Why Lattice Semiconductor Tanked


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lattice Semiconductor (NAS: LSCC) tanked today by as much as 18% before recovering to close out the day with a 14% loss after the company slashed its current quarter's guidance.

So what: Second-quarter sales are expected to be roughly flat to down 3% sequentially, compared with its prior guidance of flat to up 4% sequentially. Gross margin is also expected at 51%, give or take a percent, lower than its previous forecast of 55%, again give or take a percent.

Now what: The company said growth in strategic accounts is being offset by continued softness in its global distribution channel, with Europe in particular being problematic. Lattice is leaving its operating-expense forecast unchanged and should be in the ballpark of $39.5 million, including $1 million in acquisition-related charges, which primarily consists of amortization of intangibles. The Street is perched on a consensus estimate of $73.5 million in sales next quarter.

Interested in more info on Lattice Semiconductor? Add it to yourWatchlist.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.