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) 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.

Interested in more info on Lattice Semiconductor? Add it to your watchlist by clicking here.

Fool contributor Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.