Lattice Semiconductor Corporation (NASDAQ:LSCC) Q3 2023 Earnings Call Transcript

Nathaniel Bolton: Great. And then for Jim, I know you’ve said multiple times, the Avant pipeline is bigger than the Nexus pipeline at the given point in time. But I guess I’m wondering, and I hope this doesn’t come across as a very simple question, but does that translate into a faster revenue ramp for Avant? Or is it just that the TAM is much bigger for Avant? It’s 10x higher ASPs, and so the pipeline is bigger, but it doesn’t — people shouldn’t necessarily read into a faster Avant revenue ramp than Nexus. And I guess where I’m getting this is you’re getting lots of questions from investors after the close, kind of, hey, can Avant ramp help offset some of this macro weakness that you’re seeing and still allow you to sort of grow in 2024?

James Anderson: Yes. I think that what I would say is that Avant design win pipeline being larger than Nexus is obviously positive. We certainly expected that, but it’s still, it’s good to see that. The pipeline, the whole idea of the pipeline is that converts to revenue over time. I think the major, if you look at the major limiter or governor over the revenue ramp over time, once we put the samples in the hands of customers, it’s actually more the customers rate and pace of being able to bring that product to market. They’re on their own natural beat rate and natural platform refreshes. And so they’ll — as we win designs, they’ll design Avant at the next platform refresh rate. And so that’s more of the rate or the governor of that growth rate over time of Avant once we put the samples in customers’ hands.

And then what I would say is I would refer you back to the Investor Day that we did earlier this year, where we tried to characterize or give a sense of how to think about both the continued ramp of our small FPGA products. We expect those to continue to grow over the long term, but then how to think about how Avant layers on top of that over a multiyear period.

Operator: Ladies and gentlemen, that was our final question. I would now like to turn the floor back over to Lattice’s President and CEO, Jim Anderson, for closing comments.

James Anderson: Yes, thank you, operator, and thanks again, everybody, for joining us on the call today. We’re pleased with the solid results in Q3. And we’re really excited to continue to execute on what we see as the biggest product portfolio expansion in the company’s history and excited to share more about that at our developers conference in December. So thanks for the time. And operator, that concludes today’s call.

Operator: Thank you. This concludes today’s teleconference. You may now disconnect your lines at this time. Thank you for your participation.