In a bid to reduce additional operating expenses, Lattice Semiconductor has decided to shut down its millimeter wave (mmWave) business. Glen Hawk, Lattice Semiconductor’s Interim Chief Executive Officer, said, that after careful evaluation, millimeter wave was determined to be a non-core business, unable to achieve the required near-term scale to be profitable or to warrant any further investment. They considered various strategic alternatives for this business but none proved to be viable.
They have thus taken this concrete action to further sharpen their focus on the compelling opportunities in core businesses. Lattice will continue working to further improve operational efficiencies and to accelerate revenue growth of existing semiconductor solutions into attractive control, connect and compute applications.
The move is expected to result in approximately $25 million of primarily non-cash restructuring and impairment charges in the second quarter of 2018, and an annualized reduction in operating expenses of approximately $13 million. The company does not expect a significant impact to its potential full year 2018 revenue due to strength in other areas of its business. Lattice is committed to supporting customers’ product and support requirements during the transition period.
The company will provide further elaboration on the announcement when it holds its fiscal second quarter 2018 results conference call on Thursday, July 26, 2018. The dial-in number for the live audio call beginning on Thursday, July 26, 2018 at 5:00 p.m. Eastern Time is 1-888-684-5603 or 1-918-398-4852 with conference identification number 6199158.