$LSCC Q3: BEAT and raise, and up ~3% after hours, a muted move for a stock down 29% in a month. FPGA revenue alone was $251.9M, +89% and $22M over the top of its own guide, by my math. Core acceleration, not AMI math, as I said in August.
The numbers:
-Revenue $291.0M, +118% YoY, vs $255.9M est: BEAT
-Non-GAAP EPS $0.72 vs $0.55 est: BEAT
-Non-GAAP gross margin 70.9% vs 69.5% guide: BEAT
-Q4 guide $335M; non-GAAP EPS $0.84 vs $0.64 est: BEAT
Takeaways:
1. The +118% includes two months of AMI, $39.1M. By my math FPGA grew 25% QoQ, and Q4 is guided +15% QoQ with industrial and embedded at +70% YoY.
2. Non-GAAP gross margin slipped 80bps with AMI inside, not the 220bps the guide implied. My math. Non-GAAP operating margin hit 41.1%; Q4 gross margin is guided to 72%.
3. FPGA plus AMI firmware makes Lattice the AI rack's control plane. It leads OCP's SCMP workstream with AMD, Arm, Intel and Microsoft.
@latticesemi