Lattice Semiconductor has reported single-digioat sales growth in 2011 but warns of weakness in the FPGA market and a "softening of demand".
The chip supplier reported fourth quarter revenues of $70.2m, a decrease of 14% from Q3 and a decrease of 4% from the $73.1 million reported in the same quarter a year ago.
FPGA revenue for the fourth quarter was lower at $22.1m.
"We achieved approximately 7% revenue growth in 2011 compared to 2010, even with ongoing, broader market weakness and the macro softening of demand, primarily in the communications business," said Darin Billerbeck, president and CEO.
In the quarter Lattice strengthened its position in the mobile market with the $63m acquisition of SiliconBlue.
"Our integration of the SiliconBlue acquisition is progressing well. Importantly, we believe this acquisition will accelerate our growth strategy in the Consumer market driven by its desire for longer battery life, more natural interfaces, increased functionality, smaller form factors and lower cost," said Billerbeck.
Net income increased in the fourth quarter to $40.9m, this was helped by a tax benefit of $35.1m related to the release of tax valuation allowance for certain deferred tax assets.
Lattice said it will complete its global tax restructuring during the first quarter of 2012, which will result in a tax provision of approximately $10.8m.
Fourth quarter 2011 financial results include approximately $1.1m of restructuring related charges, as compared to approximately $1.8m of restructuring related charges included in the third quarter 2011 financial results. The fourth quarter of 2011 also included $0.5m related to acquisition charges.
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