Lattice Semiconductor Corporation (LSCC) has approved a new share repurchase authorization of up to $20 million. Lattice expects this program to complete within 12 months of announcement.
Under the program, Lattice may repurchase its shares through the open market as well as privately negotiated transactions at prices deemed appropriate by management. However, decisions regarding the quantity of shares to be repurchased and timing of repurchases will depend on the prevailing market conditions and other corporate considerations. Lattice plans to use the available working capital to fund the current share repurchase authorization.
The strength of Lattice’s business model reflects the company’s commitment toward returning value to shareholders with its strong cash generation capabilities. We believe the continued share buybacks will increase investors’ enthusiasm regarding the shares, while retaining its strong financial position.
Lattice’s strong balance sheet and cash flows provide financial flexibility in matters of share repurchases and accretive acquisitions. During the last concluded quarter, Lattice purchased approximately 830,000 shares for $3.7 million. The cash and cash equivalents were $215.8 million at quarter-end, having increased $5.04 million during the quarter. For full-year 2013, operating cash flow increased to $56.5 million from $4.3 million in 2012. The company has no debt.
Lattice Semiconductor designs, develops and markets high-performance Programmable logic devices and related development system software. The company’s fourth-quarter revenues were up 2.7% sequentially and 35.9% from the year-ago period to $89.5 million. Earnings of 6 cents exceeded the Zacks Consensus Estimate of 3 cents driven by higher revenues and solid cost management.
Lattice continues to undertake various initiatives and develop products, keeping in mind the interest of the organization over both the long and short run. The new share repurchase program indicates that the company is confident about its steady cash flows.
Lattice sports a Zacks Rank #1 (Strong Buy). Other stocks that the investors can consider this season are Himax Technologies (HIMX), Ambarella, Inc. (AMBA) and Formfactor Inc. (FORM). All these stocks carry a Zacks Rank #2 (Buy).
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