Analysis LSCC
Lattice's sales more than doubled. How much came from the AMI deal?
The purchase added debt as well as revenue. Large adjustments also separate reported profit from the earnings measure used in Lattice’s forecast.
AMI helped Lattice Semiconductor more than double quarterly sales, but the acquisition explains only about a quarter of the dollar increase. The chip business Lattice already owned also grew faster than management had forecast.
Revenue reached $291.0 million in the fiscal third quarter ended October 3, 2026, up from $133.3 million a year earlier. AMI, the firmware and infrastructure-software business acquired on July 27, contributed $39.1 million.
The original chip business beat its own target
Lattice makes programmable chips that equipment manufacturers can configure to control and connect electronic systems. Its existing chip activities produced approximately $251.9 million of revenue, combining the two end markets reported separately from AMI.
Research by Ticker Byline shows that this exceeded the $230 million upper end of the chip-business forecast issued on August 4 by about $22 million. The earlier consolidated forecast already included approximately two months of AMI revenue.
| Fiscal third quarter | August forecast | Actual |
|---|---|---|
| Original chip-business sales | $210m to $230m | About $252m |
| Total sales, including AMI | $245m to $265m | $291.0m |
| Adjusted earnings per share | $0.54 to $0.58 | $0.72 |
Management reported roughly 90% year-over-year growth in the chip business, citing demand from data centers and a recovery in industrial and embedded applications.
The earnings beat has a large adjustment
Adjusted net income reached $103.7 million. Reported net income was $11.2 million, up from $2.8 million a year earlier but below the previous quarter's $19.4 million.
The largest excluded cost was $50.7 million of stock compensation and related payroll taxes. Adjustments also removed acquisition expenses and accounting charges that spread acquired-asset costs over time, with related tax changes. Net interest expense of $9.6 million remains in the adjusted result.
The deal adds debt as well as sales
Quarterly operating cash flow was $95.0 million. After $17.4 million of capital spending, free cash flow was $77.6 million. That measure does not deduct the cash used to buy AMI.
Lattice recorded $971.3 million of net acquisition cash outflow during the first nine months. At October 3, cash was $128.3 million and the balance-sheet value of borrowing was $869.1 million.
For the fourth fiscal quarter, including a full quarter of AMI, management expects revenue of $325 million to $345 million and adjusted earnings of 82 to 86 cents per share. The Lattice company profile tracks the completed acquisition, the original forecast and the cash available to repay debt.