What happened

Shares of Lattice Semiconductor (NASDAQ:LSCC) declined sharply on Friday, falling as much as 21.1%. The semiconductor company's stock was down 14.4% as of 2:16 p.m. EDT.

The stock's pullback follows Lattice Semiconductor's third-quarter earnings release and is likely due to management's weaker-than-expected revenue guidance for its fourth quarter.

A chalkboard sketch of a stock price falling.

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So what

Lattice reported revenue of $101.5 million -- about in line with consensus analyst estimates. This revenue was up from about $92 million in the year-ago quarter.

Lattice's non-GAAP earnings per share were $0.11, slightly ahead of a consensus analyst estimate for non-GAAP EPS of $0.10. Lattice's non-GAAP EPS was up from $0.04 in the year-ago quarter.

But Lattice's fourth-quarter revenue guidance for revenue between $93 million and $97 million was well below a consensus analyst estimate for revenue of $105 million. 

Now what

The results come as the company undergoes a strategic review, which Lattice Semiconductor CEO Jim Anderson gave an update on in the company's third-quarter earnings release:

Our near term focus remains on driving profitable revenue growth, carefully managing OpEx, and paying down corporate debt. Over the mid-and longer-term we will work to expand our total addressable market with higher margin opportunities in both existing and adjacent markets, as we build greater value for the Company and shareholders.

Lattice also announced it had added two executives to its team: Steve Douglass as chief of research and development and Esam Elashmawi as chief marketing and strategy officer. The additions, Anderson said, "will help our team increase the alignment between our customers' needs and our product roadmap and ensure that our customers can count on us for a steady cadence of new innovations over multiple product generations."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.