SUNNYVALE, Calif., Aug. 8,
2018 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK), a
developer of ultra-low power multi-core voice enabled SoCs,
embedded FPGA (eFPGA) IP, display bridge and programmable logic
solutions, announced its financial results for the fiscal second
quarter ended July 1, 2018.
Recent Accomplishments
- BBK Educational Electronics Corporation Ltd. selected
QuickLogic's EOS™ S3 SoC to enable always-on / always listening
voice features for its new S3 Pro flagship and H20 entry level
educational tablets.
- C-Sky Microsystems Co., Ltd. signed a Master Technology License
Agreement for ArcticPro™ embedded FPGA (eFPGA) IP.
- Qualcomm Incorporated added QuickLogic's EOS S3 voice and
sensor processing platform to its eXtension program to support
designers targeting always-on / always listening voice enabled
applications with its CSR8670 and CSR8675 Bluetooth® Audio
solutions.
- QuickLogic raised $13.9 million
in net proceeds from a public equity offering in May.
- QuickLogic demonstrated an early proof-of-concept QuickAI™
solution with its partner, SensiML at the Design Automation
Conference (DAC) and Sensors Expo Conference.
Fiscal 2018 Second Quarter Financial Results
Second quarter total revenue was $3.1
million, up 13% compared to the first quarter of 2018, and
up 3% compared to the second quarter of 2017. New product revenue
was $1.6 million, up 22% compared to
the first quarter of 2018 and up 6% compared to the second quarter
of 2017. Mature product revenue was $1.5
million, up 5% compared to the first quarter of 2018 and
flat compared to the second quarter of 2017. New product revenue
accounted for 51% of the total revenue, compared to 47% in the
first quarter of 2018 and 49% in the second quarter of 2017.
Second quarter GAAP gross margin was 49.0%, down from 50.3% in
the first quarter of 2018 and up from 45.6% in the second quarter
of 2017. Non-GAAP gross margin was 50.1%, down from 51.5% in the
first quarter of 2018 and up from 46.3% in the second quarter of
2017.
Second quarter GAAP operating expenses were $5.0 million, down from $5.3 million in the first quarter of 2018 and up
slightly from $4.9 million in the
second quarter of 2017. Non-GAAP operating expenses were
$4.5 million, down from $4.9 million in the first quarter of 2018 and
from $4.6 million in the second
quarter of 2017.
Second quarter GAAP net loss decreased to $3.5 million, or $0.04 per share, from $4.0
million, or $0.05 per
share, in the first quarter of 2018 and from $3.6 million, or $0.05 per share, in the second quarter of 2017.
Non-GAAP net loss decreased to $3.0
million or $0.04 per share,
from $3.5 million or $0.04 per share in the first quarter of 2018 and
from $3.3 million or $0.04 per share in the second quarter of 2017.
(See below for an explanation of non-GAAP financial measures.)
Conference Call
QuickLogic 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 8,
2018, to discuss its current financial results. The
conference call will be webcasted at QuickLogic's IR Site Events
Page. 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 6648678. A recording of the call will be
available starting one hour after completion of the call. To access
the recording, please call (855) 859-2056 or (404) 537-3406 and
reference the passcode: 6648678. The call recording, which can be
accessed by phone, will be archived until Wednesday, August 15, 2018, and the webcast will
be available for 12 months on the Company's website.
About QuickLogic
QuickLogic Corporation (NASDAQ: QUIK) enables OEMs to maximize
battery life for highly differentiated, immersive user experiences
with Smartphone, Wearable, Hearable 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.
QuickLogic uses its website (www.quicklogic.com), the company
blog QuickLogic HotSpot (http://blog.quicklogic.com),
corporate Twitter account (@QuickLogic_Corp), Facebook page
(https://www.facebook.com/QuickLogic), and LinkedIn page
(https://www.linkedin.com/company/13512/) as channels of
distribution of information about its products, its planned
financial and other announcements, its attendance at upcoming
investor and industry conferences, and other matters. Such
information may be deemed material information, and QuickLogic may
use these channels to comply with its disclosure obligations under
Regulation FD. Therefore, investors should monitor the company's
website and its social media accounts in addition to following the
company's press releases, SEC filings, public conference calls, and
webcasts.
Non-GAAP Financial Measures
QuickLogic 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 Statements
This 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 8, 2018, 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.
ArcticLink, QuickLogic and the QuickLogic logo are registered
trademarks and EOS and ArcticPro are trademarks of QuickLogic
Corporation. All other brands or trademarks are the property
of their respective holders and should be treated as such.
CODE: 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 1, 2018
|
|
|
July 2,
2017
|
|
|
April 1,
2018
|
|
July 1, 2018
|
|
|
July 2,
2017
|
Revenue
|
$
|
3,122
|
|
|
$
|
3,026
|
|
|
$
|
2,764
|
|
$
|
5,886
|
|
|
$
|
6,196
|
Cost of
revenue
|
|
1,592
|
|
|
|
1,646
|
|
|
|
1,375
|
|
|
2,967
|
|
|
|
3,443
|
Gross
profit
|
|
1,530
|
|
|
|
1,380
|
|
|
|
1,389
|
|
|
2,919
|
|
|
|
2,753
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,366
|
|
|
|
2,319
|
|
|
|
2,699
|
|
|
5,065
|
|
|
|
4,746
|
Selling, general and
administrative
|
|
2,610
|
|
|
|
2,614
|
|
|
|
2,561
|
|
|
5,171
|
|
|
|
5,028
|
Total operating
expense
|
|
4,976
|
|
|
|
4,933
|
|
|
|
5,260
|
|
|
10,236
|
|
|
|
9,774
|
Loss from
operations
|
|
(3,446)
|
|
|
|
(3,553)
|
|
|
|
(3,871)
|
|
|
(7,317)
|
|
|
|
(7,021)
|
Interest
expense
|
|
(32)
|
|
|
|
(21)
|
|
|
|
(24)
|
|
|
(56)
|
|
|
|
(82)
|
Interest income and
other (expense), net
|
|
23
|
|
|
|
1
|
|
|
|
(14)
|
|
|
9
|
|
|
|
1
|
Loss before income
taxes
|
|
(3,455)
|
|
|
|
(3,573)
|
|
|
|
(3,909)
|
|
|
(7,364)
|
|
|
|
(7,102)
|
Provision for income
taxes
|
|
29
|
|
|
|
34
|
|
|
|
61
|
|
|
90
|
|
|
|
70
|
Net loss
|
$
|
(3,484)
|
|
|
$
|
(3,607)
|
|
|
$
|
(3,970)
|
|
$
|
(7,454)
|
|
|
$
|
(7,172)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.04)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.05)
|
|
$
|
(0.09)
|
|
|
$
|
(0.10)
|
Diluted
|
$
|
(0.04)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.05)
|
|
$
|
(0.09)
|
|
|
$
|
(0.10)
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
85,753
|
|
|
|
79,799
|
|
|
|
80,571
|
|
|
83,176
|
|
|
|
74,327
|
Diluted
|
|
85,753
|
|
|
|
79,799
|
|
|
|
80,571
|
|
|
83,176
|
|
|
|
74,327
|
QUICKLOGIC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(Unaudited)
|
|
|
|
|
|
July 1, 2018
|
|
December 31,
2017 (1)
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
22,815
|
|
$
|
16,527
|
Accounts receivable,
net
|
|
2,191
|
|
|
925
|
Inventories
|
|
4,290
|
|
|
3,559
|
Other current
assets
|
|
1,099
|
|
|
997
|
Total current
assets
|
|
30,395
|
|
|
22,008
|
Property and
equipment, net
|
|
1,790
|
|
|
2,375
|
Other
assets
|
|
246
|
|
|
253
|
TOTAL
ASSETS
|
$
|
32,431
|
|
$
|
24,636
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Revolving line of
credit
|
$
|
6,000
|
|
$
|
6,000
|
Trade
payables
|
|
1,700
|
|
|
1,437
|
Accrued
liabilities
|
|
1,828
|
|
|
1,653
|
Current portion of
capital lease obligations
|
|
303
|
|
|
299
|
Total current
liabilities
|
|
9,831
|
|
|
9,389
|
Long-term
liabilities:
|
|
|
|
|
|
Capital lease
obligations, less current portion
|
|
115
|
|
|
355
|
Other long-term
liabilities
|
|
61
|
|
|
14
|
Total
liabilities
|
|
10,007
|
|
|
9,758
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, par
value
|
|
95
|
|
|
80
|
Additional paid-in
capital
|
|
283,819
|
|
|
268,833
|
Accumulated
deficit
|
|
(261,490)
|
|
|
(254,035)
|
Total stockholders'
equity
|
|
22,424
|
|
|
14,878
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
32,431
|
|
$
|
24,636
|
|
|
|
|
|
|
(1)
|
Derived from the
December 31, 2017 audited balance sheet included in the 2017
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 1, 2018
|
|
|
July 2,
2017
|
|
|
April 1,
2018
|
|
|
July 1, 2018
|
|
|
July 2,
2017
|
|
US GAAP loss from
operations
|
|
$
|
(3,446)
|
|
|
$
|
(3,553)
|
|
|
$
|
(3,871)
|
|
|
$
|
(7,317)
|
|
|
$
|
(7,021)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
35
|
|
|
|
20
|
|
|
|
34
|
|
|
|
69
|
|
|
|
53
|
|
Research and
development
|
|
|
207
|
|
|
|
134
|
|
|
|
183
|
|
|
|
390
|
|
|
|
273
|
|
Selling, general and
administrative
|
|
|
237
|
|
|
|
193
|
|
|
|
215
|
|
|
|
452
|
|
|
|
339
|
|
Adjustment for the
write-off of equipment within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
|
5
|
|
|
|
—
|
|
Non-GAAP loss from
operations
|
|
$
|
(2,967)
|
|
|
$
|
(3,206)
|
|
|
$
|
(3,434)
|
|
|
$
|
(6,401)
|
|
|
$
|
(6,356)
|
|
US GAAP net
loss
|
|
$
|
(3,484)
|
|
|
$
|
(3,607)
|
|
|
$
|
(3,970)
|
|
|
$
|
(7,454)
|
|
|
$
|
(7,172)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
35
|
|
|
|
20
|
|
|
|
34
|
|
|
|
69
|
|
|
|
53
|
|
Research and
development
|
|
|
207
|
|
|
|
134
|
|
|
|
183
|
|
|
|
390
|
|
|
|
273
|
|
Selling, general and
administrative
|
|
|
237
|
|
|
|
193
|
|
|
|
215
|
|
|
|
452
|
|
|
|
339
|
|
Adjustment for the
write-off of equipment within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
|
5
|
|
|
|
—
|
|
Non-GAAP net
loss
|
|
$
|
(3,005)
|
|
|
$
|
(3,260)
|
|
|
$
|
(3,533)
|
|
|
$
|
(6,538)
|
|
|
$
|
(6,507)
|
|
US GAAP net loss
per share
|
|
$
|
(0.04)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.10)
|
|
Adjustment for
stock-based compensation
|
|
*
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.09)
|
|
US GAAP gross
margin percentage
|
|
|
49.0
|
%
|
|
|
45.6
|
%
|
|
|
50.3
|
%
|
|
|
49.6
|
%
|
|
|
44.4
|
%
|
Adjustment for
stock-based compensation
|
|
|
1.1
|
%
|
|
|
0.7
|
%
|
|
|
1.2
|
%
|
|
|
1.2
|
%
|
|
|
0.9
|
%
|
Adjustment for the
write-off of equipment
|
|
|
—
|
|
|
|
—
|
|
|
*
|
|
|
*
|
|
|
|
—
|
|
Non-GAAP gross
margin percentage
|
|
|
50.1
|
%
|
|
|
46.3
|
%
|
|
|
51.5
|
%
|
|
|
50.8
|
%
|
|
|
45.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Figures were not
considered for reconciliation due to the insignificant
amount.
|
QUICKLOGIC
CORPORATION
SUPPLEMENTAL
DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q2 2018
|
|
|
Q2 2017
|
|
|
Q1 2018
|
|
|
Q2 2017
to
Q2
2018
|
|
|
Q1 2018
to
Q2
2018
|
|
COMPOSITION OF
REVENUE
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Revenue by product:
(1)
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New
products
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51
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%
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49
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%
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47
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%
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|
6
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%
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22
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%
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Mature
products
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49
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%
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51
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%
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53
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%
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0
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%
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|
5
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%
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Revenue by
geography:
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Asia
Pacific
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44
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%
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55
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%
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33
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%
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(18)
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%
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49
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%
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North
America
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|
47
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%
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|
36
|
%
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|
57
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%
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|
|
35
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%
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(6)
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%
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Europe
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9
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%
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9
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%
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10
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%
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6
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%
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(1)
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%
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(1)
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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.
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multimedia:http://www.prnewswire.com/news-releases/quicklogic-reports-fiscal-2018-second-quarter-results-300694260.html
SOURCE QuickLogic Corporation