we

and optimize for priced that sure products, correctly call value end pre-Nexus products, products the think that's I to that let's to the And our where or areas of able even made our on attach that's markets. continues value is to ORAN we making Where bringing of software newest portfolio that comments XG selling maybe pricing. we in along were our I portfolio solution more customers just And of they're about earlier in the our other are us five or our one the solution. there tie software stacks to but to we're with sensAI better the bringing really of software can solution them be to whether not more any selling stack customers, the those products. that's the hardware bringing that's existing we're three that device,

when a the we customers we to higher more of valuable so ASP solution, for. something tend get our bring paid that's And that that's to

course, customers to another away Lattice that's more more then more it optimize competitors it has is bringing our It market helps creates forward our by well. And value that them quickly. helps we software can products software. nice our as for of the convert where so stickiness that And effect quickly. side believe through just continue area towards of our designs to we And get -- other ASPs moving all also from --

reasons we so forward. for important And moving our software for that of create that part variety strategy is of an the value a customers

Tristan Gerra

is I which just great. question mentioned. related second what And then guess my to That's you

is I successful servers competition or you've could you quite talk some chip. for MCU And expect with example like performance? now looks do for in know been there more be product worth stickiness, also, continue traction. If in solutions, function out you there Is ASIC with a that about gain time trust just And but couple sticky of than really you ramp PC to your of years. some for to a of your

non-FPGA not As eventually about socket? wins to design such concerned a reverting those you're

Jim Anderson

Yeah.

secondly first So and were you then I PCs. asking about servers think

that those centers there. really in whether servers growth the centers in with Yeah, pleased driven hyperscale just traditional past growth over the enterprise the data drive we've are start So really centers, we're year. data go me or with pleased let servers, we've into been data able that to

and it's dollars to the piece of that to we've ASPs And time. capability we just a And is a that on to higher places more top a over that for provide, server well. our helped improve which we've that. it's to that it's systems. then And layers capability, get the believe but then provide rates of very our is our has us in So position designed continued of -- just not which with is driven can customers bring ASPs in ships of bring in each -- we of underneath moving as into combination more attach Xx but We because very us finding server attach not of continue over And that, just forward. per it's nice silicon can in continued the servers rate we again growing is that chip well on has that focus terms on continue content And new attach healthy now server. of future. we see rates similar Lattice the for chip Lattice we're a effectively than devices with with software PCs, of growth opportunity do that layer And sockets one cases global providing, driven server new a do Lattice that more we're further providing hardware combination average the shipments. more functionality that means of in many sticky course, generation software more which

platforms there's that announced for above software with underneath the of for and earlier the support the or there chip that So have new year. full that chip but not just those stack. layers Lenovo, in instance, instance we this -- That's solution we're providing,

And over flexibility benefit. customer, so capabilities part a flexibility or that the the frankly, strategic new design, customer big create FPGA that's because FPGA that That's system Whether PC, a of to provide the think our stickiness flexibility ASIC add ability they're system to know big a big by features, a big a or on hardware That's we time-to-market do whole a benefit or is new benefit, they to I is FPGAs design, and versus that's And server multigenerational automotive you're new an add design. a a industrial, that need time going a basis. do benefit. simply just in our reprogramming to to then, having customers. the an the of value that a their big

our that into multigenerational a remain power reasons, one they in for FPGAs our number over basis. so customers the our And of and the designed designed the markets, initially main efficiency of of get is across a flexibility, systems

Tristan Gerra

time Thanks Great. that’s for very much useful. taking on so that the question.

Jim Anderson

Tristan. Thanks,

Operator

Our with Please next question comes of Williams proceed your from with the line David question Benchmark.

David Williams

and Hi. good afternoon and success congrats wins on the here. the

really the That was books First of have -- would lower is moving be win. into seems the migrating thought about from maybe to to question, I down, guess we segment, tier the and the Chrome kind what enterprise be design Lenovo segment.

maybe what So of years? think and if out just opportunity three kind to that like you two looks that see how curious, you

Jim Anderson

our systems Yes. the of initial of more adoption Lenovo Thanks, David. see class like We the designs, did in enterprise ThinkPad.

can that able our to relevant in greenfield enterprise Chromebook, roughly and all be the large also to context, context to certainly in There's really features for are you but as as that important in consumer systems well. a see and in capabilities relevant we the bring those to bring PCs, that or PCs. is devices of users, usage are the Lenovo features, model PCs, a say, amount can XXX we sorts save that more announced really consumer. end consumers. a also many whether enterprise million of it's battery said, opportunity we enterprise We as we a growth help well as bring There's significant tremendous year that's Again, user where believe both that to the power. used experience us we opportunity that PC, we're a helpful for And and consumer-oriented the

see So we potential PC time. over TAM, really the segment whole as

And and content over happy time. add so or a system, those systems to ramp it's those to whether Chromebook a pad to we're think system,

growth area. greenfield long-term good a just as it see we So

David Williams

color. the you've for talked thinking Thanks the rate And strong. center, just of data then the about server kind attach about

the if or changes any data of seeing demand, maybe behavior within you're there? center curious, in Just in customer anything specific terms

Jim Anderson

by strong data not from market so customers. data demand the In see center growth driven our David. growth end continue Again, in Thanks, our to the is, Yes. of itself, center, much remember very the it's server growth we center. data most

continue rate Our ASPs. so much generation of in driven by content -- that, dollars driven our in then of solutions thing factor that, the note from would strong I we new CPU our That's see to other our very increasing which much bigger growth in server more attach we've increasing a are just that, is, reminder growth. And the is demand agnostic. each is, customers. by our seen a course, been a But

important -- is our actually this customers. really So to and

Our server that software customers of value are the and solutions hardware the really CPU to agnostic flavor. we Lattice that, the fact provide

of CPUs, as So, production, or across all processors. well support we're flavors whether both Intel AMD we from an that's, an xXX that processor, as comes or of xXX well processor, those potentially ARM or ARM, course, in as all --

vendors shift share is and were among we're buffered customers across CPU that to from that, shift, happens share because And there the platforms. flavors multiple extent that our CPU so supporting the

David Williams

Thank you.

Operator

And Instructions] question Craig-Hallum. from line Richard of the proceed our Shannon with comes [Operator last with question. Please your

Richard Shannon

my taking got for just and them. guess, Thanks question. Hi, two Sherri. Jim of I I

your which that roll them. maybe of hardware wind helps going here, of revenue in you Obviously, today. about Jim couple help really the think current over kind with out they're us designs attached of it past, software stream, to to years you software can to the one, mentioned of overall quantified contribution a us First your but half haven't have the after

you hardware is? Anyway just just question this about for have X% adder somewhere or any XX% where the or in is, think topic is the software that mean, that my guess of characterize I of it? how you arrange content amount quantify it? personal of or can that us? designs, we But kind And of these middle way do the so to software on you my can has attached

Jim Anderson

Yeah. Richard. Thanks,

on attached the What reason a a where We number. software depend haven't get is The given application. we lot a we there generally is ASP. specific can higher it is seeing are

of be can range on applications. ASP additional significant the a that depending type Now

But was Some value less. it's uplift that ASP very when definitely first design terms XX part then applications those we question, of -- And average, I attached. in get on the ASP a And significant, of seeing, is an significantly. content may in we're new talking -- some that last over you're the your software right on a months. be valued it absolutely uplift, applications, wins software other of the

over are new and those new time. those beneficial ASPs in attach into the to wins coming design layer design revenue, As now higher years, the over they software wins and transition with us the

is, growth new higher which -- software by has another forward. ASP it's of So as of growth it the is the moving way we saying look a majority moving enabled to growth, forward, attach, generally revenue revenue that revenue new the

Richard Shannon

do would a can be those agree low we it I the I'm My you'd a haven't any very helpful but enough. question, which Fair commit following-up point or to that in sort Nexus one the disclosing to a time, think point is revenues us where and providing of there start so about there around Okay. way Nexus, is to versus contribution it's you'll to but and think that, pre-Nexus, a people to assuming given I about. second number because fairly an today, earlier above, think percentage start a there, splits? of contribution percentage was from on

Jim Anderson

to in We'll Yes. the potentially sharing future. look that

We ramp, our year full Just year of revenue is Nexus. year are of full still NEXUS be the as Sine a revenues. early second will reminder year the -- its from XXXX second the in just of right? of a in is,

multiple Nexus the of expect percentage a We years. to ramp to years as and to grow continue lines over over product multiple revenue

into And in so breaking we that do that consideration. that out something the we'll separately future take maybe

Richard Shannon

be That’d all great. And the Thank Perfect. you. Okay. questions. that's

Jim Anderson

Thanks, Richard.

Operator

back Anderson of reached the remarks. the we session. now And call Jim for I'll closing turn CEO, the have end to over question-and-answer

Jim Anderson

joining and call All on thanks us right, today. everybody for the operator,

pleased results the the do year company we half a the you in that of second call. as financial from our well. with of pleased we this have quite first in forward of on always very delivered I giving overall, with the So, I'm execution next half and we'll expect the strong first updates half, that course, year. saw to the we further strong And company earnings look to the

So, you operator, thank and call. today's that concludes

Operator

conference, again, disconnect your you at this your for And participation. you time. today's concludes and this Thank may lines

Lattice Semiconductor (LSCC) 2 Aug 222022 Q2 Earnings call transcript