Pros

Lots of upside for new products and an increasingly high profile blue chip customer base. Lattices's proprietary embedded flash CMOS process developed with foundry partner Fujitsu is not available to competitors and represents a major barrier of entry for them. Lattice will continue to optimize product development around this process down to 65nm and 45nm nodes.

Cons

There is relatively high risk at Lattice given its financial resources and market share in comparison to its larger competitors Xilinx and Altera. Currently, the company is operating at around the breakeven point but will continue to have strong cash flows from its prepaid wafer agreement with Fujitsu

Advice to Senior Management

Lattice needs to continue to increase resource deployment in differentiated products where they have a clear technological advantage over their competitors