Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the new Nexus product launches and the traction you're seeing with customers?
A: James Robert Anderson, President, CEO & Director of Lattice Semiconductor, expressed excitement about the Nexus product family, highlighting positive customer feedback and the recent expansion of device options. This expansion has been well-received, indicating a sustained focus on innovation in the small FPGA market, which is crucial for customers. The differentiation and leadership demonstrated by Nexus in power efficiency and capabilities have bolstered customer confidence, potentially leading to increased business and market share growth for Lattice.
Q: Regarding the cyclical nature of the FPGA market, do you still expect inventory normalization to complete in Q2, and how will this affect shipments?
A: Anderson confirmed that Q2 guidance accounts for ongoing semiconductor inventory reductions by customers, which includes Lattice products. This inventory normalization is expected to continue through Q2 but should dissipate in the second half of the year, leading to stronger revenue in the latter half as inventory levels stabilize and new product ramps contribute to growth.
Q: With the Communications segment showing weakness, do you have any indications of when this might stabilize?
A: Anderson noted additional weakness in the telecom infrastructure, particularly in the last couple of months, which is factored into the Q2 forecast. Recovery in this segment hinges on increased telecom CapEx, which would boost equipment spending and subsequently demand for Lattice's products. The compute segment, however, is showing strength and is expected to grow sequentially.
Q: Can you provide insights into the industrial market trends and expectations for recovery?
A: Anderson described the industrial market as mixed, with segments like medical equipment and aerospace/defense showing stability or growth, while automotive has weakened. Recovery in industrial and automotive segments is anticipated in the second half of the year as inventory normalization completes.
Q: How are the new Avant product families being received, and what are the expectations for revenue contribution?
A: Anderson detailed that the Avant product families are in the early stages of revenue generation, with Avant-E already contributing and expected to ramp up through the year. The G and X families are projected to start contributing by year-end, with significant revenue expected in 2025. The ramp-up of Avant is driven more by customer development cycles rather than current market demand fluctuations.
Q: With the shift in server demand dynamics, how confident are you in maintaining your market position in server applications over the next few years?
A: Anderson expressed confidence in Lattice's continued growth in server applications, citing increased content per server in the current generation and expectations for future generations. The company's innovations in both hardware and software are anticipated to drive further content growth and maintain competitive differentiation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
