Lattice Semiconductor Corp. (LSCC, Financial) filed Quarterly Report for the period ended 2010-10-02.
Lattice Semiconductor Corp. has a market cap of $569.6 million; its shares were traded at around $4.98 with a P/E ratio of 12.2 and P/S ratio of 3. LSCC is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
million in the first nine months of fiscal 2009, primarily as a result of an increase in cash flow from Net income (loss) due to a net loss of $12.6 million in the first nine months of fiscal 2009 compared to net income of $43.2 million in the first nine months of fiscal 2010. Net cash provided by the decrease in foundry advances was $11.4 million in the first nine months of fiscal 2010 compared to $43.1 million provided in the first nine months of fiscal 2009, which included a cash repayment of $30.0 million under a letter agreement between the Company and Fujitsu Semiconductor Limited ("Fujitsu"). In addition, the increase in Deferred income and allowances on sales to sell-through distributors in the first nine months of fiscal 2010 provided net cash of $8.0 million to operations compared to $0.2 million in the first nine months of fiscal 2009, primarily due to the increased activity by sell-through distributors and increased revenue levels. This was partially offset by; net cash used in operations as the result of an increase in Accounts receivable, net, of $15.7 million in the first nine months of fiscal 2010 compared to cash used in operations as the result of an increase in Accounts receivable, net, of $1.8 million in the first nine months of fiscal 2009 generated from higher revenue and increased volume by sell-through distributors; and, net cash used in operations as a result of an increase in Inventory of $5.8 million in the first nine months of fiscal 2010 compared to cash provided by operations as a result of a decrease in Inventory of $5.6 million in the first nine months of fiscal 2009.
Net cash (used in) provided by investing activities decreased by $66.9 million in the first nine months of fiscal 2010 compared to the first nine months of fiscal 2009. The decrease was due to the purchase of short-term marketable securities of $91.2 million in the first nine months of fiscal 2010 while no comparable purchases were completed in the first nine months of fiscal 2009. Capital equipment expenditures were $8.5 million and $4.3 million in the first nine months of fiscal 2010 and fiscal 2009, respectively. It is expected that capital equipment expenditures, primarily test related equipment, will increase due to the introduction of new products and increased revenue levels.
As of October 2, 2010, our principal source of liquidity was $229.1 million of Cash and cash equivalents and Short-term marketable securities, which were approximately $64.6 million more than the balance of $164.5 million at January 2, 2010. Working capital increased to $260.1 million at October 2, 2010 from $205.5 million at January 2, 2010.
At October 2, 2010 and January 2, 2010, the Company held auction rate securities with a par value of $19.9 million and $24.1 million, respectively. During the first nine months of fiscal 2010, the Company accepted 13 partial redemptions at 100% of par value ($0.3 million) of auction rate securities. On July 29, 2010, the Company sold student loan auction rate securities, with a par value of $3.8 million and fair value of $2.9 million for $3.3 million and reported a gain of $0.4 million in the third quarter of fiscal 2010. The Company intends to sell its auction rate securities as markets for these securities resume or reasonable offers become available. At October 2, 2010, due to continued multiple failed auctions and a determination of illiquidity, the $19.9 million par value of auction rate securities held by the Company had an estimated fair value of $9.7 million and are classified as Long-term marketable securities. At January 2, 2010, the fair value of auction rate securities held by the Company and classified as Long-term marketable securities was $12.9 million.
Long-term marketable securities with a par value of $11.6 million (estimated fair value of $9.5 million) are exposed to risks associated with student loan asset-backed notes. Such loans are insured by the federal government or guaranteed by the Federal Family Educational Loan Program. Long-term marketable securities with a par value of $8.3 million (estimated fair value of $0.2 million) are auction market preferred shares issued by Ambac Assurance Corporation (“AMBAC”). On August 1, 2009, AMBAC discontinued paying monthly dividends on its auction market preferred shares, which reduced interest income included in Other income (expense), net, by less than $0.1 million per quarter.
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Lattice Semiconductor Corp. has a market cap of $569.6 million; its shares were traded at around $4.98 with a P/E ratio of 12.2 and P/S ratio of 3. LSCC is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Research and development expense was $14.8 million and $44.7 million in the third quarter and first nine months of fiscal 2010, respectively, compared to $14.8 million and $43.5 million in the third quarter and first nine months of fiscal 2009, respectively. Research and development expenses consist primarily of personnel, masks, engineering wafers, third-party design automation software, assembly tooling and qualification expenses. This increase in the first nine months of fiscal 2010 compared to the first nine months of fiscal 2009 was the result of an increase in personnel related costs, primarily accrued bonus costs recorded in connection with the 2010 Cash Incentive Compensation Plan, partially offset by a decrease of mask costs. We believe that a continued commitment to research and development is essential to maintain product leadership and provide innovative new product offerings, and therefore we expect to continue to make significant future investments in research and development. As we continue to move to more advanced process technologies such as 65nm, mask and engineering wafer costs are becoming increasingly more expensive and will therefore represent a greater proportion of total research and development expenses.million in the first nine months of fiscal 2009, primarily as a result of an increase in cash flow from Net income (loss) due to a net loss of $12.6 million in the first nine months of fiscal 2009 compared to net income of $43.2 million in the first nine months of fiscal 2010. Net cash provided by the decrease in foundry advances was $11.4 million in the first nine months of fiscal 2010 compared to $43.1 million provided in the first nine months of fiscal 2009, which included a cash repayment of $30.0 million under a letter agreement between the Company and Fujitsu Semiconductor Limited ("Fujitsu"). In addition, the increase in Deferred income and allowances on sales to sell-through distributors in the first nine months of fiscal 2010 provided net cash of $8.0 million to operations compared to $0.2 million in the first nine months of fiscal 2009, primarily due to the increased activity by sell-through distributors and increased revenue levels. This was partially offset by; net cash used in operations as the result of an increase in Accounts receivable, net, of $15.7 million in the first nine months of fiscal 2010 compared to cash used in operations as the result of an increase in Accounts receivable, net, of $1.8 million in the first nine months of fiscal 2009 generated from higher revenue and increased volume by sell-through distributors; and, net cash used in operations as a result of an increase in Inventory of $5.8 million in the first nine months of fiscal 2010 compared to cash provided by operations as a result of a decrease in Inventory of $5.6 million in the first nine months of fiscal 2009.
Net cash (used in) provided by investing activities decreased by $66.9 million in the first nine months of fiscal 2010 compared to the first nine months of fiscal 2009. The decrease was due to the purchase of short-term marketable securities of $91.2 million in the first nine months of fiscal 2010 while no comparable purchases were completed in the first nine months of fiscal 2009. Capital equipment expenditures were $8.5 million and $4.3 million in the first nine months of fiscal 2010 and fiscal 2009, respectively. It is expected that capital equipment expenditures, primarily test related equipment, will increase due to the introduction of new products and increased revenue levels.
As of October 2, 2010, our principal source of liquidity was $229.1 million of Cash and cash equivalents and Short-term marketable securities, which were approximately $64.6 million more than the balance of $164.5 million at January 2, 2010. Working capital increased to $260.1 million at October 2, 2010 from $205.5 million at January 2, 2010.
At October 2, 2010 and January 2, 2010, the Company held auction rate securities with a par value of $19.9 million and $24.1 million, respectively. During the first nine months of fiscal 2010, the Company accepted 13 partial redemptions at 100% of par value ($0.3 million) of auction rate securities. On July 29, 2010, the Company sold student loan auction rate securities, with a par value of $3.8 million and fair value of $2.9 million for $3.3 million and reported a gain of $0.4 million in the third quarter of fiscal 2010. The Company intends to sell its auction rate securities as markets for these securities resume or reasonable offers become available. At October 2, 2010, due to continued multiple failed auctions and a determination of illiquidity, the $19.9 million par value of auction rate securities held by the Company had an estimated fair value of $9.7 million and are classified as Long-term marketable securities. At January 2, 2010, the fair value of auction rate securities held by the Company and classified as Long-term marketable securities was $12.9 million.
Long-term marketable securities with a par value of $11.6 million (estimated fair value of $9.5 million) are exposed to risks associated with student loan asset-backed notes. Such loans are insured by the federal government or guaranteed by the Federal Family Educational Loan Program. Long-term marketable securities with a par value of $8.3 million (estimated fair value of $0.2 million) are auction market preferred shares issued by Ambac Assurance Corporation (“AMBAC”). On August 1, 2009, AMBAC discontinued paying monthly dividends on its auction market preferred shares, which reduced interest income included in Other income (expense), net, by less than $0.1 million per quarter.
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