Q1 2024 revenue of $140.8 million, down 17.5% sequentially and down 24% year-over-year.
Non-GAAP gross margin for Q1 declined 140 basis points to 69% compared to the prior quarter and 130 basis points year-over-year.
Non-GAAP operating expenses for Q1 were $54.9 million compared to $55.5 million in the prior quarter and $54 million in the year-ago quarter.
Non-GAAP operating margin for Q1 decreased 780 basis points to 30% compared to the prior quarter and was down 1,100 basis points compared to the year-ago quarter.
Q1 non-GAAP earnings per diluted share was $0.29 compared to $0.51 in the year-ago quarter.
Approximately 265,000 shares were repurchased in Q1, or $20 million worth of stock.
Future Guidance
Revenue for the second quarter of 2024 is expected to be between $120 million and $140 million.
Gross margin for Q2 is expected to be 69%, plus or minus 1%, on a non-GAAP basis due to a less favorable mix from end markets.
Total operating expenses for Q2 are expected to be between $54 million and $56 million on a non-GAAP basis, in line with Q1 at the midpoint.
Trends, Market Conditions, Sentiment
The Industrial and Automotive segment was down 25% sequentially due to softened demand and inventory reductions by end customers.
The Communications and Computing segment decreased by 7% sequentially in Q1, with computing up slightly due to stronger demand for server products, offset by weaker demand in communications, especially telecommunications infrastructure deployments.
Near-term business conditions include softer end customer demand and continued inventory normalization, particularly in the communications segment.
Anticipation of revenue improvement in the second half of 2024 based on end customer inventory levels normalizing and new product ramps for Nexus and Avant.
Positive customer feedback on the expansion of the Nexus device options and continued investment in mid-range FPGA portfolio with Avant.
AI-related applications for Lattice hardware and software solutions are growing in importance, including AI-optimized servers in data centers and AI-enabled PCs.
Strong customer momentum and excitement about the company’s largest product portfolio expansion in its history.
Notable Quotes
”Q1 ‘24 results were in line with expectations for revenue, margin, and profitability.” - Jim Anderson, CEO
”Despite near-term industry headwinds, the company is well positioned with a rapidly expanding product portfolio, and we remain focused on long-term value creation.” - Jim Anderson, CEO
”We maintain strong profitability and cash generation and returned cash to shareholders through share buybacks.” - Sherri Luther, CFO
”Looking forward to the second half of the year…we continue to expect revenue in the second half of 2024 to be higher than the first half.” - Jim Anderson, CEO
”We’re excited to be in the midst of the largest product portfolio expansion in our history, which is driving strong customer momentum.” - Jim Anderson, CEO
