SAN JOSE, Calif., Feb. 12, 2020 /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 fourth quarter and fiscal year 2019 ended
December 29, 2019.
Recent Highlights
- Won a key EOS S3 SoC design at Kyocera for their Torque G04
smartphone
- Joined STMicroelectronics Partner Program so that developers
using the STM32 can implement intelligent IoT edge sensing using
SensiML's complete end-to-end AI workflow
- Delivered FLEXino Sensor Fusion Development Kit, a complete
solution for IoT endpoint applications, with Flex and Infineon
Technologies AG
- Announced Renode support (an open source tool for embedded and
IoT development) for EOS S3 SoC with Antmicro
- Announced restructuring plan to reduce operating expenses in
order to achieve profitability goal in fiscal year 2020
Fourth Quarter and Fiscal Year 2019 Financial Results
Total revenue for the fourth quarter of 2019 was $2.9 million, compared with $3.2 million in the fourth quarter of 2018.
New product revenue was $0.7 million
in the fourth quarter of 2019, 47% lower than the $1.3 million in the fourth quarter of 2018.
Mature product revenue was $2.2
million in the fourth quarter of 2019, compared with
$1.9 million in the fourth quarter of
2018.
Fourth quarter 2019 GAAP gross margin was 64.9%, compared with
51.7% in the fourth quarter of 2018. Fourth quarter 2019 Non-GAAP
gross margin was 65.6%, compared with 52.6% in the fourth quarter
of 2018. The increase in gross margin from the same quarter a year
ago was mostly due to the higher mix of mature product revenue and
additional SaaS business.
Fourth quarter 2019 GAAP operating expenses were $4.8 million, compared with $4.7 million in the fourth quarter of 2018.
Fourth quarter 2019 Non-GAAP operating expenses were $4.2 million, compared with $4.3 million in the fourth quarter of 2018.
Fourth quarter 2019 GAAP net loss was $3.1 million, or $0.37 per share. This compares with $3.1 million, or $0.45 per share, in the fourth quarter of 2018.
Fourth quarter 2019 non-GAAP net loss was $2.4 million, or $0.29 per share, compared with $2.6 million, or $0.38 per share, in the fourth quarter of 2018.
Share and per share data have been adjusted to reflect the 1-for-14
reverse stock split that was completed on December 24, 2019.
Please see below for an explanation of the Company's non-GAAP
financial measures.
Fiscal Year 2019 Results
For fiscal year 2019, total revenue was $10.3 million, compared with $12.6 million in fiscal year 2018. New product
revenue for fiscal year 2019 was $3.1
million, compared with $5.7
million in fiscal year 2018. Mature product revenue was
$7.2 million, compared with
$6.9 million in fiscal year 2018.
Fiscal year 2019 GAAP gross margin was 57.3%, compared with
50.2% in fiscal year 2018. Non-GAAP gross margin for fiscal year
2019 was 58.0%, compared with 51.2% in fiscal year 2018.
GAAP operating expenses for fiscal year 2019 were $21.3 million, compared with $19.9 million in fiscal year 2018. The
increase was primarily due to the SensiML acquisition that was
completed in January 2019. Non-GAAP
operating expenses of $18.2 million
for fiscal year 2019 were flat with fiscal year 2018.
GAAP net loss for fiscal year 2019 was $15.4 million, or $2.02 per share. This compares with
$13.8 million, or $2.16 per share in fiscal year 2018. Non-GAAP net
loss was $12.3 million, or
$1.60 per share, for fiscal year
2019. This compares with $11.9
million, or $1.87 per share,
for fiscal year 2018.
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, February 12,
2020. The conference call will be webcast at QuickLogic's IR
Site Events Page. To join the live conference, you may dial
1-888-394-8218 and international participants should dial
1-323-794-2588. 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
5294729. The call recording will be archived until Wednesday, February 19, 2020, and the webcast
will be available for 12 months on the Company's website at
https://ir.quicklogic.com/ir-calendar.
About QuickLogic
QuickLogic is a fabless semiconductor company that 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
February 12, 2020, 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
|
|
|
Year
Ended
|
|
|
|
December 29,
2019
|
|
|
December 30,
2018
|
|
|
September 29,
2019
|
|
|
December 29,
2019
|
|
|
December 30,
2018
|
|
Revenue
|
|
$
|
2,871
|
|
|
$
|
3,233
|
|
|
$
|
2,158
|
|
|
$
|
10,310
|
|
|
$
|
12,629
|
|
Cost of
revenue
|
|
|
1,008
|
|
|
|
1,561
|
|
|
|
1,117
|
|
|
|
4,405
|
|
|
|
6,295
|
|
Gross
profit
|
|
|
1,863
|
|
|
|
1,672
|
|
|
|
1,041
|
|
|
|
5,905
|
|
|
|
6,334
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2,754
|
|
|
|
2,422
|
|
|
|
3,139
|
|
|
|
12,350
|
|
|
|
9,948
|
|
Selling, general and
administrative
|
|
|
2,037
|
|
|
|
2,302
|
|
|
|
2,095
|
|
|
|
8,918
|
|
|
|
9,982
|
|
Total operating
expense
|
|
|
4,791
|
|
|
|
4,724
|
|
|
|
5,234
|
|
|
|
21,268
|
|
|
|
19,930
|
|
Loss from
operations
|
|
|
(2,928)
|
|
|
|
(3,052)
|
|
|
|
(4,193)
|
|
|
|
(15,363)
|
|
|
|
(13,596)
|
|
Interest
expense
|
|
|
(80)
|
|
|
|
(31)
|
|
|
|
(63)
|
|
|
|
(350)
|
|
|
|
(108)
|
|
Interest and other
income, net
|
|
|
36
|
|
|
|
51
|
|
|
|
55
|
|
|
|
189
|
|
|
|
77
|
|
Loss before income
taxes
|
|
|
(2,972)
|
|
|
|
(3,032)
|
|
|
|
(4,201)
|
|
|
|
(15,524)
|
|
|
|
(13,627)
|
|
Provision (benefit
from) for income taxes
|
|
|
91
|
|
|
|
33
|
|
|
|
70
|
|
|
|
(80)
|
|
|
|
152
|
|
Net loss
|
|
$
|
(3,063)
|
|
|
$
|
(3,065)
|
|
|
$
|
(4,271)
|
|
|
$
|
(15,444)
|
|
|
$
|
(13,779)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
(1)
|
|
$
|
(0.37)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.51)
|
|
|
$
|
(2.02)
|
|
|
$
|
(2.16)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
(1)
|
|
|
8,328
|
|
|
|
6,807
|
|
|
|
8,313
|
|
|
|
7,663
|
|
|
|
6,365
|
|
|
(1) Net loss per share, basic
and diluted share numbers are adjusted to reflect 1-for-14 reverse
stock split effected on December 24, 2019.
|
QUICKLOGIC
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
December 29,
2019
|
|
|
December 30, 2018
(1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
21,448
|
|
|
$
|
26,363
|
|
Restricted
cash
|
|
|
100
|
|
|
|
100
|
|
Accounts receivable,
net
|
|
|
1,991
|
|
|
|
2,209
|
|
Inventories
|
|
|
3,260
|
|
|
|
3,836
|
|
Other current
assets
|
|
|
1,565
|
|
|
|
1,775
|
|
Total current
assets
|
|
|
28,364
|
|
|
|
34,283
|
|
Property and
equipment, net
|
|
|
830
|
|
|
|
1,449
|
|
Internal Use
Software, net
|
|
|
333
|
|
|
|
-
|
|
Right of use
assets
|
|
|
2,370
|
|
|
|
-
|
|
Intangible assets,
net
|
|
|
1,008
|
|
|
|
-
|
|
Goodwill
|
|
|
185
|
|
|
|
-
|
|
Other
assets
|
|
|
314
|
|
|
|
354
|
|
TOTAL
ASSETS
|
|
$
|
33,404
|
|
|
$
|
36,086
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
1,003
|
|
|
|
1,488
|
|
Accrued
liabilities
|
|
|
1,133
|
|
|
|
1,903
|
|
Deferred
Revenue
|
|
|
158
|
|
|
|
-
|
|
Current portion of
lease obligations
|
|
|
704
|
|
|
|
316
|
|
Total current
liabilities
|
|
|
17,998
|
|
|
|
18,707
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Lease obligations,
less current portion
|
|
|
1,583
|
|
|
|
108
|
|
Other long-term
liabilities
|
|
|
-
|
|
|
|
16
|
|
Total
liabilities
|
|
|
19,581
|
|
|
|
18,831
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, par
value (2)
|
|
|
8
|
|
|
|
7
|
|
Additional paid-in
capital (2)
|
|
|
297,073
|
|
|
|
285,062
|
|
Accumulated
deficit
|
|
|
(283,258)
|
|
|
|
(267,814)
|
|
Total
stockholders' equity
|
|
|
13,823
|
|
|
|
17,255
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
33,404
|
|
|
$
|
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.
|
(2)
|
Common stock, par
value and additional paid-in capital amounts are adjusted to
reflect 1-for-14 reverse stock split effected on December 24,
2019.
|
QUICKLOGIC
CORPORATION
|
SUPPLEMENTAL
RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL
MEASURES
|
(in thousands,
except per share amounts and percentages)
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Year
Ended
|
|
|
|
December 29,
2019
|
|
|
December 30,
2018
|
|
|
September 29,
2019
|
|
|
December 29,
2019
|
|
|
December 30,
2018
|
|
US GAAP loss from
operations
|
|
$
|
(2,928)
|
|
|
$
|
(3,052)
|
|
|
$
|
(4,193)
|
|
|
$
|
(15,363)
|
|
|
$
|
(13,596)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
19
|
|
|
|
30
|
|
|
|
15
|
|
|
|
78
|
|
|
|
129
|
|
Research and
development
|
|
|
534
|
|
|
|
150
|
|
|
|
521
|
|
|
|
2,242
|
|
|
|
760
|
|
Selling, general and
administrative
|
|
|
101
|
|
|
|
294
|
|
|
|
212
|
|
|
|
824
|
|
|
|
1,012
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
5
|
|
Non-GAAP loss from
operations
|
|
$
|
(2,272)
|
|
|
$
|
(2,578)
|
|
|
$
|
(3,445)
|
|
|
$
|
(12,215)
|
|
|
$
|
(11,690)
|
|
US GAAP net
loss
|
|
$
|
(3,063)
|
|
|
$
|
(3,065)
|
|
|
$
|
(4,271)
|
|
|
$
|
(15,444)
|
|
|
$
|
(13,779)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
19
|
|
|
|
30
|
|
|
|
15
|
|
|
|
78
|
|
|
|
129
|
|
Research and
development
|
|
|
534
|
|
|
|
150
|
|
|
|
521
|
|
|
|
2,242
|
|
|
|
760
|
|
Selling, general and
administrative
|
|
|
101
|
|
|
|
294
|
|
|
|
212
|
|
|
|
824
|
|
|
|
1,012
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
5
|
|
Non-GAAP net
loss
|
|
$
|
(2,407)
|
|
|
$
|
(2,591)
|
|
|
$
|
(3,523)
|
|
|
$
|
(12,296)
|
|
|
$
|
(11,873)
|
|
US GAAP net loss
per share (1)
|
|
$
|
(0.37)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.51)
|
|
|
$
|
(2.02)
|
|
|
$
|
(2.16)
|
|
Adjustment for
stock-based compensation
|
|
|
0.08
|
|
|
|
0.07
|
|
|
|
0.09
|
|
|
|
0.42
|
|
|
|
0.29
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.29)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.42)
|
|
|
$
|
(1.60)
|
|
|
$
|
(1.87)
|
|
US GAAP gross
margin percentage
|
|
|
64.9
|
%
|
|
|
51.7
|
%
|
|
|
48.2
|
%
|
|
|
57.3
|
%
|
|
|
50.2
|
%
|
Adjustment for
stock-based compensation
|
|
|
0.7
|
%
|
|
|
0.9
|
%
|
|
|
0.7
|
%
|
|
|
0.7
|
%
|
|
|
1.0
|
%
|
Non-GAAP gross
margin percentage
|
|
|
65.6
|
%
|
|
|
52.6
|
%
|
|
|
48.9
|
%
|
|
|
58.0
|
%
|
|
|
51.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net loss per share is
adjusted to reflect 1-for-14 reverse stock split effected on
December 24, 2019.
|
QUICKLOGIC
CORPORATION
|
SUPPLEMENTAL
DATA
|
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
Change in
Revenue
|
|
|
|
Q4 2019
|
|
|
Q3 2019
|
|
|
Fiscal
2019
|
|
Fiscal
2018
|
|
|
Q3 2019
to
Q4
2019
|
|
|
2018
to
2019
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
25
|
%
|
|
|
47
|
%
|
|
|
30
|
%
|
|
45
|
%
|
|
|
(30)
|
%
|
|
|
(46)
|
%
|
Mature
products
|
|
|
75
|
%
|
|
|
53
|
%
|
|
|
70
|
%
|
|
55
|
%
|
|
|
89
|
%
|
|
|
4
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
19
|
%
|
|
|
25
|
%
|
|
|
30
|
%
|
|
39
|
%
|
|
|
5
|
%
|
|
|
(38)
|
%
|
North
America
|
|
|
37
|
%
|
|
|
70
|
%
|
|
|
47
|
%
|
|
51
|
%
|
|
|
(31)
|
%
|
|
|
(25)
|
%
|
Europe
|
|
|
44
|
%
|
|
|
5
|
%
|
|
|
23
|
%
|
|
10
|
%
|
|
|
1028
|
%
|
|
|
92
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
New products include
all products manufactured on 180 nanometer or smaller semiconductor
processes, eFPGA IP license, QuickAI, and SensiML AI software as a
service (SaaS) revenues. Mature products include all products
produced on semiconductor processes larger than 180
nanometer.
|
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multimedia:http://www.prnewswire.com/news-releases/quicklogic-reports-fourth-quarter-and-fiscal-2019-results-301003860.html
SOURCE QuickLogic Corporation