* Sees Q1 rev up 21 pct-25 pct sequentially
* Sees Q1 gross margins 55 pct-57 pct
* Shares up as much as 13 pct
(Adds analysts' comments, background, share movement)
By Manasi Phadke
BANGALORE, March 3 Chipmaker Lattice
Semiconductor Corp (LSCC.O) raised its first-quarter revenue
outlook, citing robust growth across all product lines and
continued strength in order bookings.
Shares of the Hillsboro, Oregon-based company rose as much
as 13 percent to $3.47, their highest in 20 months, Wednesday
morning to be one of the highest percentage gainers on Nasdaq.
"The new revenue guidance is impressive and highlights both
design wins for Lattice along with a significantly stretched
semiconductor supply chain now starting to catch up with end
demand," Robert W. Baird analyst Tristan Gerra wrote in a note.
Gerra, who has a "neutral" rating on the stock, said this
would be the highest quarter-over-quarter change Lattice has
seen in 10 years.
"While strength could continue near-term, most of the good
news is out, in our view, while risks of a significant slowdown
in the second half are now significant," he added.
However Northland Securities analyst Richard Shannon
expects the company's second half of the year to be as strong
as its first.
"The company is having a lot of success in wireless in
China with customers such as Huawei Technologies HWT.UL and
ZTE Corp (0763.HK)," said Shannon, who rates the stock
Lattice has recently secured a couple of design wins for
its chips in flat panel displays with a large Japanese original
equipment manufacturer, he said.
The company, which designs programmable chips for markets
such as consumer, computing, industrial and communications,
competes with rivals like Altera Corp ALTR.O and Xilinx Corp
"Lattice is likely to gain some share this year from Altera
and Xilinx," Shannon said.
Latice now expects first-quarter revenue to increase by 21
percent to 25 percent sequentially, based on its fourth-quarter
revenue of $55.1 million.
It had previously forecast first-quarter revenue to rise 8
percent to 12 percent on a sequential basis.
Analysts expect revenue of $60.5 million, according to
Thomson Reuters I/B/E/S.
The company returned to profitability in the fourth
quarter, benefitting from strength in Asia, recovery in its
Japan business, and improvement in its U.S. markets, after
posting losses for three years.
Earlier this week, cellphone chipmaker Skyworks Solutions
Inc (SWKS.O) raised its second-quarter outlook, citing strong
demand for mobile Internet, smart grid and high-growth analog
Lattice said it now expects gross margins of 55 percent to
57 percent, modestly up from its previous outlook of 54 percent
to 56 percent.
The company expects to incur operating expenses of $30
million, compared with its prior outlook of $29 million, due to
higher sales related expenditure and acceleration of certain
research and development activities.
(Reporting by Manasi Phadke in Bangalore; Editing by
Aradhana Aravindan, Jarshad Kakkrakandy)