SUNNYVALE, Calif., Nov. 7, 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 third quarter ended September 30, 2018.
Recent Accomplishments
- Forecasts first material revenue from QuickAITM in
the fourth quarter of 2018.
- ETH Zurich will integrate eFPGA into its PULP Platform and has
licensed ArcticProTM eFPGA technology on the
GLOBALFOUNDRIES new 22FDX® process node.
- Announced availability of ArcticPro eFPGA technology as the
industry's first and only eFPGA solution available for the
GLOBALFOUNDRIES 22FDX process.
- Secured new $9 million revolving
line of credit with Heritage Bank of Commerce.
- Showcased its ArcticPro eFPGA Solutions at three
GLOBALFOUNDRIES Technology Conferences.
- QuickLogic CEO presented "Platform Approach for a Scalable
Intelligent Edge" and participated in the "Advanced Technology
Solutions" panel at Silicon Summit East.
Fiscal 2018 Third Quarter Financial Results
Third quarter total revenue was $3.5
million, a year-over-year increase of 18%. New product
revenue was $1.5 million, a
year-over-year increase of 3%. Mature product revenue was
$2.0 million, a year-over-year
increase of 33%. New product revenue accounted for 43% of the total
revenue, compared to 50% in the same period of the prior year.
Third quarter GAAP gross margin was 49.7%, up from 42.6% in the
same period of the prior year. Non-GAAP gross margin was 50.5%, up
from 43.7% in the same period of the prior year.
Third quarter GAAP operating expenses were $5.0 million, up from $4.7
million in the same period of the prior year. Non-GAAP
operating expenses were $4.5 million,
up from $4.3 million in the same
period of the prior year.
Third quarter GAAP net loss decreased to $3.3 million, or $0.03 per share, from $3.6
million, or $0.04 per share,
in the same period of the prior year. Non-GAAP net loss decreased
to $2.7 million or $0.03 per share, from $3.1
million or $0.04 per share in
the same period of the prior year. (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 Standard
Time/ 5:30 p.m. Eastern Standard
Time today, November 7, 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 Standard Time. The Conference
ID is 8096602. 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 8096602. The call recording, which can be accessed by
phone, will be archived until Wednesday,
November 14, 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 November 7, 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
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2018
|
|
|
October 1,
2017
|
|
|
July 1,
2018
|
|
|
September 30,
2018
|
|
|
October 1,
2017
|
|
Revenue
|
|
$
|
3,510
|
|
|
$
|
2,972
|
|
|
$
|
3,122
|
|
|
$
|
9,396
|
|
|
$
|
9,168
|
|
Cost of
revenue
|
|
|
1,767
|
|
|
|
1,706
|
|
|
|
1,592
|
|
|
|
4,734
|
|
|
|
5,149
|
|
Gross
profit
|
|
|
1,743
|
|
|
|
1,266
|
|
|
|
1,530
|
|
|
|
4,662
|
|
|
|
4,019
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2,461
|
|
|
|
2,368
|
|
|
|
2,366
|
|
|
|
7,526
|
|
|
|
7,114
|
|
Selling, general and
administrative
|
|
|
2,509
|
|
|
|
2,353
|
|
|
|
2,610
|
|
|
|
7,680
|
|
|
|
7,381
|
|
Total operating
expense
|
|
|
4,970
|
|
|
|
4,721
|
|
|
|
4,976
|
|
|
|
15,206
|
|
|
|
14,495
|
|
Loss from
operations
|
|
|
(3,227)
|
|
|
|
(3,455)
|
|
|
|
(3,446)
|
|
|
|
(10,544)
|
|
|
|
(10,476)
|
|
Interest
expense
|
|
|
(21)
|
|
|
|
(15)
|
|
|
|
(32)
|
|
|
|
(77)
|
|
|
|
(97)
|
|
Interest income and
other (expense), net
|
|
|
17
|
|
|
|
(3)
|
|
|
|
23
|
|
|
|
26
|
|
|
|
(2)
|
|
Loss before income
taxes
|
|
|
(3,231)
|
|
|
|
(3,473)
|
|
|
|
(3,455)
|
|
|
|
(10,595)
|
|
|
|
(10,575)
|
|
Provision for income
taxes
|
|
|
29
|
|
|
|
77
|
|
|
|
29
|
|
|
|
119
|
|
|
|
147
|
|
Net loss
|
|
$
|
(3,260)
|
|
|
$
|
(3,550)
|
|
|
$
|
(3,484)
|
|
|
$
|
(10,714)
|
|
|
$
|
(10,722)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.14)
|
|
Diluted
|
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.14)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
94,725
|
|
|
|
80,125
|
|
|
|
85,753
|
|
|
|
87,040
|
|
|
|
76,267
|
|
Diluted
|
|
|
94,725
|
|
|
|
80,125
|
|
|
|
85,753
|
|
|
|
87,040
|
|
|
|
76,267
|
|
QUICKLOGIC
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017 (1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,219
|
|
|
$
|
16,527
|
|
Accounts receivable,
net
|
|
|
1,226
|
|
|
|
925
|
|
Inventories
|
|
|
4,090
|
|
|
|
3,559
|
|
Other current
assets
|
|
|
1,087
|
|
|
|
997
|
|
Total current
assets
|
|
|
30,622
|
|
|
|
22,008
|
|
Property and
equipment, net
|
|
|
1,688
|
|
|
|
2,375
|
|
Other
assets
|
|
|
222
|
|
|
|
253
|
|
TOTAL
ASSETS
|
|
$
|
32,532
|
|
|
$
|
24,636
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
9,000
|
|
|
$
|
6,000
|
|
Trade
payables
|
|
|
1,214
|
|
|
|
1,437
|
|
Accrued
liabilities
|
|
|
2,218
|
|
|
|
1,653
|
|
Current portion of
capital lease obligations
|
|
|
360
|
|
|
|
299
|
|
Total current
liabilities
|
|
|
12,792
|
|
|
|
9,389
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Capital lease
obligations, less current portion
|
|
|
142
|
|
|
|
355
|
|
Other long-term
liabilities
|
|
|
47
|
|
|
|
14
|
|
Total
liabilities
|
|
|
12,981
|
|
|
|
9,758
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, par
value
|
|
|
95
|
|
|
|
80
|
|
Additional paid-in
capital
|
|
|
284,205
|
|
|
|
268,833
|
|
Accumulated
deficit
|
|
|
(264,749)
|
|
|
|
(254,035)
|
|
Total stockholders'
equity
|
|
|
19,551
|
|
|
|
14,878
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
32,532
|
|
|
$
|
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
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2018
|
|
|
October 1,
2017
|
|
|
July 1,
2018
|
|
|
September 30,
2018
|
|
|
October 1,
2017
|
|
US GAAP loss from
operations
|
|
$
|
(3,227)
|
|
|
$
|
(3,455)
|
|
|
$
|
(3,446)
|
|
|
$
|
(10,544)
|
|
|
$
|
(10,476)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
30
|
|
|
|
32
|
|
|
|
35
|
|
|
|
99
|
|
|
|
85
|
|
Research and
development
|
|
|
220
|
|
|
|
151
|
|
|
|
207
|
|
|
|
610
|
|
|
|
424
|
|
Selling, general and
administrative
|
|
|
266
|
|
|
|
212
|
|
|
|
237
|
|
|
|
718
|
|
|
|
551
|
|
Adjustment for the
write-off of equipment
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
5
|
|
|
|
10
|
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
Non-GAAP loss from
operations
|
|
$
|
(2,711)
|
|
|
$
|
(3,050)
|
|
|
$
|
(2,967)
|
|
|
$
|
(9,112)
|
|
|
$
|
(9,406)
|
|
US GAAP net
loss
|
|
$
|
(3,260)
|
|
|
$
|
(3,550)
|
|
|
$
|
(3,484)
|
|
|
$
|
(10,714)
|
|
|
$
|
(10,722)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
30
|
|
|
|
32
|
|
|
|
35
|
|
|
|
99
|
|
|
|
85
|
|
Research and
development
|
|
|
220
|
|
|
|
151
|
|
|
|
207
|
|
|
|
610
|
|
|
|
424
|
|
Selling, general and
administrative
|
|
|
266
|
|
|
|
212
|
|
|
|
237
|
|
|
|
718
|
|
|
|
551
|
|
Adjustment for the
write-off of equipment
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
5
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss
|
|
$
|
(2,744)
|
|
|
$
|
(3,145)
|
|
|
$
|
(3,005)
|
|
|
$
|
(9,282)
|
|
|
$
|
(9,652)
|
|
US GAAP net loss
per share
|
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.14)
|
|
Adjustment for
stock-based compensation
|
|
*
|
|
|
*
|
|
|
*
|
|
|
|
0.01
|
|
|
|
0.01
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.13)
|
|
US GAAP gross
margin percentage
|
|
|
49.7
|
%
|
|
|
42.6
|
%
|
|
|
49.0
|
%
|
|
|
49.6
|
%
|
|
|
43.8
|
%
|
Adjustment for
stock-based compensation
|
|
|
0.8
|
%
|
|
|
1.1
|
%
|
|
|
1.1
|
%
|
|
|
1.1
|
%
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
margin percentage
|
|
|
50.5
|
%
|
|
|
43.7
|
%
|
|
|
50.1
|
%
|
|
|
50.7
|
%
|
|
|
44.8
|
%
|
|
* Figures were not
considered for reconciliation due to the insignificant
amount.
|
QUICKLOGIC
CORPORATION
|
SUPPLEMENTAL
DATA
|
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q3 2018
|
|
|
Q3 2017
|
|
|
Q2 2018
|
|
|
Q3 2017
to
Q3
2018
|
|
|
Q2 2018
to
Q3
2018
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
43
|
%
|
|
|
50
|
%
|
|
|
51
|
%
|
|
|
3
|
%
|
|
|
(4)
|
%
|
Mature
products
|
|
|
57
|
%
|
|
|
50
|
%
|
|
|
49
|
%
|
|
|
33
|
%
|
|
|
29
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
50
|
%
|
|
|
49
|
%
|
|
|
44
|
%
|
|
|
19
|
%
|
|
|
27
|
%
|
North
America
|
|
|
39
|
%
|
|
|
39
|
%
|
|
|
47
|
%
|
|
|
18
|
%
|
|
|
(7)
|
%
|
Europe
|
|
|
11
|
%
|
|
|
12
|
%
|
|
|
9
|
%
|
|
|
12
|
%
|
|
|
46
|
%
|
|
_____________________
|
(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.
|
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SOURCE QuickLogic Corporation