Lattice Semiconductor's First Quarter 2011 Results Report

Revenue of $82.6 million was up 13% from the $73.1 million in fourth quarter 2010, an increase of 17% compared to $70.4 million in the first quarter of 2010.

Gross profit margin was 60.0%, compared with 62.7% in the fourth quarter of 2010, and 58.5% in the first quarter of 2010.

Diluted net income per share was $0.09. Diluted net income per share for the fourth quarter of 2010 was $0.11. Diluted net income per share for the first quarter of 2010 was $0.1. The financial results for the first quarter of 2011 included restructuring-related expenses of approximately $1.8 million ($0.02 per diluted share).

Hillsboro, Oregon, United States - April 21, 2011 - Lattice Semiconductor Corporation (NASDAQ:LSCC) today announced its first quarterly financial report for the year ended April 2, 2011.

The company’s revenue for the first quarter was $82.6 million, an increase of 13% compared to $73.1 million in the previous quarter and an increase of 17% compared to $70.4 million in the same period of last year. Previously expected revenue for the first quarter of 2011 will continue to grow from 2% to 7%. FPGA revenue in the first quarter was $31.2 million, an increase of 28% from $24.4 million in the previous quarter, and an increase of 33% compared to $23.4 million in the same period of last year. PLD revenue in the first quarter was US$51.4 million, an increase of 6% compared to US$48.7 million in the previous quarter, and an increase of 9% compared to US$47 million in the same period last year.

First-quarter net income was $10.9 million (compared to $0.10 per diluted share) compared to net income of $13.9 million ($0.11 per diluted share) last year. Last year The net income for the same period was 11.1 million U.S. dollars ($0.10 per diluted share). The first quarter 2011 financial report included restructuring-related expenses of approximately 1.8 million U.S. dollars ($0.02 per diluted share) due to the company’s Adjust the strategic decisions of their R&D team.

Ladin’s President and Chief Executive Officer, Darin G. Billerbeck said: "The company's overall performance during the quarter was strong. The recovery of the communications market led to a rebound in consumer, industrial and other end market demand. It is worth noting that the company's revenue is much higher than previously expected ceiling. According to customer feedback, we We believe that only US$1.0 to US$2 million in growth was due to unexpected purchases of Japan’s related “safety stocks”; the remaining revenue growth reflects the continued strong growth momentum of our business and the high market demand for our mainstream products. As expected, we are very pleased that the customer's positive response to our recently introduced low-power, low-cost MachXO2 devices further increases our confidence and motivation for continuous development."

The first quarter of 2011:

· Japan's severe earthquake and tsunami: We are deeply concerned about the major disasters caused by the nuclear disaster of the affected Japanese people and the affected nuclear power plants. We will continue to consider the safety of our partners and employees first. Although the earthquake and tsunami disasters were very serious, they did not have any impact on the delivery and lead-time of our customers.

• MachXO2 has been introduced: The highly advantageous MachXO2 provides PLD designers with low power consumption, low cost, and high system integration in a single device. The MachXO2 family uses embedded flash technology, which is based on a low-power 65-nm process, offers 3x the logic density, and 100x lower static power compared to the MachXO PLD family. In addition, common functions in some low-density PLD applications, including user flash memory, I2C, SPI, and timer/counter, have been consolidated into MachXO2 devices and optimized for consumer electronics and system market applications.

· Released Platform Manager: Our third-generation mixed-signal series, the Platform Manager series, has been fully qualified and has begun mass production. Lattice's Platform Manager simplifies board management design by integrating programmable analog and digital logic to support many common functions such as power management, digital circuit management, and interface logic.

· Shipped 10 million Power Manager devices: All seven Power Manager devices have been widely used in high-volume, cost-sensitive applications because they allow board designers to integrate multiple power management functions on a board into one Power Manager device. In the past 12 months, Lattice’s Power Manager device shipments have increased in multiple end markets, including communications, consumer electronics and computing, making Power Manager devices the fastest growing Lattice products for sales.

• Five new IP suites are introduced for the Lattice ECP3 FPGA family: Five new comprehensive intellectual property (IP) kits (PCI Express, Ethernet network, digital signal processing, video and display, and value-added features) help Accelerated the use of the award-winning LatticeECP3TM FPGA family for electronic system design in various industries. Lattice is committed to providing a comprehensive chip development environment that includes evaluation kits, reference designs, software tools, and bundled IP cores to help our customers accelerate the time to market for new products.

Business Outlook - Second Quarter 2011:

· Revenue is expected to continue to maintain or reach a maximum of 5% growth.

· Gross margin is expected to be about 60% to 62% of income.

· Total operating expenses are expected to be approximately $38 million, including restructuring charges of approximately $0.9 million to $1.4 million.