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 on 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 is currently available, and that actual results may differ materially.

We refer you to the documents that the company files with the SEC, including our 10-Ks, 10-Qs, and 8-Ks. 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 end 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 recast 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, and our second quarter outlook reflects our expected continued momentum across the business. This is the seventh earnings call since I joined Lattice, and 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 3 months last quarter to close to 2 months of inventory on hand. We expect this trend to continue to under 2 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 the 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, I/O aggregation, flexible bridging, and control.

This approach allows Lattice to participate across hyperscale data centers, communications 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 44 cents 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'll be able to consistently drive earnings growth that significantly outpacing revenue growth.

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, creates the industry's most complete secure management and control platform.

Together, we enable customers to accelerate development, simplify system integration, and bring increasingly complex platforms to market faster across AI servers, advanced compute, communications 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 the transaction to be accretive to gross margins, 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 41 cents, 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. Now for our guidance.

We are targeting closing the AMI acquisition in Q3, this guidance reflects expectations for Lattice standalone. In Q2 2026, we expect revenues to grow in the range of $175 million to $195 million.

At the midpoint of this range, this is almost 50% growth from Q2 '25 and 8% over Q1. We expect gross margin to be 70%, plus or minus 1%, on a non-GAAP basis.

We expect non-GAAP operating expense to be between $64 million and $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 42 cents per share and 46 cents 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. This 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. Now 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 support our customers value. We also share the same commitment to discipline execution, strong margins, and focus on building values for our investors.

Thank you again. I am very excited and looking forward to build a great future together.

Sanjoy, great to have you here. Welcome to Lattice.

Operator, we can now take questions.

Yes. Thank you.

Hey, guys. Congratulations on the strong results and outlook and the deal announcement.

I guess, Ford, 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 installed base versus you talk about combined solution categories, etc., 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 the served or serviceable available market to us to double from about what we think was about $6 billion currently to about $12 billion jointly with AMI over the next 3 to 4 years. That main increase would come from this compute and communication subsegment.

As you pointed out, the two major indicators in that segment are the percent server and the percent AI. A good follow-on question.

On the percent server, that has been going 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 subsegment is the percent of our revenue coming from AI.

Again, it grew from the mid-teens in '24 to the high teens last year to what 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 coms 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 the software and firmware business relative to your 70% non-GAAP gross margin run rate at this point?

How much of the accretion, as you look ahead, would be structural versus maybe dependent on synergies, revenue or otherwise? Thank you.

Yeah. That's a great question, Ruben.

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 mid-term 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, operating model that AMI has is, we are not dependent upon synergies to make the deal accretive. In fact, AMI's business is very high gross margin.

It's higher than ours, and we'll share some more detail on that later. Then 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 close to ours and maybe slightly above ours right now. If you think about it that way, you can see that there is not a dependency on cost cutting.

We'll look at efficiencies through time for sure, but on a go-forward basis, we're able to fund the debt and cover the interest and still show accretion immediately.

Appreciate all the detail. Congrats again.

Thank you.

Hi, guys. Thank you for the question.

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 in-firm management software.

Would love to know just kind of the cross-synergies here between Lattice FPGAs and what you're going to 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 '26, but that growth rate expectation moving forward would be very helpful for us as well.

Yeah. Thank you, Chris.

Let me start in trying to explain this, let me start going to 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, and 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 7 that provided us with protocol software.

What we were able to do is to use that to come up with reference designs 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 that was successful and 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.

Then the second one was at Inphi, where we were actually when I joined, we were sending TIA. 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 module, for Microsoft for between data center 80 km at the time. It was called COLORZ.

Some of some of you on the line know it very well. That sort of complementary addition of a system or subsystem skill, if you wish, with module was very critical.

We we debated at length whether this was going to be a departure from selling silicon and components. It made And 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 it started with Microsoft, then eventually it became the whole market. Today, it's very standardized across the whole market.

The addition of that module system subsystem skills were very critical in in the success because these folks had the folks on the on the silicon side go to market faster and and and do a better job. The history of AMI has 40 years of developing these test cases and and very deep knowledge of the whole industry from server to switch to NIC to, they're the first one to be brought up on when a CPU gets brought up.

They're the first one to be brought up when a GPU gets brought up. They're the first one 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 ASPEED, the Nuvoton, the NXP, the others in the market.

It's it's an extremely strategic move for us that that complements our our, FPGA, low-power FPGA business. The growth rates are going to be in the high teens, and 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 could see we're growing at 40% on the revenue, and 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 '28 time frame as these solutions go to market. Solutions are being fielded today, in discussions today.

We've had many discussions with many customers about these solutions. They're very excited about it, and it's going to be a very exciting very exciting, growth.

Now I I we've got a presentation investor deck on our on our website, and if you if I if you could turn to it, please, it details the AMI acquisition. On slide 5, it shows you the challenges that the data center face today as as you go from managing servers to racks to pods to the whole data center.

This modularity becomes extremely important. AI is is adding a lot of complexity.

Uptime, these components, GPUs, which are very expensive, uptime is very key. There is a huge pressure on time to market and shift left, as shown on slide 5.

Then if you if you jump to slide slide 11 slide 11 shows I'm sorry, slide yes, 11, it shows the solutions that we're providing together through these challenges. Things like rack boot, power and cooling, retrofit, and plug and play are going to be solutions that we provide together as long along with our low-power FPGA and the platform firmware and manageability 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 guys said inventory maybe was even under 2 months at this point in time. We should have an uplift here.

I think we can see it in the guide. If you want to talk about it more broadly, just as you are no longer burning, and could there potentially even be an opportunity to refill?

How are you guys thinking about all this into the future? Next quarter, will we be balanced?

Yeah. Good question.

Look, we're very excited about it. What I would say, Chris, is this is part of telling you what we're going to do and do what we say.

I told you when I joined now about a year and a half ago, this is my seventh quarterly call, that we're going to bring this under control. When I joined, the numbers were closer to six.

We told you it would be at three by end of last year, and we did. End of '25 got to three.

I told you we're going to 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 then 1.X.

We may be entering a very strong period here. You could see our industrial and embedded business grew 22% sequentially, which is amazing.

Hopefully more to come. Lorenzo, you want to add to this?

Yeah. No,

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 this is what I would characterize as a non-issue for Lattice going forward, and 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, our build is much more efficient.

Thank you, guys. Appreciate it.

Congrats.

Yep.

Hi there. Thank you so much for letting me ask a question.

Congrats on nice results, an 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 the wireline side in addition to the server side. Any any help on, I guess, content in the data center would be helpful.

Yes. Thank you, Melissa.

The couple of trends that I'll highlight in in the the recent customer visits I had to a server OEM, and they showed me how the unit of a rack is now gone from where they had, all in one rack to now four racks together: a compute rack, a networking rack, a power rack, and a cooling rack. That's one change that is pretty profound and is going to allow us to increase our content as in in the coms 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 going to be much harder to to change the the these cooling racks.

These cooling racks may have a longevity need that's actually closer to our industrial and embedded business that that may may last for many years as opposed to the the faster cadence of moving on the on the on the compute side. In the presentation that we have about AMI, we are highlighting rack boot on slide 11 where now some of these This is again a new application where the cloud would like to not just power up a server at a time, would like to power up the whole rack at one point.

We can have some very interesting application, FPGA in in that new application. That's pretty exciting.

The third bullet there on slide 11, you could see that of that AMI application, you could see that people want to go and retrofit some of their older systems for better uptime and better security, better fault detection. Again, that's another new opportunity.

We're we're finding opportunities all the time. From from a from a modeling point of view, we still have this forecast of about 16.5 million servers in 2026.

We're roughly saying about three FPGAs per server on overall. Okay?

That gives you a number of total FPGA. We're roughly saying our you can calculate the percent you can calculate the business, right?

We just gave you today what we don't typically do, but we gave you a breakdown of that server business in Q1, you could take that 38% I just gave you. You've got our number for Q1.

You could see how much revenue we have, and it gives you a bit of a of an ASP. That that gives you all you need, I think, Melissa.

Yeah. By the way, our ASP is continuing to increase on a per-unit basis through this progression as we keep finding more value-added opportunities for our customers.

Yeah. As we've said in the past, Melissa, what's 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 Claude 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 new product, ASP continues to increase, hence increasing that server dollar amount.

Perfect. Thank you for all the color.

Then maybe just a quick follow-up. 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 anything there that we should be

worried about? We do.

Our Senior VP of Operations, Divya Shah, has been in the industry for a long time. He lives on a plane and lives at the supplier, and we've had many calls with our suppliers.

This definitely is straining us. Working hard on it, though, and we have been able to secure supply.

It comes at a cost, the costs are challenging, but we're working with our customers, our suppliers to deal with this, and we're in good shape.

Yeah. I think, unlike some other industry players, our wafers are more legacy-node wafers, and so 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.

Perfect.

Yeah. Okay.

Hi. Good afternoon.

Just as a follow-up to an earlier question, is there any step-function increase in the content for root of trust security with the upcoming Turin and Cayman platforms? Also, is there any potential for Avant content in data center, or is that going to be in the other end market?

Yeah. We're not commenting on specific platforms, but our security continues to be a major factor in allowing us to grow our business here.

The second question?

Was regarding Avant and whether there is any data center potential opportunities for the higher-density FPGA that's coming out.

Yes. Absolutely.

Absolutely. What Can you I'm not sure.

Can you speak be a bit more specific? We we What What are you Can you I'm not sure we understand the question.

Go Go ahead.

Yeah. I was just wondering what type of use cases you see for Avant and whether there's any data center applications, potentially data path or anything else outside of root of trust security, or even for root of trust security for Avant.

Okay. I'm sorry.

Now I get it. You're asking whether our mid-range FPGA, Avant platform, has applications in data center.

Far, it's been mostly our Certus-NX and Nexus product is what is applicable for data center. As time goes by, Avant may find its way there, but Avant is really focused on our industrial and embedded platform segment.

Okay. Then just a quick follow-up.

Your gross margin is 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 potential for gross margin to go higher given the supply constrain and the state of demand versus supply?

Yeah. We've talked about this a few times, 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're just, given where we are in the year, we are not going to give very precise guidance about the second half of the year, but we're in the range. I said before, 69.5%, plus or minus 1%.

This quarter we happen to be 70%, a little bit higher than that. This is going to be the approximate range we see going forward.

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.

Hi, 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 mentioned that 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 an estimated revenue for the year?

It is inclusive of the AMI acquisition.

Got it. Then specifically kind of Oh, was there a follow-up to that?

Sorry. I had a follow-up question afterwards, but if there are additional thoughts.

No. Go ahead.

Oh.

Yeah. As it relates to AMI, I'm curious to know what kind of capabilities did this give Lattice that you didn't have before, and if you could talk about AMI's current 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.

First, as you said, we we together expect to exit the year at this billion run rate at this roughly 40% free cash flow. You could see we'd be able to delever pretty fast, from from there.

That that's what we think is a beautiful business. The combination is going to 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 the at the next quarter 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 the on their financials.

Today, we wanted to, focus on our business, introduce the acquisition. It's going to take us a couple of months to close, expected in early Q3.

Then at that time, we'll be able to fully give you all the details on on their business.

All right. Thank you very much.

Hi, Ford. Good afternoon, guys.

I'll also add my congratulations. Ford, maybe just a high-level question on the AMI acquisition.

AMI talks about security, board management. You've historically talked about 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 as it resides in the servers?

Just is there any sort of direct overlap between the two businesses?

Yeah. Great question, Quinn.

We have been working together since 2019, it's been 7 years of close collaboration. There is no place where we compete.

It's totally complementary. It's actually very complementary to our customer and should really benefit our customer and partners.

We are committed to remain agnostic. They support all the other silicon partners, and we are partnered to the same silicon partners.

We see it very complementary and beneficial to 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 4, 5, and 6, hopefully.

He's laughing here, so.

Excellent. Excellent.

Then obviously, you guys 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% to 40% and industrial and now I guess the embedded business up 5% to 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, given the strong start to the year, but I figured I'd ask.

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, and that trend is, our business continues to book in very, very strong.

The customers are continuing to increase their demand, and we are booking out even longer in time. At this point in time, we have high confidence that our growth this year will be strong.

It will be stronger than we originally thought at the beginning of the year. Compute and coms 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, the extremely high year-on-year growth rates might not hold for the rest of the year for the compute and the server, but it will be pretty strong.

The coms business will be aligned, it kind of goes up and down relative to the compute growth rate, but it's still going to 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, you're 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.

Go ahead.

Yeah. They have a lockup that extends through the year.

It's 25% per quarter. For

12 months. For 12 months from close.

Yeah, 12 months from close for a year, not through the year. Thank you.

Perfect. Okay.

Thank you.

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 well into '27.

Backlog is building up. The lead times are expanding.

You said the AMI margins are stronger. Is it possible that the margin structure now is more structurally just higher than before?

I think you're touching into untouched territories. I think you haven't really sustained 70% plus before, but now should we think this is something more achievable at this point?

No. This opens up opportunities for us that we may have been shied away from before across the various markets.

We don't intend to go much above that. 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 to 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-constrained environment? 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, and extremely supportive. We have strong assembly and test partners.

We're adding more because this is where the shortages are. Far, we feel very good about our supply chain, our ability to supply.

That's not an issue for us.

All right. Thank you.

Great. Thanks, everyone, for joining us on the call today.

We'll be attending the following investor events this quarter: the J.P. Morgan 2026 Global TMT Conference on May the 19th in Boston, and the TD Cowen 54th Annual TMT Conference in New York City on May 28th.

This concludes our call. Thank you very much for your participation, and have a good evening.

Goodbye.