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Research Alert: Lscc: All Around Beat Driven By Ai Server Strength; New Deal Announced

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

LSCC delivered a Q1 beat with record revenue of $170.9M (+42.2% Y/Y, +17.2% Q/Q), well above the guided range of $158M-$172M and consensus of $165M. Non-GAAP EPS of $0.41 (+86% Y/Y) exceeded the $0.37 expectation, driven by strength in Compute and Communications (+86% to $106.6M) and accelerating Industrial recovery (+21% Q/Q to $64.3M). The company announced a strategic $1.65B acquisition of AMI ($1.0B cash, $650M stock) to create a complete secure management platform, doubling the serviceable addressable market and supporting trajectory toward $1B+ annual revenue. Q2 guidance of $175M-$195M in revenue and $0.42-$0.46 EPS both exceeded expectations at $171M and $0.38, respectively. We believe channel inventory normalization is largely complete, with AI datacenter demand driving the Compute segment to 62% of total revenue. Margins improved with non-GAAP gross margin at 70.0% and EBITDA margin reaching 39.6%, slightly ahead of our view, demonstrating significant operating leverage as the business scales.

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