Lattice Semiconductor Corporation reported its financial results for the third quarter and first nine months of fiscal 2025, revealing a revenue of $133.3 million for the quarter, a 4.0% increase from $127.1 million in the same period last year. However, for the nine-month period, revenue decreased to $377.5 million from $392.0 million, reflecting a decline of 3.9%. The company experienced a net income of $2.8 million for the third quarter, down from $7.2 million a year earlier, while net income for the nine months fell to $10.7 million from $44.6 million in the prior year.
The financial performance was impacted by increased operating expenses, which rose to $92.1 million in the third quarter from $80.2 million in the same quarter last year. This increase was primarily driven by higher stock-based compensation expenses, which totaled $35.8 million for the quarter, compared to $16.6 million in the prior year. The gross margin for the third quarter was $90.5 million, representing a gross margin percentage of 67.9%, a decrease from 69.0% in the same quarter last year. The decline in gross margin percentage was attributed to changes in product mix and increased stock-based compensation.
In terms of strategic developments, Lattice Semiconductor has focused on enhancing its product offerings, particularly in low-power programmable logic products and related solutions. The company continues to invest in research and development, with expenses increasing to $49.6 million in the third quarter from $41.4 million a year earlier. This investment is aimed at supporting growth in high-demand areas such as artificial intelligence, factory automation, and communications infrastructure. The company also reported a significant reliance on distributors, which accounted for 83% of total revenue in the third quarter, down from 95% in the same period last year.
Geographically, Lattice's revenue from Asia represented 65% of total revenue in the third quarter, with China alone accounting for 49% of the total. The Americas contributed 19% and Europe 16%. The company noted that revenue from the Communications and Computing segment increased by 21% year-over-year, driven by demand for data center applications, while revenue from the Industrial and Automotive segment decreased by 7% due to softer market demand.
Looking ahead, Lattice Semiconductor anticipates continued challenges from global economic conditions, including inflationary pressures and trade uncertainties. The company remains committed to its growth strategy, focusing on expanding its addressable market and enhancing its product portfolio. Lattice expects to leverage its technological advancements and customer relationships to navigate these challenges and drive future growth.
About LATTICE SEMICONDUCTOR CORP
Lattice Semiconductor designs and markets low power, programmable FPGA devices and system solutions for markets including communications, industrial automation, automotive, and consumer electronics. Its products enable control, connectivity, security, and AI workloads at the edge, supporting OEMs and system integrators worldwide. The company leverages a fabless manufacturing model, licensing IP, and providing design services to deliver flexible, high-performance, energy-efficient solutions that accelerate product development and time-to-market.
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