Lattice Semiconductor Corporation (NASDAQ:LSCC) Q4 2023 Earnings Call Transcript

Srini Pajjuri: And then, Jim, on the Avant new product ramp, given the environment. On one hand, I think a lot of excitement about AI, et cetera. But on the other hand, the macro, especially in industrial is not that great. So I’m just curious if that’s having any impact, either positive or negative on the design activity itself, given what’s going on out there?

James Anderson: Yes, it’s a good question, and we really haven’t seen it have an impact on the design win activity. And just a couple qualitative data points is. Last year, in totality for the company, we had a record level of design wins last year and significant growth in our design win opportunity pipeline from ’22 to ’23. And that was across all products, Nexus, pre-Nexus and Avant. Now I had — actually last year, given the team a pretty aggressive goal on Avant design wins. And the team actually exceeded their design win goal for last year on Avant, which I was quite pleased with. And I want to take the opportunity to thank the Lattice teams for their great work on driving the Avant design win goals last year. And I would say, overall, the other thing that we look at with Avant is — just how is it tracking relative to Nexus at the same relative point in time?

And if I look at the total Lattice or the total Avant design opportunity pipeline for Avant at the end of last year relative to the same or compared to the same relative point in time for Nexus, it significantly exceeds the Nexus opportunity pipeline, which, again, we just view as another really positive indicator of the future health of Avant. And the main governor of the rate and pace of the growth of Avant in this ramping phase is really the customers’ own time lines in terms of their ability to once we put the product in the hands of the customers, their ability to design that into the system, to do their qualifications to do their system-level software and get to market. And clearly, we provide software to make that as easy as possible for our customers.

But actually, the customer rate in pace is the primary gate to that Avant ramp.

Operator: Thank you. There are no further questions at this time. And I’d like to turn the floor back over to CEO, Jim Anderson, for closing comments.

James Anderson: Yes. Thank you, operator, and thanks again for everyone for joining us on today’s call. I’m very pleased with our strong results in 2023. And I actually want to take the opportunity to thank the Lattice team for the great execution in 2023. And as we look forward into 2024 and beyond, clearly, we’re navigating some near-term macro headwinds, but we continue to be very well positioned for long-term growth with the strongest product portfolio we’ve ever had in the company’s history in a rapidly expanding product portfolio as well. Operator, that concludes today’s call.

Operator: Thank you. You may now disconnect your lines at this time. Thank you for your participation. Goodbye.