Why Lattice Semiconductor Tanked (LSCC)

Why Lattice Semiconductor Tanked

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lattice Semiconductor (Nasdaq: LSCC ) tanked today by as much as 18% before recovering to close out the day with a 14% loss after the company slashed its current quarter's guidance.

So what: Second-quarter sales are expected to be roughly flat to down 3% sequentially, compared with its prior guidance of flat to up 4% sequentially. Gross margin is also expected at 51%, give or take a percent, lower than its previous forecast of 55%, again give or take a percent.

Now what: The company said growth in strategic accounts is being offset by continued softness in its global distribution channel, with Europe in particular being problematic. Lattice is leaving its operating-expense forecast unchanged and should be in the ballpark of $39.5 million, including $1 million in acquisition-related charges, which primarily consists of amortization of intangibles. The Street is perched on a consensus estimate of $73.5 million in sales next quarter.

Interested in more info on Lattice Semiconductor? Add it to your Watchlist.

More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.