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What: Shares of Lattice Semiconductor (NASDAQ:LSCC) have surged today by as much as 11% after the company boosted first-quarter guidance.
So what: Revenue in the first quarter is now expected to jump 6% to 8% sequentially thanks to strong demand in the communications and consumer market segments. That's much better than the 2% to 4% sequential gain that Lattice predicted nearly two months ago for first quarter sales.
Now what: Since the communications and consumer market segments have lower margins, the booming business there will put some downward pressure on profitability. Gross margin should be at the low end of guidance of roughly 54% plus or minus 2%. Operating expense guidance is unchanged and should be in the neighborhood of $35.5 million, which includes $500,000 in restructuring charges. Lattice is benefiting from capital spending from telecommunications giants.
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