Lattice Semiconductor is Latest to Miss Its Mark

When Texas Instruments (TXN) missed their earnings target we noted they were the latest in a string of semiconductor manufacturers serving the wireless food chain to miss. We also offered up a list of other potential candidates for a comeuppance, on the basis of serving wireless end markets and having a high P/E multiple.

Lattice Semiconductor (LSCC) is the latest to fulfill the prophesy.

Lattice Semiconductor [yesterday] announced its business update for the fourth quarter of 2006.The updated guidance is as follows:

– The Company now expects fourth quarter revenue to be 2% - 4% lower than the third quarter of 2006 due to weaker than anticipated turns business in the fourth quarter, particularly from the Company’s major communications customers. This is a revision of previous guidance of 0% to up 4% sequentially.

– Total operating expenses are now expected to be in the range of $35 -$36 million, including an estimated $1.1 million of stock-based compensation. This is a revision of previous guidance of $36 million.

While Lattice didn’t make our list of names to watch out for, it certainly fit the criteria.

LSCC 1-yr chart: