Lattice Semiconductor Corporation EBITDA surged on 253% and EBITDA Margin increased on 6.4 pp from 2.7% to 9.1%
02/12/2019 • About Lattice Semiconductor Corporation (
$LSCC) • By InTwits
Lattice Semiconductor Corporation reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.1% in FY2018, 2.7% in FY2017, 8.2% in FY2016, -11.4% in FY2015, 17.4% in FY2014
- Lattice Semiconductor Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: $316m in 2018, $311m in 2017, $1,111m in 2016, $643m in 2015, $65m in 2014
- The company has unprofitable business model: ROIC is -0.6%
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.3%. Revenue growth showed slowdown in FY18Q4 - it was 0.7% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.63 pp from 3.1% to 3.7% in 2018.
Gross Margin decreased slightly on 1.1 pp from 56.1% to 55.0% in FY2018. SG&A as a % of Revenue decreased slightly on 0.67 pp from 23.5% to 22.8% in FY2018.
Net Income margin surged on 11.7 pp from -18.3% to -6.6% in FY2018.
Investments (CAPEX, working capital and M&A)
Lattice Semiconductor Corporation's CAPEX/Revenue was 2.1% in FY2018. Lattice Semiconductor Corporation's CAPEX/Revenue decreased on 2.4 pp from 4.5% in FY2015 to 2.1% in FY2018. It's average level of CAPEX/Revenue for the last three years was 3.1%. During the last 5 years CAPEX as a % of Revenue topped in FY2015 at 4.5% and was declining since that time.
Return on investment
The company operates at negative ROIC (-0.6%) and ROE (-11.1%). ROIC increased on 7.7 pp from -8.3% to -0.60% in FY2018. ROE jumped on 17.9 pp from -28.9% to -11.1% in FY2018.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 7.2x Debt / EBITDA. Net Debt / EBITDA dropped on 15.1x from 19.0x to 3.9x in FY2018. Debt dropped on 13.8% while cash jumped on 11.5%.
Lattice Semiconductor Corporation has no short term refinancing risk: cash is higher than short term debt (1,436.1%).
Management team
James R Anderson "Jim" is a Lattice Semiconductor Corporation's CEO. James R Anderson "Jim" is a founder and has spent 0 years with the company. The company's CFO Sherri Luther has spent 0 years with the company.
Financial and operational results
FY ended 12/29/2018
Lattice Semiconductor Corporation ($LSCC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 366.1 | 406.0 | 427.1 | 386.0 | 398.8 | 3.3% |
| Gross Profit | 206.2 | 219.9 | 246.4 | 216.6 | 219.4 | 1.3% |
| SG&A | 73.5 | 97.3 | 98.6 | 90.7 | 91.1 | 0.4% |
| EBITDA | 63.9 | -46.4 | 35.1 | 10.2 | 36.1 | 252.9% |
| Net Income | 48.6 | -159.2 | -54.1 | -70.6 | -26.3 | |
Balance Sheet
|
|---|
| Cash | 115.6 | 84.6 | 106.6 | 106.8 | 119.1 | 11.5% |
| Short Term Debt | 0.0 | 7.6 | 33.8 | 1.5 | 8.3 | 449.7% |
| Long Term Debt | 0.0 | 330.9 | 300.9 | 299.7 | 251.4 | -16.1% |
Cash flow
|
|---|
| Capex | 10.3 | 18.2 | 16.7 | 12.9 | 8.4 | -34.8% |
Ratios
|
|---|
| Revenue growth | 10.1% | 10.9% | 5.2% | -9.6% | 3.3% | |
| EBITDA growth | 34.2% | -172.7% | -175.6% | -70.8% | 252.9% | |
|
|---|
| Gross Margin | 56.3% | 54.2% | 57.7% | 56.1% | 55.0% | -1.1% |
| EBITDA Margin | 17.4% | -11.4% | 8.2% | 2.7% | 9.1% | 6.4% |
| SG&A, % of revenue | 20.1% | 24.0% | 23.1% | 23.5% | 22.8% | -0.7% |
| Net Income Margin | 13.3% | -39.2% | -12.7% | -18.3% | -6.6% | 11.7% |
| CAPEX, % of revenue | 2.8% | 4.5% | 3.9% | 3.3% | 2.1% | -1.2% |
|
|---|
| ROIC | 10.0% | -19.7% | -4.2% | -8.3% | -0.6% | 7.7% |
| ROE | 11.8% | -42.7% | -18.8% | -28.9% | -11.1% | 17.9% |
| Net Debt/EBITDA | -1.8x | | 6.5x | 19.0x | 3.9x | -15.1x |
Lattice Semiconductor Corporation ($LSCC) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 99 | 103 | 101 | 96 | | -5.7% | 9.1% | 10.3% | 0.7% |
| EBITDA | 12 | -3 | 21 | 7 | | -20.8% | -154.0% | | -41.1% |
| Net Income | -6 | -20 | 7 | -7 | | | | | |
Balance Sheet
|
|---|
| Cash | 99 | 94 | 108 | 119 | | 2.0% | 25.9% | 7.9% | 11.5% |
| Short Term Debt | 2 | 25 | 14 | 8 | | -92.2% | 60.1% | -36.6% | 449.7% |
| Long Term Debt | 299 | 266 | 261 | 251 | | -0.9% | -7.4% | -6.9% | -16.1% |
Ratios
|
|---|
| Gross Margin | 57.3% | 48.9% | 57.5% | 56.6% | | -0.9% | -5.5% | -0.5% | 2.8% |
| EBITDA Margin | 11.7% | -3.4% | 21.0% | 7.1% | | -2.2% | -10.3% | 45.3% | -5.0% |
| Net Income Margin | -6.0% | -19.7% | 6.9% | -7.4% | | 0.9% | -5.9% | 53.7% | 0.2% |
Peers in Semiconductors
Below you can find Lattice Semiconductor Corporation benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (67 companies) | 54.6% | 8.5% | 4.4% | 11.0% | 5.0% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | | 10.9% | 5.2% | -9.6% | 3.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 45.3% | 47.0% | 47.2% | 48.6% | 50.4% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 56.3% | 54.2% | 57.7% | 56.1% | 55.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.6% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 17.4% | -11.4% | 8.2% | 2.7% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.6% | 4.7% | 4.6% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 2.8% | 4.5% | 3.9% | 3.3% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.0% | 3.8% | 1.7% | 3.2% | 5.2% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 10.0% | -19.7% | -4.2% | -8.3% | -0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| Himax Technologies, Inc. ($HIMX) | -0.6x | 1.1x | -0.6x | 0.4x | 3.3x |
| |
|---|
| Median (45 companies) | -0.5x | -0.2x | -0.0x | 0.4x | 0.3x |
|---|
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
