The move is expected to result in approximately $25 million of primarily non-cash restructuring and impairment charges in the second quarter of 2018. and is expected to generate an annualised reduction in operating expenses of approximately $13 million.
According to Lattice the decision is unlikely to have a significant impact in terms of its potential full year 2018 revenue due to strength in other areas of its business. Lattice said that it was committed to supporting customers’ product and support requirements during the transition period.
Commenting Glen Hawk, Lattice Semiconductor’s Interim Chief Executive Officer, said, "After careful evaluation, millimetre wave was determined to be a non-core business, unable to achieve the required near-term scale to be profitable or to warrant any further investment. We considered various strategic alternatives for this business but none proved to be viable.
"We have taken this concrete action to further sharpen our focus on the compelling opportunities in our core business. We continue working to further improve operational efficiencies and to accelerate revenue growth of our existing semiconductor solutions into attractive control, connect and compute applications.”
