SAN JOSE, Calif., Nov. 6, 2019 /PRNewswire/ -- QuickLogic
Corporation (NASDAQ: QUIK) ("QuickLogic" or the "Company"), a
developer of ultra-low power multi-core voice-enabled SoCs,
embedded FPGA IP, and Endpoint AI solutions, today announced its
financial results for the fiscal third quarter of 2019, which ended
September 29, 2019.
Recent Highlights
- Atmosic and QuickLogic Partner to Enable Always-On,
Always-Listening Voice Interactivity in Audio and Sensor Processing
Platform
- QuickLogic and Retune DSP Partner to Provide Best-in-Class Low
Power Voice Control Solutions
- Nations Technologies Selects QuickLogic's ArcticPro eFPGA to
Power its Next Generation Low Power IoT SoC
- SensiML Analytics Toolkit Delivers Quick and Easy Anomaly
Detection for Industrial Applications
- SensiML Joins the ST Partner Program, Increasing the Number of
Supported Low Power MCUs, and Greatly Expanding the Served
Available Market for the SaaS-based AI Software
- QuickLogic Teams with SiFive to Make eFPGA Technology Available
via DesignShare Portfolio
Fiscal 2019 Third Quarter Financial Results
Total
revenue for the third quarter of fiscal 2019 was $2.2 million, compared with revenue of
$2.1 million in the second quarter of
2019, and $3.5 million in the third
quarter 2018. The decrease from the third quarter of 2018 was
primarily due to lower shipments of mature products and display
bridge solutions.
Sales of new products in the third quarter of 2019 were
$1.0 million, compared with
$0.7 million of the second quarter of
2019 and $1.5 million in the third
quarter of 2018. The increase from the second quarter of 2019 was
mainly due to an increase of connectivity product revenue. The
decline from the same period a year ago was primarily due to a
significant decrease in display bridge sales that were not offset
by increased revenue from new product sales. Mature product revenue
was $1.1 million in the third quarter
of 2019, compared with $1.4 million
in the second quarter of 2019, and $2.0
million in the third quarter of 2018.
Third quarter 2019 GAAP gross margin was 48.2%, compared with
49.0% in the second quarter of 2019, and 49.7% in the third quarter
of 2018.
Third quarter 2019 non-GAAP gross margin was 48.9%, compared
with 49.8% in the second quarter of 2019 and 50.5% in the third
quarter of 2018.
Third quarter 2019 GAAP operating expenses were $5.2 million, compared with $5.6 million in the second quarter of 2019, and
$5.0 million in the third quarter of
2018.
Third quarter 2019 non-GAAP operating expenses were $4.5 million, compared with $4.8 million in the second quarter of 2019, and
$4.5 million in the third quarter of
2018.
Third quarter 2019 GAAP net loss was $4.3
million, or $0.04 per share,
compared with $4.6 million, or
$0.05 per share, in the second
quarter of 2019, and $3.3 million, or
$0.03 per share, in the third quarter
of 2018.
Third quarter 2019 non-GAAP net loss was $3.5 million, or $0.03 per share, compared with $3.8 million, or $0.04 per share, in the second quarter of 2019,
and $2.7 million, or $0.03 per share, in the third quarter of
2018.
Please see the language included in the section below titled
Non-GAAP Financial Measures for an explanation of the Company's
non-GAAP financial measures.
Conference Call
QuickLogic will hold a conference call
to discuss its financial results and outlook at 2:30 p.m. Pacific Standard Time / 5:30 p.m. Eastern Standard Time today,
November 6, 2019. The conference call
will be webcast at QuickLogic's IR Site Events Page. To join
the live conference, you may dial 1-888-204-4368 and international
participants should dial 1-323-794-2551. A recording of the call
will be available starting approximately one hour after completion
of the call. To access the recording, please call (412) 317-6671
and reference the passcode 1297797. The call recording will be
archived until Wednesday, November 13,
2019, and the webcast will be available for 12 months on the
Company's website at https://ir.quicklogic.com/ir-calendar.
About QuickLogic
QuickLogic develops low power,
multi-core semiconductor platforms and Intellectual Property (IP)
for Artificial Intelligence (AI), voice and sensor
processing. The solutions include an embedded FPGA IP (eFPGA)
for hardware acceleration and pre-processing, and heterogeneous
multi-core SoCs that integrate eFPGA with other processors and
peripherals. The Analytics Toolkit from the company's
wholly-owned subsidiary, SensiML Corporation, completes the
end-to-end solution with accurate sensor algorithms using AI
technology. The full range of platforms, software tools and
eFPGA IP enables the practical and efficient adoption of AI, voice
and sensor processing across the multitude of mobile, wearable,
hearable, consumer, industrial, edge and endpoint IoT
applications. For more information, visit
www.quicklogic.com and https://www.quicklogic.com/blog/.
QuickLogic uses its website (www.quicklogic.com), the company
blog (https://www.quicklogic.com/blog/), 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 U.S. 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 U.S. GAAP. A reconciliation of U.S. 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 U.S. GAAP financial measures and
the reconciliation of non-GAAP financial measures with their most
directly comparable U.S. 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; our ability to
capitalize on synergies with our newly acquired subsidiary SensiML
Corporation; changes in product demand or supply; capacity
constraints; general economic conditions; political events,
international trade disputes, war, terrorism, natural disasters,
public health issues, and other business interruptions that could
disrupt supply or delivery of, or demand for, the Company's
products; and changes in tax rates and exposure to additional tax
liabilities. 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 6, 2019, 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 29,
2019
|
|
|
September 30,
2018
|
|
|
June 30,
2019
|
|
|
September 29,
2019
|
|
|
September 30,
2018
|
|
Revenue
|
|
$
|
2,158
|
|
|
$
|
3,510
|
|
|
$
|
2,087
|
|
|
$
|
7,439
|
|
|
$
|
9,396
|
|
Cost of
revenue
|
|
|
1,117
|
|
|
|
1,767
|
|
|
|
1,065
|
|
|
|
3,397
|
|
|
|
4,734
|
|
Gross
profit
|
|
|
1,041
|
|
|
|
1,743
|
|
|
|
1,022
|
|
|
|
4,042
|
|
|
|
4,662
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
3,139
|
|
|
|
2,461
|
|
|
|
3,215
|
|
|
|
9,596
|
|
|
|
7,526
|
|
Selling, general and
administrative
|
|
|
2,095
|
|
|
|
2,509
|
|
|
|
2,340
|
|
|
|
6,881
|
|
|
|
7,680
|
|
Total operating
expense
|
|
|
5,234
|
|
|
|
4,970
|
|
|
|
5,555
|
|
|
|
16,477
|
|
|
|
15,206
|
|
Loss from
operations
|
|
|
(4,193)
|
|
|
|
(3,227)
|
|
|
|
(4,533)
|
|
|
|
(12,435)
|
|
|
|
(10,544)
|
|
Interest
expense
|
|
|
(63)
|
|
|
|
(21)
|
|
|
|
(124)
|
|
|
|
(270)
|
|
|
|
(77)
|
|
Interest and other
income, net
|
|
|
55
|
|
|
|
17
|
|
|
|
50
|
|
|
|
153
|
|
|
|
26
|
|
Loss before income
taxes
|
|
|
(4,201)
|
|
|
|
(3,231)
|
|
|
|
(4,607)
|
|
|
|
(12,552)
|
|
|
|
(10,595)
|
|
Provision for
(benefit from) income taxes
|
|
|
70
|
|
|
|
29
|
|
|
|
27
|
|
|
|
(171)
|
|
|
|
119
|
|
Net loss
|
|
$
|
(4,271)
|
|
|
$
|
(3,260)
|
|
|
$
|
(4,634)
|
|
|
$
|
(12,381)
|
|
|
$
|
(10,714)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.04)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.12)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
116,387
|
|
|
|
94,725
|
|
|
|
99,226
|
|
|
|
104,173
|
|
|
|
87,040
|
|
QUICKLOGIC
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
September 29,
2019
|
|
|
December 30, 2018
(1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,722
|
|
|
$
|
26,363
|
|
Restricted
cash
|
|
|
100
|
|
|
|
100
|
|
Accounts receivable,
net
|
|
|
1,259
|
|
|
|
2,209
|
|
Inventories
|
|
|
3,378
|
|
|
|
3,836
|
|
Other current
assets
|
|
|
1,506
|
|
|
|
1,775
|
|
Total current
assets
|
|
|
30,965
|
|
|
|
34,283
|
|
Property and
equipment, net
|
|
|
1,033
|
|
|
|
1,449
|
|
Right of use
assets
|
|
|
2,170
|
|
|
|
-
|
|
Intangible assets,
net
|
|
|
1,045
|
|
|
|
-
|
|
Goodwill
|
|
|
282
|
|
|
|
-
|
|
Other
assets
|
|
|
306
|
|
|
|
354
|
|
TOTAL
ASSETS
|
|
$
|
35,801
|
|
|
$
|
36,086
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
1,004
|
|
|
|
1,488
|
|
Accrued
liabilities
|
|
|
1,474
|
|
|
|
1,903
|
|
Current portion of
lease obligations
|
|
|
662
|
|
|
|
316
|
|
Total current
liabilities
|
|
|
18,140
|
|
|
|
18,707
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Lease obligations,
less current portion
|
|
|
1,423
|
|
|
|
108
|
|
Other long-term
liabilities
|
|
|
-
|
|
|
|
16
|
|
Total
liabilities
|
|
|
19,563
|
|
|
|
18,831
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, par
value
|
|
|
116
|
|
|
|
95
|
|
Additional paid-in
capital
|
|
|
296,317
|
|
|
|
284,974
|
|
Accumulated
deficit
|
|
|
(280,195)
|
|
|
|
(267,814)
|
|
Total
stockholders' equity
|
|
|
16,238
|
|
|
|
17,255
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
35,801
|
|
|
$
|
36,086
|
|
|
|
|
|
|
|
|
(1)
|
Derived from the
December 30, 2018 audited balance sheet included in the 2018
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 29,
2019
|
|
|
September 30,
2018
|
|
|
June 30,
2019
|
|
|
September 29,
2019
|
|
|
September 30,
2018
|
|
US GAAP loss from
operations
|
|
$
|
(4,193)
|
|
|
$
|
(3,227)
|
|
|
$
|
(4,533)
|
|
|
$
|
(12,435)
|
|
|
$
|
(10,544)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
15
|
|
|
|
30
|
|
|
|
18
|
|
|
|
59
|
|
|
|
99
|
|
Research and
development
|
|
|
521
|
|
|
|
220
|
|
|
|
532
|
|
|
|
1,708
|
|
|
|
610
|
|
Selling, general and
administrative
|
|
|
212
|
|
|
|
266
|
|
|
|
241
|
|
|
|
723
|
|
|
|
718
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
2
|
|
|
|
5
|
|
Non-GAAP loss from
operations
|
|
$
|
(3,445)
|
|
|
$
|
(2,711)
|
|
|
$
|
(3,740)
|
|
|
$
|
(9,943)
|
|
|
$
|
(9,112)
|
|
US GAAP net
loss
|
|
$
|
(4,271)
|
|
|
$
|
(3,260)
|
|
|
$
|
(4,634)
|
|
|
$
|
(12,381)
|
|
|
$
|
(10,714)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
15
|
|
|
|
30
|
|
|
|
18
|
|
|
|
59
|
|
|
|
99
|
|
Research and
development
|
|
|
521
|
|
|
|
220
|
|
|
|
532
|
|
|
|
1,708
|
|
|
|
610
|
|
Selling, general and
administrative
|
|
|
212
|
|
|
|
266
|
|
|
|
241
|
|
|
|
723
|
|
|
|
718
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
2
|
|
|
|
5
|
|
Non-GAAP net
loss
|
|
$
|
(3,523)
|
|
|
$
|
(2,744)
|
|
|
$
|
(3,841)
|
|
|
$
|
(9,889)
|
|
|
$
|
(9,282)
|
|
US GAAP net loss
per share
|
|
$
|
(0.04)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.12)
|
|
Adjustment for
stock-based compensation
|
|
|
0.01
|
|
|
*
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.01
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.03)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.11)
|
|
US GAAP gross
margin percentage
|
|
|
48.2
|
%
|
|
|
49.7
|
%
|
|
|
49.0
|
%
|
|
|
54.3
|
%
|
|
|
49.6
|
%
|
Adjustment for
stock-based compensation
|
|
|
0.7
|
%
|
|
|
0.8
|
%
|
|
|
0.8
|
%
|
|
|
0.8
|
%
|
|
|
1.1
|
%
|
Non-GAAP gross
margin percentage
|
|
|
48.9
|
%
|
|
|
50.5
|
%
|
|
|
49.8
|
%
|
|
|
55.1
|
%
|
|
|
50.7
|
%
|
|
* Figures were not
considered for reconciliation due to the insignificant
amount.
|
QUICKLOGIC
CORPORATION
|
SUPPLEMENTAL
DATA
|
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q3 2019
|
|
|
Q3 2018
|
|
|
Q2 2019
|
|
|
Q3 2018
to Q3
2019
|
|
|
Q2 2019
to Q3
2019
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
47
|
%
|
|
|
43
|
%
|
|
|
34
|
%
|
|
|
(33)
|
%
|
|
|
43
|
%
|
Mature
products
|
|
|
53
|
%
|
|
|
57
|
%
|
|
|
66
|
%
|
|
|
(42)
|
%
|
|
|
(17)
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
25
|
%
|
|
|
50
|
%
|
|
|
26
|
%
|
|
|
(70)
|
%
|
|
|
(2)
|
%
|
North
America
|
|
|
70
|
%
|
|
|
39
|
%
|
|
|
51
|
%
|
|
|
11
|
%
|
|
|
42
|
%
|
Europe
|
|
|
5
|
%
|
|
|
11
|
%
|
|
|
23
|
%
|
|
|
(72)
|
%
|
|
|
(77)
|
%
|
|
|
|
|
|
|
|
|
(1)
|
New products include
all products manufactured on 180 nanometer or smaller semiconductor
processes, eFPGA IP license, QuickAI and software revenues. Mature
products include all products produced on semiconductor processes
larger than 180 nanometer.
|
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SOURCE QuickLogic Corporation