SAN JOSE, Calif., May 11, 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 first quarter of fiscal 2020, ended
March 29, 2020.
Recent Highlights
- New Web-Based AutoML Tool from SensiML Makes AI for IoT Easier
than Ever
- QuickLogic's eFPGA Technology Qualified on GLOBALFOUNDRIES
22FDX® Platform for IoT and Edge AI Applications
- QuickLogic and Antmicro Partner to Bring Low Power Machine
Learning to Endpoint IoT Devices
- SensiML Delivers AI-Based Sensor Algorithms for IoT Endpoints
Using NXP's i.MX RT Crossover MCUs
- QuickLogic Names OptimusLogic Authorized Design Partner for
Embedded System and Software Development
Fiscal 2020 First Quarter Financial Results
Total revenue for the first quarter of 2020 was $2.2 million, a decline of 25% compared with the
fourth quarter of 2019, and 32% compared with the first quarter of
2019. New product revenue was $0.5
million in the first quarter of 2020, a decline of 32%
compared with the fourth quarter of 2019, and 29% compared with the
first quarter of 2019. This sequential decline was due to lower
sales of display bridge, connectivity and mature products that were
not fully offset by increased EOS S3 revenue. New product revenue
accounted for 23% of the total revenue in the first quarter of
2020, compared with 25% in the fourth quarter of 2019, and 22% in
the first quarter of 2019. Mature product revenue was
$1.7 million in the first quarter of
2020, down 23% compared with the fourth quarter of 2019, and 33%
compared with the first quarter of 2019.
First quarter 2020 GAAP gross margin was 51.7%, down from 64.9%
in the fourth quarter of 2019, and 62.0% in the first quarter of
2019.
First quarter 2020 non-GAAP gross margin was 52.2%, down from
65.6% in the fourth quarter of 2019 and 62.8% in the first quarter
of 2019. The lower gross margin in the first quarter 2020 was
primarily due to product mix and some higher margin mature product
revenue moving into Q2.
First quarter 2020 GAAP operating expenses were $4.2 million, down from $4.8 million in the fourth quarter of 2019, and
$5.7 million in the first quarter of
2019. The first quarter 2020 GAAP operating expenses include
restructuring expenses of $0.5
million related to the restructuring plan implemented in the
first quarter of 2020.
First quarter 2020 non-GAAP operating expenses were $4.1 million, down from $4.2 million in the fourth quarter of 2019, and
from $4.8 million compared with the
first quarter of 2019.
First quarter 2020 GAAP net loss was $3.2 million, or $0.38 per share, compared with a net loss of
$3.1 million, or $0.37 per share, in the fourth quarter of 2019,
and a net loss of $3.5 million, or
$0.50 per share, in the first quarter
of 2019.
First quarter 2020 non-GAAP net loss was $3.1 million, or $0.37 per share, compared with a net loss of
$2.4 million, or $0.29 per share, in the fourth quarter of 2019,
and a net loss of $2.5 million, or
$0.37 per share, in the first quarter
of 2019.
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 at 2:00 p.m. Pacific
Daylight Time / 5:00 p.m. Eastern Daylight
Time today, May 11, 2020, to
discuss its current financial results. The conference call will be
webcast at QuickLogic's IR Site Events Page. To join the live
conference, you may dial (877) 407-0792 and international
participants should dial (201) 689-8263 by 1:50 p.m. Pacific
Daylight Time. No Passcode is needed to join the conference call. A
recording of the call will be available starting approximately one
hour after completion. To access the recording, please call
(412) 317-6671 and reference the passcode 13702119. The call
recording, which can be accessed by phone, will be archived until
Monday, May 18, 2020, 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 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 May 11, 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
|
|
|
March 29, 2020
|
|
|
March 31, 2019
|
|
|
December 29,
2019
|
Revenue
|
|
$
|
2,158
|
|
|
$
|
3,194
|
|
|
$
|
2,871
|
Cost of
revenue
|
|
|
1,043
|
|
|
|
1,215
|
|
|
|
1,008
|
Gross
profit
|
|
|
1,115
|
|
|
|
1,979
|
|
|
|
1,863
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,819
|
|
|
|
3,242
|
|
|
|
2,754
|
Selling, general and
administrative
|
|
|
1,879
|
|
|
|
2,446
|
|
|
|
2,037
|
Restructuring
expenses
|
|
|
479
|
|
|
|
-
|
|
|
|
-
|
Total operating
expense
|
|
|
4,177
|
|
|
|
5,688
|
|
|
|
4,791
|
Loss from
operations
|
|
|
(3,062)
|
|
|
|
(3,709)
|
|
|
|
(2,928)
|
Interest
expense
|
|
|
(80)
|
|
|
|
(83)
|
|
|
|
(80)
|
Interest and other
income, net
|
|
|
(5)
|
|
|
|
48
|
|
|
|
36
|
Loss before income
taxes
|
|
|
(3,147)
|
|
|
|
(3,744)
|
|
|
|
(2,972)
|
(Benefit from)
Provision for income taxes
|
|
|
18
|
|
|
|
(268)
|
|
|
|
91
|
Net loss
|
|
$
|
(3,165)
|
|
|
$
|
(3,476)
|
|
|
$
|
(3,063)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
$
|
(0.38)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.37)
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
|
8,362
|
|
|
|
6,916
|
|
|
|
8,328
|
|
|
(1)
|
Net loss per share,
basic and diluted share numbers are adjusted to reflect 1-for-14
reverse stock split effected on December 23,
2019.
|
QUICKLOGIC
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
March 29, 2020
|
|
|
December 29, 2019
(1)
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
18,898
|
|
|
$
|
21,448
|
Restricted
cash
|
|
|
100
|
|
|
|
100
|
Accounts receivable,
net
|
|
|
1,376
|
|
|
|
1,991
|
Inventories
|
|
|
3,085
|
|
|
|
3,260
|
Other current
assets
|
|
|
1,285
|
|
|
|
1,565
|
Total current
assets
|
|
|
24,744
|
|
|
|
28,364
|
Property and
equipment, net
|
|
|
713
|
|
|
|
830
|
Internal-use
software
|
|
|
561
|
|
|
|
333
|
Right of use
assets
|
|
|
2,444
|
|
|
|
2,370
|
Intangible assets,
net
|
|
|
971
|
|
|
|
1,008
|
Goodwill
|
|
|
185
|
|
|
|
185
|
Other
assets
|
|
|
293
|
|
|
|
314
|
TOTAL
ASSETS
|
|
$
|
29,911
|
|
|
$
|
33,404
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
Trade
payables
|
|
|
944
|
|
|
|
1,003
|
Accrued
liabilities
|
|
|
1,223
|
|
|
|
1,133
|
Deferred
revenue
|
|
|
95
|
|
|
|
158
|
Current portion of
capital lease obligations
|
|
|
775
|
|
|
|
704
|
Total current
liabilities
|
|
|
18,037
|
|
|
|
17,998
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Capital lease
obligations, less current portion
|
|
|
1,639
|
|
|
|
1,583
|
Total
liabilities
|
|
|
19,676
|
|
|
|
19,581
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock, par
value (2)
|
|
|
8
|
|
|
|
8
|
Additional paid-in
capital (2)
|
|
|
296,650
|
|
|
|
297,073
|
Accumulated
deficit
|
|
|
(286,423)
|
|
|
|
(283,258)
|
Total
stockholders' equity
|
|
|
10,235
|
|
|
|
13,823
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
29,911
|
|
|
$
|
33,404
|
|
|
|
|
(1)
|
Derived from the
December 29, 2019 audited balance sheet included in the 2019
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 23,
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
|
|
|
|
March 29, 2020
|
|
|
March 31, 2019
|
|
|
December 29,
2019
|
|
US GAAP loss from
operations
|
|
$
|
(3,062)
|
|
|
$
|
(3,709)
|
|
|
$
|
(2,928)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
12
|
|
|
|
26
|
|
|
|
19
|
|
Research and
development
|
|
|
(464)
|
|
|
|
655
|
|
|
|
534
|
|
Selling, general and
administrative
|
|
|
54
|
|
|
|
270
|
|
|
|
101
|
|
Restructuring
expenses
|
|
|
479
|
|
|
|
—
|
|
|
|
—
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
Non-GAAP loss from
operations
|
|
$
|
(2,981)
|
|
|
$
|
(2,758)
|
|
|
$
|
(2,272)
|
|
US GAAP net
loss
|
|
$
|
(3,165)
|
|
|
$
|
(3,476)
|
|
|
$
|
(3,063)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
12
|
|
|
|
26
|
|
|
|
19
|
|
Research and
development
|
|
|
(464)
|
|
|
|
655
|
|
|
|
534
|
|
Selling, general and
administrative
|
|
|
54
|
|
|
|
270
|
|
|
|
101
|
|
Restructuring
expenses
|
|
|
479
|
|
|
|
—
|
|
|
|
—
|
|
Adjustment for the
write-off of equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
Non-GAAP net
loss
|
|
$
|
(3,084)
|
|
|
$
|
(2,525)
|
|
|
$
|
(2,407)
|
|
US GAAP net loss
per share (1)
|
|
$
|
(0.38)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.37)
|
|
Adjustment for
stock-based compensation
|
|
|
(0.05)
|
|
|
|
0.13
|
|
|
|
0.08
|
|
Restructuring
expenses
|
|
|
0.06
|
|
|
|
—
|
|
|
|
—
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.37)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.29)
|
|
US GAAP gross
margin percentage
|
|
|
51.7
|
%
|
|
|
62.0
|
%
|
|
|
64.9
|
%
|
Adjustment for
stock-based compensation
|
|
|
0.5
|
%
|
|
|
0.8
|
%
|
|
|
0.7
|
%
|
Non-GAAP gross
margin percentage
|
|
|
52.2
|
%
|
|
|
62.8
|
%
|
|
|
65.6
|
%
|
|
|
(1)
|
Net loss per share is
adjusted to reflect 1-for-14 reverse stock split effected on
December 23, 2019.
|
QUICKLOGIC
CORPORATION
|
SUPPLEMENTAL
DATA
|
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q1 2020
|
|
|
Q1 2019
|
|
|
Q4 2019
|
|
|
Q1 2019
to Q1
2020
|
|
|
Q4 2019
to Q1
2020
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
23
|
%
|
|
|
22
|
%
|
|
|
25
|
%
|
|
|
(29)
|
%
|
|
|
(32)
|
%
|
Mature
products
|
|
|
77
|
%
|
|
|
78
|
%
|
|
|
75
|
%
|
|
|
(33)
|
%
|
|
|
(23)
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
19
|
%
|
|
|
45
|
%
|
|
|
19
|
%
|
|
|
(72)
|
%
|
|
|
(27)
|
%
|
North
America
|
|
|
44
|
%
|
|
|
36
|
%
|
|
|
37
|
%
|
|
|
(18)
|
%
|
|
|
(10)
|
%
|
Europe
|
|
|
37
|
%
|
|
|
19
|
%
|
|
|
43
|
%
|
|
|
33
|
%
|
|
|
(37)
|
%
|
|
|
|
|
(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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SOURCE QuickLogic Corporation