Lattice Semiconductor Corporation (NASDAQ:LSCC) Q4 2022 Earnings Call Transcript

Jim Anderson: Yes. Thanks, Hans. Actually, I’m glad you asked about that, so when Sherri was talking earlier, she was talking about Lattice-owned inventory. Now if you look at channel inventory, which is inventory that’s sitting at our distributors and the vast majority of our revenue flow through distribution. The channel inventory is quite lean. It continues to be quite lean, and in fact from Q3 to Q4, we saw our channel inventory roughly flat, slightly down sequentially from Q3 to Q4. But if you look at where we ended the year 2022 in distributor inventory, you compare that the historical norms that we’ve seen over many years, the inventory in the channel remains lean relative to historic norms. And over — at some point over the coming quarters, we do need to replenish that inventory and get it back to what we consider — what we and our distributors would consider more normal levels of inventory.

In terms of your second part was around lead times, I would say, in general, our lead times have come down and continue to improve. I think as the overall semiconductor supply chain has certainly improved over the last 12-months just in terms of availability of capacity at wafers, as well as assembly and test houses. That certainly improved our supply chain capacity and availability. And so certainly seeing lead times come down. We expect lead times to continue to improve. And then last part of your question was around supplier issues. Nothing that sticks out of note in terms of any disruptions, in terms of suppliers over the past quarter. Our supply chain is running quite well and we’ve been able to build — actually build inventory as Sherri touched on Lattice inventory, which we view as very positive to support growth.

So I would say the supply chain overall running quite well at the moment.

Hans Mosesmann: Great. Thank you. Congrats again.

Jim Anderson: Thanks, Hans.

Operator: And we have reached the end of the question-and-answer session. And I’ll now turn the call back over to Lattice’s CEO, Jim Anderson, for closing remarks.

Jim Anderson: Thank you, operator, and thanks everyone for joining us on today’s call. So when we look back 2022, really was another great year for Lattice. So I want to — once again, I want to thank the Lattice team, as well as our partners and our customers for all their dedication and support not just in 2022, but overall the past years. And as we kick off 2023, we’re certainly looking forward to another strong year for Lattice as we continue to rapidly expand the product lines of Lattice, but also drive new levels of innovation for our customers. Operator, that concludes today’s call.

Operator: And this concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.