-- Fourth quarter revenue is now expected to be approximately $53 million to $54 million. This is a revision from previous guidance of $57 million to $59 million. Reduction in expected revenue is primarily due to: -- Weaker than anticipated turns orders in Asia, particularly in China, primarily due to year-end inventory reductions by major customers in the communications market. -- Weaker than anticipated resale trends in North America and Europe. The fourth quarter revenue decline is expected to be concentrated in Mainstream and Mature products. New products are expected to continue to grow strongly in the fourth quarter. -- Total operating expenses for the fourth quarter are now expected to be approximately $34 million. -- Other income is now expected to be approximately $1.5 million. The revision from previous guidance is due to an anticipated investment gain that will now not occur in the fourth quarter.
No conference call will be held in conjunction with this guidance update. Additional information related to the quarter will be available when the Company reports its fourth quarter results on January 24, 2008.
The foregoing business update contains forward-looking statements. Lattice believes the factors identified below in connection with each such statement could cause actual results to differ materially from the forward-looking statements.
Estimates of future revenue are inherently uncertain due to the high percentage of quarterly "turns" business, as well as such factors as pricing pressures, competitive actions, the demand for our products, and our ability to supply products to customers in a timely manner. Actual gross margin percentage and operating expenses could vary from the estimates contained herein on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly and test costs, variations in manufacturing yields, and changes in stock-based compensation charges due to stock price changes.
In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements herein include the Company's dependencies on its silicon wafer suppliers, technological and product development risks, and other risks that are described from time to time in our filings with the Securities and Exchange Commission. The Company does not intend to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Lattice Semiconductor
Lattice Semiconductor Corporation provides the industry's broadest range of Programmable Logic Devices (PLD), including Field Programmable Gate Arrays (FPGA), Complex Programmable Logic Devices (CPLD), Mixed-Signal Power Management and Clock Generation Devices, and industry-leading SERDES products.
Lattice continues to deliver "More of the Best" to its customers with comprehensive solutions for system design, including an unequaled portfolio of high-performance, non-volatile and low-cost FPGAs.
Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in communications, computing, industrial, consumer, automotive, medical and military end markets. For more information, visit http://www.latticesemi.com.
Lattice Semiconductor Corporation, Lattice (& design), L (& design), and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.