LSCCHIGH SIGNALFINANCIAL10-K

LSCC experienced a severe 95% collapse in net income despite strong operating cash flow growth, indicating major non-cash charges or one-time items dramatically impacted profitability.

The dramatic disconnect between strong operating cash flow (+24%) and collapsing net income (-95%) suggests significant non-cash impairments, restructuring charges, or accounting adjustments that investors need to understand. The substantial increase in SG&A expenses (+31%) and interest costs (+51%) also indicate rising operational pressures and debt burden.

Comparing 2026-02-13 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

LSCC shows a tale of two stories - operationally the company generated strong cash flows with operating cash flow up 24% and doubled their capital investments, but profitability collapsed with net income falling 95% and operating income down 67%. The company increased share buybacks by 49% while SG&A expenses surged 31% and interest costs rose 51%, suggesting either major one-time charges or significant operational challenges masked by strong underlying cash generation. The balance sheet also shows stress with total liabilities up 27% and working capital pressures from higher receivables, creating an overall picture of a company facing significant financial headwinds despite maintaining operational cash generation.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+102.7%
$21.0M→$42.5M

Capital expenditure jumped 102.7% — major investment cycle underway; assess returns on deployment.

Net Income
P&L
-95%
$61.1M→$3.1M

Net income declined 95% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-67.4%
$34.5M→$11.2M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Interest Expense
P&L
+51.4%
$2.7M→$4.1M

Interest expense surged 51.4% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
+49.3%
$67.0M→$100.0M

Share repurchases increased 49.3% — management returning capital, signals confidence in intrinsic value.

SG&A Expense
P&L
+31.4%
$116.9M→$153.6M

SG&A up 31.4% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Total Liabilities
Balance Sheet
+27.1%
$133.0M→$169.1M

Liabilities increased 27.1% — monitor debt-to-equity ratio and interest coverage.

Accounts Receivable
Balance Sheet
+26.2%
$81.1M→$102.3M

Receivables grew 26.2% — monitor days sales outstanding for collection efficiency.

Operating Cash Flow
Cash Flow
+24.3%
$140.9M→$175.1M

Operating cash flow grew 24.3% — strong conversion of earnings to cash, healthy business fundamentals.

Current Liabilities
Balance Sheet
+18.1%
$99.6M→$117.7M

Current liabilities rose 18.1% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-14
ADDED
Includes termination fees on the cancellation of certain contracts.
Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.
Forward-looking statements include, but are not limited to, statements about: our target or expected financial performance and our ability to achieve those results; current and future impacts of the macroeconomic climate, including ongoing global military conflicts and actions of governments, businesses, and individuals in response to these situations; the impact of any continuing trade or travel restrictions or increasing tariffs on the export and import of products between the U.S.
Internal Revenue Service or other taxing authority, unanticipated effects of tax reform, and unrecognized tax benefits and tax adjustments and allowances; our ability to attract and retain key personnel; the sufficiency of our insurance coverage; the impact of our outstanding indebtedness on our strategic flexibility, liquidity and results of operations; the impact of strategic transactions; unexpected impacts of accounting guidance; unfavorable results of legal proceedings.
Our technology, long-standing relationships, and commitment to world-class support lets our customers quickly and easily unleash their innovation to create a smart, secure, and connected world.
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REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.
Forward-looking statements include, but are not limited to, statements about: our target or expected financial performance and our ability to achieve those results; future impacts of the ongoing military conflicts between Ukraine and Russia, and in the Middle East, and the outbreak of new, or expansion of current, military conflicts or terrorism; the impact of any continuing trade or travel restrictions or increasing tariffs on the export and import of products between the U.S.
and China; the impact of increasing trade restrictions or tariffs on the export and import of products between the U.S.
Internal Revenue Service or other taxing authority; unanticipated effects of tax reform; our ability to attract and retain key personnel; the sufficiency of our insurance coverage; the impact of our outstanding indebtedness on our strategic flexibility, liquidity and results of operations; the impact of strategic transactions; unexpected impacts of accounting guidance; unfavorable results of legal proceedings; and the macroeconomic climate and effects of global military conflicts and actions of governments, businesses, and individuals in response to these situations.
Our technology, long-standing relationships, and commitment to world-class support enable our customers to create a smart, secure, and connected world.
+7 more — sign up free →
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