Lattice Semiconductor Corporation (NASDAQ:LSCC) Q3 2018 Earnings Conference Call Transcript

Oct 25, 2018 • 05:00 pm ET

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Lattice Semiconductor Corporation (NASDAQ:LSCC) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Gabriel, and I will be your conference operator today. At this time, I would like to welcome everyone to the third quarter 2018 results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session (Operator Instructions)

Thank you. Mr. David Pasquale, you may begin your conference.

Executive
David Pasquale

Thank you, operator. Welcome, everyone, to Lattice Semiconductor's Third Quarter 2018 Results Conference Call. Joining us from the company today are Mr. Jim Anderson, Lattice's President and CEO; and Mr. Max Downey, Lattice's CFO. Both executives will be available for Q&A after the prepared comments. If you have not yet received a copy of today's results release, please e-mail Global IR Partners using lscc@globalirpartners.com or you can get a copy of the release off of the Investor Relations section of Lattice Semiconductor's website.

(Forward-Looking Cautionary Statements)

Our prepared remarks also will be presented within the requirements of SEC Regulation G regarding generally accepted accounting principles or GAAP. Some financial information presented by us during the call, will be provided on both a GAAP and on a non-GAAP basis. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance for results and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. Non-GAAP information should not be viewed by investors as a substitute for data prepared in accordance with GAAP.

If we use any non-GAAP financial measures during this call, you will find the required presentation of and reconciliation to the most directly comparable GAAP financial measure in the company's earnings press release.

At this time, I would like to now turn the call over to President and CEO, Mr. Jim Anderson. Please go ahead, sir.

Executive
James Anderson

Thank you, David, and thank you to everyone for joining us on our call today. We're pleased to report that results for the third quarter of 2018 met or exceeded Lattice's guidance. We continue to execute well with our near-term business focus on driving profitable revenue growth, carefully managing our OpEx and paying down corporate debt. We again checked all of those boxes in Q3 with our highest non-GAAP EPS since the third quarter of 2014.

We further reduced OpEx to $38.4 million and we made an additional $15 million discretionary debt payment. Max will provide further detailed commentary on the results in just a few minutes. Before I hand it over to Max, I thought it would be helpful to provide some background on why I joined Lattice, and what near-term actions we're taking. As you get to know me over the coming quarters, you'll see that I'm focused on unlocking the full potential of Lattice. For over 20 years, I've worked in the technology industry across many markets, including consumer, enterprise, data center and telecom. I was most recently in-charge of AMDs computing and graphics business since Q2 of 2015. That was