QuickLogic Reports Fiscal 2017 Second Quarter Results
August 09 2017 - 4:05PM
QuickLogic Corporation (NASDAQ:QUIK), a developer of ultra-low
power multi-core voice enabled SoCs, embedded FPGA IP, display
bridge and programmable logic solutions, announced its financial
results for the fiscal second quarter ended July 2, 2017.
Recent Accomplishments
- EOS™ S3 Sensor Processing Platform:
- Selected by Qiwo Smartlink Technology Company, Ltd., for voice
enabled Bluetooth headset designs.
- Chosen by Janyun, a developer of cloud-based applications,
wearable and IoT products, for its new voice enabled GPS
smartwatch.
- Collaborating with AISpeech, a leading enterprise of Artificial
Intelligence (AI) speech technology that is focusing on the Chinese
market.
- Released new voice "Barge-in" feature, which uses acoustic echo
cancellation (AEC) technology to enable verbal commands even when
there is background sound.
- Released new sensor fusion software from developer CyweeMotion
that supports EOS S3 in smartphones using the Android "Nougat"
operating system.
- Embedded FPGA (eFPGA) Intellectual Property (IP)
Licensing:
- Taped-out test chip on schedule for previously disclosed
unnamed top-tier foundry.
- Appointed Bernie Rosenthal, co-founder of Tensilica,
Inc. and a serial entrepreneur, to QuickLogic’s advisory
board.
- Established a support center in Taiwan to accelerate
the adoption of the company's eFPGA IP.
- Participated in a panel discussion on “Minimizing IC Power
Consumption” at the Design Automation Conference (DAC) in
June.
Fiscal 2017 second Quarter Financial
ResultsTotal revenue was $3.0 million, within guidance,
down 5% compared to the first quarter of 2017 and up 11% compared
to the second quarter of 2016. New product revenue was $1.5
million, down 22% compared to the first quarter of 2017 and up 25%
compared to the second quarter of 2016. Mature product revenue was
$1.5 million, up 22% compared to the first quarter of 2017 and 1%
compared to the second quarter of 2016. New product revenue
accounted for 49% of the total revenue, compared to 60% in the
first quarter of 2017 and 44% in the second quarter of 2016.
GAAP gross margin increased to 45.6%, up from 43.3% in the first
quarter of 2017 and 28.6% in the second quarter of 2016. Non-GAAP
gross margin increased to 46.3%, up from 44.4% in the first quarter
of 2017 and 30.3% in the second quarter of 2016. The improvements
are primarily due to IP license revenue and better product mix.
GAAP operating expenses increased slightly to $4.9 million, from
$4.8 million in the first quarter of 2017 and down significantly
from $6.3 million in the second quarter of 2016. Non-GAAP
operating expenses were $4.6 million, flat compared to the first
quarter of 2017 and down from $5.6 million in the second quarter of
2016. The reduction from Q2 2016 reflects the cost savings from our
strategic realignment efforts. GAAP net loss was flat at
$3.6 million, or $0.05 per share, compared to the first
quarter of 2017 and improved compared to $5.6 million, or $0.08 per
share, in the second quarter of 2016. Non-GAAP net loss was
slightly higher at $3.3 million compared to $3.2 million in
the first quarter of 2017 and improved from $4.8 million in the
second quarter of 2016. (See below for an explanation of non-GAAP
financial measures.)
Conference CallQuickLogic Corporation
(NASDAQ:QUIK) will hold a conference call at 2:30 p.m. Pacific
Daylight Saving Time/ 5:30 p.m. Eastern Daylight Saving Time today,
August 9, 2017, to discuss its current financial results. The
conference call will be webcasted and can be accessed via the
Company's website at http://ir.quicklogic.com/events.cfm. To join
the live conference, you may dial (877) 377-7094 and
international participants should dial (253) 237-1177 by
2:20 p.m. Pacific Daylight Saving Time. The conference ID is
56477001. A recording of the call will be available starting one
hour after completion of the call. To access the recording, please
call (404) 537-3406 and reference the passcode: 56477001. The
call recording will be archived until Wednesday, August 16, 2017
and the webcast will be available for 12 months on the
Company's website.
About QuickLogicQuickLogic Corporation
(NASDAQ:QUIK) enables OEMs to maximize battery life for highly
differentiated, immersive user experiences with Smartphone,
Wearable and IoT devices. QuickLogic delivers these benefits
through industry leading ultra-low power customer programmable SoC
semiconductor solutions, embedded software, and algorithm solutions
for always-on voice and sensor processing. The company's embedded
FPGA initiative also enables SoC designers to easily implement post
production changes, and increase revenue by providing hardware
programmability to their end customers. For more information about
QuickLogic, please visit www.quicklogic.com.
Non-GAAP Financial MeasuresQuickLogic reports
financial information in accordance with United States Generally
Accepted Accounting Principles, or US GAAP, but believes that
non-GAAP financial measures are helpful in evaluating its operating
results and comparing its performance to comparable companies.
Accordingly, the Company excludes charges related to stock-based
compensation, restructuring, the effect of the write-off of
long-lived assets and the tax effect on other comprehensive income
in calculating non-GAAP (i) income (loss) from operations,
(ii) net income (loss), (iii) net income (loss) per
share, and (iv) gross margin percentage. The Company provides
this non-GAAP information to enable investors to evaluate its
operating results in a manner similar to how the Company analyzes
its operating results and to provide consistency and comparability
with similar companies in the Company’s industry.
Management uses the non-GAAP measures, which exclude gains,
losses and other charges that are considered by management to be
outside of the Company’s core operating results, internally to
evaluate its operating performance against results in prior periods
and its operating plans and forecasts. In addition, the non-GAAP
measures are used to plan for the Company’s future periods, and
serve as a basis for the allocation of the Company's resources,
management of operations and the measurement of profit-dependent
cash and equity compensation paid to employees and executive
officers.
Investors should note, however, that the non-GAAP financial
measures used by QuickLogic may not be the same non-GAAP financial
measures, and may not be calculated in the same manner, as that of
other companies. QuickLogic does not itself, nor does it suggest
that investors should, consider such non-GAAP financial measures
alone or as a substitute for financial information prepared in
accordance with GAAP. A reconciliation of US GAAP financial
measures to non-GAAP financial measures is included in the
financial statements portion of this press release. Investors are
encouraged to review the related GAAP financial measures and the
reconciliation of non-GAAP financial measures with their most
directly comparable US GAAP financial measures.
Forward Looking StatementsThis press release
contains forward-looking statements regarding our future business
expectations, which are subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are only predictions and may differ
materially from actual results due to a variety of factors
including: delays in the market acceptance of the Company’s new
products; the ability to convert design opportunities into customer
revenue; our ability to replace revenue from end-of-life products;
the level and timing of customer design activity; the market
acceptance of our customers’ products; the risk that new orders may
not result in future revenue; our ability to introduce and produce
new products based on advanced wafer technology on a timely basis;
our ability to adequately market the low power, competitive pricing
and short time-to-market of our new products; intense competition,
including the introduction of new products by competitors; our
ability to hire and retain qualified personnel; changes in product
demand or supply; capacity constraints; and general economic
conditions. These and other potential factors and uncertainties
that could cause actual results to differ from the results
predicted are described in more detail in the Company’s public
reports filed with the Securities and Exchange Commission (the
"SEC"), including the risks discussed in the “Risk Factors” section
in the Company’s Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and in the Company’s prior press
releases, which are available on the Company's Investor Relations
website at http://ir.quicklogic.com/and on the SEC website at
www.sec.gov. In addition, please note that the date of this press
release is August 9, 2017, and any forward-looking statements
contained herein are based on assumptions that we believe to be
reasonable as of this date. We undertake no obligation to update
these statements as a result of new information or future
events.
QuickLogic and the QuickLogic logo are registered trademarks of
QuickLogic Corporation. All other brands or trademarks are the
property of their respective holders and should be treated as
such.
Company ContactSue CheungChief Financial
Officer(408) 990-4076Scheung@quicklogic.com
IR ContactKirsten Chapman(415)
433-3777ir@quicklogic.com
QUIK-E
-Tables Follow -
QUICKLOGIC CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share
amounts) |
(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
July 2, 2017 |
|
July 3, 2016 |
|
April 2, 2017 |
|
July 2, 2017 |
|
July 3, 2016 |
Revenue |
$ |
3,026 |
|
|
$ |
2,717 |
|
|
$ |
3,170 |
|
|
$ |
6,196 |
|
|
$ |
5,667 |
|
Cost of revenue |
1,646 |
|
|
1,941 |
|
|
1,797 |
|
|
3,443 |
|
|
3,735 |
|
Gross profit |
1,380 |
|
|
776 |
|
|
1,373 |
|
|
2,753 |
|
|
1,932 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
2,319 |
|
|
3,683 |
|
|
2,427 |
|
|
4,746 |
|
|
7,130 |
|
Selling,
general and administrative |
2,614 |
|
|
2,591 |
|
|
2,414 |
|
|
5,028 |
|
|
5,284 |
|
Total operating
expense |
4,933 |
|
|
6,274 |
|
|
4,841 |
|
|
9,774 |
|
|
12,414 |
|
Loss from
operations |
(3,553 |
) |
|
(5,498 |
) |
|
(3,468 |
) |
|
(7,021 |
) |
|
(10,482 |
) |
Interest expense |
(21 |
) |
|
(34 |
) |
|
(61 |
) |
|
(82 |
) |
|
(72 |
) |
Interest income and
other (expense), net |
1 |
|
|
(15 |
) |
|
— |
|
|
1 |
|
|
(22 |
) |
Loss before income
taxes |
(3,573 |
) |
|
(5,547 |
) |
|
(3,529 |
) |
|
(7,102 |
) |
|
(10,576 |
) |
Provision for income
taxes |
34 |
|
|
27 |
|
|
36 |
|
|
70 |
|
|
91 |
|
Net loss |
$ |
(3,607 |
) |
|
$ |
(5,574 |
) |
|
$ |
(3,565 |
) |
|
$ |
(7,172 |
) |
|
$ |
(10,667 |
) |
Net loss per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
Basic |
79,799 |
|
|
67,415 |
|
|
68,794 |
|
|
74,327 |
|
|
62,893 |
|
Diluted |
79,799 |
|
|
67,415 |
|
|
68,794 |
|
|
74,327 |
|
|
62,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUICKLOGIC CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands) |
(Unaudited) |
|
|
|
July 2, 2017 |
|
January 1, 2017 (1) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
22,234 |
|
|
$ |
14,870 |
|
Accounts
receivable, net |
|
1,051 |
|
|
839 |
|
Inventories |
|
3,322 |
|
|
2,017 |
|
Other
current assets |
|
868 |
|
|
1,123 |
|
Total
current assets |
|
27,475 |
|
|
18,849 |
|
Property and equipment,
net |
|
2,529 |
|
|
2,765 |
|
Other assets |
|
236 |
|
|
230 |
|
TOTAL
ASSETS |
|
$ |
30,240 |
|
|
$ |
21,844 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Revolving
line of credit |
|
$ |
6,000 |
|
|
$ |
6,000 |
|
Trade
payables |
|
1,227 |
|
|
2,018 |
|
Accrued
liabilities |
|
1,648 |
|
|
1,580 |
|
Deferred
Revenue |
|
79 |
|
|
— |
|
Current
portion of capital lease obligations |
|
167 |
|
|
209 |
|
Total
current liabilities |
|
9,121 |
|
|
9,807 |
|
Long-term
liabilities: |
|
|
|
|
Capital
lease obligations, less current portion |
|
129 |
|
|
— |
|
Other
long-term liabilities |
|
35 |
|
|
49 |
|
Total
liabilities |
|
9,285 |
|
|
9,856 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock, par value |
|
80 |
|
|
68 |
|
Additional paid-in capital |
|
267,951 |
|
|
251,824 |
|
Accumulated deficit |
|
(247,076 |
) |
|
(239,904 |
) |
Total
stockholders’ equity |
|
20,955 |
|
|
11,988 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
30,240 |
|
|
$ |
21,844 |
|
|
|
|
|
|
|
|
|
|
________________________(1) Derived from the January 1,
2017 audited balance sheet included in the 2016 Annual Report on
Form 10-K of QuickLogic Corporation.
|
|
QUICKLOGIC CORPORATION |
SUPPLEMENTAL RECONCILIATIONS OF US
GAAP AND NON-GAAP FINANCIAL MEASURES |
(in thousands, except per share
amounts and percentages) |
(Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
July 2, 2017 |
|
July 3, 2016 |
|
April 2, 2017 |
|
July 2, 2017 |
|
July 3, 2016 |
US GAAP loss
from operations |
|
$ |
(3,553 |
) |
|
$ |
(5,498 |
) |
|
$ |
(3,468 |
) |
|
$ |
(7,021 |
) |
|
$ |
(10,482 |
) |
Adjustment for stock-based compensation within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
20 |
|
|
47 |
|
|
33 |
|
|
53 |
|
|
85 |
|
Research
and development |
|
134 |
|
|
175 |
|
|
139 |
|
|
273 |
|
|
466 |
|
Selling,
general and administrative |
|
193 |
|
|
217 |
|
|
146 |
|
|
339 |
|
|
450 |
|
Adjustment for the write-off of equipment within: |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
— |
|
|
312 |
|
|
— |
|
|
— |
|
|
312 |
|
Non-GAAP loss
from operations |
|
$ |
(3,206 |
) |
|
$ |
(4,747 |
) |
|
$ |
(3,150 |
) |
|
$ |
(6,356 |
) |
|
$ |
(9,169 |
) |
US GAAP net
loss |
|
$ |
(3,607 |
) |
|
$ |
(5,574 |
) |
|
$ |
(3,565 |
) |
|
$ |
(7,172 |
) |
|
$ |
(10,667 |
) |
Adjustment for stock-based compensation within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
20 |
|
|
47 |
|
|
33 |
|
|
53 |
|
|
85 |
|
Research
and development |
|
134 |
|
|
175 |
|
|
139 |
|
|
273 |
|
|
466 |
|
Selling,
general and administrative |
|
193 |
|
|
217 |
|
|
146 |
|
|
339 |
|
|
450 |
|
Adjustment for the write-off of equipment within: |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
— |
|
|
312 |
|
|
— |
|
|
— |
|
|
312 |
|
Non-GAAP net
loss |
|
$ |
(3,260 |
) |
|
$ |
(4,823 |
) |
|
$ |
(3,247 |
) |
|
$ |
(6,507 |
) |
|
$ |
(9,354 |
) |
US GAAP net
loss per share |
|
$ |
(0.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
Adjustment for stock-based compensation |
|
0.01 |
|
|
0.01 |
|
|
|
* |
|
|
0.01 |
|
|
0.02 |
|
Adjustment for the write-off of equipment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
* |
|
Adjustment for restructuring costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
* |
|
Adjustment for tax effect on other comprehensive income |
|
— |
|
|
— |
|
|
— |
|
|
|
* |
|
|
— |
|
Non-GAAP net
loss per share |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.15 |
) |
US GAAP gross
margin percentage |
|
45.6 |
% |
|
28.6 |
% |
|
43.3 |
% |
|
44.4 |
% |
|
34.1 |
% |
Adjustment for stock-based compensation |
|
0.7 |
% |
|
1.7 |
% |
|
1.1 |
% |
|
0.9 |
% |
|
1.5 |
% |
Adjustment for the write-off of equipment |
|
— |
% |
|
|
* |
|
|
— |
% |
|
— |
% |
|
|
* |
|
Adjustment for restructuring costs |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
|
* |
|
Non-GAAP gross
margin percentage |
|
46.3 |
% |
|
30.3 |
% |
|
44.4 |
% |
|
45.3 |
% |
|
35.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Figures were not considered for
reconciliation due to the insignificant amount.
QUICKLOGIC CORPORATION |
SUPPLEMENTAL
DATA |
(Unaudited) |
|
|
|
Percentage of Revenue |
|
Change in Revenue |
|
|
Q2 2017 |
|
Q2 2016 |
|
Q1 2017 |
|
Q2 2016 to Q2 2017 |
|
Q1 2017 to Q2 2017 |
COMPOSITION OF
REVENUE |
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1) |
|
|
|
|
|
|
|
|
|
|
New
products |
|
49 |
% |
|
44 |
% |
|
60 |
% |
|
25 |
% |
|
(22 |
)% |
Mature
products |
|
51 |
% |
|
56 |
% |
|
40 |
% |
|
1 |
% |
|
22 |
% |
Revenue by
geography: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific |
|
55 |
% |
|
65 |
% |
|
54 |
% |
|
(6 |
)% |
|
(3 |
)% |
North
America |
|
36 |
% |
|
24 |
% |
|
36 |
% |
|
71 |
% |
|
(4 |
)% |
Europe |
|
9 |
% |
|
11 |
% |
|
10 |
% |
|
(13 |
)% |
|
(15 |
)% |
_____________________(1) New products include all products
manufactured on 180 nanometer or smaller semiconductor processes.
eFPGA IP license revenue is also included in new product revenue.
Mature products include all products produced on semiconductor
processes larger than 180 nanometers.
QUIK-E
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