SAN JOSE, Calif., Aug. 5, 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 second quarter of fiscal 2020, ended
June 28, 2020.
Recent Highlights
- QuickLogic Announced its new Open Reconfigurable Computing
Initiative
- SensiML Uses AI Technology to Help Fight COVID-19 Global
Pandemic
- Completed over-subscribed public offering of common stock,
raising approximately $8.1 million in
net proceeds
- QuickLogic Added to the Russell Microcap Index
Fiscal 2020 Second Quarter Financial Results
Total
revenue for the second quarter of 2020 was $2.2 million, an increase of 2% compared with the
first quarter of 2020, and 5% compared with the second quarter of
2019. New product revenue was $0.8
million in the second quarter of 2020, an increase of 69%
compared with the first quarter of 2020, and 15% compared with the
second quarter of 2019. This sequential and year over year increase
was primarily due to higher sales of EOS S3 product. Mature product
revenue was $1.4 million in the
second quarter of 2020, down 18% compared with the first quarter of
2020, and flat compared with the second quarter of 2019.
Second quarter 2020 GAAP gross margin was 45.7%, compared with
51.7% in the first quarter of 2020, and 49.0% in the second quarter
of 2019.
Second quarter 2020 non-GAAP gross margin was 47.1%, compared
with 52.2% in the first quarter of 2020 and 49.8% in the second
quarter of 2019. The lower gross margin in the second quarter 2020
was primarily due to a higher percentage of products shipped into
the smartphone market.
Second quarter 2020 GAAP operating expenses were $3.9 million, improved from $4.2 million in the first quarter of 2020, and
$5.6 million in the second quarter of
2019.
Second quarter 2020 non-GAAP operating expenses were
$3.2 million, improved from
$4.1 million in the first quarter of
2020, and from $4.8 million in the
second quarter of 2019.
Second quarter 2020 GAAP net loss was $3.0 million, or $0.35 per share, compared with a net loss of
$3.2 million, or $0.38 per share, in the first quarter of 2020,
and a net loss of $4.6 million, or
$0.65 per share, in the second
quarter of 2019.
Second quarter 2020 non-GAAP net loss was $2.2 million, or $0.26 per share, compared with a net loss of
$3.1 million, or $0.37 per share, in the first quarter of 2020,
and a net loss of $3.8 million, or
$0.54 per share, in the second
quarter of 2019.
Please see 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 2:30 p.m. Pacific Daylight Time / 5:30 p.m. Eastern Daylight Time today,
August 5, 2020, to discuss its
current financial results. The conference call will be webcast at
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 2:15 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 13706980. The call
recording, which can be accessed by phone, will be archived until
Wednesday, August 12, 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 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 newly acquired 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 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 5, 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
|
|
|
Six Months
Ended
|
|
|
|
June 28,
2020
|
|
|
June 30, 2019
|
|
|
March 29,
2020
|
|
|
June 28,
2020
|
|
|
June 30, 2019
|
|
Revenue
|
|
$
|
2,196
|
|
|
$
|
2,087
|
|
|
$
|
2,158
|
|
|
$
|
4,354
|
|
|
$
|
5,281
|
|
Cost of
revenue
|
|
|
1,192
|
|
|
|
1,065
|
|
|
|
1,043
|
|
|
|
2,235
|
|
|
|
2,280
|
|
Gross
profit
|
|
|
1,004
|
|
|
|
1,022
|
|
|
|
1,115
|
|
|
|
2,119
|
|
|
|
3,001
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2,200
|
|
|
|
3,215
|
|
|
|
1,819
|
|
|
|
4,019
|
|
|
|
6,457
|
|
Selling, general and
administrative
|
|
|
1,665
|
|
|
|
2,340
|
|
|
|
1,879
|
|
|
|
3,544
|
|
|
|
4,786
|
|
Restructuring
expenses
|
|
|
34
|
|
|
|
—
|
|
|
|
479
|
|
|
|
513
|
|
|
|
—
|
|
Total operating
expense
|
|
|
3,899
|
|
|
|
5,555
|
|
|
|
4,177
|
|
|
|
8,076
|
|
|
|
11,243
|
|
Loss from
operations
|
|
|
(2,895)
|
|
|
|
(4,533)
|
|
|
|
(3,062)
|
|
|
|
(5,957)
|
|
|
|
(8,242)
|
|
Interest
expense
|
|
|
(183)
|
|
|
|
(124)
|
|
|
|
(80)
|
|
|
|
(263)
|
|
|
|
(207)
|
|
Interest and other
income, net
|
|
|
72
|
|
|
|
50
|
|
|
|
(5)
|
|
|
|
67
|
|
|
|
98
|
|
Loss before income
taxes
|
|
|
(3,006)
|
|
|
|
(4,607)
|
|
|
|
(3,147)
|
|
|
|
(6,153)
|
|
|
|
(8,351)
|
|
(Benefit from)
Provision for income taxes
|
|
|
(27)
|
|
|
|
27
|
|
|
|
18
|
|
|
|
(9)
|
|
|
|
(241)
|
|
Net loss
|
|
$
|
(2,979)
|
|
|
$
|
(4,634)
|
|
|
$
|
(3,165)
|
|
|
$
|
(6,144)
|
|
|
$
|
(8,110)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
$
|
(0.35)
|
|
|
$
|
(0.65)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.73)
|
|
|
$
|
(1.16)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
|
8,560
|
|
|
|
7,088
|
|
|
|
8,362
|
|
|
|
8,461
|
|
|
|
7,002
|
|
|
Note: Net loss equals
to comprehensive loss for all periods presented.
|
(1) Net loss per share,
and weighted average shares outstanding basic and diluted for the
three- and six-months ended June 30, 2019 are adjusted to reflect
1-for-14 reverse stock split effected on December 23,
2019.
|
QUICKLOGIC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(Unaudited)
|
|
|
|
|
|
June 28,
2020
|
|
|
December 29,
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
|
26,398
|
|
|
$
|
21,548
|
|
Accounts receivable,
net
|
|
|
1,124
|
|
|
|
1,991
|
|
Inventories
|
|
|
3,052
|
|
|
|
3,260
|
|
Other current
assets
|
|
|
1,162
|
|
|
|
1,565
|
|
Total current
assets
|
|
|
31,736
|
|
|
|
28,364
|
|
Property and
equipment, net
|
|
|
591
|
|
|
|
830
|
|
Capitalized
internal-use software, net
|
|
|
672
|
|
|
|
333
|
|
Right of use
assets
|
|
|
2,212
|
|
|
|
2,370
|
|
Intangible assets,
net
|
|
|
934
|
|
|
|
1,008
|
|
Goodwill
|
|
|
185
|
|
|
|
185
|
|
Other
assets
|
|
|
291
|
|
|
|
314
|
|
TOTAL
ASSETS
|
|
$
|
36,621
|
|
|
$
|
33,404
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
1,644
|
|
|
|
1,003
|
|
Accrued
liabilities
|
|
|
890
|
|
|
|
1,133
|
|
Paycheck protection
program loan, current portion
|
|
|
461
|
|
|
|
—
|
|
Deferred
revenue
|
|
|
56
|
|
|
|
158
|
|
Current portion of
capital lease obligations
|
|
|
752
|
|
|
|
704
|
|
Total current
liabilities
|
|
|
18,803
|
|
|
|
17,998
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Paycheck protection
program loan, less current portion
|
|
|
730
|
|
|
|
—
|
|
Capital lease
obligations, less current portion
|
|
|
1,466
|
|
|
|
1,583
|
|
Total
liabilities
|
|
|
20,999
|
|
|
|
19,581
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, par
value
|
|
|
11
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
305,013
|
|
|
|
297,073
|
|
Accumulated
deficit
|
|
|
(289,402)
|
|
|
|
(283,258)
|
|
Total
stockholders' equity
|
|
|
15,622
|
|
|
|
13,823
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
36,621
|
|
|
$
|
33,404
|
|
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
|
|
|
|
June 28,
2020
|
|
|
June 30, 2019
|
|
|
March 29,
2020
|
|
|
June 28,
2020
|
|
|
June 30, 2019
|
|
US GAAP loss from
operations
|
|
$
|
(2,895)
|
|
|
$
|
(4,533)
|
|
|
$
|
(3,062)
|
|
|
$
|
(5,957)
|
|
|
$
|
(8,242)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
31
|
|
|
|
18
|
|
|
|
12
|
|
|
|
43
|
|
|
|
44
|
|
Research and
development
|
|
|
486
|
|
|
|
532
|
|
|
|
(464)
|
|
|
|
22
|
|
|
|
1,187
|
|
Selling, general and
administrative
|
|
|
224
|
|
|
|
241
|
|
|
|
54
|
|
|
|
278
|
|
|
|
511
|
|
Restructuring
expenses
|
|
|
34
|
|
|
|
—
|
|
|
|
479
|
|
|
|
513
|
|
|
|
—
|
|
Non-GAAP loss from
operations
|
|
$
|
(2,120)
|
|
|
$
|
(3,742)
|
|
|
$
|
(2,981)
|
|
|
$
|
(5,101)
|
|
|
$
|
(6,500)
|
|
US GAAP net
loss
|
|
$
|
(2,979)
|
|
|
$
|
(4,634)
|
|
|
$
|
(3,165)
|
|
|
$
|
(6,144)
|
|
|
$
|
(8,110)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
31
|
|
|
|
18
|
|
|
|
12
|
|
|
|
43
|
|
|
|
44
|
|
Research and
development
|
|
|
486
|
|
|
|
532
|
|
|
|
(464)
|
|
|
|
22
|
|
|
|
1,187
|
|
Selling, general and
administrative
|
|
|
224
|
|
|
|
241
|
|
|
|
54
|
|
|
|
278
|
|
|
|
511
|
|
Restructuring
expenses
|
|
|
34
|
|
|
|
—
|
|
|
|
479
|
|
|
|
513
|
|
|
|
—
|
|
Non-GAAP net
loss
|
|
$
|
(2,204)
|
|
|
$
|
(3,843)
|
|
|
$
|
(3,084)
|
|
|
$
|
(5,288)
|
|
|
$
|
(6,368)
|
|
US GAAP net loss
per share (1)
|
|
$
|
(0.35)
|
|
|
$
|
(0.65)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.73)
|
|
|
$
|
(1.16)
|
|
Adjustment for
stock-based compensation
|
|
|
0.09
|
|
|
|
0.11
|
|
|
|
(0.05)
|
|
|
|
0.08
|
|
|
|
0.25
|
|
Restructuring
expenses
|
|
*
|
|
|
|
—
|
|
|
|
0.06
|
|
|
|
0.03
|
|
|
|
—
|
|
Non-GAAP net loss
per share
|
|
$
|
(0.26)
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.62)
|
|
|
$
|
(0.91)
|
|
US GAAP gross
margin percentage
|
|
|
45.7
|
%
|
|
|
49.0
|
%
|
|
|
51.7
|
%
|
|
|
48.7
|
%
|
|
|
56.8
|
%
|
Adjustment for
stock-based compensation included in cost of revenue
|
|
|
1.4
|
%
|
|
|
0.8
|
%
|
|
|
0.5
|
%
|
|
|
1.0
|
%
|
|
|
0.9
|
%
|
Non-GAAP gross
margin percentage
|
|
|
47.1
|
%
|
|
|
49.8
|
%
|
|
|
52.2
|
%
|
|
|
49.7
|
%
|
|
|
57.7
|
%
|
|
* Figures were not
considered for reconciliation due to the insignificant
amount.
|
(1) Net loss per share for the three-
and six-months ended June 30, 2019 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
|
|
|
|
Q2 2020
|
|
|
Q2 2019
|
|
|
Q1 2020
|
|
|
Q2 2020
to
Q2
2019
|
|
|
Q2 2020
to
Q1
2020
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
37
|
%
|
|
|
34
|
%
|
|
|
23
|
%
|
|
|
15
|
%
|
|
|
69
|
%
|
Mature
products
|
|
|
63
|
%
|
|
|
66
|
%
|
|
|
77
|
%
|
|
|
0
|
%
|
|
|
(18)
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
36
|
%
|
|
|
26
|
%
|
|
|
19
|
%
|
|
|
45
|
%
|
|
|
92
|
%
|
North
America
|
|
|
58
|
%
|
|
|
51
|
%
|
|
|
44
|
%
|
|
|
20
|
%
|
|
|
35
|
%
|
Europe
|
|
|
6
|
%
|
|
|
23
|
%
|
|
|
37
|
%
|
|
|
(72)
|
%
|
|
|
(83)
|
%
|
|
|
|
|
|
|
|
|
(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