Lattice Semiconductor Corporation (NASDAQ:LSCC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 05:00 pm ET

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Lattice Semiconductor Corporation (NASDAQ:LSCC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

And without further delay, I would like to hand it over to your speaker today, Mr. Rick Muscha, Director of Investor Relations. Sir, you may begin.

Executive
Rick Muscha

Thank you, operator, and good afternoon, everyone. With me today are Jim Anderson, Lattice's President and CEO; and Sherri Luther, Lattice's CFO. We will provide a financial and business review of the second quarter of 2020 and the business outlook for the third quarter of 2020. If you have not obtained a copy of our earnings press release, it can be found at our company website in the Investor Relations section at latticesemi.com.

I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that is currently available, and actual results may differ materially. We refer you to the documents that the company files with the SEC, including our 10-Ks, 10-Qs and 8-Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This call includes and constitutes the company's official guidance for the third quarter of 2020. If at any time after this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call.

Some financial information that we present during the call will be provided on both a GAAP and 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 and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com.

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

Executive
Jim Anderson

Thank you, Rick, and thank you, everyone, for joining us on our call today. I'm pleased with our results in Q2 of 2020, as we continue to execute on our product road map and build momentum with our customer base. Let me cover a few highlights from our second quarter. We drove strong growth in our communications and computing segment, as our position continues to grow in server, client computing and 5G infrastructure.

We continue to make steady progress on gross margin expansion, as non-GAAP gross margin increased 150 basis points sequentially and 230 basis points year-over-year. We also continue to expand profitability with a 17% sequential increase in non-GAAP