HILLSBORO, Ore. - Lattice (OTC:LTTC) Semiconductor Corporation (NASDAQ: LSCC), known for its low power programmable solutions, today announced a change in its executive team with the immediate resignation of Chief Financial Officer Sherri Luther. Tonya Stevens, who has served as the company's Corporate Vice President and Corporate Controller, will step in as interim CFO.
The transition comes as Luther departs to explore a new opportunity after a six-year tenure with Lattice. During her time with the company, she played a pivotal role in building a strong financial team and contributing to its growth. Stevens, a seasoned finance professional with over three decades of experience, including significant roles at Intel (NASDAQ:INTC) and PwC, is expected to maintain financial stability and continuity. She is also a Certified Public Accountant and an alumna of the University of Oregon with a degree in accounting and business management.
CEO Ford (NYSE:F) Tamer expressed his confidence in the company's direction and growth prospects, citing the strong customer momentum and the potential of their field-programmable gate array (FPGA) solutions. He also acknowledged Luther's contributions to the company's development and welcomed Stevens's expertise in the interim role.
Luther reflected positively on her time at Lattice, endorsing the strategic vision and operational knowledge of the current leadership, and expressed her belief in the company's successful trajectory going forward.
In conjunction with this executive shuffle, Lattice Semiconductor reaffirmed its financial guidance issued on July 29, 2024. The company is scheduled to report its financial results on November 4, 2024.
This press release includes forward-looking statements, which are subject to risks and uncertainties. These statements involve expectations about future plans, growth, and performance and are based on current beliefs and estimates. Investors are advised to consult the company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, for a more complete understanding of the risks involved.
The information in this article is based on a press release statement from Lattice Semiconductor.
In other recent news, Lattice Semiconductor has been making headlines due to significant changes and developments. The company recently appointed Dr. Ford Tamer as its new CEO, a move that has been well-received due to his extensive industry experience. This leadership change was accompanied by Stifel upgrading Lattice Semiconductor's stock from Hold to Buy, reflecting a positive sentiment towards the new leadership and the company's future.
Lattice Semiconductor also reaffirmed its third-quarter guidance, projecting modest sequential revenue growth following three consecutive quarters of decline. Despite a challenging period, the company's gross margin remained steady at 69%. However, Lattice Semiconductor's earnings per share of $0.23 fell short of the expected $0.24 consensus, and the company's sales decreased by 35% year over year, notably in the industrial and automotive sectors.
In response to these developments, several firms including Raymond James, Needham, TD Cowen, CFRA, and Stifel have adjusted their outlooks for Lattice Semiconductor. Raymond James upgraded the company's rating to Outperform, while Needham and TD Cowen maintained a Buy rating but reduced their price targets. CFRA and Stifel also revised their price targets and maintained a Hold rating.
The company has also launched new products like the Lattice MachXO5D-NX and the Lattice Sentry solution stack, which are expected to contribute to future growth. Analysts from firms such as Needham and CFRA anticipate improvements in the second half of the year, driven by ongoing inventory normalization and new product introductions. These are the recent developments for Lattice Semiconductor as it navigates through a period of leadership transition and broader economic challenges.
InvestingPro Insights
As Lattice Semiconductor navigates this leadership transition, InvestingPro data offers additional context to the company's financial landscape. Despite the recent executive change, Lattice maintains a solid market capitalization of $7.07 billion, reflecting its significant presence in the semiconductor industry.
InvestingPro Tips highlight some key aspects of Lattice's financial position. The company is currently trading at a high earnings multiple, with a P/E ratio of 37.18. This valuation suggests that investors have high expectations for future growth, which aligns with CEO Ford Tamer's expressed confidence in the company's growth prospects and customer momentum.
However, it's worth noting that analysts anticipate a sales decline in the current year, with revenue growth showing a negative 13.17% over the last twelve months. This projection may explain why 11 analysts have revised their earnings downwards for the upcoming period, as indicated by another InvestingPro Tip.
On a positive note, Lattice's financial health appears robust in certain areas. The company operates with a moderate level of debt, and its cash flows can sufficiently cover interest payments. This financial stability could prove crucial as the company navigates the CFO transition and aims to maintain its strategic direction.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Lattice Semiconductor, providing a deeper dive into the company's financial metrics and market position.
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