Lattice Semiconductor Jumps 9%
A more confident tone from management and a stable quarterly report pushed Lattice Semiconductor up 9% today.
Revenue was a few million less than hoped for; a $6 million payment that had been penciled into the quarter was not received.
Product margins were much better than expected, mainly due to higher sales of more profitable industrial products. A loss of one penny was in line with estimates. The company is on track to deliver $.44 of earnings this year.
Although no new guidance was released, management reiterated that the first quarter would be the trough for revenue. New wins with major consumer customers increase visibility into a stronger second half of the year.
Solid wins in drones, virtual reality headsets and camera technology products highlight Lattice’s strength in low cost, high definition imaging and super-high-speed connectivity tools. Lattice should start to creep higher in anticipation of these product launches.
Robust cash flow of $23 million sets the company on solid footing to feed demand.
Lattice Semiconductor is buy rated with a $10 target.