Lattice Semiconductor (LSCC) 1 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to Lattice Semiconductor Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Muscha, Senior Director of Investor Relations. you. Thank

begin. may You

and Lattice's everyone. Sherri President CFO. operator, are Luther, me Jim Anderson, and good you, With afternoon, today Lattice's Thank CEO; and

will the fourth of of XXXX. business XXXX We the quarter financial quarter and for third of review outlook business a provide the and

our future announced Company and Company's XX-Qs forward-looking files If the not to with the to I statements everyone those Investor the These differ you the If at This could projections forum forward-looking such call Relations to copy regarding materially differ constitutes at we important contained as latticesemi.com. obtained actual statements. factors identify documents guidance and financial for statements information includes future call performance fourth that that of cause and this call. done results a public release remind or earnings documents time you the press from XX-Ks, that that X-Ks. be conference in and you our risk in conference currently using can publicly quarter of official company any be the may SEC, such after during a this events including our intend the or release contain are website like wish call, material we any XXXX. may communicate we or the guidance, to changes updates or have We would will that is We based results to that on other the that materially. Company. found refer a make our such at today, the predictions our of caution available section actual projections press

of management non-GAAP We analysis financial this information, to Company's By trends. primarily investors will to performance disclosing to permit underlying provide with certain further information the and non-GAAP measures intends additional call. refer during

financial measures to that these Relations provided our on historical the Investor non-GAAP of can reconciliations section we financial found of latticesemi.com. periods, be GAAP measures For at website

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

and you, non-GAAP on quarterly XX% in thank us income joining grew year-over-year in Avant product very year-over-year. FPGA and for the and QX Lattice. growth call will and growth current Rick, We the for December portfolio strong We're Thank newest on excited of today. you, results with XX% revenue record net revenue, greenfield delivered launch everyone, which X. our create addressable about our with Lattice our we're double our Avant platform, new of market pleased opportunities

QX few a on highlights. touch me Let

we which And year-over-year. by of of record introduction the addition profit an year-over-year version expanded growth, we margin expand CertusPro-NX. operating the of revenue road to XX.X%. continue points map non-GAAP was XXX record with In our gross to automotive basis of XXX increase achieved strong basis a our XX.X%, an to non-GAAP We points

drivers in now growth infrastructure. on deliver growth on XG segment end roughly communications In servers, content in We center me our segment. in basis. and this expansion long-term of remain an XX% and computing wins data client consecutive The year-over-year computing was a up the Let provide market. revenue sequentially and track overview our flat business fourth to market, by wireless greenfield three year to double-digit of continue this design key growth for be new

basis. to up was market. now on sequentially automotive XX% Turning industrial and the XX% increased Revenue and year-over-year a

revenue this to year of double-digit segment. this in third our growth expect We be consecutive

well and this robotics as opportunity in as strong see market as as industrial automation address and Lattice long-term we to infotainment systems. continue ADAS automotive, growing We applications growth a for

softness Turning end the in year-over-year, market. now was to XX% Revenue electronics consumer. declined sequentially down and macroeconomic XX% consumer reflecting

and product other revenue launched X% in offset consumer road provide growth decline was I'm more in map automotive only solutions This Given see of our market, some efficiency we CertusPro-NX highlights. for consumer that we power with are small form as market-leading our the by adds quarter, revenue factor. in to for our QX, that family our recent to new which our our than most I'll revenue optimized a continue product of represents automotive driver in an the total version that performance the pleased long-term Nexus based now platform Company. segments. on

our at forward with Nexus, and We're create the greenfield Lattice. the will Lattice our platform. to of addition will our addressable event. launch product In Avant launch expanding further leadership opportunities portfolio upcoming new Avant revenue to more position we're for excited details with share looking double Avant our market to

been software customers few past our to it Turning now and products We've strategy. software to our Lattice in our the are These making investments focused for adopt easy years. get increasing investments quickly. market to portfolio over on

pleased our while products. the current using As summary, including are least wins half will continued on of mentioned our ramp the platform. earnings very call, now design by we our at continued headwinds, portfolio, demand existing one we our continue of same our we five product carefully, that silicon software today leverage enabled last there are our signals progress over are recognize with Nexus customers software we're watch the solution and macroeconomic Avant new to and also on In of growth stacks. our our of

turn CFO, expansion launch the of continued In platform I'll product of over addition, Luther. call about Sherri our now the portfolio. new to and the we're excited our Avant our

Thank you, Jim.

our gross return by results revenue share shareholders QX remain We our map record We continue double-digit through free profitability strong flow, to financial cash on road in are focused invest buybacks. with and with pleased capital continued growth our margin and expansion. driven in product to

our summary of results. Let provide a now me

industrial X% and macroeconomic was XX% the million, year-over-year. in record and Third grew of digits automotive quarter quarter segments market two than and up and sequentially weakness year-over-year more in second revenue from a communications up computing $XXX.X Revenue offsetting strategic double consumer. our

year basis which the sequential the compared was margin increased be ago gross Non-GAAP execution strategy, in compared strong XXX QX prior margin a year increases and sequentially operating record million in and portfolio quarter started the in non-GAAP continue Both demand increased Both XXXX. gross to year-over-year quarter $XX.X the to continued Our in up we were product creation. points to quarter. in $XX.X of SG&A to ago prior and by the expenses gross in to quarter. we our as early million to and margin compared XX basis million driven R&D XX.X% points and our $XX.X expenses investments expansion make

operating record margin year the in non-GAAP to basis points points increased the was XXX quarter. compared up to to basis XX.X% Our and QX prior compared quarter XXX a ago

year-over-year growth that earnings non-GAAP the was which in expansion business. long-term to margin diluted QX will growth. $X.XX drive the of investments our operating balance to represents continue We per share quarter, compared with year-ago XX% $X.XX

with $XX of QX cash increase the XX% capital flow our our flow. pleased are priority returned in generation, share strong buybacks. to continues QX, be which We eighth repurchasing a year-over-year to for us. executing shares operating We million cash drove a consecutive we quarter shareholders, In of making XXX,XXX approximately

in of of through August, program Board the expanded million with that our $XXX Additionally, Directors end a authorization the XXXX. buyback new goes share

is Total to between expenses operating review the quarter between of $XXX fourth non-GAAP now outlook the on fourth margin Operator, for expected be X% XX.X% quarter. is be for In on for be are are million or million. questions. the on results call expected million strong closing, basis. Gross Let driving $XX our to open plus XXXX million expected and pleased the non-GAAP quarter to me and a and basis. and minus $XXX can Revenue for and our remain now fourth further we revenue expansion. $XX progress growth we focused with a profit

Thank time, proceed Roy Our your with we'll from Stifel. Please first a with question. be you. line comes of the Instructions] At conducting question-and-answer [Operator this session. Ruben question

on a puts see Jim we congrats another core quarter. and I start, takes wanted industrial. automotive two the the Jim, Sheri, segments, little and to communications around talk then bit if could and and solid and about

Just you're guidance segments sort about QX. And of those to detail thinking quarterly QX? relative performance any two how the then the for around in

Yes. it. the Thanks question. appreciate I for

but in those growth both in of pleased So first comms QX. segments all, sequentially If the and XX% of start we flat great very with with year-over-year compute, growth year-over-year. progress

vectors our content computing XG growth. networking, in growth good expansion servers, client as in to well which see enterprise as main continue really are We progress infrastructure, wireless three there,

yes, so I'm with And really happy there. the performance

comms robotics very computing be now just are and year our a sequential drivers in would segments well. The growth be in great for the And that years that As just And a expect to -- over win segments we drivers And would double-digit basis. coming segment as will we're flat XX% to into be And we healthy our double-digit then and expecting seen and QX, be consecutive automation fact, a consecutive computing the and of a industrial to this, segment both and that year-over-year that expect our growth. be segment there, the had to to to design up XX% the that very if and into revenue industrial And we combine and the in for in and strong in Automotive pipeline. that expect and QX, be the and fit and segment you efficiency, well. compute of well flexibility it growth up. Lattice were about the combination are going sequentially customers, revenue we performance small and progress our look and industrial those industrial automotive, comms third segment, is two growth well. the long-term in products our this QX automotive, growth auto. year expect auto, I growth XX% happy as we've adaptability of industrial year as fourth in strong with comes as then we in for those that very segment, do This size, sequentially Company great we win in of The power design to represents advantage flat forward in on particular, market. very, really as

Great.

minutes As a spend follow-up, a I'm can wondering if few Nexus. we on

here years three the recently next fifth getting ready the this Nexus. Nexus you launch year, for earlier we're family into month. And released Avant So, of

wondering around has been. Just feedback bit color what little you of give customer if can a us

markets years preview three say? on greenfield revenue Are in? a inherent the be your opportunities look rates, detail those fact attributes a attributes Avant. you et give those you of like things the brought talked guys that power, launch about you talked for inherent to with cetera. Nexus any the of And error you're of revenue end excited Or that us One bit -- Any at preview, the low of can Nexus soft number customers would -- a are you on how that FD-SOI launch great? about lower similar, were little feeling opportunities was that if going about maybe greenfield would some about

really, happy Always talk that. about portfolio our expansion, thanks. to we're really about Yes, happy product

start me progress really with the Nexus. continued on Nexus, with pleased Let

You asked Customer is about feedback. very customer good. very, feedback

Xx is really performance, Our Great competition. Nexus competitive The position competitors. good size versus size is very power better advantage on our than our efficiency physical up strong. to --

continue into launched to that go there. next five we we to those half most families different engagement will device introduced, are really four date. We've momentum see that So the strong family family year. production in and first Nexus the five, fifth customer and of and ramping the fifth, And on in production of recent based

Company's Nexus. of production and revenue. then, existing Avant launch entering devices Nexus with top as to product the road saying, strongest product ramp the have family the kind we'll goes well. course, ramp but think the will a portfolio, of a quarter. more map continued you we effect to believe have we expect come old beginning next company our So and history, of lineup on of of we the I XX And on and new And without really Nexus excited it I in a of have as this layering should we're combination super portfolio years year, Avant. great turn each about pleased And

of for scheduled Avant but double event, market. share December the about will that We completely the FPGA really launch more excited an into have to Avant move Company our at the It's products. existing addressable market. X, additive event public part launch details adjacent to It our will

really that's event. future a customers customer will existing X us in enters launch more good, started happy revenue Avant the fact, back it that Avant years ago. was in December the couple brand-new when really, a streams as that so Company revenue our today. quarters, for And create we pushed invest stream additive details to Again, in at engagement, And production of to to yes, share

Susquehanna. of comes with proceed question next line your Our from with Rolland question. Please the Christopher

puts if Sherri. December. including there for is like over is in sustainable looks it's was were kind into could gross of double-click you wondering gross and guess this But margin, And I or carried and one stuff, some takes you build for Sherri, us margin, XXXX. it I think whether September, regarding mix. we're beneficial can seeing what you maybe some on This there into even

Chris. you, Thank

we're our with margin record for points XXX really gross pleased results another XX basis QX, points sequentially, basis year-over-year. So, improvement improvement XX.X%,

gross remarks, As mentioned margin prepared we've our I've expansion strategy XXXX. in executing since our been on

And of time, when improvement now been drivers And has as back the in period in multiple Pricing been our gross we're So, basis started expansion, margin that, look or we that of driven a factors. elements year. margin of that one. gross since over in of terms you of fourth optimization points the strategy. result we've this X,XXX it's

added products Mix to well time also the cost value also been contributor. been contributor have has New margin. efficiencies has gross as as a product a over

in the been right? a that more of initiatives minus way about it's those So, have the terms at look been how on But range, it's that and XX.X%, range. to X%, before, of we've or as when things able a we you the in longer-term. plus talked strategy. do guide, near-term really our execute some some And we business. it's And think effective of we've

business. focus way we on just the margin that And expansion do so, we to continue gross

Jim. September. this freed maybe extra you, if into wondering as out one some some if whether And I seeing a you from there And you some supply the are Or for well? for up supply you supply market. building explain other some inventories for seen supply are you bit inventories, some forward? we built then why seeing We've were overall, about the as guess you inventories want better those pricing chain, weakness has of that I Or you lastly, in think inventory? pressures? was pricing on Great. and of in top of as there's little could slack even you moving some opportunities guys

Chris. Thanks, Yes.

prior across supply, are did our the in half calls earnings we supply well. actually to chain the that in first certainly on that and of So this incremental on supply all, chain supply. of supply year flagged -- second Lattice we see general expect seeing going That's supply improve in something in into and the as we some capacity actually next year

supply half. we so, of supply have here that to do we as And additional in continue year the into next second well. And seen improve the expect realization to

from really that was So, to ramps. as to new intentionally grow support QX, QX We we positive. inventory did and that very product view

were earlier we product So talking as we as were Nexus we ramp, about ramp. mentioning, the

we ramp for or are want sure place to ramps. new the that have design multiple As product those well, life products us, we make ramp as we as new on in long. pre-Nexus products new win the we support and that, Nexus And even our design cycles very versions to but of wins inventory

And for so, relatively of the obsolescence is risk low inventory around us.

seen makes of pretty just then sure was sense it pricing part win right the inventory we're around in so to well I position pressure. to positioned We've of we us And pricing. the your last And durability so for level growth. our design question think make good

to the ago, as seem gross executing pricing XXXX. I We beginning a long margin on And good think had of XXXX year know strategy started expansion in our -- plus anticipate execute beginning I as that we I would now and fourth that part may pricing, overall we've we on very put like that Sherri on continued time our expansion. seen continuing. at the strategy executing of of margin pricing optimization gross we've touched in that. optimization part a of but our that durability of at

Please Cowen. Matt of the next comes Ramsay from question. your Our line with question with proceed

consumer, Happy that bit big of industrial the part I bit business guess, segment. little the surprise the was weakness little had in touches but first PCs, seeing was, weaker, then I maybe results Halloween. that guess, maybe Yes. a no it question auto some a I of in computing Jim, the the upside

guess remained in quarter that there as that the a to stuff did got that pull check supply was first pretty some strong, up we like you is on to big demand I we that industrial organic -- It there. segment business wanted trends kind sure make you in and So, -- segment, I the look on where in sustainability service forward. seems more of just on to but in question some pull auto trying just I'm didn't

Yes. really demand was driven. It

We have and beginning the in had than the demand industrial anticipated auto seen we at stronger-than-expected quarter. actually of

year over design calls now increasing even we production are a competitor If about an you win those couple seen over years. And are last were production. us have design talking from the the entering into quarters from recall -- we did that started earnings of to ramping of few wins prior, last level conversions and

of faster wins frankly some have had design we ramped anticipated. than those And

And in of really so segment. we're that seeing it's a good really the demand that reflection

we've years great long segment Lattice This growth well. Company we that I've QX you look had have to very well. for a over beginning relationships that, most in fit this last in question. in three forward want as on as as our too. consumer your the in we As of did just certainly weakness That for about some products term, in strengthened. to the the QX, the space. then recent is long-term a seen I and the as continue and at weakness place in quarter just customer see touch good only this we this are two softness And really the past, And customers source over mentioned asked segment a to of -- you

overall certainly electronics as in that see macroeconomic the by consumer sector. we So weakness driven

certainly business that's that in but an good So weak seen. has spot we've strength and of area our been automotive, been definitely in a industrial that

it. appreciate I

right? the big so about following of was results last you ask that kind guys a the since in up just came bucked mean out question pretty gotten sustainability, here. Just to you or the trend I've have hour I

and of maybe you other extending been what's companies talking packets there, on ecosystem seen little order visibility in worry moved I a with end got inflation out wall is the macro? concern but amazingly bit consumer, the ask just about just -- that of of really different weakness from five don't -- guys at book, that's book big end of strong some understandable, on the but There's or is question visibility going the the around results a Nexus how competitors a from in here to the your into certain enterprise, sort you in have You've and down markets choppy but really anything the you the of and -- know the thoughts I seen and because good question industrial. just about different of are today. totally The certainly ways, and company your up in order which results

Company certainly back quarter, And to been macroeconomic only sequentially. so I revenue on immune is Matt. step Yes. we might Certainly, the our softness the you be weaker. if demand -- guide would we're see consumer certainly not guidance, But to downturn all, across market. look up I the expecting more of to any slightly or we're and of the has we electronics think you midpoint broadly broadly, Thanks, take QX. the guidance, if say, first current

in environment I around data enterprise think in is centers, for servers, now segment. especially the experiencing industry instance, softer the a

think past in immune really by if Company. That the primarily design pre-Nexus are done think are of instance, there cycles of So we're not by for at of end attach has higher the doing are year, just particular are content going terms servers, The wins has the the segments, by Nexus really beneficial example well in actually you expansion, that and the and look we combination particular that. by our servers through the growth said, of been been content product securing driven within rates. certainly specific our to that's And expansion well. demand. one per over Company In some new market, server, even places where dollars then I ramp, I products not the places, but driven to

in higher a ASP number chips greater attach growth content, in being our have chips good as server opportunities to and see used combined content hardware select additional Also us in rates just and with one to we customers the of So over example. multiple ASPs that additional content higher Lattice new servers and on software with time. expansion for continue and really higher devices give as space, years servers over

for So earlier some the and about we that places we auto and industrial talked growth. continued there of see

So cognizant about. there the but certainly Lattice of excited market pretty trends, certainly think to broader macroeconomic the growth I the pressures areas we're isn't that Company specific are and immune some

Our line with question. next William from proceed with Vecchi Blair. of question comes Alessandra your the Please

on are some alluded can I wins this you Jim, strong of think the it if Or follow that ramping Congratulations still a just to where pre-Nexus getting design software second forget environment. Is investors of this really is products pre-Nexus just remarkable attach products? on that product? one progressing on there? and results the new from in up you the long-life some comment made I rates? kind life

software, really the as great that about in I'll we seen been opportunity the question, see pre-Nexus we've strong well reinvigorate And Nexus really to growth it. a do talk appreciate software because on, of products. adding have actually, Actually, we we helped Alex. I products. you're any layers have some Yes, on your take products can -- spot Thanks, our question, pre-Nexus

customers that about market give also to kicked to which strategy, that get to products, to to our investing used software would ago in past. they but our devices and in really to for applies we applications our the really it years Nexus, just them was about applies new maybe products be off And been used Our not quickly, adopt software new hadn't too. four that to earnest our our in in make it but software easy products, allow very pre-Nexus

believe software built we've past And those products. so the the of do that that yes, has reinvigorate years I helped over some

in stacks. application one those solution invested now reinvigorate market. five software particular, example, we've to those solution stacks We in have pipeline as the Just extend brought certainly have life the stacks I different solution we win And products. think design pre-Nexus and have helped that of around some

Awesome. extension That's well that really helpful. Matt's. And then of as as question just an

but Some for leveraged you semi like industrial? think in split Can Lattice things we not definitely consumer competitors kind portion industrial you robotics vision versus closer competitors, how much granted of more industrial pointed normally last, the of to how or towards strong. the other some and on whereas side sound factory much to that's at companies consumer-centric still we color least and have Or of or that about quite automation the how us the portion being think some to business? give of industrial value-add tends weakening

do we that not It's is automotive industrial a industrial to weighted would years. Alex. definitely broad that immune certainly we're that that think a our and it our and to favor in to trends. call our towards we industrial. over wins And design And out into base to the past that. in those about, the much related as question, any to revenue the your our to wins automation and pleased continue was products a talked customers now design as for And was general devices competitor those we, Company. what less But again, trends right, more see the robotics, industrial area growth. making I Thanks, switch design real I think, years, devices. deep with to quickly, towards we're say we see quite were company, more bringing to a see as of consumer-centric industrial design easier well of our certainly We of and did starting a revenue we last you're long-term more I over our in starting industrial, new prior were software part growth Yes. Part we've to to growth weighted accumulated that, market year strengthening for of transferring couple as over ago, automotive and certainly

of with Our the proceed Baird. Gerra question. your Please Tristan Robert W. next question line with comes from

a or commentary as qualitative follow-up a percent any terms Just Nexus it a halfway your us to as revenue, you of early Any mix sense still there? in could of kind question, the give innings? prior commentary is total Or the of we in of there?

year. earlier out have four which at first enter next Tristan. production, As devices. Thanks, fifth Yes. I To we're of production still full ramp, production mentioned yet stage where Nexus That of relatively will would sample, this that I even we've our And the launched five the of device in a And as at Nexus-based earlier, right? I second devices enter are because we're production half characterize of and in give you families, bringing in that new sense kind that -- ramping. early. still of year, still launched we're to year would device that's we're only we

And so, that quarters. we're future on building production. devices road we expect map devices, are still in you have multiple Nexus additional launched Nexus be to entering And our which should

so Nexus would at years. few the ramp greater over to percentage we least time, to a expect become And next really of over revenue and continue

of percentage a about you just wanted lot of relative push-outs product areas as mean to positioning very the end your customers right orders of pauses? year, non-cancelable peers, that next are cancelable what right but I how into thinking would how 'XX? your doing is in you to your then could And talk Great. markets are color expect resilient terms trend now now? And if obviously, to in still you're very, some weak get to of in and continue some

There Yes. in around cancellations or our rescheduling. change any policies been hasn't

-- in be NCNR something customer is the more we specific do. we would there don't want the give delay or force we example. wouldn't they time. we approach that that only would philosophy to our You where about let's to have to use for is NCNR an because on It's in use customer ask why say I'll is case something NCNR. need over one the a NCNR that's specific only reason reason you issue that volume broadly that Where or would a really in And say a asked a that because as would take particular. not circumstances product we I'll

orders if go may quantity customer customers that were large be of a particular a part and customers. is an normal where ask build going part. NCNR order to Let's other would we for of lower for don't would have it use case, that say volume us we exceed other volume unusually in that lot an And for for a off volume with that part that customer, the we because that that

we that for So an NCNR situation be where might ask a order.

say Just for a with to And We're cancellations circumstances -- of you would a in healthy our respect seeing look not very current current backlog any to then if to we respect specific just instances. it's give I at sense that, with more use but unusual where for and backlog I backlog the or quarter. the current level that for quarter. reschedulings quarter, QX, of the

level I healthy So for quarter. think at a we're this

proceed question. the with next comes from with of line Our your Jefferies. Lipacis Mark question Please

Great. I two. had

just to it a us there -- Is to you do ramped? you Jim, Nexus think First relative expect we had Nexus than it's there faster the give of that how would idiosyncrasies with I that sense ramp can because Avant or how or one are you you because And or like I late think Is XXXX. revenues -- talk be about expect on should slower? how think maybe other Avant, something you in worse? should ramp you interesting it, production better it Nexus the ramps us can launch think tell

three So XXXX Avant. here with a late launch we of later are years

-- out Are benchmark digits? know there follow-up. on your you if be a it just to single -- teens, able how just in talking you could a help And we compare help So are I percent previous big give just you that I to us so -- of revenues? answer. could. had And could just then of are The any don't Nexus interesting like the it you think of contrast, Are Avant. I you is is we as would question, believe if the heard kind I I us and

Thanks, Mark. Okay.

the ramp expectations. on the So, question first of and part around so Avant, the your

using model way in the of we're Avant timing of internally So what is we're we well. for kind as as the timing expect modeling would the terms for Nexus it

the market. XX to brought So when and the kind revenue saw XX device first start to later. we of We when we months in launched Nexus

well. And same so, with of as revenue initial we're using kind to Avant time that as we're the same -- the expecting

So would months to now. with XX quarter, start this from from to we launch XX the revenue expect Avant

a and at maybe XXXX bit the So, into XXXX a revenue little of with end contribution from more beyond. Avant of material

that's thinking of timing about revenue we're how So kind the ramp. the of

first leverage beneficial use are of to Avant couple of will couple to from is, note Nexus devices. things a software and customers the is use that that same of -- the their maybe just all, software will Now basically Avant that the ramp a pre-Nexus

on Avant. same same those are was earlier, I the the about talking So, to environment, development stacks leverage-able software that

So beneficial the already you customers customers XX% at for helpful over And target customers. of Lattice are the our the that's Avant, customer certainly there's secondly, then of if to look today. target Avant overlap, customers and for

the really are customers product we're time. these So existing with line over that expanding

Avant. growth drive revenue we those Avant. using to So modeling Nexus from we're aspects, for baseline positioned the well But feel as really of

for the this that a higher want to you we level inventories keep of balance so Fair sheet on Is Do should for the relative new enough. And inventories -- about level think did grow. a past? this the Sherri, to inventories? then

Yes. Thanks, Mark, for the question.

So we to support our about the that feel good we inventory business. level have really It's growing right now. of

as in I think Nexus' currently. earlier bit to as support it product And we the of talked inventory whether growth a talked ramps. well four for the ramping are about wins in business, design that our little devices our Jim increase customers the about be

happening important to got we've business. depending make on sure inventory what's can inventory support are ramps. But very So to levels that in other that's fluctuate the there those

other really is But note that thing products live to that's can that our So about cycles. cool have happen. always products very our the

really is of risk obsolescence And so low. the

very -- certainly so has And we that a not have we and like perishable feel we life. the is long that inventory

really that's so And well. as good

thing highlight cash that was XX% quarter year-over-year. our that is other The the is I'll just for generation

cash strong very So, generation.

Our free cash flow is XX%.

Our cash revenue generation the as percentage for of a quarter was alone XX%. about

strong really, really results cash so there. And

the continue that business. that's And on to so we'll we focus as manage something

with question of with Please line comes Hans proceed question. Securities. Rosenblatt next Mosesmann the Our your from Instructions] [Operator

inventory and evidence seeing momentum a are Great for that your of degree in expectations the you bit channel? What inventories designs? new any some that little bringing could down the from be inventories? offsetting maybe Are Still guys. business Congratulations, customers the question. And of execution. on some impacting to the

Yes. Thanks, Hans.

So distribution. our our have of inventory the ships distributors. in very Most inventory, channel of sits we visibility with on good revenue through terms that

visibility we so good And there. have

to distributor If you normals, at historic -- inventory the where the quite lean ended look on on we relative really side. QX it's

inventory we lean distributed customers. will over in of over because the then have sense do quarters on to need And it end coming X,XXX the And we makes as is side. customer inventory, replenish so terms it

but we terms sure know supply being in So, we either them they're of inventory end lean on do we unnecessary unnecessary visibility getting inventory. do right customers, to with difficult closely our have inventory. or make And strategic customer the to with building perfect us without work from --

relatively closely strategic distribution, good we and visibility with we again, say in lean would we're So, side. there. I on have so customers, work the the But

same designs the envision more working the Based question. do and And That's Avant you on, pre-Nexus and are helpful. you the on platforms that on on board? platform, same Okay. guys one Nexus using then

systems, I of applications. model, we likely pre-Nexus have they is That's a to different systems. do would that possible, let's a Hans. higher address But What the devices let's allow say, more of percentage systems. of many their maybe like, customer Nexus on, use And X/X say, their is usage think Avant us say, portion their got that's or today, types their systems of particular and a

that that able it we move been past. new service will systems to on us to the So, or in to new haven't allow applications in systems

an more product So as at expansion wallet of the in share or -- accounts. it coverage think about coverage

line your of David Our question. next Benchmark. with proceed question the Williams Please with comes from

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Yes.

David, the for thanks, So question.

-- Avant to is be Avant our growth moderate. our included, So, products, designed all of new

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expect product than be And David, we ASPs. in portfolio, our existing a ASPs XXx shared the ASPs. is on today's just today's we bit product that Avant I XXx the ASPs That portfolio, higher more to think past, color too, to little to Avant relative

half an about auto and of remains Jim, worlds? best And think of time? you guess, would you think I that the got How over maybe over you all time? ideal industrial look that gives industrial, now revenue. of Great. Or and of mix there trend revenue will mix kind auto do XX% Is we've you the that this think

that's last and two Investor XXXX growth in year, later one in about a seen Sherri but years two now maybe you segment, to kind I segments. the the faster growing we did. be said really take of well, very XXXX, one What in pleased years. those of engines If for grow segments is And our we Both comms the of you've of expect automotive, Company. other should account actually than the we And four particular and industrial first may over reiterated with what Day to that growth exactly XX% quite Yes. they overall, of I segment those and the computing little and back the that XXXX and revenues.

and existing our content, markets, with the but this Avant our those as quarter we -- especially have those long-term pleased in we're and We well all of that the growth grow with mix. revenue for grow line that So positioned And addition product quarters. just markets. also trends believe products not expand two segments is that in to continue that we the those Lattice underneath secular launch coming with four particularly to those believe markets then

the comes Shannon Richard Our Craig-Hallum. your proceed Please next from line question with with question. of

benefit benefit one of you pricing if the which it's is first pre-Nexus? the versus characterize beneficial market, revisiting you. Maybe the and here my you guess to think degree revenue or would I And kind topic that of it characterization also end and please? application by dynamics software per or quantify the about to to given great, can be Nexus any

Richard. Thanks, Yes.

benefit, look say, in design of are silicon months the wins. we these revenue all, wins, when of XX or of at, terms design First last pricing

is what the is track we attached. that things the of One software

So when we meaning using And piece as along now using as is see of an that wins we win sell they overall with what a our XX% the customer that over we a -- brought silicon are five the of one design software can that using win software of solution. market. attached, our silicon what customers, solution have to that we've they're stacks software design is specifically with

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the We're then last that on the both And of attach. just where so, on And our when get a the sort part software we we valuing software measure seeing pre-Nexus that we attach your can of is are price because question that higher devices. and seeing software? have it in we customer around know it Nexus we with

in either seeing really Nexus. computing good that we're the electronics. And a don't robotics, attach there's or markets, like So, think automotive I the difference automation, certainly pre-Nexus across industrial in software we're dramatic things seeing between in attach then

particular So, I stack. software of would depends say number bit it's a it quite And a the markets. our on across little

one One of of for to are some stacks software targeted software the the five particular instance, markets, industrial stacks, for more actually specifically automation. is

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I there, My Jim. feedback second I've Great going question is apologize, on Halloween -- some here. got business

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Richard trick was or getting treated.

from -- Rolland. the a question from Please proceed line comes next question Christopher question. Our follow-up with is your

the server benefit Mirametrix compute from of on are quickly And you Sapphire Just have the in that that guys guys and/or as a well? to the continuing you portfolio to see Rapids on side going Genoa client then Are really side, ramp on you things. side?

Chris. Thanks, Yes.

first so, is that automotive But on on server and from computing. per of just reiterating then anticipating to expand yes, we on there in growth server client in yes, dollars content those you certainly the again, to bring those platforms, Mirametrix content past expand call expecting the value really focused that, believe earlier my other note of the that and well, be industrial for same Mirametrix, us. are driver been those the we the platforms of we we per server space. that's technology I'll across to of level additional we're the to content also amount to bringing in on we to the opportunity to part, continue as beneficial our And are continuing are the markets or it's segment and And that in expansion growth listed, and future. the higher expect footprint we primary anticipate years, a that in of do client over point On instance,

in on but the we're footprint that something is client, expanding industrial that applications well. just and working so, as for in finding new And parallel the in software automotive is not

from is your question line Our proceed Richard Shannon a Craig-Hallum. next question. with follow-up with question Please of the

right. All

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response follow-on this won't in question My happen a I earlier question. again. is an to So hope

seem I the think Maybe And context industrial in to and talked was gains, recently. you platforms. to share if reference it, newer forgetting but I Nexus of here a for outsized I'm to competitors the degree about you can as be it focus maybe Jim would growth to think reason great, the to gaining Nexus add products that that who share to against some newer That focused don't color be your which areas? please. related and is to in

Certainly the very that around seen my growth we've pipeline. Richard. design Thanks, the understand going back say But Halloween win Yes. is excitement, I comments in to is, on would house, good a that industrial too. what yes,

design would the of also this to think electronics Nexus we've in And our couple nice is pre-Nexus seen I years. a products, win over but products. past apply well. And that growth certainly automotive our as

question around the software and earlier to older Alex ability of think in a rejuvenate I the call products. asked software

that win we the on software of of brought to market And as drive well. products pre-Nexus helped design the some so, has the think some I growth of some

that say and we've those Lattice of crosses so share seen our and where portfolio. outs And favor Nexus software devices, of of are design certainly would gains yes, some competitors in by aided pre-Nexus I both

call over further the to to closing There back like hand Anderson questions. are Mr. I'd remarks. for no

We're December details growth about call. And then, the very forward today's for event much and that Thank Operator launch are out there, everybody excited pleased strong really concludes see for for the course, certainly today's and about X. ahead host you, opportunities operator, the joining of We're to and we the cognizant excited results on that on Lattice-specific but Lattice. execution continued of drivers that with us. looking of our more about call. macroeconomic headwinds we'll sharing us that thanks at Avant

for concludes Ladies gentlemen, This teleconference. participation. and you today's thank your

have time, your and disconnect a at this may lines You wonderful day.