Second is those devices get changed on a very frequent basis, right? They may get changed every year, they may get changed even more frequently than that with upgraded features, et cetera. The FPGAs are a great solution for being able to change and add new features on a rapid basis. And then the third is, that same software that we’ve been developing for other applications, that’s definitely relevant in the consumer segment as well. It’s the ability to use the — for instance SensAI software stack to design Lattice devices into inference algorithms, the computer vision software stack and a number of the other software stacks that we’ve developed, that helps those consumer customers get to market quickly and design Lattice solutions in. Now all that said, we’re always excited about that.
We still believe that the big long-term growth areas for Lattice are the industrial and automotive segment and the communications and computing segment. But we do participate in the consumer segment where we believe we can bring some unique value to our customers.
Christopher Rolland: Great. And perhaps the second question. How do you think about your revenues versus Altera, Xilinx, Microsemi? Do you believe you can outgrow them, particularly because you have a new product rolling on? And about that new product, do you think that could be a 10% revenue adder for you this year? And in terms of overall top line is 15% to 20%, which is your long-term growth target, is that still reasonable considering the setback?
James Anderson: Yes. Thanks, Chris. So first of all, on Avant, in general, across both small FGPA and midrange, yes, we believe we can continue to gain share in those markets. In small FPGA, we believe we’ve gained share over the past years. And in mid-range FPGA, we’re just at the very beginning of that revenue stream. But that is us penetrating into a segment that we haven’t been in the past. It’s completely additive revenue. And we certainly believe that we can grow Avant revenue and gain share in that segment. Look, 90% of the target customers for Avant are already customers of Lattice today and the software that they would use to program an Avant device, they are already using that today on Nexus devices, for example. So these are existing customers using software that they’re already familiar with just adding another product line from Lattice to their portfolio.
So we certainly believe we can grow in the mid-range space. And then on the last part of your question around the long-term growth, targets, yes, we are still targeting and committed to those targets that we shared at the last Investor Day. Those are, we believe, the right long-term growth targets for the company. If you look over the last four years from 2019, which was our first full year as the new management team to the end of last year, the average CAGR over that time period for the company was mid-teens, about — I think it’s about 16% growth over that period. And that was growth only in the small FPGA segment of the market. And so I think we’ve demonstrated the ability to grow revenue consistently in the small FPGA part of the market.
We still have headroom in terms of the size of that market and the total SAM of that market to continue to grow. So we believe over the long-term, we can still continue to grow in that small FPGA portion of the market. And then in addition, adding on top of that now growth in mid-range, where the revenue is completely additive and where we’re doubling our addressable market. So we believe that helps us drive greater growth in the future. And so yes, the — we certainly continue to target those investments — or those goals that we put out at our last Investors Day.
Christopher Rolland: Will we ever get an update like a number for Avant? And if so, when do you think we might get that number?
James Anderson: Yes, it’s possible in the future as Avant ramps to begin — to be a bigger portion of our revenue. At some point, we would provide more color on that, right? Remember, we’re at the very beginning of the Avant ramp. We had a little bit of Avant revenue before the end of last year. Now that was on schedule. In fact, it was a little bit on the early end of what we had projected. But as Avant ramps through this year into next year and becomes a more significant portion, yes, we may provide more color on the quantity of it at some point.
Operator: Our next question comes from the line of Blake Friedman with Bank of America.
Blake Friedman: I wanted to circle back to Avant as well. I believe at your Analyst Day, you’ve mentioned that with an objective of Avant generating about 15% to 20% of total company revenue in three to four years. And I know you’re not quantifying anything today. But I guess, is that still the long-term objective to have Avant contribute that much to the model long-term?
James Anderson: Yes. That’s truly our objective, Blake, yes.
Blake Friedman: And then maybe a little bit more near term. Thank you for outlining some of the drivers for the second half of the year to drive a revenue pickup. I guess, what gives you more of the confidence that given your customers are still working through inventory that by the — towards the end of the June quarter, the inventory picture should be relatively clear and those second half catalysts can help drive growth? Just any more details on there would be helpful.
