LATTICE SEMICONDUCTOR CORP — Call Transcript 2026

Ladies and gentlemen, greetings and welcome to the Lattice Semiconductor first quarter 2026 earnings conference call. At this time, all participants are in the listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal an operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Mr. Rick Muscha, Vice President of Investor Relations. Please go ahead. Thank you, operator, and good afternoon, everyone. With me today are Ford Tamer, Lattice's CEO, Lorenzo Flores, Lattice's CFO, and Sanjoy Maity, AMI's CEO. We'll provide a financial and business review of the first quarter of 2026, an overview of the AMI acquisition, and the business outlook for the second quarter of 2026. Both a copy of our earnings press release and the press release announcing our planned acquisition of AMI can be found at our company website in the Investor Relations section at latticesemi.com. I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that's currently available and that actual results may differ materially. We refer you to the documents that the company files with the SEC, including our Form 10-K, Form 10-Q, and Form 8-K. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This call includes and constitutes the company's official guidance for the second quarter of 2026. If at any time after this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call. We will refer primarily to non-GAAP financial measures during this call. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com. Lastly, we streamlined our financial reporting to better align with our strategic focus. Beginning this quarter, we'll break out revenue across two primary markets, Compute and Communications and Industrial and Embedded. Our consumer business is now included within the Industrial and Embedded end market. For comparability, we've recapped all prior period results so you can make a direct apples to apples comparison. With that, I'll turn the call over to our CEO, Ford Tamer. Thank you, Rick, and welcome everyone to our first quarter earnings call. Lattice delivered an excellent start to 2026, with results that underscore both strong market tailwinds and our disciplined execution against a clear strategy. Our first quarter performance exceeded expectations. Our second quarter outlook reflects our expected continued momentum across the business. This is the seventh earnings call since I joined Lattice. I hope we have now demonstrated that we consistently say what we do and do what we say. These positive factors in aggregate provide the foundation for our proposed acquisition of AMI. This acquisition positions Lattice to create the industry's most comprehensive, secure management and control platform and enables us to deepen our customer relationships and expand our long-term growth opportunities. Now turning to our results and outlook. Revenue for the first quarter was $170.9 million, representing 42% year-over-year growth with strength across all end markets. Our Compute and Communications end market achieved record revenue, driven by continued momentum in data center AI applications. In Q1, 62% of our revenue came from Compute and Communications products with expanding opportunities ahead. As Rick highlighted in the Safe Harbor, we have now merged our Industrial and Automotive end market with our Consumer end market into what we now term Industrial and Embedded. The revenue from our Industrial and Embedded end market grew more than 20% sequentially, reflecting improving market conditions and expanding adoption of Lattice solutions. As importantly, along with increased consumption, channel inventory reduced from three months last quarter to close to two months of inventory on hand, and we expect this trend to continue to under two months in Q2. As we anticipated, profitability grew faster than revenue, with EPS up 86% year-over-year. These results demonstrate the operating leverage in our model and our ability to scale efficiently as revenue accelerates. Demand trends continue to build across AI servers, networking, industrial automation, and emerging physical AI applications. We are seeing accelerated bookings, which now support a strong backlog that extends well into 2027. We're also witnessing improved customer visibility and healthy design win momentum across our FPGA portfolio. Taken together, we're confident that we're in the early innings of a multi-year growth cycle and in our ability to deliver sustained above-market growth for the foreseeable future. Our results also highlight the progress we've made in evolving Lattice into a system-level solutions company. Customers increasingly value Lattice not just for low-power programmable hardware, but for complete solutions spanning connectivity, security, management, and control. As system complexity increases, particularly in AI-driven and advanced computing architectures, our customers are giving their highest priority to platforms that reduce integration risk, shorten development cycles, and enable faster deployment at scale. These trends continue to expand Lattice's role within customer systems, increase attach rates, and drive higher value per design. We also continue to benefit from our everywhere companion chip strategy, positioning Lattice broadly across the ecosystem. Rather than competing with CPUs, GPUs, or other processors, our low-power FPGAs enable and enhance them, providing Secure Boot, power sequencing, platform management, IO aggregation, sensor bridging, and control. This approach allows Lattice to participate across hyperscale data centers, communication infrastructure, industrial automation, aerospace and defense, automotive, medical, and emerging physical AI applications, while remaining silicon-agnostic and ecosystem neutral. Looking to the second quarter, our revenue guidance of $185 million at the midpoint represents nearly 50% year-over-year growth. This underscores our confidence in the accelerating momentum of the business. Our midpoint EPS outlook of $0.44 reflects roughly 80% year-over-year growth. It highlights the powerful operating leverage in our model and differentiated products we bring to market. We maintain a disciplined capital strategy and believe we will be able to consistently drive earnings growth that significantly outpaces revenue growth, and we are committed to continue to do so. Turning now to the planned acquisition of AMI we announced earlier today. We are excited to have signed a definitive agreement to acquire AMI, a leader in firmware, orchestration, and system-level manageability. The combination of Lattice's low-power programmable hardware with AMI's industry-leading solutions, including BIOS, BMC, and platform security, create the industry's most complete secure management and control platform. Together, we'll enable customers to accelerate development, simplify system integration, and bring increasingly complex platforms to market faster across AI servers, advanced compute, communication infrastructure, and industrial applications. Strategically, this acquisition represents a pivotal milestone in advancing Lattice's long-term growth strategy. AMI's firmware is expected to remain processor and silicon-agnostic, preserving open ecosystems and customer choice, while Lattice FPGAs provide a complementary hardware foundation, reinforcing our everywhere companion chip strategy. We expect this transaction to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. It also supports our trajectory toward exceeding a $1 billion annual revenue run rate by the end of 2026. We look forward to welcoming the talented AMI team to Lattice and expect this combination to strengthen our system-level roadmap and long-term growth profile significantly. Looking forward, we're encouraged by the continued durability of demand across our end markets, the depth of customer engagement, and the expanding role Lattice plays in next-generation systems. With a differentiated strategy, a scalable financial model, and an increasingly complete platform spanning hardware, firmware, security, manageability, and control, we are confident that Lattice is exceptionally well-positioned for the future. With that, I'll turn over the call to Lorenzo for a comprehensive review of our first quarter results. Lorenzo? Thank you, Ford, and good afternoon, everyone. We will begin with an overview of our first quarter 2026 financial performance and our second quarter outlook, followed by an overview of our planned AMI acquisition. With a quarter this good and guidance this strong, it is worth repeating some of what Ford said. Revenue reached $170.9 million, growing 42% year-over-year and 17% quarter-over-quarter. Earnings performance was even stronger as Q1 non-GAAP EPS demonstrated the leverage in our model. EPS grew more than 80% year-over-year to $0.41, a 30% increase quarter-over-quarter and above the high end of our guidance. We expect Q2 to continue this growth trend, and I'll detail our guidance in a few moments. Back to Q1. Revenue growth was driven by a record performance in Compute and Communications, up 86% year-over-year and 15% sequentially. We continue to benefit from strong data center growth, as Ford told you. Additionally, our Industrial and Embedded end market grew 21% quarter-over-quarter, primarily driven by increased demand in factory automation, robotics, and medical applications. Q1 non-GAAP gross margin was a little better than expected at 70%, up 60 basis points quarter-over-quarter and 100 basis points year-over-year. Our gross margin continues to reflect the value and differentiation our products provide for our customers. non-GAAP Operating Expense was $60.8 million, up roughly 8% sequentially and 18% on a year-over-year basis. Much of the sequential increase is from performance-based bonuses and commissions as our revenue and profitability are exceeding expectations. We also continue to invest in order to capitalize on our near and long-term opportunities. Our Q1 non-GAAP operating margin expanded 370 basis points to 34.4%, and our EBITDA margin increased 310 basis points to 39.6%. Both were a little better than expected. Q1 cash flow was impacted by last year's annual bonus payout, as well as revenue linearity in the quarter associated with our rapid growth. GAAP net cash flow from operating activities for the first quarter of 2026 was $50.3 million compared to $57.6 million in Q4. Free cash flow trended with operating cash flow. In Q1, free cash flow was $39.7 million, down from $44 million in Q4. We expect a strong recovery of cash flow as we continue to grow. During Q1, we repurchased $15 million of stock. We ended the quarter with $140 million in cash and no debt. For our guidance, we are targeting closing the AMI acquisition in Q3, so this guidance reflects expectations for Lattice standalone. In Q2 2026, we expect revenues to grow in the range of $175 million-$195 million. At the midpoint of this range, this is almost 50% growth from Q2 2025 and 8% over Q1. We expect gross margin to be 70% ±1% on a non-GAAP basis. We expect non-GAAP operating expense to be between $64 million-$67 million. Most of the growth in OpEx will be in R&D and reflects disciplined investments to drive long-term, sustained revenue growth. We expect income tax rate for Q2 to be between 4% and 6% on a non-GAAP basis. We anticipate non-GAAP EPS to be in the range of $0.42 per share and $0.46 per share. At the midpoint of this guidance, we expect that we would again exceed 80% year-over-year earnings growth as we continue to demonstrate the leverage in our model. Turning now to the AMI transaction. I am just as excited as Ford, our board of directors, and our leadership team that we have entered into a definitive agreement to acquire AMI. AMI is a leader in platform firmware, secure boot, device management, and system control software. This acquisition represents a strategic expansion of Lattice's capabilities to deliver system-level solutions, further accelerating our growth. The total consideration of the deal is expected to be $1.65 billion, with $1 billion of cash and $650 million of equity. This is approximately 5.4 million shares based on the closing price on May 1st. We expect the acquisition to be equally compelling from a financial perspective. With AMI, we expect our revenue to exceed an annual run rate of $1 billion by the end of this year. We anticipate AMI's software-centric, asset-light model will further enhance Lattice's already strong business model. We expect that the transaction will be immediately accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. We will cover our pro forma expectations in more details after we close the transaction. In closing, we are truly excited about our organic growth and financial performance. We are all very enthusiastic about the opportunity to combine Lattice's strengths with those of AMI. Finally, the Lattice team remains focused on execution and taking advantage of the expanding growth opportunities ahead. We are well positioned to drive continued short and long-term revenue growth, expand our operating margin, increase free cash flow, and grow earnings faster than revenue. Operator, that concludes our formal remarks. We can now open the call for questions. Operator, before we jump into questions, can we introduce, with us today AMI CEO, Sanjoy Maity, who has a few remarks. Sanjoy? Hello. Thank you, Ford. At AMI, our management team, our employees, board, investors, and I, we are equally excited to be joining with you and the Lattice Semiconductor team. The strategic combinations with Lattice Semiconductor pairs the low power programmable leader with the leader in the platform firmware and infrastructure manageability for cloud and AI data centers. Lattice and AMI, we shared a long history, a collaboration, and a common vision for secure management and control platform. Together, we can build on that foundation, extending the reach of Lattice's low power FPGAs and AMI's trusted platform. While we will maintain the open, silicon-agnostic, multi-vendor app support our customers value, we also share the same commitment to disciplined execution, strong margins, and focus on building values for our investors. Thank you again. I'm very excited and looking forward to build a great future together. Thanks, Sanjoy. Great to have you here. Welcome to Lattice. Now, operator, we can now take questions. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question is from Ruben Roy with Stifel. Please state your question. Yes, thank you. Hey, guys. Congratulations on the strong results and outlook and the deal announcement. I guess to start, in the press release, you talk about doubling the SAM opportunity here. Can you talk about how we should think about that expansion? How much is incremental addressable opportunity from AMI and their existing firmware install base versus you talk about combined solution categories, et cetera, you know, that perhaps neither company could attack independently. Can you help us with that? I guess as part of that question, the core business is inflecting, particularly on the Compute side. If you think about 2026, how are you thinking about mix of revenue from servers specifically and maybe AI overall? Thank you. Thank you, Ruben. Good question. Yes, we expect our both the service available market to double from about what we think was about $6 billion currently to about $12 billion jointly with AMI over the next three to four years. That main increase will come from this Compute and Communications sub-segment. As you pointed out, the two major indicators in that segment are the percent server and the percent AI. These are a good follow-on question on the percent server that has been growing steadily for us from sort of the teens a couple of years ago, to this year, expected to be in about 38% of our revenue, total revenue coming from server. The second facet to the question in this Compute and Communications market or sub-segment is the % of our revenue coming from AI. Again, it grew from the mid-teens in 2024 to the high teens last year to where we expect it to be about 25% of revenue in 2026. AMI plus Lattice is going to be uniquely positioned to be able to provide solutions to customers in this Compute and Comms market. That's great. Thank you. Ford, if I could ask a quick follow-up for Lorenzo. It's great to see that you're flagging the deal as immediately accretive on gross margin, free cash flow, EPS. Can you give us a framework for the gross margin profile? I know it's early, Lorenzo, but any thoughts on, you know, the software and firmware business relative to, you know, your 70% non-GAAP gross margin run rate at this point? How much of the accretion, you know, as you look ahead, would be structural versus maybe dependent on synergies, revenue or otherwise? Thank you. Yeah. That's a great question, Ruben, and, you know, we'll get this again in more detail once we close. The way to think about this acquisition, as Ford said is, it's very strategic and in the midterm opens up really significant growth opportunities for us. The really nice thing about it immediately is thinking about this deal strategically and looking at the very complementary P&L structure and operating model that AMI has is, you know, we are not dependent upon synergies to make the deal accretive. You know, in fact, AMI's business is very high gross margin. It's higher than ours. We'll share some more detail on that later. You know, they have a different structure, but at the operating margin level, it's pretty close to ours. They generate a very significant EBITDA percent of revenue, and that's, you know, close to ours and maybe slightly above ours right now. If you think about it that way, you can, you can see that, you know, there's not a dependency on cost cutting. We'll look at efficiencies through time for sure. On a go-forward basis, we're able to fund the debt and cover the interest and still show accretion immediately. Appreciate all the details. Congrats again. Thank you. Our next question comes from Christopher Rolland with Susquehanna International Group. Please state your question. Hi, guys. Thank you for the question. Yeah, I just wanted to dig in a little bit more on the strategic value of AMI. I just looked over the website and it seems like they offer firmware, but also like infra management software. Would love to know just kind of the cross synergies here between Lattice FPGAs and what you're gonna do with this software. Perhaps if you could also talk about the growth rate for AMI. I know you talked about $200 million revs in 2026, that growth rate expectation moving forward would be very helpful for us as well. Yes. Thank you, Chris. Let me start in trying to explain this. Let me start going through my background, where I've done this twice already. This is the third time that I do something very similar. When I was at Broadcom, we were actually second on the switch market share to Marvell. We by the time I left, our team had done a great job becoming number one. One of the key acquisitions we did along the way was a company called Level Seven that provided us with protocol software. What we're able to do is to use that to come up with reference design for the ODMs in Taiwan. That made it much faster for customers to go to production with their switch system. This is number one that was successful and very relevant to discussion we're having. Again, this protocol software, don't think about it as software, think about it as hardware. This is very low-level stuff. The second one was at Inphi, where we were. Actually, when I joined, we were second at CIA. By the time I left, we were the number one leader in optical interconnect. In that journey, we decided along the way to have a partnership with Microsoft to deliver a DCI model, you know, for Microsoft for between data center, 80 km at the time was called COLORZ, and some of you on the line know it very well. That sort of complementary addition of a system, or subsystem scale, if you wish, with module, was very critical. We debated at length whether this was gonna be a departure from selling silicon and components. It was about almost 80/20. 80% of the business ended up being these components that we're selling as a platform, and 20% of the business was this module that we're selling to. It started with Microsoft. They eventually became the whole market, and today it's very standardized across the whole market. The addition of that module system, subsystem skills were very critical in the success because these folks helped the folks on the silicon side go to market faster and do a better job. The history of AMI is 40 years of developing these test cases and very deep knowledge of the whole industry from server to switch to NIC to, you know, they're the first ones to be brought up when a CPU gets brought up. They're the first ones to be brought up when a GPU gets brought up. They're the first ones to be brought up along with a lot of systems. They're a very key complementary partner to the BMC, the Board Management Controller today. We intend to continue to be a very strong partner to all of these board management controllers, the HPs, the Nuvoton, the NXPs, the others in the market. You know, it's an extremely strategic move for us that complements our, you know, FPGA, low power FPGA business. The growth rates are gonna be in the high teens. We expect next year to be actually accelerating. We do expect to come to solutions to market together that will end up growing our revenue faster than. You can see we're growing at 40% on the revenue. By the way, as you noticed, we grew 80% on EPS, and we should be able to grow faster on both revenue and EPS together in the 2028 timeframe as these solutions go to market. Solutions are being featured today in discussions today. We had many discussions with many customers about these solutions. They're very excited about it, and it's gonna be a very exciting, very exciting, you know, growth. We've got a presentation investor deck on our slide on our website, and if you could turn to it please, that details the AMI acquisition. On slide five, it shows you the challenges that the data center face today. As you go from managing servers to racks, to pods, now the whole data center, this modularity becomes extremely important. AI is adding a lot of complexity. Uptime, these components, GPU switch are very expensive. Uptime is very key, and there is a huge pressure on time to market and shift left as shown on slide five. Then if you jump to slide 11. Slide 11 shows. I'm sorry. Slide, yes, 11. It shows the solutions that we are providing together to these challenges. Things like rack, booth, power and cooling, retrofit, and plug and play are gonna be solutions that we provide together along with our low power FPGA and the platform firmware and measurability infrastructure that AMI provides. Very exciting future ahead. Excellent. Thank you for that, Ford, and congrats on this deal. I guess, maybe as a follow-up, if you could talk about, I think you said, you guys said inventory maybe was even under two months at this point in time. I mean, we should have an uplift here. I think we can see it in the guide, but if you wanna talk about it more broadly, just as you are no longer burning, and could there potentially even be an opportunity to refill? You know, how are you guys thinking about all this into the future? Yeah. No. Next quarter, will we be balanced? Yeah, good question. Good question. Look, I mean, we're very excited about it. What I would say, Chris, is this is part of telling you what we're gonna do and do what we say. I told you when we joined, when I joined now about a year and a half ago, this is my seventh quarterly report, that we're gonna bring this under control. When I joined, the numbers were closer to six, and we told you we'll be at three by end of last year, and we did. Plan of 2025, we got to three. I told you we're gonna be in the twos. We are in the twos. I told you actually we'll bring it under two, and we're on our way to under two. The last time the company was under two, we had 10 good quarters ahead and 1.X. We may be entering a very strong period here. You know, you can see our Industrial and Embedded business grew 22% sequentially, which is amazing. Amazing. You know, hopefully more to come. Lorenzo, you want to add to this? I think the way to think about channel inventory right now is it's no longer a business imperative to bring it down. What we're really working on is keeping the right balance of inventory at the distributors across the globe and the right type of inventory so that they can service their customer needs. I think it's this is what I would characterize as a non-issue for Lattice going forward. We're really happy that we were able to manage through this. Now what we get is much greater visibility, much more direct visibility into what end customers are demanding, so our build is much more efficient. Thank you, guys. Appreciate it. Thanks. Congrats. Yep. Our next question comes from Melissa Weathers with Deutsche Bank. Please state your question. Hi there. Thank you so much for letting me ask a question. Congrats on nice results and interesting deal. Sanjoy, I'm looking forward to working with you in the future. I guess for my first question, I wanted to touch on the data center side of things. In the past, you guys have given, like, an FPGA attach rate per server, and it seems like those applications that you can use an FPGA for in the data center is growing massively, and those conversations with engineers are happening live. We heard Jensen talk at GTC about using more FPGAs in those racks. Can you help us? I don't know if there's an updated framework that we can think about in terms of FPGA attach in the data center. I'm also really curious on the wireline side in addition to the server side. Any help on, I guess, content in the data center would be helpful. Yes. Thank you, Melissa. You know, the couple of trends that I'll highlight in the recent customer visits I had to a server AM, and they showed me how the unit of rack is now gone from where they had, you know, only one rack to now four racks together. A compute rack, a networking rack, a power rack, and a cooling rack. You know, that's one change that is pretty profound and is gonna allow us to increase our content as in the comms as well as power and cooling. The second one, when you go visit these data centers, is you realize now these cooling racks are actually attached by these big pipes coming from the ceiling. It's gonna be much harder to change these cooling rack. These cooling rack may have a longevity need that's actually closer to our Industrial and Embedded business that may last for many years as opposed to the faster cadence of moving on the Compute side. In the presentation that we have at AMI, we are highlighting rack boots on slide 11, where now some of these, again, a new application where the cloud would like to not just power up a server at a time, they'd like to power up the whole rack at one point. You know, we can have some very interesting application FPGA in that new applications. That's pretty exciting. The third bullet there on slide 11, you could see that of that AMI application, you can see that people want to go and retrofit some of their older systems for better uptime and better security, better port detection. Again, that's another new opportunity. We're finding opportunities all the time. From a modeling point of view, we still have this forecast of a 16.5 million server in 2026. We're roughly saying about three FPGA per server on overall, okay? That gives you a number of total FPGA. We're roughly saying our, you know, you can calculate the percent. You can calculate the business, right? We just gave you today what we don't typically do, is that we gave you a breakdown of that server business in Q1. You could take that 38% I just gave you, and you've got our number for Q1, you can see, how much revenue, we have and gives you a bit of an ASP, so that gives you all you need, I think, Melissa. Yeah. Our, by the way, our ASP is continuing to increase on a per unit basis through this progression as we, you know, we keep finding, you know, more value-added opportunities for our customers. Yeah. As we said in the past, Melissa, what was helping us, number of server increasing, AI increasing. Actually, even shorter term, we've seen a big demand increase, not just only from AI, but traditional CPU and storage because of things like cloud and other agentic type of coding have driven not just the AI, but also the traditional CPU and storage. The attach rates, we continue to find new applications, new ASP, with the new product. The ASP continues to increase, hence increasing that server dollar amount. Perfect. Thank you for all the color. Maybe just a quick follow-up. I mean, these growth rates seem to be a lot faster than maybe what we were expecting coming into the year. From a supply perspective, can you just talk about your ability to secure supply? It seems like your customer visibility is increasing, but what about your supplier visibility? Do you have the front end? Do you have the back end? Is there anything there that we should know? We do. We do. Our SVP of operations, Divyesh Shah, has been in the industry for a long time. He lives on a plane and lives as a, as a supplier, and we've had many calls to our supplier. Definitely have our strengths. This definitely is training us and working hard on it, though, and we have been able to secure supply. It comes at a cost. The costs are changing, but we're working with our customers and our suppliers to deal with this, and we're in good shape. Yeah. I think, unlike some other industry players, you know, our wafers are more legacy node wafers, our supply there is less challenged. The back end is where we see pressure, and we keep expanding our supply chain in that area to provide a diversity of suppliers and additional capacity. We're actually beginning to bring our lead times down as we get that expanded supply. Perfect. Thank you. Over. Yeah. Okay. Our next question comes from Tristan Gerra with Robert W. Baird. Please state your question. Hi. Good afternoon. Just as a follow-up to a earlier question, is there any step function increase in the content for Root of Trust security with the upcoming cyber and payment platform? Is there any potential for advanced content in the data center or is that going to be other end market? Yeah. We're not commenting on specific platform, but our security continues to be a major factor in allowing us to grow our business here. The second question? It was regarding Avant and whether there is any data center potential opportunities for the higher dense FPGA that's coming out. Yes, absolutely. Absolutely. I'm not sure. Can you be a bit more specific? I'm not sure we understand the question. Go ahead. Yeah. I was just wondering, you know, what type of use cases you see for Avant, and whether there's any data center applications, you know, potentially data paths or anything else outside of Root of Trust security or even for a Root of Trust security for Avant? Okay. I'm sorry. I get it now. You're asking whether our mid-term, mid-range FPGA Avant platform has application in data center. So far it's been mostly our Pre-Nexus and Nexus product is what is applicable for data center. As time goes by, Avant may find its way there, Avant is really focused on our Industrial and Embedded platform segment. Okay. Okay. Then just a quick follow-up. You know, your gross margin starting to increase again, and your lead times have been expanding, which typically is good for ASP. I know you only guide a quarter at a time, but what's the, what's the potential for gross margin to go higher, given the supply constraint and the state of demand versus supply? Yeah. You know, we've talked about this a few times, you know, especially leading into the year where we thought that we should be prudent about our outlook in gross margin because we saw the supply chain increases coming. What we have been able to do is continue to work with our customers on ways to offset the cost increases we're seeing. We do also, though, expect that the cost pressure will continue and increase relatively in the second half of this year versus the first half. We haven't. We're just, you know, given where we are in the year, we are not gonna give very precise guidance about the second half of the year. You know, we are in the range, as I said before, 69.5% ±1%. This quarter we happen to be, you know, 70%, a little bit higher than that. You know, this is going to be the approximate range we see going forward. You know, we will provide you more specific guidance as we get into the second half of the year on how the cost increases are playing out. Great. Thank you. Our next question comes from Joshua Buchalter with TD Cowen. Please state your question. Hey, guys. This is Lannie on for Josh. Congratulations on the quarter, and I'll extend my congratulations for the deal as well. Focusing on the core business really quickly, you've mentioned that, you know, Lattice is still on track for hitting that over $1 billion run rate in the fourth quarter of this year. Can you clarify if that's specifically for the core business or is that inclusive of the AMI acquisition as well, since I know you've given kind of a estimated revenue for the year? It is exclusive of the AMI acquisition. Got it. Specifically kind of, was there a follow-up to that? Sorry, I had a follow-up question afterwards, is there any additional thoughts? No, no, go ahead. Go ahead. Yeah, as it relates to, you know, AMI, I'm curious to know, you know, what kind of capabilities does this give Lattice that you didn't have before? If you could talk about AMI's current, you know, go-to-market and monetization strategy and how that fits in with Lattice's business model currently and then going forward as you integrate together. Thank you. Yeah. Thank you. You know, first, as you said, we together expecting to exit the year at this $1 billion run rate at this roughly 40% free cash flow. You could see we'd be able to deliver pretty fast, you know, from there. That's what we think is a beautiful business. The combination is gonna be very strong financially. Then, from a capability point of view, it gives us much stronger system skills, jointly, that and allow us to bring these solutions to customer much faster. It's a capability that we'll be adding. We'll be able to discuss further at our next quarterly call. When we get in front of you to discuss Q2 and guide to Q3, we'll be able to give you a lot more details on some of the AMI business and go into a bit more of the detail on their financials. Today, we want to, you know, focus on our business, introduce the acquisition, and it's going to take us two months to close, expected in early Q3. At that time, we'll be able to fully give you all the details on their business. All right. Thank you very much. Our next question comes from Quinn Bolton with Needham & Company. Please state your question. Thanks for squeezing me in, guys. I'll also add my congratulations. For maybe just a high-level question on AMI acquisition. AMI talks about security board management. You've historically talked about, you know, similar things for your FPGAs. Can you just spend a minute, is there any place where the two businesses compete, or is it truly complementary? Does the Lattice FPGA Root of Trust protect the AMI firmware BIOS, you know, as it resides in the servers? Just, you know, is there any sort of direct overlap between the two businesses? Yeah, great question, Quinn. We have been working together since 2019, so it's been seven years of close collaboration. There is no place where we compete. This is totally complementary. It's actually very complementary to our customer and should really benefit our customer and partners. We are committed to remain agnostic. You know, they support all the other silicon partners, and we are partnered through the same silicon partners, so we see it very complementary and beneficial to our, not only the customers, but also the partners. It should be very strong, 1 + 1 = 3. Sanjoy is sitting with me today. He has plans for four, five, and six. He's laughing here. Excellent. Excellent. Then, honestly, you guys had a great start to the year in terms of revenue growth. I think we came into the year, thinking, the server business could be up something like 20%-40% in Industrial, and now I guess the Embedded business up 5%-15%. Looks like you're tracking well above that. I don't know if you're prepared to perhaps talk about growth rates for those businesses, you know, given the strong start to the year, but I figured I'd ask. Well, you know, for the, for the year, it's still early. I would say that the trend that started late last year and has led to our results in the first quarter continues. That trend is, you know, our business continues to book in very, very strong. The customers are continuing to increase their demand. We are booking out even longer in time. At this point in time, you know, we have high confidence that, you know, our growth this year will be strong. It'll be stronger than we originally thought at the beginning of the year. Comms and Compute as an end market will be the key driver of that for the reasons we all know. The Industrial and Embedded, though, is recovering, and we saw signs of that in the first quarter. I would say, you know, the extremely high year-over-year growth rates might not hold for the rest of the year for the compute and the server, but we will be pretty strong. The comms business will be aligned. You know, it kind of goes up and down relative to the compute growth rate, but it's still gonna be pretty high. Like I said, Industrial and Embedded will continue to grow, but probably not at the rate that we saw in Q1 versus Q4 of last year. They did grow 10% year-over-year, Industrial and Embedded, and that's a pretty good range to think about the year. Quinn, right now, as Lorenzo was saying, the demand is strong for the foreseeable future and bookings well into 2027. Got it. Can I ask a quick just clarification on the deal? Will THL Partners be locked up for any period of time post-close on that $650 million of equity issued, or are they free to sell once the deal closes? No, they. Go ahead. Yeah, they have a lockup that extends through the year. It's, you know, 25% per quarter. 12 months. 12 months from close. Yeah, twelve months from close, for a year, not through the year. Thank you. Perfect. Okay, thank you. Our next question comes from Duksan Jang with Bank of America. Please state your question. Hi, thank you for taking the question and congrats on the strong results as well. Just following up on some of the earlier gross margin questions. You've been talking about bookings strong well into 2027. Backlog is building up. The lead times are expanding. You know, that the AMI margins are stronger. Is it possible that the margin structure now is more structurally just higher than before? I think you haven't really sustained 70%+ before, now should we think this is something more achievable at this point? No, that's an. This opens up opportunities for us that we may have been shied away from before and across the various markets. We don't intend to go much above that, and we can we? Sure, we can. I think right now there are opportunities for us that we haven't gone after that we could go after. It could potentially open up a higher top line. Got it. Then one follow-up is just on broader competitiveness of the supply chain. I ask this because clearly Intel has now divested Altera, and it's now a standalone company. We haven't heard much since from them, but they clearly have a much different supply chain with the internal manufacturing team. Do you think that gives them a lot more advantage in this supply constraint environment? And if not, could you explain why? Thank you. Yeah. Look, our supplier have been fantastic. We are with UMC, Samsung, and TSMC on the fab side. extremely supportive and, you know, we have strong assembly and test partners. We're adding more because this is where the shortages are. So far, we feel very good of our supply chain and our ability to supply. That's not an issue for us. All right. Thank you. Ladies and gentlemen, that concludes the time we had for the Q&A session. I will now turn the call back to the company's Rick Muscha for any closing comments. Great. Thanks everyone for joining us on the call today. We'll be attending the following investor events this quarter: the JPMorgan 2026 Global TMT Conference on May 19th in Boston and the TD Cowen 54th Annual TMT Conference in New York City on May 28th. This completes our call. Thank you very much for your participation and have a good evening. Thank you. Ladies and gentlemen, the conference call of Lattice Semiconductor has concluded. Thank you for your participation. You may now disconnect your lines.

Speaker 7: Ladies and gentlemen, greetings and welcome to the Lattice Semiconductor first quarter 2026 earnings conference call. At this time, all participants are in the listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal an operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Mr. Rick Muscha, Vice President of Investor Relations. Please go ahead. Ladies and gentlemen, greetings and welcome to the Lattice Semiconductor first quarter 2026 earnings conference call. ladies and gentlemen greetings and welcome to the lattice semiconductor first quarter 2026 earnings conference call At this time, all participants are in the listen-only mode. at this time all participants are in the listen-only mode A brief question- and- answer session will follow the formal presentation. a brief question- and- answer session will follow the formal presentation If anyone requires operator assistance during the conference, please signal an operator by pressing star and zero on your telephone keypad. if anyone requires operator assistance during the conference please signal an operator by pressing star and zero on your telephone keypad As a reminder, this conference is being recorded. as a reminder this conference is being recorded It is now my pleasure to introduce your host for today, Mr. Rick Muscha, Vice President of Investor Relations. it is now my pleasure to introduce your host for today mr rick muscha vice president of investor relations Please go ahead. please go ahead

Speaker 9: Thank you, operator, and good afternoon, everyone. With me today are Ford Tamer, Lattice's CEO, Lorenzo Flores, Lattice's CFO, and Sanjoy Maity, AMI's CEO. We'll provide a financial and business review of the first quarter of 2026, an overview of the AMI acquisition, and the business outlook for the second quarter of 2026. Both a copy of our earnings press release and the press release announcing our planned acquisition of AMI can be found at our company website in the Investor Relations section at latticesemi.com. I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that's currently available and that actual results may differ materially. Thank you, operator, and good afternoon, everyone. thank you operator and good afternoon everyone With me today are Ford Tamer, Lattice's CEO, Lorenzo Flores, Lattice's CFO, and Sanjoy Maity, AMI's CEO. with me today are ford tamer lattice's ceo lorenzo flores lattice's cfo and sanjoy maity ami's ceo We'll provide a financial and business review of the first quarter of 2026, an overview of the AMI acquisition, and the business outlook for the second quarter of 2026. we'll provide a financial and business review of the first quarter of 2026 an overview of the ami acquisition and the business outlook for the second quarter of 2026 Both a copy of our earnings press release and the press release announcing our planned acquisition of AMI can be found at our company website in the Investor Relations section at latticesemi.com. both a copy of our earnings press release and the press release announcing our planned acquisition of ami can be found at our company website in the investor relations section at latticesemi.com I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. i would like to remind everyone that during our conference call today we may make projections or other forward-looking statements regarding future events or the future financial performance of the company We wish to caution you that such statements are predictions based on information that's currently available and that actual results may differ materially. we wish to caution you that such statements are predictions based on information that's currently available and that actual results may differ materially We refer you to the documents that the company files with the SEC, including our Form 10-K, Form 10-Q, and Form 8-K. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This call includes and constitutes the company's official guidance for the second quarter of 2026. If at any time after this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call. We will refer primarily to non-GAAP financial measures during this call. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. We refer you to the documents that the company files with the SEC, including our Form 10-K, Form 10-Q, and Form 8-K. we refer you to the documents that the company files with the sec including our form 10-k form 10-q and form 8-k These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. these documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements This call includes and constitutes the company's official guidance for the second quarter of 2026. this call includes and constitutes the company's official guidance for the second quarter of 2026 If at any time after this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call. if at any time after this call we communicate any material changes to this guidance we intend that such updates will be done using a public forum such as a press release or publicly announced conference call We will refer primarily to non-GAAP financial measures during this call. we will refer primarily to non-gaap financial measures during this call By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. by disclosing certain non-gaap information management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com. Lastly, we streamlined our financial reporting to better align with our strategic focus. Beginning this quarter, we'll break out revenue across two primary markets, Compute and Communications and Industrial and Embedded. Our consumer business is now included within the Industrial and Embedded end market. For comparability, we've recapped all prior period results so you can make a direct apples to apples comparison. With that, I'll turn the call over to our CEO, Ford Tamer. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com. for historical periods we provide reconciliations of these non-gaap financial measures to gaap financial measures that can be found on the investor relations section of our website at latticesemi.com Lastly, we streamlined our financial reporting to better align with our strategic focus. lastly we streamlined our financial reporting to better align with our strategic focus Beginning this quarter, we'll break out revenue across two primary markets, Compute and Communications and Industrial and Embedded. beginning this quarter we'll break out revenue across two primary markets compute and communications and industrial and embedded Our consumer business is now included within the Industrial and Embedded end market. our consumer business is now included within the industrial and embedded end market For comparability, we've recapped all prior period results so you can make a direct apples to apples comparison. for comparability we've recapped all prior period results so you can make a direct apples to apples comparison With that, I'll turn the call over to our CEO, Ford Tam er. with that i'll turn the call over to our ceo ford tam er

Speaker 3: Thank you, Rick, and welcome everyone to our first quarter earnings call. Lattice delivered an excellent start to 2026, with results that underscore both strong market tailwinds and our disciplined execution against a clear strategy. Our first quarter performance exceeded expectations. Our second quarter outlook reflects our expected continued momentum across the business. This is the seventh earnings call since I joined Lattice. I hope we have now demonstrated that we consistently say what we do and do what we say. These positive factors in aggregate provide the foundation for our proposed acquisition of AMI. This acquisition positions Lattice to create the industry's most comprehensive, secure management and control platform and enables us to deepen our customer relationships and expand our long-term growth opportunities. Now turning to our results and outlook. Thank you, Rick, and welcome everyone to our first quarter earnings call. thank you rick and welcome everyone to our first quarter earnings call Lattice delivered an excellent start to 2026, with results that underscore both strong market tailwinds and our disciplined execution against a clear strategy. lattice delivered an excellent start to 2026 with results that underscore both strong market tailwinds and our disciplined execution against a clear strategy Our first quarter performance exceeded expectations. our first quarter performance exceeded expectations Our second quarter outlook reflects our expected continued momentum across the business. our second quarter outlook reflects our expected continued momentum across the business This is the seventh earnings call since I joined Lattice. this is the seventh earnings call since i joined lattice I hope we have now demonstrated that we consistently say what we do and do what we say. i hope we have now demonstrated that we consistently say what we do and do what we say These positive factors in aggregate provide the foundation for our proposed acquisition of AMI. these positive factors in aggregate provide the foundation for our proposed acquisition of ami This acquisition positions Lattice to create the industry's most comprehensive, secure management and control platform and enables us to deepen our customer relationships and expand our long-term growth opportunities. this acquisition positions lattice to create the industry's most comprehensive secure management and control platform and enables us to deepen our customer relationships and expand our long-term growth opportunities Now turning to our results and outlook. now turning to our results and outlook Revenue for the first quarter was $170.9 million, representing 42% year-over-year growth with strength across all end markets. Our Compute and Communications end market achieved record revenue, driven by continued momentum in data center AI applications. In Q1, 62% of our revenue came from Compute and Communications products with expanding opportunities ahead. As Rick highlighted in the Safe Harbor, we have now merged our Industrial and Automotive end market with our Consumer end market into what we now term Industrial and Embedded. The revenue from our Industrial and Embedded end market grew more than 20% sequentially, reflecting improving market conditions and expanding adoption of Lattice solutions. Revenue for the first quarter was $170.9 million, representing 42% year-over-year growth with strength across all end markets. revenue for the first quarter was $170.9 million representing 42% year-over-year growth with strength across all end markets Our Compute and Communications end market achieved record revenue, driven by continued momentum in data center AI applications. our compute and communications end market achieved record revenue driven by continued momentum in data center ai applications In Q1, 62% of our revenue came from Compute and Communications products with expanding opportunities ahead. in q1 62% of our revenue came from compute and communications products with expanding opportunities ahead As Rick highlighted in the Safe Harbor, we have now merged our Industrial and Automotive end market with our Consumer end market into what we now term Industrial and Embedded. as rick highlighted in the safe harbor we have now merged our industrial and automotive end market with our consumer end market into what we now term industrial and embedded The revenue from our Industrial and Embedded end market grew more than 20% sequentially, reflecting improving market conditions and expanding adoption of Lattice solutions. the revenue from our industrial and embedded end market grew more than 20% sequentially reflecting improving market conditions and expanding adoption of lattice solutions As importantly, along with increased consumption, channel inventory reduced from three months last quarter to close to two months of inventory on hand, and we expect this trend to continue to under two months in Q2. As we anticipated, profitability grew faster than revenue, with EPS up 86% year-over-year. These results demonstrate the operating leverage in our model and our ability to scale efficiently as revenue accelerates. Demand trends continue to build across AI servers, networking, industrial automation, and emerging physical AI applications. We are seeing accelerated bookings, which now support a strong backlog that extends well into 2027. We're also witnessing improved customer visibility and healthy design win momentum across our FPGA portfolio. Taken together, we're confident that we're in the early innings of a multi-year growth cycle and in our ability to deliver sustained above-market growth for the foreseeable future. As importantly, along with increased consumption, channel inventory reduced from three months last quarter to close to two months of inventory on hand, and we expect this trend to continue to under two months in Q2. as importantly along with increased consumption channel inventory reduced from three months last quarter to close to two months of inventory on hand and we expect this trend to continue to under two months in q2 As we anticipated, profitability grew faster than revenue, with EPS up 86% year-over-year. as we anticipated profitability grew faster than revenue with eps up 86% year-over-year These results demonstrate the operating leverage in our model and our ability to scale efficiently as revenue accelerates. these results demonstrate the operating leverage in our model and our ability to scale efficiently as revenue accelerates Demand trends continue to build across AI servers, networking, industrial automation, and emerging physical AI applications. demand trends continue to build across ai servers networking industrial automation and emerging physical ai applications We are seeing accelerated bookings, which now support a strong backlog that extends well into 2027. we are seeing accelerated bookings which now support a strong backlog that extends well into 2027 We're also witnessing improved customer visibility and healthy design win momentum across our FPGA portfolio. we're also witnessing improved customer visibility and healthy design win momentum across our fpga portfolio Taken together, we're confident that we're in the early innings of a multi-year growth cycle and in our ability to deliver sustained above-market growth for the foreseeable future. taken together we're confident that we're in the early innings of a multi-year growth cycle and in our ability to deliver sustained above-market growth for the foreseeable future Our results also highlight the progress we've made in evolving Lattice into a system-level solutions company. Customers increasingly value Lattice not just for low-power programmable hardware, but for complete solutions spanning connectivity, security, management, and control. As system complexity increases, particularly in AI-driven and advanced computing architectures, our customers are giving their highest priority to platforms that reduce integration risk, shorten development cycles, and enable faster deployment at scale. These trends continue to expand Lattice's role within customer systems, increase attach rates, and drive higher value per design. We also continue to benefit from our everywhere companion chip strategy, positioning Lattice broadly across the ecosystem. Rather than competing with CPUs, GPUs, or other processors, our low-power FPGAs enable and enhance them, providing Secure Boot, power sequencing, platform management, IO aggregation, sensor bridging, and control. Our results also highlight the progress we've made in evolving Lattice into a system-level solutions company. our results also highlight the progress we've made in evolving lattice into a system-level solutions company Customers increasingly value Lattice not just for low-power programmable hardware, but for complete solutions spanning connectivity, security, management, and control. customers increasingly value lattice not just for low-power programmable hardware but for complete solutions spanning connectivity security management and control As system complexity increases, particularly in AI-driven and advanced computing architectures, our customers are giving their highest priority to platforms that reduce integration risk, shorten development cycles, and enable faster deployment at scale. as system complexity increases particularly in ai-driven and advanced computing architectures our customers are giving their highest priority to platforms that reduce integration risk shorten development cycles and enable faster deployment at scale These trends continue to expand Lattice's role within customer systems, increase attach rates, and drive higher value per design. these trends continue to expand lattice's role within customer systems increase attach rates and drive higher value per design We also continue to benefit from our everywhere companion chip strategy, positioning Lattice broadly across the ecosystem. we also continue to benefit from our everywhere companion chip strategy positioning lattice broadly across the ecosystem Rather than competing with CPUs, GPUs, or other processors, our low-power FPGAs enable and enhance them, providing Secure Boot, power sequencing, platform management, IO aggregation, sensor bridging, and control. rather than competing with cpus gpus or other processors our low-power fpgas enable and enhance them providing secure boot power sequencing platform management io aggregation sensor bridging and control This approach allows Lattice to participate across hyperscale data centers, communication infrastructure, industrial automation, aerospace and defense, automotive, medical, and emerging physical AI applications, while remaining silicon-agnostic and ecosystem neutral. Looking to the second quarter, our revenue guidance of $185 million at the midpoint represents nearly 50% year-over-year growth. This underscores our confidence in the accelerating momentum of the business. Our midpoint EPS outlook of $0.44 reflects roughly 80% year-over-year growth. It highlights the powerful operating leverage in our model and differentiated products we bring to market. We maintain a disciplined capital strategy and believe we will be able to consistently drive earnings growth that significantly outpaces revenue growth, and we are committed to continue to do so. Turning now to the planned acquisition of AMI we announced earlier today. This approach allows Lattice to participate across hyperscale data centers, communication infrastructure, industrial automation, aerospace and defense, automotive, medical, and emerging physical AI applications, while remaining silicon-agnostic and ecosystem neutral. this approach allows lattice to participate across hyperscale data centers communication infrastructure industrial automation aerospace and defense automotive medical and emerging physical ai applications while remaining silicon-agnostic and ecosystem neutral Looking to the second quarter, our revenue guidance of $185 million at the midpoint represents nearly 50% year-over-year growth. looking to the second quarter our revenue guidance of $185 million at the midpoint represents nearly 50% year-over-year growth This underscores our confidence in the accelerating momentum of the business. this underscores our confidence in the accelerating momentum of the business Our midpoint EPS outlook of $0.44 reflects roughly 80% year-over-year growth. our midpoint eps outlook of $0.44 reflects roughly 80% year-over-year growth It highlights the powerful operating leverage in our model and differentiated products we bring to market. it highlights the powerful operating leverage in our model and differentiated products we bring to market We maintain a disciplined capital strategy and believe we will be able to consistently drive earnings growth that significantly outpaces revenue growth, and we are committed to continue to do so. we maintain a disciplined capital strategy and believe we will be able to consistently drive earnings growth that significantly outpaces revenue growth and we are committed to continue to do so Turning now to the planned acquisition of AMI we announced earlier today. turning now to the planned acquisition of ami we announced earlier today We are excited to have signed a definitive agreement to acquire AMI, a leader in firmware, orchestration, and system-level manageability. The combination of Lattice's low-power programmable hardware with AMI's industry-leading solutions, including BIOS, BMC, and platform security, create the industry's most complete secure management and control platform. Together, we'll enable customers to accelerate development, simplify system integration, and bring increasingly complex platforms to market faster across AI servers, advanced compute, communication infrastructure, and industrial applications. Strategically, this acquisition represents a pivotal milestone in advancing Lattice's long-term growth strategy. AMI's firmware is expected to remain processor and silicon-agnostic, preserving open ecosystems and customer choice, while Lattice FPGAs provide a complementary hardware foundation, reinforcing our everywhere companion chip strategy. We expect this transaction to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. We are excited to have signed a definitive agreement to acquire AMI, a leader in firmware, orchestration, and system-level manageability. we are excited to have signed a definitive agreement to acquire ami a leader in firmware orchestration and system-level manageability The combination of Lattice's low-power programmable hardware with AMI's industry-leading solutions, including BIOS, BMC, and platform security, create the industry's most complete secure management and control platform. the combination of lattice's low-power programmable hardware with ami's industry-leading solutions including bios bmc and platform security create the industry's most complete secure management and control platform Together, we'll enable customers to accelerate development, simplify system integration, and bring increasingly complex platforms to market faster across AI servers, advanced compute, communication infrastructure, and industrial applications. together we'll enable customers to accelerate development simplify system integration and bring increasingly complex platforms to market faster across ai servers advanced compute communication infrastructure and industrial applications Strategically, this acquisition represents a pivotal milestone in advancing Lattice's long-term growth strategy. strategically this acquisition represents a pivotal milestone in advancing lattice's long-term growth strategy AMI's firmware is expected to remain processor and silicon-agnostic, preserving open ecosystems and customer choice, while Lattice FPGAs provide a complementary hardware foundation, reinforcing our everywhere companion chip strategy. ami's firmware is expected to remain processor and silicon-agnostic preserving open ecosystems and customer choice while lattice fpgas provide a complementary hardware foundation reinforcing our everywhere companion chip strategy We expect this transaction to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. we expect this transaction to be accretive to gross margin free cash flow and eps on a non-gaap basis It also supports our trajectory toward exceeding a $1 billion annual revenue run rate by the end of 2026. We look forward to welcoming the talented AMI team to Lattice and expect this combination to strengthen our system-level roadmap and long-term growth profile significantly. Looking forward, we're encouraged by the continued durability of demand across our end markets, the depth of customer engagement, and the expanding role Lattice plays in next-generation systems. With a differentiated strategy, a scalable financial model, and an increasingly complete platform spanning hardware, firmware, security, manageability, and control, we are confident that Lattice is exceptionally well-positioned for the future. With that, I'll turn over the call to Lorenzo for a comprehensive review of our first quarter results. Lorenzo? It also supports our trajectory toward exceeding a $1 billion annual revenue run rate by the end of 2026. it also supports our trajectory toward exceeding a $1 billion annual revenue run rate by the end of 2026 We look forward to welcoming the talented AMI team to Lattice and expect this combination to strengthen our system-level roadmap and long-term growth profile significantly. we look forward to welcoming the talented ami team to lattice and expect this combination to strengthen our system-level roadmap and long-term growth profile significantly Looking forward, we're encouraged by the continued durability of demand across our end markets, the depth of customer engagement, and the expanding role Lattice plays in next-generation systems. looking forward we're encouraged by the continued durability of demand across our end markets the depth of customer engagement and the expanding role lattice plays in next-generation systems With a differentiated strategy, a scalable financial model, and an increasingly complete platform spanning hardware, firmware, security, manageability, and control, we are confident that Lattice is exceptionally well-positioned for the future. with a differentiated strategy a scalable financial model and an increasingly complete platform spanning hardware firmware security manageability and control we are confident that lattice is exceptionally well-positioned for the future With that, I'll turn over the call to Lorenzo for a comprehensive review of our first quarter results. with that i'll turn over the call to lorenzo for a comprehensive review of our first quarter results Lorenzo? lorenzo

Speaker 5: Thank you, Ford, and good afternoon, everyone. We will begin with an overview of our first quarter 2026 financial performance and our second quarter outlook, followed by an overview of our planned AMI acquisition. With a quarter this good and guidance this strong, it is worth repeating some of what Ford said. Revenue reached $170.9 million, growing 42% year-over-year and 17% quarter-over-quarter. Earnings performance was even stronger as Q1 non-GAAP EPS demonstrated the leverage in our model. EPS grew more than 80% year-over-year to $0.41, a 30% increase quarter-over-quarter and above the high end of our guidance. We expect Q2 to continue this growth trend, and I'll detail our guidance in a few moments. Back to Q1. Thank you, Ford, and good afternoon, everyone. thank you ford and good afternoon everyone We will begin with an overview of our first quarter 2026 financial performance and our second quarter outlook, followed by an overview of our planned AMI acquisition. we will begin with an overview of our first quarter 2026 financial performance and our second quarter outlook followed by an overview of our planned ami acquisition With a quarter this good and guidance this strong, it is worth repeating some of what Ford said. with a quarter this good and guidance this strong it is worth repeating some of what ford said Revenue reached $170.9 million, growing 42% year-over-year and 17% quarter-over-quarter. revenue reached $170.9 million, growing 42% year-over-year and 17% quarter-over-quarter Earnings performance was even stronger as Q1 non-GAAP EPS demonstrated the leverage in our model. earnings performance was even stronger as q1 non-gaap eps demonstrated the leverage in our model EPS grew more than 80% year-over-year to $0.41, a 30% increase quarter-over-quarter and above the high end of our guidance. eps grew more than 80% year-over-year to $0.41 a 30% increase quarter-over-quarter and above the high end of our guidance We expect Q2 to continue this growth trend, and I'll detail our guidance in a few moments. we expect q2 to continue this growth trend and i'll detail our guidance in a few moments Back to Q1. back to q1 Revenue growth was driven by a record performance in Compute and Communications, up 86% year-over-year and 15% sequentially. We continue to benefit from strong data center growth, as Ford told you. Additionally, our Industrial and Embedded end market grew 21% quarter-over-quarter, primarily driven by increased demand in factory automation, robotics, and medical applications. Q1 non-GAAP gross margin was a little better than expected at 70%, up 60 basis points quarter-over-quarter and 100 basis points year-over-year. Our gross margin continues to reflect the value and differentiation our products provide for our customers. non-GAAP Operating Expense was $60.8 million, up roughly 8% sequentially and 18% on a year-over-year basis. Much of the sequential increase is from performance-based bonuses and commissions as our revenue and profitability are exceeding expectations. Revenue growth was driven by a record performance in Compute and Communications, up 86% year-over-year and 15% sequentially. revenue growth was driven by a record performance in compute and communications up 86% year-over-year and 15% sequentially We continue to benefit from strong data center growth, as Ford told you. we continue to benefit from strong data center growth as ford told you Additionally, our Industrial and Embedded end market grew 21% quarter-over-quarter, primarily driven by increased demand in factory automation, robotics, and medical applications. additionally our industrial and embedded end market grew 21% quarter-over-quarter primarily driven by increased demand in factory automation robotics and medical applications Q1 non-GAAP gross margin was a little better than expected at 70%, up 60 basis points quarter-over-quarter and 100 basis points year-over-year. q1 non-gaap gross margin was a little better than expected at 70% up 60 basis points quarter-over-quarter and 100 basis points year-over-year Our gross margin continues to reflect the value and differentiation our products provide for our customers. non-GAAP Operating Expense was $60.8 million, up roughly 8% sequentially and 18% on a year-over-year basis. our gross margin continues to reflect the value and differentiation our products provide for our customers non-gaap operating expense was $60.8 million up roughly 8% sequentially and 18% on a year-over-year basis Much of the sequential increase is from performance-based bonuses and commissions as our revenue and profitability are exceeding expectations. much of the sequential increase is from performance-based bonuses and commissions as our revenue and profitability are exceeding expectations We also continue to invest in order to capitalize on our near and long-term opportunities. Our Q1 non-GAAP operating margin expanded 370 basis points to 34.4%, and our EBITDA margin increased 310 basis points to 39.6%. Both were a little better than expected. Q1 cash flow was impacted by last year's annual bonus payout, as well as revenue linearity in the quarter associated with our rapid growth. GAAP net cash flow from operating activities for the first quarter of 2026 was $50.3 million compared to $57.6 million in Q4. Free cash flow trended with operating cash flow. In Q1, free cash flow was $39.7 million, down from $44 million in Q4. We expect a strong recovery of cash flow as we continue to grow. We also continue to invest in order to capitalize on our near and long-term opportunities. we also continue to invest in order to capitalize on our near and long-term opportunities Our Q1 non-GAAP operating margin expanded 370 basis points to 34.4%, and our EBITDA margin increased 310 basis points to 39.6%. our q1 non-gaap operating margin expanded 370 basis points to 34.4% and our ebitda margin increased 310 basis points to 39.6% Both were a little better than expected. both were a little better than expected Q1 cash flow was impacted by last year's annual bonus payout, as well as revenue linearity in the quarter associated with our rapid growth. q1 cash flow was impacted by last year's annual bonus payout as well as revenue linearity in the quarter associated with our rapid growth GAAP net cash flow from operating activities for the first quarter of 2026 was $50.3 million compared to $57.6 million in Q4. gaap net cash flow from operating activities for the first quarter of 2026 was $50.3 million compared to $57.6 million in q4 Free cash flow trended with operating cash flow. free cash flow trended with operating cash flow In Q1, free cash flow was $39.7 million, down from $44 million in Q4. in q1 free cash flow was $39.7 million down from $44 million in q4 We expect a strong recovery of cash flow as we continue to grow. we expect a strong recovery of cash flow as we continue to grow During Q1, we repurchased $15 million of stock. We ended the quarter with $140 million in cash and no debt. For our guidance, we are targeting closing the AMI acquisition in Q3, so this guidance reflects expectations for Lattice standalone. In Q2 2026, we expect revenues to grow in the range of $175 million-$195 million. At the midpoint of this range, this is almost 50% growth from Q2 2025 and 8% over Q1. We expect gross margin to be 70% ±1% on a non-GAAP basis. We expect non-GAAP operating expense to be between $64 million-$67 million. Most of the growth in OpEx will be in R&D and reflects disciplined investments to drive long-term, sustained revenue growth. During Q1, we repurchased $15 million of stock. during q1 we repurchased $15 million of stock We ended the quarter with $140 million in cash and no debt. we ended the quarter with $140 million in cash and no debt For our guidance, we are targeting closing the AMI acquisition in Q3, so this guidance reflects expectations for Lattice standalone. for our guidance we are targeting closing the ami acquisition in q3 so this guidance reflects expectations for lattice standalone In Q2 2026, we expect revenues to grow in the range of $175 million-$195 million. in q2 2026 we expect revenues to grow in the range of $175 million-$195 million At the midpoint of this range, this is almost 50% growth from Q2 2025 and 8% over Q1. at the midpoint of this range this is almost 50% growth from q2 2025 and 8% over q1 We expect gross margin to be 70% ±1% on a non-GAAP basis. we expect gross margin to be 70% ±1% on a non-gaap basis We expect non-GAAP operating expense to be between $64 million-$67 million. we expect non-gaap operating expense to be between $64 million-$67 million Most of the growth in OpEx will be in R&D and reflects disciplined investments to drive long-term, sustained revenue growth. most of the growth in opex will be in r&d and reflects disciplined investments to drive long-term sustained revenue growth We expect income tax rate for Q2 to be between 4% and 6% on a non-GAAP basis. We anticipate non-GAAP EPS to be in the range of $0.42 per share and $0.46 per share. At the midpoint of this guidance, we expect that we would again exceed 80% year-over-year earnings growth as we continue to demonstrate the leverage in our model. Turning now to the AMI transaction. I am just as excited as Ford, our board of directors, and our leadership team that we have entered into a definitive agreement to acquire AMI. AMI is a leader in platform firmware, secure boot, device management, and system control software. This acquisition represents a strategic expansion of Lattice's capabilities to deliver system-level solutions, further accelerating our growth. We expect income tax rate for Q2 to be between 4% and 6% on a non-GAAP basis. we expect income tax rate for q2 to be between 4% and 6% on a non-gaap basis We anticipate non-GAAP EPS to be in the range of $0.42 per share and $0.46 per share. we anticipate non-gaap eps to be in the range of $0.42 per share and $0.46 per share At the midpoint of this guidance, we expect that we would again exceed 80% year-over-year earnings growth as we continue to demonstrate the leverage in our model. at the midpoint of this guidance we expect that we would again exceed 80% year-over-year earnings growth as we continue to demonstrate the leverage in our model Turning now to the AMI transaction. turning now to the ami transaction I am just as excited as Ford, our board of directors, and our leadership team that we have entered into a definitive agreement to acquire AMI. i am just as excited as ford our board of directors and our leadership team that we have entered into a definitive agreement to acquire ami AMI is a leader in platform firmware, secure boot, device management, and system control software. ami is a leader in platform firmware secure boot device management and system control software This acquisition represents a strategic expansion of Lattice's capabilities to deliver system-level solutions, further accelerating our growth. this acquisition represents a strategic expansion of lattice's capabilities to deliver system-level solutions further accelerating our growth The total consideration of the deal is expected to be $1.65 billion, with $1 billion of cash and $650 million of equity. This is approximately 5.4 million shares based on the closing price on May 1st. We expect the acquisition to be equally compelling from a financial perspective. With AMI, we expect our revenue to exceed an annual run rate of $1 billion by the end of this year. We anticipate AMI's software-centric, asset-light model will further enhance Lattice's already strong business model. We expect that the transaction will be immediately accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. We will cover our pro forma expectations in more details after we close the transaction. In closing, we are truly excited about our organic growth and financial performance. The total consideration of the deal is expected to be $1.65 billion, with $1 billion of cash and $650 million of equity. the total consideration of the deal is expected to be $1.65 billion with $1 billion of cash and $650 million of equity This is approximately 5.4 million shares based on the closing price on May 1st. this is approximately 5.4 million shares based on the closing price on may 1st We expect the acquisition to be equally compelling from a financial perspective. we expect the acquisition to be equally compelling from a financial perspective With AMI, we expect our revenue to exceed an annual run rate of $1 billion by the end of this year. with ami we expect our revenue to exceed an annual run rate of $1 billion by the end of this year We anticipate AMI's software-centric, asset-light model will further enhance Lattice's already strong business model. we anticipate ami's software-centric asset-light model will further enhance lattice's already strong business model We expect that the transaction will be immediately accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. we expect that the transaction will be immediately accretive to gross margin free cash flow and eps on a non-gaap basis We will cover our pro forma expectations in more details after we close the transaction. we will cover our pro forma expectations in more details after we close the transaction In closing, we are truly excited about our organic growth and financial performance. in closing we are truly excited about our organic growth and financial performance We are all very enthusiastic about the opportunity to combine Lattice's strengths with those of AMI. Finally, the Lattice team remains focused on execution and taking advantage of the expanding growth opportunities ahead. We are well positioned to drive continued short and long-term revenue growth, expand our operating margin, increase free cash flow, and grow earnings faster than revenue. Operator, that concludes our formal remarks. We can now open the call for questions. We are all very enthusiastic about the opportunity to combine Lattice's strengths with those of AMI. we are all very enthusiastic about the opportunity to combine lattice's strengths with those of ami Finally, the Lattice team remains focused on execution and taking advantage of the expanding growth opportunities ahead. finally the lattice team remains focused on execution and taking advantage of the expanding growth opportunities ahead We are well positioned to drive continued short and long-term revenue growth, expand our operating margin, increase free cash flow, and grow earnings faster than revenue. we are well positioned to drive continued short and long-term revenue growth expand our operating margin increase free cash flow and grow earnings faster than revenue Operator, that concludes our formal remarks. operator that concludes our formal remarks We can now open the call for questions. we can now open the call for questions

Speaker 3: Operator, before we jump into questions, can we introduce, with us today AMI CEO, Sanjoy Maity, who has a few remarks. Sanjoy? Operator, before we jump into questions, can we introduce, with us today AMI CEO, Sanjoy Maity, who has a few remarks. operator before we jump into questions can we introduce with us today ami ceo sanjoy maity who has a few remarks Sanjoy? sanjoy

Speaker 11: Hello. Thank you, Ford. At AMI, our management team, our employees, board, investors, and I, we are equally excited to be joining with you and the Lattice Semiconductor team. The strategic combinations with Lattice Semiconductor pairs the low power programmable leader with the leader in the platform firmware and infrastructure manageability for cloud and AI data centers. Lattice and AMI, we shared a long history, a collaboration, and a common vision for secure management and control platform. Together, we can build on that foundation, extending the reach of Lattice's low power FPGAs and AMI's trusted platform. While we will maintain the open, silicon-agnostic, multi-vendor app support our customers value, we also share the same commitment to disciplined execution, strong margins, and focus on building values for our investors. Thank you again. I'm very excited and looking forward to build a great future together. Hello. hello Thank you, Ford. At AMI, our management team, our employees, board, investors, and I, we are equally excited to be joining with you and the Lattice Semiconductor team. thank you ford. at ami our management team our employees board investors and i we are equally excited to be joining with you and the lattice semiconductor team The strategic combinations with Lattice Semiconductor pairs the low power programmable leader with the leader in the platform firmware and infrastructure manageability for cloud and AI data centers. the strategic combinations with lattice semiconductor pairs the low power programmable leader with the leader in the platform firmware and infrastructure manageability for cloud and ai data centers Lattice and AMI, we shared a long history, a collaboration, and a common vision for secure management and control platform. lattice and ami we shared a long history a collaboration and a common vision for secure management and control platform Together, we can build on that foundation, extending the reach of Lattice's low power FPGAs and AMI's trusted platform. together we can build on that foundation extending the reach of lattice's low power fpgas and ami's trusted platform While we will maintain the open, silicon-agnostic, multi-vendor app support our customers value, we also share the same commitment to disciplined execution, strong margins, and focus on building values for our investors. while we will maintain the open silicon-agnostic multi-vendor app support our customers value we also share the same commitment to disciplined execution strong margins and focus on building values for our investors Thank you again. thank you again I'm very excited and looking forward to build a great future together. i'm very excited and looking forward to build a great future together

Speaker 3: Thanks, Sanjoy. Great to have you here. Welcome to Lattice. Now, operator, we can now take questions. Thanks, Sanjoy. thanks sanjoy Great to have you here. great to have you here Welcome to Lattice. welcome to lattice Now, operator, we can now take questions. now operator we can now take questions

Speaker 7: Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question is from Ruben Roy with Stifel. Please state your question. Ladies and gentlemen, we will now begin the question- and- answer session. ladies and gentlemen we will now begin the question- and- answer session If you would like to ask a question, please press star and one on your telephone keypad. if you would like to ask a question please press star and one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star and two if you would like to remove your question from the queue. you may press star and two if you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star key Ladies and gentlemen, we will wait for a moment while we poll for questions. ladies and gentlemen we will wait for a moment while we poll for questions Our first question is from Ruben Roy with Stifel. our first question is from ruben roy with stifel Please state your question. please state your question

Speaker 10: Yes, thank you. Hey, guys. Congratulations on the strong results and outlook and the deal announcement. I guess to start, in the press release, you talk about doubling the SAM opportunity here. Can you talk about how we should think about that expansion? How much is incremental addressable opportunity from AMI and their existing firmware install base versus you talk about combined solution categories, et cetera, you know, that perhaps neither company could attack independently. Can you help us with that? I guess as part of that question, the core business is inflecting, particularly on the Compute side. If you think about 2026, how are you thinking about mix of revenue from servers specifically and maybe AI overall? Thank you. Yes, thank you. yes thank you Hey, guys. hey guys Congratulations on the strong results and outlook and the deal announcement. congratulations on the strong results and outlook and the deal announcement I guess to start, in the press release, you talk about doubling the SAM opportunity here. i guess to start in the press release you talk about doubling the sam opportunity here Can you talk about how we should think about that expansion? can you talk about how we should think about that expansion How much is incremental addressable opportunity from AMI and their existing firmware install base versus you talk about combined solution categories, et cetera, you know, that perhaps neither company could attack independently. how much is incremental addressable opportunity from ami and their existing firmware install base versus you talk about combined solution categories et cetera you know that perhaps neither company could attack independently Can you help us with that? can you help us with that I guess as part of that question, the core business is inflecting, particularly on the Compute side. i guess as part of that question the core business is inflecting particularly on the compute side If you think about 2026, how are you thinking about mix of revenue from servers specifically and maybe AI overall? if you think about 2026 how are you thinking about mix of revenue from servers specifically and maybe ai overall Thank you. thank you

Speaker 3: Thank you, Ruben. Good question. Yes, we expect our both the service available market to double from about what we think was about $6 billion currently to about $12 billion jointly with AMI over the next three to four years. That main increase will come from this Compute and Communications sub-segment. As you pointed out, the two major indicators in that segment are the percent server and the percent AI. These are a good follow-on question on the percent server that has been growing steadily for us from sort of the teens a couple of years ago, to this year, expected to be in about 38% of our revenue, total revenue coming from server. Thank you, Ruben. thank you ruben Good question. good question Yes, we expect our both the service available market to double from about what we think was about $6 billion currently to about $12 billion jointly with AMI over the next three to four years. yes we expect our both the service available market to double from about what we think was about $6 billion currently to about $12 billion jointly with ami over the next three to four years That main increase will come from this Compute and Communications sub-segment. that main increase will come from this compute and communications sub-segment As you pointed out, the two major indicators in that segment are the percent server and the percent AI. as you pointed out the two major indicators in that segment are the percent server and the percent ai These are a good follow-on question on the percent server that has been growing steadily for us from sort of the teens a couple of years ago, to this year, expected to be in about 38% of our revenue, total revenue coming from server. these are a good follow-on question on the percent server that has been growing steadily for us from sort of the teens a couple of years ago to this year expected to be in about 38% of our revenue total revenue coming from server The second facet to the question in this Compute and Communications market or sub-segment is the % of our revenue coming from AI. Again, it grew from the mid-teens in 2024 to the high teens last year to where we expect it to be about 25% of revenue in 2026. AMI plus Lattice is going to be uniquely positioned to be able to provide solutions to customers in this Compute and Comms market. The second facet to the question in this Compute and Communications market or sub-segment is the % of our revenue coming from AI. the second facet to the question in this compute and communications market or sub-segment is the % of our revenue coming from ai Again, it grew from the mid-teens in 2024 to the high teens last year to where we expect it to be about 25% of revenue in 2026. again it grew from the mid-teens in 2024 to the high teens last year to where we expect it to be about 25% of revenue in 2026 AMI plus Lattice is going to be uniquely positioned to be able to provide solutions to customers in this Compute and Comms market. ami plus lattice is going to be uniquely positioned to be able to provide solutions to customers in this compute and comms market

Speaker 10: That's great. Thank you. Ford, if I could ask a quick follow-up for Lorenzo. It's great to see that you're flagging the deal as immediately accretive on gross margin, free cash flow, EPS. Can you give us a framework for the gross margin profile? I know it's early, Lorenzo, but any thoughts on, you know, the software and firmware business relative to, you know, your 70% non-GAAP gross margin run rate at this point? How much of the accretion, you know, as you look ahead, would be structural versus maybe dependent on synergies, revenue or otherwise? Thank you. That's great. that's great Thank you. thank you Ford, if I could ask a quick follow-up for Lorenzo. ford if i could ask a quick follow-up for lorenzo It's great to see that you're flagging the deal as immediately accretive on gross margin, free cash flow, EPS. it's great to see that you're flagging the deal as immediately accretive on gross margin free cash flow eps Can you give us a framework for the gross margin profile? can you give us a framework for the gross margin profile I know it's early, Lorenzo, but any thoughts on, you know, the software and firmware business relative to, you know, your 70% non-GAAP gross margin run rate at this point? i know it's early lorenzo but any thoughts on you know the software and firmware business relative to you know your 70% non-gaap gross margin run rate at this point How much of the accretion, you know, as you look ahead, would be structural versus maybe dependent on synergies, revenue or otherwise? how much of the accretion you know as you look ahead would be structural versus maybe dependent on synergies revenue or otherwise Thank you. thank you

Speaker 5: Yeah. That's a great question, Ruben, and, you know, we'll get this again in more detail once we close. The way to think about this acquisition, as Ford said is, it's very strategic and in the midterm opens up really significant growth opportunities for us. The really nice thing about it immediately is thinking about this deal strategically and looking at the very complementary P&L structure and operating model that AMI has is, you know, we are not dependent upon synergies to make the deal accretive. You know, in fact, AMI's business is very high gross margin. It's higher than ours. We'll share some more detail on that later. You know, they have a different structure, but at the operating margin level, it's pretty close to ours. Yeah. yeah That's a great question, Ruben, and, you know, we'll get this again in more detail once we close. that's a great question ruben and you know we'll get this again in more detail once we close The way to think about this acquisition, as Ford said is, it's very strategic and in the midterm opens up really significant growth opportunities for us. the way to think about this acquisition as ford said is it's very strategic and in the midterm opens up really significant growth opportunities for us The really nice thing about it immediately is thinking about this deal strategically and looking at the very complementary P&L structure and operating model that AMI has is, you know, we are not dependent upon synergies to make the deal accretive. the really nice thing about it immediately is thinking about this deal strategically and looking at the very complementary p&l structure and operating model that ami has is you know we are not dependent upon synergies to make the deal accretive You know, in fact, AMI's business is very high gross margin. you know in fact ami's business is very high gross margin It's higher than ours. it's higher than ours We'll share some more detail on that later. we'll share some more detail on that later You know, they have a different structure, but at the operating margin level, it's pretty close to ours. you know they have a different structure but at the operating margin level it's pretty close to ours They generate a very significant EBITDA percent of revenue, and that's, you know, close to ours and maybe slightly above ours right now. If you think about it that way, you can, you can see that, you know, there's not a dependency on cost cutting. We'll look at efficiencies through time for sure. On a go-forward basis, we're able to fund the debt and cover the interest and still show accretion immediately. They generate a very significant EBITDA percent of revenue, and that's, you know, close to ours and maybe slightly above ours right now. they generate a very significant ebitda percent of revenue and that's you know close to ours and maybe slightly above ours right now If you think about it that way, you can, you can see that, you know, there's not a dependency on cost cutting. if you think about it that way you can you can see that you know there's not a dependency on cost cutting We'll look at efficiencies through time for sure. we'll look at efficiencies through time for sure On a go-forward basis, we're able to fund the debt and cover the interest and still show accretion immediately. on a go-forward basis we're able to fund the debt and cover the interest and still show accretion immediately

Speaker 10: Appreciate all the details. Congrats again. Appreciate all the details. appreciate all the details Congrats again. congrats again

Speaker 5: Thank you. Thank you. thank you

Speaker 7: Our next question comes from Christopher Rolland with Susquehanna International Group. Please state your question. Our next question comes from Christopher Rolland with Susquehanna International Group. our next question comes from christopher rolland with susquehanna international group Please state your question. please state your question

Speaker 1: Hi, guys. Thank you for the question. Yeah, I just wanted to dig in a little bit more on the strategic value of AMI. I just looked over the website and it seems like they offer firmware, but also like infra management software. Would love to know just kind of the cross synergies here between Lattice FPGAs and what you're gonna do with this software. Perhaps if you could also talk about the growth rate for AMI. I know you talked about $200 million revs in 2026, that growth rate expectation moving forward would be very helpful for us as well. Hi, guys. hi guys Thank you for the question. thank you for the question Yeah, I just wanted to dig in a little bit more on the strategic value of AMI. yeah i just wanted to dig in a little bit more on the strategic value of ami I just looked over the website and it seems like they offer firmware, but also like infra management software. i just looked over the website and it seems like they offer firmware but also like infra management software Would love to know just kind of the cross synergies here between Lattice FPGAs and what you're gonna do with this software. would love to know just kind of the cross synergies here between lattice fpgas and what you're gonna do with this software Perhaps if you could also talk about the growth rate for AMI. perhaps if you could also talk about the growth rate for ami I know you talked about $200 million revs in 2026, that growth rate expectation moving forward would be very helpful for us as well. i know you talked about $200 million revs in 2026 that growth rate expectation moving forward would be very helpful for us as well

Speaker 3: Yes. Thank you, Chris. Let me start in trying to explain this. Let me start going through my background, where I've done this twice already. This is the third time that I do something very similar. When I was at Broadcom, we were actually second on the switch market share to Marvell. We by the time I left, our team had done a great job becoming number one. One of the key acquisitions we did along the way was a company called Level Seven that provided us with protocol software. What we're able to do is to use that to come up with reference design for the ODMs in Taiwan. That made it much faster for customers to go to production with their switch system. Yes. yes Thank you, Chris. thank you chris Let me start in trying to explain this. let me start in trying to explain this Let me start going through my background, where I've done this twice already. let me start going through my background where i've done this twice already This is the third time that I do something very similar. this is the third time that i do something very similar When I was at Broadcom, we were actually second on the switch market share to Marvell. when i was at broadcom we were actually second on the switch market share to marvell We by the time I left, our team had done a great job becoming number one. we by the time i left our team had done a great job becoming number one One of the key acquisitions we did along the way was a company called Level Seven that provided us with protocol software. one of the key acquisitions we did along the way was a company called level seven that provided us with protocol software What we're able to do is to use that to come up with reference design for the ODMs in Taiwan. what we're able to do is to use that to come up with reference design for the odms in taiwan That made it much faster for customers to go to production with their switch system. that made it much faster for customers to go to production with their switch system This is number one that was successful and very relevant to discussion we're having. Again, this protocol software, don't think about it as software, think about it as hardware. This is very low-level stuff. The second one was at Inphi, where we were. Actually, when I joined, we were second at CIA. By the time I left, we were the number one leader in optical interconnect. In that journey, we decided along the way to have a partnership with Microsoft to deliver a DCI model, you know, for Microsoft for between data center, 80 km at the time was called COLORZ, and some of you on the line know it very well. That sort of complementary addition of a system, or subsystem scale, if you wish, with module, was very critical. This is number one that was successful and very relevant to discussion we're having. this is number one that was successful and very relevant to discussion we're having Again, this protocol software, don't think about it as software, think about it as hardware. again this protocol software don't think about it as software think about it as hardware This is very low-level stuff. this is very low-level stuff The second one was at Inphi, where we were. the second one was at inphi where we were Actually, when I joined, we were second at CIA. actually when i joined we were second at cia By the time I left, we were the number one leader in optical interconnect. by the time i left we were the number one leader in optical interconnect In that journey, we decided along the way to have a partnership with Microsoft to deliver a DCI model, you know, for Microsoft for between data center, 80 km at the time was called COLORZ, and some of you on the line know it very well. in that journey we decided along the way to have a partnership with microsoft to deliver a dci model you know for microsoft for between data center 80 km at the time was called colorz and some of you on the line know it very well That sort of complementary addition of a system, or subsystem scale, if you wish, with module, was very critical. that sort of complementary addition of a system or subsystem scale if you wish with module was very critical We debated at length whether this was gonna be a departure from selling silicon and components. It was about almost 80/20. 80% of the business ended up being these components that we're selling as a platform, and 20% of the business was this module that we're selling to. It started with Microsoft. They eventually became the whole market, and today it's very standardized across the whole market. The addition of that module system, subsystem skills were very critical in the success because these folks helped the folks on the silicon side go to market faster and do a better job. We debated at length whether this was gonna be a departure from selling silicon and components. we debated at length whether this was gonna be a departure from selling silicon and components It was about almost 80/20. 80% of the business ended up being these components that we're selling as a platform, and 20% of the business was this module that we're selling to. it was about almost 80/20 80% of the business ended up being these components that we're selling as a platform and 20% of the business was this module that we're selling to It started with Microsoft. it started with microsoft They eventually became the whole market, and today it's very standardized across the whole market. they eventually became the whole market and today it's very standardized across the whole market The addition of that module system, subsystem skills were very critical in the success because these folks helped the folks on the silicon side go to market faster and do a better job. the addition of that module system subsystem skills were very critical in the success because these folks helped the folks on the silicon side go to market faster and do a better job The history of AMI is 40 years of developing these test cases and very deep knowledge of the whole industry from server to switch to NIC to, you know, they're the first ones to be brought up when a CPU gets brought up. They're the first ones to be brought up when a GPU gets brought up. They're the first ones to be brought up along with a lot of systems. They're a very key complementary partner to the BMC, the Board Management Controller today. We intend to continue to be a very strong partner to all of these board management controllers, the HPs, the Nuvoton, the NXPs, the others in the market. You know, it's an extremely strategic move for us that complements our, you know, FPGA, low power FPGA business. The history of AMI is 40 years of developing these test cases and very deep knowledge of the whole industry from server to switch to NIC to, you know, they're the first ones to be brought up when a CPU gets brought up. the history of ami is 40 years of developing these test cases and very deep knowledge of the whole industry from server to switch to nic to you know they're the first ones to be brought up when a cpu gets brought up They're the first ones to be brought up when a GPU gets brought up. they're the first ones to be brought up when a gpu gets brought up They're the first ones to be brought up along with a lot of systems. they're the first ones to be brought up along with a lot of systems They're a very key complementary partner to the BMC, the Board Management Controller today. they're a very key complementary partner to the bmc the board management controller today We intend to continue to be a very strong partner to all of these board management controllers, the HPs, the Nuvoton, the NXPs, the others in the market. we intend to continue to be a very strong partner to all of these board management controllers the hps the nuvoton the nxps the others in the market You know, it's an extremely strategic move for us that complements our, you know, FPGA, low power FPGA business. you know it's an extremely strategic move for us that complements our you know fpga low power fpga business The growth rates are gonna be in the high teens. We expect next year to be actually accelerating. We do expect to come to solutions to market together that will end up growing our revenue faster than. You can see we're growing at 40% on the revenue. By the way, as you noticed, we grew 80% on EPS, and we should be able to grow faster on both revenue and EPS together in the 2028 timeframe as these solutions go to market. Solutions are being featured today in discussions today. We had many discussions with many customers about these solutions. They're very excited about it, and it's gonna be a very exciting, very exciting, you know, growth. The growth rates are gonna be in the high teens. the growth rates are gonna be in the high teens We expect next year to be actually accelerating. we expect next year to be actually accelerating We do expect to come to solutions to market together that will end up growing our revenue faster than. we do expect to come to solutions to market together that will end up growing our revenue faster than You can see we're growing at 40% on the revenue. you can see we're growing at 40% on the revenue By the way, as you noticed, we grew 80% on EPS, and we should be able to grow faster on both revenue and EPS together in the 2028 timeframe as these solutions go to market. by the way as you noticed we grew 80% on eps and we should be able to grow faster on both revenue and eps together in the 2028 timeframe as these solutions go to market Solutions are being featured today in discussions today. solutions are being featured today in discussions today We had many discussions with many customers about these solutions. we had many discussions with many customers about these solutions They're very excited about it, and it's gonna be a very exciting, very exciting, you know, growth. they're very excited about it and it's gonna be a very exciting very exciting you know growth We've got a presentation investor deck on our slide on our website, and if you could turn to it please, that details the AMI acquisition. On slide five, it shows you the challenges that the data center face today. As you go from managing servers to racks, to pods, now the whole data center, this modularity becomes extremely important. AI is adding a lot of complexity. Uptime, these components, GPU switch are very expensive. Uptime is very key, and there is a huge pressure on time to market and shift left as shown on slide five. Then if you jump to slide 11. Slide 11 shows. I'm sorry. Slide, yes, 11. It shows the solutions that we are providing together to these challenges. We've got a presentation investor deck on our slide on our website, and if you could turn to it please, that details the AMI acquisition. we've got a presentation investor deck on our slide on our website and if you could turn to it please that details the ami acquisition On slide five, it shows you the challenges that the data center face today. on slide five it shows you the challenges that the data center face today As you go from managing servers to racks, to pods, now the whole data center, this modularity becomes extremely important. as you go from managing servers to racks to pods now the whole data center this modularity becomes extremely important AI is adding a lot of complexity. Uptime, these components, GPU switch are very expensive. ai is adding a lot of complexity. uptime these components gpu switch are very expensive Uptime is very key, and there is a huge pressure on time to market and shift left as shown on slide five. uptime is very key and there is a huge pressure on time to market and shift left as shown on slide five Then if you jump to slide 11. then if you jump to slide 11 Slide 11 shows. slide 11 shows I'm sorry. i'm sorry Slide, yes, 11. slide yes 11 It shows the solutions that we are providing together to these challenges. it shows the solutions that we are providing together to these challenges Things like rack, booth, power and cooling, retrofit, and plug and play are gonna be solutions that we provide together along with our low power FPGA and the platform firmware and measurability infrastructure that AMI provides. Very exciting future ahead. Things like rack, booth, power and cooling, retrofit, and plug and play are gonna be solutions that we provide together along with our low power FPGA and the platform firmware and measurability infrastructure that AMI provides. things like rack booth power and cooling retrofit and plug and play are gonna be solutions that we provide together along with our low power fpga and the platform firmware and measurability infrastructure that ami provides Very exciting future ahead. very exciting future ahead

Speaker 1: Excellent. Thank you for that, Ford, and congrats on this deal. I guess, maybe as a follow-up, if you could talk about, I think you said, you guys said inventory maybe was even under two months at this point in time. I mean, we should have an uplift here. I think we can see it in the guide, but if you wanna talk about it more broadly, just as you are no longer burning, and could there potentially even be an opportunity to refill? You know, how are you guys thinking about all this into the future? Excellent. excellent Thank you for that, Ford, and congrats on this deal. thank you for that ford and congrats on this deal I guess, maybe as a follow-up, if you could talk about, I think you said, you guys said inventory maybe was even under two months at this point in time. i guess maybe as a follow-up if you could talk about i think you said you guys said inventory maybe was even under two months at this point in time I mean, we should have an uplift here. i mean we should have an uplift here I think we can see it in the guide, but if you wanna talk about it more broadly, just as you are no longer burning, and could there potentially even be an opportunity to refill? i think we can see it in the guide but if you wanna talk about it more broadly just as you are no longer burning and could there potentially even be an opportunity to refill You know, how are you guys thinking about all this into the future? you know how are you guys thinking about all this into the future

Speaker 3: Yeah. No. Yeah. yeah No. no

Speaker 1: Next quarter, will we be balanced? Next quarter, will we be balanced? next quarter, will we be balanced

Speaker 3: Yeah, good question. Good question. Look, I mean, we're very excited about it. What I would say, Chris, is this is part of telling you what we're gonna do and do what we say. I told you when we joined, when I joined now about a year and a half ago, this is my seventh quarterly report, that we're gonna bring this under control. When I joined, the numbers were closer to six, and we told you we'll be at three by end of last year, and we did. Plan of 2025, we got to three. I told you we're gonna be in the twos. We are in the twos. I told you actually we'll bring it under two, and we're on our way to under two. Yeah, good question. yeah good question Good question. good question Look, I mean, we're very excited about it. look i mean we're very excited about it What I would say, Chris, is this is part of telling you what we're gonna do and do what we say. what i would say chris is this is part of telling you what we're gonna do and do what we say I told you when we joined, when I joined now about a year and a half ago, this is my seventh quarterly report, that we're gonna bring this under control. i told you when we joined when i joined now about a year and a half ago this is my seventh quarterly report that we're gonna bring this under control When I joined, the numbers were closer to six, and we told you we'll be at three by end of last year, and we did. when i joined the numbers were closer to six and we told you we'll be at three by end of last year and we did Plan of 2025, we got to three. plan of 2025 we got to three I told you we're gonna be in the twos. i told you we're gonna be in the twos We are in the twos. we are in the twos I told you actually we'll bring it under two, and we're on our way to under two. i told you actually we'll bring it under two and we're on our way to under two The last time the company was under two, we had 10 good quarters ahead and 1.X. We may be entering a very strong period here. You know, you can see our Industrial and Embedded business grew 22% sequentially, which is amazing. Amazing. You know, hopefully more to come. Lorenzo, you want to add to this? The last time the company was under two, we had 10 good quarters ahead and 1.X. the last time the company was under two we had 10 good quarters ahead and 1.x We may be entering a very strong period here. we may be entering a very strong period here You know, you can see our Industrial and Embedded business grew 22% sequentially, which is amazing. you know you can see our industrial and embedded business grew 22% sequentially which is amazing Amazing. amazing You know, hopefully more to come. you know hopefully more to come Lorenzo, you want to add to this? lorenzo you want to add to this

Speaker 5: I think the way to think about channel inventory right now is it's no longer a business imperative to bring it down. What we're really working on is keeping the right balance of inventory at the distributors across the globe and the right type of inventory so that they can service their customer needs. I think it's this is what I would characterize as a non-issue for Lattice going forward. We're really happy that we were able to manage through this. Now what we get is much greater visibility, much more direct visibility into what end customers are demanding, so our build is much more efficient. I think the way to think about channel inventory right now is it's no longer a business imperative to bring it down. i think the way to think about channel inventory right now is it's no longer a business imperative to bring it down What we're really working on is keeping the right balance of inventory at the distributors across the globe and the right type of inventory so that they can service their customer needs. what we're really working on is keeping the right balance of inventory at the distributors across the globe and the right type of inventory so that they can service their customer needs I think it's this is what I would characterize as a non-issue for Lattice going forward. i think it's this is what i would characterize as a non-issue for lattice going forward We're really happy that we were able to manage through this. we're really happy that we were able to manage through this Now what we get is much greater visibility, much more direct visibility into what end customers are demanding, so our build is much more efficient. now what we get is much greater visibility much more direct visibility into what end customers are demanding so our build is much more efficient

Speaker 1: Thank you, guys. Appreciate it. Thank you, guys. thank you guys Appreciate it. appreciate it

Speaker 3: Thanks. Thanks. thanks

Speaker 1: Congrats. Congrats. congrats

Speaker 3: Yep. Yep. yep

Speaker 7: Our next question comes from Melissa Weathers with Deutsche Bank. Please state your question. Our next question comes from Melissa Weathers with Deutsche Bank. our next question comes from melissa weathers with deutsche bank Please state your question. please state your question

Speaker 6: Hi there. Thank you so much for letting me ask a question. Congrats on nice results and interesting deal. Sanjoy, I'm looking forward to working with you in the future. I guess for my first question, I wanted to touch on the data center side of things. In the past, you guys have given, like, an FPGA attach rate per server, and it seems like those applications that you can use an FPGA for in the data center is growing massively, and those conversations with engineers are happening live. We heard Jensen talk at GTC about using more FPGAs in those racks. Can you help us? I don't know if there's an updated framework that we can think about in terms of FPGA attach in the data center. Hi there. hi there Thank you so much for letting me ask a question. thank you so much for letting me ask a question Congrats on nice results and interesting deal. congrats on nice results and interesting deal Sanjoy, I'm looking forward to working with you in the future. sanjoy i'm looking forward to working with you in the future I guess for my first question, I wanted to touch on the data center side of things. i guess for my first question i wanted to touch on the data center side of things In the past, you guys have given, like, an FPGA attach rate per server, and it seems like those applications that you can use an FPGA for in the data center is growing massively, and those conversations with engineers are happening live. in the past you guys have given like an fpga attach rate per server and it seems like those applications that you can use an fpga for in the data center is growing massively and those conversations with engineers are happening live We heard Jensen talk at GTC about using more FPGAs in those racks. we heard jensen talk at gtc about using more fpgas in those racks Can you help us? can you help us I don't know if there's an updated framework that we can think about in terms of FPGA attach in the data center. i don't know if there's an updated framework that we can think about in terms of fpga attach in the data center I'm also really curious on the wireline side in addition to the server side. Any help on, I guess, content in the data center would be helpful. I'm also really curious on the wireline side in addition to the server side. i'm also really curious on the wireline side in addition to the server side Any help on, I guess, content in the data center would be helpful. any help on i guess content in the data center would be helpful

Speaker 3: Yes. Thank you, Melissa. You know, the couple of trends that I'll highlight in the recent customer visits I had to a server AM, and they showed me how the unit of rack is now gone from where they had, you know, only one rack to now four racks together. A compute rack, a networking rack, a power rack, and a cooling rack. You know, that's one change that is pretty profound and is gonna allow us to increase our content as in the comms as well as power and cooling. The second one, when you go visit these data centers, is you realize now these cooling racks are actually attached by these big pipes coming from the ceiling. It's gonna be much harder to change these cooling rack. Yes. yes Thank you, Melissa. thank you melissa You know, the couple of trends that I'll highlight in the recent customer visits I had to a server AM, and they showed me how the unit of rack is now gone from where they had, you know, only one rack to now four racks together. you know the couple of trends that i'll highlight in the recent customer visits i had to a server am and they showed me how the unit of rack is now gone from where they had you know only one rack to now four racks together A compute rack, a networking rack, a power rack, and a cooling rack. a compute rack a networking rack a power rack and a cooling rack You know, that's one change that is pretty profound and is gonna allow us to increase our content as in the comms as well as power and cooling. you know that's one change that is pretty profound and is gonna allow us to increase our content as in the comms as well as power and cooling The second one, when you go visit these data centers, is you realize now these cooling racks are actually attached by these big pipes coming from the ceiling. the second one when you go visit these data centers is you realize now these cooling racks are actually attached by these big pipes coming from the ceiling It's gonna be much harder to change these cooling rack. it's gonna be much harder to change these cooling rack These cooling rack may have a longevity need that's actually closer to our Industrial and Embedded business that may last for many years as opposed to the faster cadence of moving on the Compute side. In the presentation that we have at AMI, we are highlighting rack boots on slide 11, where now some of these, again, a new application where the cloud would like to not just power up a server at a time, they'd like to power up the whole rack at one point. You know, we can have some very interesting application FPGA in that new applications. That's pretty exciting. These cooling rack may have a longevity need that's actually closer to our Industrial and Embedded business that may last for many years as opposed to the faster cadence of moving on the Compute side. these cooling rack may have a longevity need that's actually closer to our industrial and embedded business that may last for many years as opposed to the faster cadence of moving on the compute side In the presentation that we have at AMI, we are highlighting rack boots on slide 11, where now some of these, again, a new application where the cloud would like to not just power up a server at a time, they'd like to power up the whole rack at one point. in the presentation that we have at ami we are highlighting rack boots on slide 11 where now some of these again a new application where the cloud would like to not just power up a server at a time they'd like to power up the whole rack at one point You know, we can have some very interesting application FPGA in that new applications. you know we can have some very interesting application fpga in that new applications That's pretty exciting. that's pretty exciting The third bullet there on slide 11, you could see that of that AMI application, you can see that people want to go and retrofit some of their older systems for better uptime and better security, better port detection. Again, that's another new opportunity. We're finding opportunities all the time. From a modeling point of view, we still have this forecast of a 16.5 million server in 2026. We're roughly saying about three FPGA per server on overall, okay? That gives you a number of total FPGA. We're roughly saying our, you know, you can calculate the percent. You can calculate the business, right? We just gave you today what we don't typically do, is that we gave you a breakdown of that server business in Q1. The third bullet there on slide 11, you could see that of that AMI application, you can see that people want to go and retrofit some of their older systems for better uptime and better security, better port detection. the third bullet there on slide 11 you could see that of that ami application you can see that people want to go and retrofit some of their older systems for better uptime and better security better port detection Again, that's another new opportunity. again that's another new opportunity We're finding opportunities all the time. we're finding opportunities all the time From a modeling point of view, we still have this forecast of a 16.5 million server in 2026. from a modeling point of view we still have this forecast of a 16.5 million server in 2026 We're roughly saying about three FPGA per server on overall, okay? we're roughly saying about three fpga per server on overall okay That gives you a number of total FPGA. that gives you a number of total fpga We're roughly saying our, you know, you can calculate the percent. we're roughly saying our you know you can calculate the percent You can calculate the business, right? you can calculate the business right We just gave you today what we don't typically do, is that we gave you a breakdown of that server business in Q1. we just gave you today what we don't typically do is that we gave you a breakdown of that server business in q1 You could take that 38% I just gave you, and you've got our number for Q1, you can see, how much revenue, we have and gives you a bit of an ASP, so that gives you all you need, I think, Melissa. You could take that 38% I just gave you, and you've got our number for Q1, you can see, how much revenue, we have and gives you a bit of an ASP, so that gives you all you need, I think, Melissa. you could take that 38% i just gave you and you've got our number for q1 you can see how much revenue we have and gives you a bit of an asp so that gives you all you need i think melissa

Speaker 5: Yeah. Our, by the way, our ASP is continuing to increase on a per unit basis through this progression as we, you know, we keep finding, you know, more value-added opportunities for our customers. Yeah. yeah Our, by the way, our ASP is continuing to increase on a per unit basis through this progression as we, you know, we keep finding, you know, more value-added opportunities for our customers. our by the way our asp is continuing to increase on a per unit basis through this progression as we you know we keep finding you know more value-added opportunities for our customers

Speaker 3: Yeah. As we said in the past, Melissa, what was helping us, number of server increasing, AI increasing. Actually, even shorter term, we've seen a big demand increase, not just only from AI, but traditional CPU and storage because of things like cloud and other agentic type of coding have driven not just the AI, but also the traditional CPU and storage. The attach rates, we continue to find new applications, new ASP, with the new product. The ASP continues to increase, hence increasing that server dollar amount. Yeah. yeah As we said in the past, Melissa, what was helping us, number of server increasing, AI increasing. as we said in the past melissa what was helping us number of server increasing ai increasing Actually, even shorter term, we've seen a big demand increase, not just only from AI, but traditional CPU and storage because of things like cloud and other agentic type of coding have driven not just the AI, but also the traditional CPU and storage. actually even shorter term we've seen a big demand increase not just only from ai but traditional cpu and storage because of things like cloud and other agentic type of coding have driven not just the ai but also the traditional cpu and storage The attach rates, we continue to find new applications, new ASP, with the new product. the attach rates we continue to find new applications new asp with the new product The ASP continues to increase, hence increasing that server dollar amount. the asp continues to increase hence increasing that server dollar amount

Speaker 6: Perfect. Thank you for all the color. Maybe just a quick follow-up. I mean, these growth rates seem to be a lot faster than maybe what we were expecting coming into the year. From a supply perspective, can you just talk about your ability to secure supply? It seems like your customer visibility is increasing, but what about your supplier visibility? Do you have the front end? Do you have the back end? Is there anything there that we should know? Perfect. perfect Thank you for all the color. thank you for all the color Maybe just a quick follow-up. maybe just a quick follow-up I mean, these growth rates seem to be a lot faster than maybe what we were expecting coming into the year. i mean these growth rates seem to be a lot faster than maybe what we were expecting coming into the year From a supply perspective, can you just talk about your ability to secure supply? from a supply perspective can you just talk about your ability to secure supply It seems like your customer visibility is increasing, but what about your supplier visibility? it seems like your customer visibility is increasing but what about your supplier visibility Do you have the front end? do you have the front end Do you have the back end? do you have the back end Is there anything there that we should know? is there anything there that we should know

Speaker 3: We do. We do. Our SVP of operations, Divyesh Shah, has been in the industry for a long time. He lives on a plane and lives as a, as a supplier, and we've had many calls to our supplier. Definitely have our strengths. This definitely is training us and working hard on it, though, and we have been able to secure supply. It comes at a cost. The costs are changing, but we're working with our customers and our suppliers to deal with this, and we're in good shape. We do. we do We do. we do Our SVP of operations, Divyesh Shah, has been in the industry for a long time. our svp of operations divyesh shah has been in the industry for a long time He lives on a plane and lives as a, as a supplier, and we've had many calls to our supplier. he lives on a plane and lives as a as a supplier and we've had many calls to our supplier Definitely have our strengths. definitely have our strengths This definitely is training us and working hard on it, though, and we have been able to secure supply. this definitely is training us and working hard on it though and we have been able to secure supply It comes at a cost. it comes at a cost The costs are changing, but we're working with our customers and our suppliers to deal with this, and we're in good shape. the costs are changing but we're working with our customers and our suppliers to deal with this and we're in good shape

Speaker 5: Yeah. I think, unlike some other industry players, you know, our wafers are more legacy node wafers, our supply there is less challenged. The back end is where we see pressure, and we keep expanding our supply chain in that area to provide a diversity of suppliers and additional capacity. We're actually beginning to bring our lead times down as we get that expanded supply. Yeah. yeah I think, unlike some other industry players, you know, our wafers are more legacy node wafers, our supply there is less challenged. i think unlike some other industry players you know our wafers are more legacy node wafers our supply there is less challenged The back end is where we see pressure, and we keep expanding our supply chain in that area to provide a diversity of suppliers and additional capacity. the back end is where we see pressure and we keep expanding our supply chain in that area to provide a diversity of suppliers and additional capacity We're actually beginning to bring our lead times down as we get that expanded supply. we're actually beginning to bring our lead times down as we get that expanded supply

Speaker 6: Perfect. Thank you. Over. Perfect. perfect Thank you. thank you Over. over

Speaker 5: Yeah. Okay. Yeah. yeah Okay. okay

Speaker 7: Our next question comes from Tristan Gerra with Robert W. Baird. Please state your question. Our next question comes from Tristan Gerra with Robert W. our next question comes from tristan gerra with robert w Baird. baird Please state your question. please state your question

Speaker 12: Hi. Good afternoon. Just as a follow-up to a earlier question, is there any step function increase in the content for Root of Trust security with the upcoming cyber and payment platform? Is there any potential for advanced content in the data center or is that going to be other end market? Hi. hi Good afternoon. good afternoon Just as a follow-up to a earlier question, is there any step function increase in the content for Root of Trust security with the upcoming cyber and payment platform? just as a follow-up to a earlier question is there any step function increase in the content for root of trust security with the upcoming cyber and payment platform Is there any potential for advanced content in the data center or i s that going to be other end market? is there any potential for advanced content in the data center or i s that going to be other end market

Speaker 3: Yeah. We're not commenting on specific platform, but our security continues to be a major factor in allowing us to grow our business here. The second question? Yeah. yeah We're not commenting on specific platform, but our security continues to be a major factor in allowing us to grow our business here. we're not commenting on specific platform but our security continues to be a major factor in allowing us to grow our business here The second question? the second question

Speaker 12: It was regarding Avant and whether there is any data center potential opportunities for the higher dense FPGA that's coming out. It was regarding Avant and whether there is any data center potential opportunities for the higher dense FPGA that's coming out. it was regarding avant and whether there is any data center potential opportunities for the higher dense fpga that's coming out

Speaker 3: Yes, absolutely. Absolutely. I'm not sure. Can you be a bit more specific? I'm not sure we understand the question. Go ahead. Yes, absolutely. yes absolutely Absolutely. absolutely I'm not sure. i'm not sure Can you be a bit more specific? can you be a bit more specific I'm not sure we understand the question. i'm not sure we understand the question Go ahead. go ahead

Speaker 12: Yeah. I was just wondering, you know, what type of use cases you see for Avant, and whether there's any data center applications, you know, potentially data paths or anything else outside of Root of Trust security or even for a Root of Trust security for Avant? Yeah. yeah I was just wondering, you know, what type of use cases you see for Avant, and whether there's any data center applications, you know, potentially data paths or anything else outside of Root of Trust security or even for a Root of Trust security for Avant? i was just wondering you know what type of use cases you see for avant and whether there's any data center applications you know potentially data paths or anything else outside of root of trust security or even for a root of trust security for avant

Speaker 3: Okay. I'm sorry. I get it now. You're asking whether our mid-term, mid-range FPGA Avant platform has application in data center. So far it's been mostly our Pre-Nexus and Nexus product is what is applicable for data center. As time goes by, Avant may find its way there, Avant is really focused on our Industrial and Embedded platform segment. Okay. okay I'm sorry. i'm sorry I get it now. i get it now You're asking whether our mid-term, mid-range FPGA Avant platform has application in data center. you're asking whether our mid-term mid-range fpga avant platform has application in data center So far it's been mostly our Pre-Nexus and Nexus product is what is applicable for data center. so far it's been mostly our pre-nexus and nexus product is what is applicable for data center As time goes by, Avant may find its way there, Avant is really focused on our Industrial and Embedded platform segment. as time goes by avant may find its way there avant is really focused on our industrial and embedded platform segment

Speaker 12: Okay. Okay. Then just a quick follow-up. You know, your gross margin starting to increase again, and your lead times have been expanding, which typically is good for ASP. I know you only guide a quarter at a time, but what's the, what's the potential for gross margin to go higher, given the supply constraint and the state of demand versus supply? Okay. okay Okay. okay Then just a quick follow-up. then just a quick follow-up You know, your gross margin starting to increase again, and your lead times have been expanding, which typically is good for ASP. you know your gross margin starting to increase again and your lead times have been expanding which typically is good for asp I know you only guide a quarter at a time, but what's the, what's the potential for gross margin to go higher, given the supply constraint and the state of demand versus supply? i know you only guide a quarter at a time but what's the what's the potential for gross margin to go higher given the supply constraint and the state of demand versus supply

Speaker 5: Yeah. You know, we've talked about this a few times, you know, especially leading into the year where we thought that we should be prudent about our outlook in gross margin because we saw the supply chain increases coming. What we have been able to do is continue to work with our customers on ways to offset the cost increases we're seeing. We do also, though, expect that the cost pressure will continue and increase relatively in the second half of this year versus the first half. We haven't. We're just, you know, given where we are in the year, we are not gonna give very precise guidance about the second half of the year. Yeah. yeah You know, we've talked about this a few times, you know, especially leading into the year where we thought that we should be prudent about our outlook in gross margin because we saw the supply chain increases coming. you know we've talked about this a few times you know especially leading into the year where we thought that we should be prudent about our outlook in gross margin because we saw the supply chain increases coming What we have been able to do is continue to work with our customers on ways to offset the cost increases we're seeing. what we have been able to do is continue to work with our customers on ways to offset the cost increases we're seeing We do also, though, expect that the cost pressure will continue and increase relatively in the second half of this year versus the first half. we do also though expect that the cost pressure will continue and increase relatively in the second half of this year versus the first half We haven't. we haven't We're just, you know, given where we are in the year, we are not gonna give very precise guidance about the second half of the year. we're just you know given where we are in the year we are not gonna give very precise guidance about the second half of the year You know, we are in the range, as I said before, 69.5% ±1%. This quarter we happen to be, you know, 70%, a little bit higher than that. You know, this is going to be the approximate range we see going forward. You know, we will provide you more specific guidance as we get into the second half of the year on how the cost increases are playing out. You know, we are in the range, as I said before, 69.5% ±1%. you know we are in the range as i said before 69.5% ±1% This quarter we happen to be, you know, 70%, a little bit higher than that. this quarter we happen to be you know 70% a little bit higher than that You know, this is going to be the approximate range we see going forward. you know this is going to be the approximate range we see going forward You know, we will provide you more specific guidance as we get into the second half of the year on how the cost increases are playing out. you know we will provide you more specific guidance as we get into the second half of the year on how the cost increases are playing out

Speaker 12: Great. Thank you. Great. great Thank you. thank you

Speaker 7: Our next question comes from Joshua Buchalter with TD Cowen. Please state your question. Our next question comes from Joshua Buchalter with TD Cowen. our next question comes from joshua buchalter with td cowen Please state your question. please state your question

Speaker 4: Hey, guys. This is Lannie on for Josh. Congratulations on the quarter, and I'll extend my congratulations for the deal as well. Focusing on the core business really quickly, you've mentioned that, you know, Lattice is still on track for hitting that over $1 billion run rate in the fourth quarter of this year. Can you clarify if that's specifically for the core business or is that inclusive of the AMI acquisition as well, since I know you've given kind of a estimated revenue for the year? Hey, guys. hey guys This is Lannie on for Josh. this is lannie on for josh Congratulations on the quarter, and I'll extend my congratulations for the deal as well. congratulations on the quarter and i'll extend my congratulations for the deal as well Focusing on the core business really quickly, you've mentioned that, you know, Lattice is still on track for hitting that over $1 billion run rate in the fourth quarter of this year. focusing on the core business really quickly you've mentioned that you know lattice is still on track for hitting that over $1 billion run rate in the fourth quarter of this year Can you clarify if that's specifically for the core business or is that inclusive of the AMI acquisition as well, since I know you've given kind of a estimated revenue for the year? can you clarify if that's specifically for the core business or is that inclusive of the ami acquisition as well since i know you've given kind of a estimated revenue for the year

Speaker 3: It is exclusive of the AMI acquisition. It is inclusive of the AMI acquisition. it is inclusive of the ami acquisition

Speaker 4: Got it. Specifically kind of, was there a follow-up to that? Sorry, I had a follow-up question afterwards, is there any additional thoughts? Got it. got it Specifically kind of, was there a follow-up to that? specifically kind of was there a follow-up to that Sorry, I had a follow-up question afterwards, is there any additional thoughts? sorry i had a follow-up question afterwards is there any additional thoughts

Speaker 3: No, no, go ahead. Go ahead. No, no, go ahead. no no go ahead Go ahead. go ahead

Speaker 4: Yeah, as it relates to, you know, AMI, I'm curious to know, you know, what kind of capabilities does this give Lattice that you didn't have before? If you could talk about AMI's current, you know, go-to-market and monetization strategy and how that fits in with Lattice's business model currently and then going forward as you integrate together. Thank you. Yeah, as it relates to, you know, AMI, I'm curious to know, you know, what kind of capabilities does this give Lattice that you didn't have before? yeah as it relates to you know ami i'm curious to know you know what kind of capabilities does this give lattice that you didn't have before If you could talk about AMI's current, you know, go-to-market and monetization strategy and how that fits in with Lattice's business model currently and then going forward as you integrate together. if you could talk about ami's current you know go-to-market and monetization strategy and how that fits in with lattice's business model currently and then going forward as you integrate together Thank you. thank you

Speaker 3: Yeah. Thank you. You know, first, as you said, we together expecting to exit the year at this $1 billion run rate at this roughly 40% free cash flow. You could see we'd be able to deliver pretty fast, you know, from there. That's what we think is a beautiful business. The combination is gonna be very strong financially. Then, from a capability point of view, it gives us much stronger system skills, jointly, that and allow us to bring these solutions to customer much faster. It's a capability that we'll be adding. We'll be able to discuss further at our next quarterly call. Yeah. yeah Thank you. thank you You know, first, as you said, we together expecting to exit the year at this $1 billion run rate at this roughly 40% free cash flow. you know first as you said we together expecting to exit the year at this $1 billion run rate at this roughly 40% free cash flow You could see we'd be able to deliver pretty fast, you know, from there. you could see we'd be able to deliver pretty fast you know from there That's what we think is a beautiful business. that's what we think is a beautiful business The combination is gonna be very strong financially. the combination is gonna be very strong financially Then, from a capability point of view, it gives us much stronger system skills, jointly, that and allow us to bring these solutions to customer much faster. then from a capability point of view it gives us much stronger system skills jointly that and allow us to bring these solutions to customer much faster It's a capability that we'll be adding. it's a capability that we'll be adding We'll be able to discuss further at our next quarterly call. we'll be able to discuss further at our next quarterly call When we get in front of you to discuss Q2 and guide to Q3, we'll be able to give you a lot more details on some of the AMI business and go into a bit more of the detail on their financials. Today, we want to, you know, focus on our business, introduce the acquisition, and it's going to take us two months to close, expected in early Q3. At that time, we'll be able to fully give you all the details on their business. When we get in front of you to discuss Q2 and guide to Q3, we'll be able to give you a lot more details on some of the AMI business and go into a bit more of the detail on their financials. when we get in front of you to discuss q2 and guide to q3 we'll be able to give you a lot more details on some of the ami business and go into a bit more of the detail on their financials Today, we want to, you know, focus on our business, introduce the acquisition, and it's going to take us two months to close, expected in early Q3. today we want to you know focus on our business introduce the acquisition and it's going to take us two months to close expected in early q3 At that time, we'll be able to fully give you all the details on their business. at that time we'll be able to fully give you all the details on their business

Speaker 4: All right. Thank you very much. All right. all right Thank you very much. thank you very much

Speaker 7: Our next question comes from Quinn Bolton with Needham & Company. Please state your question. Our next question comes from Quinn Bolton with Needham & Company. our next question comes from quinn bolton with needham & company Please state your question. please state your question

Speaker 8: Thanks for squeezing me in, guys. I'll also add my congratulations. For maybe just a high-level question on AMI acquisition. AMI talks about security board management. You've historically talked about, you know, similar things for your FPGAs. Can you just spend a minute, is there any place where the two businesses compete, or is it truly complementary? Does the Lattice FPGA Root of Trust protect the AMI firmware BIOS, you know, as it resides in the servers? Just, you know, is there any sort of direct overlap between the two businesses? Thanks for squeezing me in, guys. thanks for squeezing me in guys I'll also add my congratulations. i'll also add my congratulations For maybe just a high-level question on AMI acquisition. for maybe just a high-level question on ami acquisition AMI talks about security board management. ami talks about security board management You've historically talked about, you know, similar things for your FPGAs. you've historically talked about you know similar things for your fpgas Can you just spend a minute, is there any place where the two businesses compete, or is it truly complementary? can you just spend a minute is there any place where the two businesses compete or is it truly complementary Does the Lattice FPGA Root of Trust protect the AMI firmware BIOS, you know, as it resides in the servers? does the lattice fpga root of trust protect the ami firmware bios you know as it resides in the servers Just, you know, is there any sort of direct overlap between the two businesses? just you know is there any sort of direct overlap between the two businesses

Speaker 3: Yeah, great question, Quinn. We have been working together since 2019, so it's been seven years of close collaboration. There is no place where we compete. This is totally complementary. It's actually very complementary to our customer and should really benefit our customer and partners. We are committed to remain agnostic. You know, they support all the other silicon partners, and we are partnered through the same silicon partners, so we see it very complementary and beneficial to our, not only the customers, but also the partners. It should be very strong, 1 + 1 = 3. Sanjoy is sitting with me today. He has plans for four, five, and six. He's laughing here. Yeah, great question, Quinn. yeah great question quinn We have been working together since 2019, so it's been seven years of close collaboration. we have been working together since 2019 so it's been seven years of close collaboration There is no place where we compete. there is no place where we compete This is totally complementary. this is totally complementary It's actually very complementary to our customer and should really benefit our customer and partners. it's actually very complementary to our customer and should really benefit our customer and partners We are committed to remain agnostic. we are committed to remain agnostic You know, they support all the other silicon partners, and we are partnered through the same silicon partners, so we see it very complementary and beneficial to our, not only the customers, but also the partners. you know they support all the other silicon partners and we are partnered through the same silicon partners so we see it very complementary and beneficial to our not only the customers but also the partners It should be very strong, 1 + 1 = 3. it should be very strong 1 + 1 = 3 Sanjoy is sitting with me today. sanjoy is sitting with me today He has plans for four, five, and six. he has plans for four five and six He's laughing here. he's laughing here

Speaker 8: Excellent. Excellent. Then, honestly, you guys had a great start to the year in terms of revenue growth. I think we came into the year, thinking, the server business could be up something like 20%-40% in Industrial, and now I guess the Embedded business up 5%-15%. Looks like you're tracking well above that. I don't know if you're prepared to perhaps talk about growth rates for those businesses, you know, given the strong start to the year, but I figured I'd ask. Excellent. excellent Excellent. excellent Then, honestly, you guys had a great start to the year in terms of revenue growth. then honestly you guys had a great start to the year in terms of revenue growth I think we came into the year, thinking, the server business could be up something like 20%-40% in Industrial, and now I guess the Embedded business up 5%-15%. i think we came into the year thinking the server business could be up something like 20%-40% in industrial and now i guess the embedded business up 5%-15% Looks like you're tracking well above that. looks like you're tracking well above that I don't know if you're prepared to perhaps talk about growth rates for those businesses, you know, given the strong start to the year, but I figured I'd ask. i don't know if you're prepared to perhaps talk about growth rates for those businesses you know given the strong start to the year but i figured i'd ask

Speaker 5: Well, you know, for the, for the year, it's still early. I would say that the trend that started late last year and has led to our results in the first quarter continues. That trend is, you know, our business continues to book in very, very strong. The customers are continuing to increase their demand. We are booking out even longer in time. At this point in time, you know, we have high confidence that, you know, our growth this year will be strong. It'll be stronger than we originally thought at the beginning of the year. Comms and Compute as an end market will be the key driver of that for the reasons we all know. Well, you know, for the, for the year, it's still early. well you know for the for the year it's still early I would say that the trend that started late last year and has led to our results in the first quarter continues. i would say that the trend that started late last year and has led to our results in the first quarter continues That trend is, you know, our business continues to book in very, very strong. that trend is you know our business continues to book in very very strong The customers are continuing to increase their demand. the customers are continuing to increase their demand We are booking out even longer in time. we are booking out even longer in time At this point in time, you know, we have high confidence that, you know, our growth this year will be strong. at this point in time you know we have high confidence that you know our growth this year will be strong It'll be stronger than we originally thought at the beginning of the year. it'll be stronger than we originally thought at the beginning of the year Comms and Compute as an end market will be the key driver of that for the reasons we all know. comms and compute as an end market will be the key driver of that for the reasons we all know The Industrial and Embedded, though, is recovering, and we saw signs of that in the first quarter. I would say, you know, the extremely high year-over-year growth rates might not hold for the rest of the year for the compute and the server, but we will be pretty strong. The comms business will be aligned. You know, it kind of goes up and down relative to the compute growth rate, but it's still gonna be pretty high. Like I said, Industrial and Embedded will continue to grow, but probably not at the rate that we saw in Q1 versus Q4 of last year. The Industrial and Embedded, though, is recovering, and we saw signs of that in the first quarter. the industrial and embedded though is recovering and we saw signs of that in the first quarter I would say, you know, the extremely high year-over-year growth rates might not hold for the rest of the year for the compute and the server, but we will be pretty strong. i would say you know the extremely high year-over-year growth rates might not hold for the rest of the year for the compute and the server but we will be pretty strong The comms business will be aligned. the comms business will be aligned You know, it kind of goes up and down relative to the compute growth rate, but it's still gonna be pretty high. you know it kind of goes up and down relative to the compute growth rate but it's still gonna be pretty high Like I said, Industrial and Embedded will continue to grow, but probably not at the rate that we saw in Q1 versus Q4 of last year. like i said industrial and embedded will continue to grow but probably not at the rate that we saw in q1 versus q4 of last year They did grow 10% year-over-year, Industrial and Embedded, and that's a pretty good range to think about the year. They did grow 10% year-over-year, Industrial and Embedded, and that's a pretty good range to think about the year. they did grow 10% year-over-year industrial and embedded and that's a pretty good range to think about the year

Speaker 3: Quinn, right now, as Lorenzo was saying, the demand is strong for the foreseeable future and bookings well into 2027. Quinn, right now, as Lorenzo was saying, the demand is strong for the foreseeable future and bookings well into 2027. quinn right now as lorenzo was saying the demand is strong for the foreseeable future and bookings well into 2027

Speaker 8: Got it. Can I ask a quick just clarification on the deal? Will THL Partners be locked up for any period of time post-close on that $650 million of equity issued, or are they free to sell once the deal closes? Got it. got it Can I ask a quick just clarification on the deal? can i ask a quick just clarification on the deal Will THL Partners be locked up for any period of time post-close on that $650 million of equity issued, or are they free to sell once the deal closes? will thl partners be locked up for any period of time post-close on that $650 million of equity issued or are they free to sell once the deal closes

Speaker 5: No, they. No, they. no they

Speaker 3: Go ahead. Go ahead. go ahead

Speaker 5: Yeah, they have a lockup that extends through the year. It's, you know, 25% per quarter. Yeah, they have a lockup that extends through the year. yeah they have a lockup that extends through the year It's, you know, 25% per quarter. it's you know 25% per quarter

Speaker 3: 12 months. 12 months from close. 12 months. 12 months from close. 12 months 12 months from close

Speaker 5: Yeah, twelve months from close, for a year, not through the year. Thank you. Yeah, twelve months from close, for a year, not through the year. yeah twelve months from close for a year not through the year Thank you. thank you

Speaker 8: Perfect. Okay, thank you. Perfect. perfect Okay, thank you. okay thank you

Speaker 7: Our next question comes from Duksan Jang with Bank of America. Please state your question. Our next question comes from Duksan Jang with Bank of America. our next question comes from duksan jang with bank of america Please state your question. please state your question

Speaker 2: Hi, thank you for taking the question and congrats on the strong results as well. Just following up on some of the earlier gross margin questions. You've been talking about bookings strong well into 2027. Backlog is building up. The lead times are expanding. You know, that the AMI margins are stronger. Is it possible that the margin structure now is more structurally just higher than before? I think you haven't really sustained 70%+ before, now should we think this is something more achievable at this point? Hi, thank you for taking the question and congrats on the strong results as well. hi thank you for taking the question and congrats on the strong results as well Just following up on some of the earlier gross margin questions. just following up on some of the earlier gross margin questions You've been talking about bookings strong well into 2027. you've been talking about bookings strong well into 2027 Backlog is building up. backlog is building up The lead times are expanding. the lead times are expanding You know, that the AMI margins are stronger. you know that the ami margins are stronger Is it possible that the margin structure now is more structurally just higher than before? is it possible that the margin structure now is more structurally just higher than before I think you haven't really sustained 70%+ before, now should we think this is something more achievable at this point? i think you haven't really sustained 70%+ before now should we think this is something more achievable at this point

Speaker 3: No, that's an. This opens up opportunities for us that we may have been shied away from before and across the various markets. We don't intend to go much above that, and we can we? Sure, we can. I think right now there are opportunities for us that we haven't gone after that we could go after. It could potentially open up a higher top line. No, that's an. no that's an This opens up opportunities for us that we may have been shied away from before and across the various markets. this opens up opportunities for us that we may have been shied away from before and across the various markets We don't intend to go much above that, and we can we? we don't intend to go much above that and we can we Sure, we can. sure we can I think right now there are opportunities for us that we haven't gone after that we could go after. i think right now there are opportunities for us that we haven't gone after that we could go after It could potentially open up a higher top line. it could potentially open up a higher top line

Speaker 2: Got it. Then one follow-up is just on broader competitiveness of the supply chain. I ask this because clearly Intel has now divested Altera, and it's now a standalone company. We haven't heard much since from them, but they clearly have a much different supply chain with the internal manufacturing team. Do you think that gives them a lot more advantage in this supply constraint environment? And if not, could you explain why? Thank you. Got it. got it Then one follow-up is just on broader competitiveness of the supply chain. then one follow-up is just on broader competitiveness of the supply chain I ask this because clearly Intel has now divested Altera, and it's now a standalone company. i ask this because clearly intel has now divested altera and it's now a standalone company We haven't heard much since from them, but they clearly have a much different supply chain with the internal manufacturing team. we haven't heard much since from them but they clearly have a much different supply chain with the internal manufacturing team Do you think that gives them a lot more advantage in this supply constraint environment? do you think that gives them a lot more advantage in this supply constraint environment And if not, could you explain why? and if not could you explain why Thank you. thank you

Speaker 3: Yeah. Look, our supplier have been fantastic. We are with UMC, Samsung, and TSMC on the fab side. extremely supportive and, you know, we have strong assembly and test partners. We're adding more because this is where the shortages are. So far, we feel very good of our supply chain and our ability to supply. That's not an issue for us. Yeah. yeah Look, our supplier have been fantastic. look our supplier have been fantastic We are with UMC, Samsung, and TSMC on the fab side. extremely supportive and, you know, we have strong assembly and test partners. we are with umc samsung and tsmc on the fab side extremely supportive and you know we have strong assembly and test partners We're adding more because this is where the shortages are. we're adding more because this is where the shortages are So far, we feel very good of our supply chain and our ability to supply. so far we feel very good of our supply chain and our ability to supply That's not an issue for us. that's not an issue for us

Speaker 2: All right. Thank you. All right. all right Thank you. thank you

Speaker 7: Ladies and gentlemen, that concludes the time we had for the Q&A session. I will now turn the call back to the company's Rick Muscha for any closing comments. Ladies and gentlemen, that concludes the time we had for the Q&A session. ladies and gentlemen that concludes the time we had for the q&a session I will now turn the call back to the company's Rick Muscha for any closing comments. i will now turn the call back to the company's rick muscha for any closing comments

Speaker 9: Great. Thanks everyone for joining us on the call today. We'll be attending the following investor events this quarter: the JPMorgan 2026 Global TMT Conference on May 19th in Boston and the TD Cowen 54th Annual TMT Conference in New York City on May 28th. This completes our call. Thank you very much for your participation and have a good evening. Great. great Thanks everyone for joining us on the call today. thanks everyone for joining us on the call today We'll be attending the following investor events this quarter: the JP Morgan 2026 Global TMT Conference on May 19th in Boston and the TD Cowen 54th Annual TMT Conference in New York City on May 28th. we'll be attending the following investor events this quarter the jp morgan 2026 global tmt conference on may 19th in boston and the td cowen 54th annual tmt conference in new york city on may 28th This completes our call. this completes our call Thank you very much for your participation and have a good evening. thank you very much for your participation and have a good evening

Speaker 7: Thank you. Ladies and gentlemen, the conference call of Lattice Semiconductor has concluded. Thank you for your participation. You may now disconnect your lines. Thank you. thank you Ladies and gentlemen, the conference call of Lattice Semiconductor has concluded. ladies and gentlemen the conference call of lattice semiconductor has concluded Thank you for your participation. thank you for your participation You may now disconnect your lines. you may now disconnect your lines