SAN
JOSE, Calif., Aug. 14,
2023 /PRNewswire/ -- QuickLogic Corporation (NASDAQ:
QUIK) ("QuickLogic" or the "Company"), a developer of embedded FPGA
(eFPGA) IP, ruggedized FPGAs and Endpoint AI solutions, today
announced its financial results for the fiscal second quarter ended
July 2, 2023.
Highlights
- Significant revenue contribution from the next, executed phase
of the large eFPGA contract we announced in 2022 is expected during
the second half of 2023
- Sales funnel grew to a record $140
million, with conversion expected to accelerate during the
second half of 2023
- Top-tier microcontroller company is in the final stages of
integrating its private label version of SensiML AI/ML solutions
across its broad product line
- Our first 12nm eFPGA IP core expected to be completed this
quarter
"While the timing of the award for the next phase of the large
eFPGA contract negatively impacted our second quarter results, with
this next, substantially larger contract phase fully executed and
new bookings generated from our growing sales funnel, we reaffirm
full year revenue growth will be above 30%," said Brian Faith, CEO of QuickLogic. "In addition to
accelerated revenue growth, we also are affirming our expectation
that we will report second half and full year non-GAAP
profitability for 2023."
Fiscal Second Quarter 2023 Financial
Results
Total revenue for the second quarter
of fiscal 2023 was $2.9
million, a decrease of 29.3% compared with the first
quarter of 2023, and a decrease of 35.7% compared with the
second quarter of 2022.
New product revenue was approximately $2.2 million in the second quarter of
2023, a decrease of $0.9
million, or 26.9%, compared with the first quarter of
2023, and a decrease of $0.9 million, or 28.7%, compared
with the second quarter of 2022. The completion of the $6.9 million government contract in the second
quarter and the delay of the add-on contract led to the lower than
anticipated revenue.
Mature product revenue was $0.7 million in the second
quarter of 2023, a decrease of $0.4
million, or 36.2%, compared with the first quarter
of 2023. Mature product revenue in the second quarter of 2023
decreased 51.2% compared to the second quarter of 2022.
Second quarter 2023 GAAP gross margin was 41.2% compared with
57.8% in the first quarter of 2023, and 56.0% in the second quarter
of 2022. The decrease in gross margins was primarily related to
revenue volatility resulting from delays in starting new phases of
an existing contract.
Second quarter 2023 non-GAAP gross margin was 44.2%
compared with 59.7% in the first quarter of 2023, and 58.6% in
the second quarter of 2022.
Second quarter 2023 GAAP operating expenses were
$3.4 million compared with
$3.5 million in the first quarter of
2023, and $3.2 million in the
second quarter of 2022.
Second quarter 2023 non-GAAP operating expenses were
$2.9 million compared with
$2.9 million in the first quarter of
2023, and $2.8 million in the
second quarter of 2022.
Second quarter 2023 GAAP net loss was $2.3 million, or $0.17 per share, compared with a net loss of
$1.2 million, or $0.09 per share, in the first quarter of
2023, and a net loss of $0.5
million, or $0.04 per share,
in the second quarter of 2022.
Second quarter 2023 non-GAAP net loss was $1.7 million, or $0.12 per share, compared with a net loss of
$0.5 million, or $0.04 per
share, in the first quarter of 2023, and a net loss of
$47 thousand, or $0.00 per share, in the second quarter of
2022.
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, August 14, 2023, to discuss its current financial
results. The conference call will be webcast on QuickLogic's IR
Site Events Page at https://ir.quicklogic.com/ir-calendar. To join
the live conference, you may dial (877) 407-0792 and international
participants should dial (201) 689-8263 by 2:20 p.m. Pacific Time. No Passcode is needed to
join the conference call. A recording of the call will be available
approximately one hour after completion. To access the recording,
please call (412) 317-6671 and reference the passcode 13740059.
The call recording, which can be accessed by phone, will be
archived through August 21, 2023, and
the webcast will be available for 12 months on the Company's
website.
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 (Internet of Things) 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 (Securities and Exchange Commission)
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 certain
charges related to stock-based compensation, in calculating
non-GAAP (i) loss from operations, (ii) net loss,
(iii) net 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 like
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 within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, without limitation,
expectations regarding our future business, and actual results may
differ 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 by competitors; our
ability to hire and retain qualified personnel; our ability to
capitalize on synergies with our subsidiary SensiML Corporation;
changes in product demand or supply; general economic conditions;
political events, international trade disputes, natural disasters
and other business interruptions that could disrupt supply or
delivery of, or demand for, the Company's products; the
unpredictable and ongoing impact of the effects from the COVID-19
pandemic; 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 materially from the
results contemplated or implied 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 14,
2023, and any forward-looking statements contained herein
are based on assumptions that we believe to be reasonable as of
this date. We are not obliged to update these statements due to
latest information or future events.
QuickLogic and logo are registered trademarks of QuickLogic.
All other trademarks are the property of their respective holders
and should be treated as such.
CODE: QUIK-E
QUICKLOGIC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,
except per share amounts)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2023
|
|
|
July 3,
2022
|
|
|
April 2,
2023
|
|
|
July 2,
2023
|
|
|
July 3,
2022
|
|
Revenue
|
|
$
|
2,921
|
|
|
$
|
4,541
|
|
|
$
|
4,133
|
|
|
$
|
7,054
|
|
|
$
|
8,637
|
|
Cost of
revenue
|
|
|
1,718
|
|
|
|
1,997
|
|
|
|
1,743
|
|
|
|
3,461
|
|
|
|
3,632
|
|
Gross profit
|
|
|
1,203
|
|
|
|
2,544
|
|
|
|
2,390
|
|
|
|
3,593
|
|
|
|
5,005
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,505
|
|
|
|
1,190
|
|
|
|
1,629
|
|
|
|
3,134
|
|
|
|
2,523
|
|
Selling, general and administrative
|
|
|
1,924
|
|
|
|
1,981
|
|
|
|
1,861
|
|
|
|
3,785
|
|
|
|
4,118
|
|
Total operating
expense
|
|
|
3,429
|
|
|
|
3,171
|
|
|
|
3,490
|
|
|
|
6,919
|
|
|
|
6,641
|
|
Loss from
operations
|
|
|
(2,226)
|
|
|
|
(627)
|
|
|
|
(1,100)
|
|
|
|
(3,326)
|
|
|
|
(1,636)
|
|
Interest
expense
|
|
|
(50)
|
|
|
|
(22)
|
|
|
|
(58)
|
|
|
|
(108)
|
|
|
|
(55)
|
|
Interest and other
(expense) income, net
|
|
|
—
|
|
|
|
142
|
|
|
|
(63)
|
|
|
|
(63)
|
|
|
|
19
|
|
Loss before income
taxes
|
|
|
(2,276)
|
|
|
|
(507)
|
|
|
|
(1,221)
|
|
|
|
(3,497)
|
|
|
|
(1,672)
|
|
Provision for (benefit
from) income taxes
|
|
|
(7)
|
|
|
|
17
|
|
|
|
7
|
|
|
|
—
|
|
|
|
16
|
|
Net loss
|
|
$
|
(2,269)
|
|
|
$
|
(524)
|
|
|
$
|
(1,228)
|
|
|
$
|
(3,497)
|
|
|
$
|
(1,688)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.17)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.14)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
13,709
|
|
|
|
12,412
|
|
|
|
13,215
|
|
|
|
13,297
|
|
|
|
12,269
|
|
|
Note: Net loss equals
to comprehensive loss for all periods presented.
|
QUICKLOGIC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(Unaudited)
|
|
|
|
|
|
July 2,
2023
|
|
|
January 1,
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
|
20,565
|
|
|
$
|
19,201
|
|
Accounts receivable,
net of allowance for doubtful accounts of $14 and $18, as of July
2,
2023 and January 1, 2023, respectively
|
|
|
937
|
|
|
|
2,689
|
|
Contract
assets
|
|
|
1,013
|
|
|
|
1,987
|
|
Inventories
|
|
|
2,455
|
|
|
|
2,493
|
|
Prepaid expenses and
other current assets
|
|
|
3,045
|
|
|
|
1,570
|
|
Total current
assets
|
|
|
28,015
|
|
|
|
27,940
|
|
Property and equipment,
net
|
|
|
2,183
|
|
|
|
465
|
|
Capitalized
internal-use software, net
|
|
|
1,622
|
|
|
|
1,514
|
|
Right of use assets,
net
|
|
|
1,338
|
|
|
|
1,397
|
|
Intangible assets,
net
|
|
|
591
|
|
|
|
645
|
|
Non-marketable equity
investment
|
|
|
300
|
|
|
|
300
|
|
Goodwill
|
|
|
185
|
|
|
|
185
|
|
Other assets
|
|
|
142
|
|
|
|
140
|
|
TOTAL
ASSETS
|
|
$
|
34,376
|
|
|
$
|
32,586
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
3,406
|
|
|
|
2,391
|
|
Accrued
liabilities
|
|
|
1,965
|
|
|
|
1,509
|
|
Deferred
revenue
|
|
|
294
|
|
|
|
272
|
|
Lease liabilities,
current
|
|
|
914
|
|
|
|
850
|
|
Total current
liabilities
|
|
|
21,579
|
|
|
|
20,022
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Lease liabilities,
non-current
|
|
|
441
|
|
|
|
544
|
|
Other long-term
liabilities
|
|
|
181
|
|
|
|
125
|
|
Total
liabilities
|
|
|
22,201
|
|
|
|
20,691
|
|
Commitments and
contingencies
|
|
|
—
|
|
|
|
—
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001
par value; 10,000 shares authorized; no shares issued and
outstanding
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.001
par value; 200,000 authorized; 13,725 and 13,202 shares issued
and
outstanding as of July 2, 2023 and January 1, 2023,
respectively
|
|
|
14
|
|
|
|
13
|
|
Additional paid-in
capital
|
|
|
320,950
|
|
|
|
317,174
|
|
Accumulated
deficit
|
|
|
(308,789)
|
|
|
|
(305,292)
|
|
Total stockholders'
equity
|
|
|
12,175
|
|
|
|
11,895
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
34,376
|
|
|
$
|
32,586
|
|
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,
2023
|
|
|
July 3,
2022
|
|
|
April 2,
2023
|
|
|
July 2,
2023
|
|
|
July 3,
2022
|
|
US GAAP loss from
operations
|
|
$
|
(2,226)
|
|
|
$
|
(627)
|
|
|
$
|
(1,100)
|
|
|
$
|
(3,326)
|
|
|
$
|
(1,636)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
88
|
|
|
|
117
|
|
|
|
78
|
|
|
|
166
|
|
|
|
173
|
|
Research and
development
|
|
|
158
|
|
|
|
91
|
|
|
|
184
|
|
|
|
342
|
|
|
|
176
|
|
Selling, general and
administrative
|
|
|
340
|
|
|
|
269
|
|
|
|
453
|
|
|
|
793
|
|
|
|
511
|
|
Non-GAAP loss from
operations
|
|
$
|
(1,640)
|
|
|
$
|
(150)
|
|
|
$
|
(385)
|
|
|
$
|
(2,025)
|
|
|
$
|
(776)
|
|
US GAAP net
loss
|
|
$
|
(2,269)
|
|
|
$
|
(524)
|
|
|
$
|
(1,228)
|
|
|
$
|
(3,497)
|
|
|
$
|
(1,688)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
88
|
|
|
|
117
|
|
|
|
78
|
|
|
|
166
|
|
|
|
173
|
|
Research and
development
|
|
|
158
|
|
|
|
91
|
|
|
|
184
|
|
|
|
342
|
|
|
|
176
|
|
Selling, general and
administrative
|
|
|
340
|
|
|
|
269
|
|
|
|
453
|
|
|
|
793
|
|
|
|
511
|
|
Non-GAAP net
loss
|
|
$
|
(1,683)
|
|
|
$
|
(47)
|
|
|
$
|
(513)
|
|
|
$
|
(2,196)
|
|
|
$
|
(828)
|
|
US GAAP net loss per
share, basic and diluted
|
|
$
|
(0.17)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.14)
|
|
Adjustment for
stock-based compensation
|
|
|
0.05
|
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.09
|
|
|
|
0.07
|
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
|
(0.12)
|
|
|
$
|
—
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.07)
|
|
US GAAP gross margin
percentage
|
|
|
41.2
|
%
|
|
|
56.0
|
%
|
|
|
57.8
|
%
|
|
|
50.9
|
%
|
|
|
57.9
|
%
|
Adjustment for
stock-based compensation included in cost of revenue
|
|
|
3.0
|
%
|
|
|
2.6
|
%
|
|
|
1.9
|
%
|
|
|
2.4
|
%
|
|
|
2.0
|
%
|
Non-GAAP gross margin
percentage
|
|
|
44.2
|
%
|
|
|
58.6
|
%
|
|
|
59.7
|
%
|
|
|
53.3
|
%
|
|
|
59.9
|
%
|
QUICKLOGIC
CORPORATION
SUPPLEMENTAL
DATA
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q2
2023
|
|
|
Q2
2022
|
|
|
Q1
2023
|
|
|
Q2 2023 to
Q2 2022
|
|
|
Q2 2023 to
Q1 2023
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
76
|
%
|
|
|
69
|
%
|
|
|
74
|
%
|
|
|
(29)
|
%
|
|
|
(27)
|
%
|
Mature
products
|
|
|
24
|
%
|
|
|
31
|
%
|
|
|
26
|
%
|
|
|
(51)
|
%
|
|
|
(36)
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
16
|
%
|
|
|
18
|
%
|
|
|
17
|
%
|
|
|
(46)
|
%
|
|
|
(36)
|
%
|
North
America
|
|
|
81
|
%
|
|
|
68
|
%
|
|
|
80
|
%
|
|
|
(23)
|
%
|
|
|
(29)
|
%
|
Europe
|
|
|
3
|
%
|
|
|
14
|
%
|
|
|
3
|
%
|
|
|
(85)
|
%
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
New products include
all products manufactured on 180 nanometer or smaller semiconductor
processes, eFPGA IP intellectual property, professional
services, and QuickAI and SensiML AI software as a service (SaaS)
revenue. Mature products include all products produced on
semiconductor processes larger than 180 nanometer and includes
related royalty revenue.
|
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multimedia:https://www.prnewswire.com/news-releases/quicklogic-reports-second-quarter-fiscal-2023-results-and-affirms-its-expectation-for-full-year-profitability-301900152.html
SOURCE QuickLogic Corporation