Lattice Semiconductor Enters New Growth Phase, Targets Higher Margins

Lattice Semiconductor, under the leadership of President & CEO Jim Anderson, has been executing with reliable, consistent predictability. The company has been on such a linear trajectory that even the financial analysts at a recent investor day event had a hard time finding any controversy in its execution. The company has been on a five-year transition and is now entering its next phase of growth. In particular, the industrial and auto segments which have had three years of continual growth.

Lattice’s CEO Anderson also has a strong team supporting him. At the Investor Day, flanking Anderson was Chief Strategy and Marketing Officer and FPGA veteran Esam Elashmawi and Chief Financial Officer Sherri Luther. Both are helping to drive the product line expansion while keeping operational expenses (OpEx) in check. The improved product mix and some pricing optimizations have allowed revenue to outgrow expenses with a gross margin of >70% and OpEx target of <30%, while still increasing R&D spending. This leaves the company with a strong cash generation position and reduced debt.