Lattice Semiconductor Updates Guidance for Third Quarter 2009

HILLSBORO, OR -- Sep 10, 2009 -- Lattice Semiconductor today announced updated guidance for the third quarter ending October 3, 2009.

• Third quarter revenue is now expected to be approximately flat to up 3% sequentially. This upward revision compares to previous guidance that third quarter revenue would be minus 2% to plus 3% sequentially.
• Both original and revised revenue guidance includes the previously disclosed expected reduction in revenue of approximately $2.0 million due to transitioning certain distributors from the sell-in to the sell-through business model.
• Gross margin percentage is expected to be approximately 52% to 54% of revenue, unchanged from prior guidance.
• Total operating expenses are now expected to be approximately $30.2 million, inclusive of $2.2 million of restructuring charges, compared to previous guidance of approximately $29.2 million, and $1.2 million, respectively. The expected $1.0 million increase in restructuring charges is related to an opportunity to consolidate additional office space in Silicon Valley.

No conference call will be held in conjunction with this guidance update. Additional information related to the third quarter will be available when the Company reports its third quarter 2009 results.

About Lattice Semiconductor

Lattice is the source for innovative FPGA, PLD, programmable Power Management and Clock Management solutions. For more information, visit www.latticesemi.com.