SAN JOSE, Calif., Nov. 4, 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 third quarter of fiscal 2020, ended
September 27, 2020.
Recent Highlights
- SensiML now supports QuickLogic's QuickFeather IoT Development
Kit
- SensiML Analytics Toolkit seamlessly integrated with Google's
TensorFlow Lite for Microcontrollers
- SensiML supports AI-based algorithms running on SensorTile Box
IoT kit from STMicroelectronics
- QuickLogic joined CHIPS Alliance to expand open source FPGA
initiative and to make FPGA tools more accessible
- QuickLogic became a member of OpenHW Group to make
hardware-based IP available to the open source ecosystem
- SensiML joined the ARM AI Partner Program to simplify the
deployment of Machine Learning (ML) and AI on intelligent endpoint
devices
- QuickLogic announced the availability of eFPGA technology on
28nm FD-SOI process and also became a member of the Samsung SAFE™
IP Partner Program
Fiscal 2020 Third Quarter Financial
Results
Total revenue for the third quarter of 2020
was $1.8 million, a decrease of 19% compared
with the second quarter of 2020, and 18% compared with
the third quarter of 2019. New product revenue
was $0.7 million in the third quarter of 2020,
a decrease of 22% compared with the second quarter
of 2020, and 37% compared with the third quarter of
2019. The decreases were primarily due to lower
sales of display bridge and connectivity product revenue. Mature
product revenue was $1.1 million in the third quarter of
2020, down 17% compared with the second quarter of 2020,
and flat compared with the third quarter of 2019.
Third quarter 2020 GAAP gross margin was 51.9%, compared
with 45.7% in the second quarter of 2020, and 48.2%
in the third quarter of 2019.
Third quarter 2020 non-GAAP gross margin was 53.9%,
compared with 47.1% in the second quarter of 2020
and 48.9% in the third quarter of 2019.
Third quarter 2020 GAAP operating expenses of $3.0 million
improved from $3.9 million in the second quarter of 2020,
and $5.2 million in the third quarter of 2019.
Third quarter 2020 non-GAAP operating expenses of $2.6
million improved from $3.2 million in the second quarter
of 2020, and from $4.5 million in the third quarter of 2019,
due to updates to estimated restructuring charges.
Third quarter 2020 GAAP net loss was $2.1 million,
or $0.19 per share, compared with a net loss of $3.0
million, or $0.35 per share, in the second quarter of
2020, and a net loss of $4.3 million, or $0.51 per share,
in the third quarter of 2019.
Third quarter 2020 non-GAAP net loss was $1.7 million,
or $0.15 per share, compared with a net loss of $2.2
million, or $0.26 per share, in the second quarter of
2020, and a net loss of $3.5 million, or $0.42 per
share, in the third 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 Time / 5:30 p.m.
Eastern Time today, November 4, 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 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 13711703. The call
recording, which can be accessed by phone, will be archived until
Wednesday, November 11, 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 November 4, 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
|
|
|
Nine Months
Ended
|
|
|
|
September
27, 2020
|
|
|
September
29, 2019
|
|
|
June 28,
2020
|
|
|
September
27, 2020
|
|
|
September
29, 2019
|
|
Revenue
|
|
$
|
1,780
|
|
|
$
|
2,158
|
|
|
$
|
2,196
|
|
|
$
|
6,134
|
|
|
$
|
7,439
|
|
Cost of
revenue
|
|
|
857
|
|
|
|
1,117
|
|
|
|
1,192
|
|
|
|
3,092
|
|
|
|
3,397
|
|
Gross
profit
|
|
|
923
|
|
|
|
1,041
|
|
|
|
1,004
|
|
|
|
3,042
|
|
|
|
4,042
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,380
|
|
|
|
3,139
|
|
|
|
2,200
|
|
|
|
5,399
|
|
|
|
9,596
|
|
Selling, general and
administrative
|
|
|
1,478
|
|
|
|
2,095
|
|
|
|
1,665
|
|
|
|
5,022
|
|
|
|
6,881
|
|
Restructuring
expenses
|
|
|
111
|
|
|
|
—
|
|
|
|
34
|
|
|
|
624
|
|
|
|
—
|
|
Total operating
expense
|
|
|
2,969
|
|
|
|
5,234
|
|
|
|
3,899
|
|
|
|
11,045
|
|
|
|
16,477
|
|
Loss from
operations
|
|
|
(2,046)
|
|
|
|
(4,193)
|
|
|
|
(2,895)
|
|
|
|
(8,003)
|
|
|
|
(12,435)
|
|
Interest
expense
|
|
|
(36)
|
|
|
|
(63)
|
|
|
|
(183)
|
|
|
|
(299)
|
|
|
|
(270)
|
|
Interest and other
income, net
|
|
|
27
|
|
|
|
55
|
|
|
|
72
|
|
|
|
94
|
|
|
|
153
|
|
Loss before income
taxes
|
|
|
(2,055)
|
|
|
|
(4,201)
|
|
|
|
(3,006)
|
|
|
|
(8,208)
|
|
|
|
(12,552)
|
|
Provision for
(benefit from) income taxes
|
|
|
10
|
|
|
|
70
|
|
|
|
(27)
|
|
|
|
1
|
|
|
|
(171)
|
|
Net loss
|
|
$
|
(2,065)
|
|
|
$
|
(4,271)
|
|
|
$
|
(2,979)
|
|
|
$
|
(8,209)
|
|
|
$
|
(12,381)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
$
|
(0.19)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.88)
|
|
|
$
|
(1.66)
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(1)
|
|
|
11,023
|
|
|
|
8,313
|
|
|
|
8,560
|
|
|
|
9,315
|
|
|
|
7,441
|
|
|
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 nine months ended September 29, 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)
|
|
|
|
September 27,
2020
|
|
|
December 29,
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
|
24,685
|
|
|
$
|
21,548
|
|
Accounts receivable,
net
|
|
|
1,115
|
|
|
|
1,991
|
|
Inventories
|
|
|
3,138
|
|
|
|
3,260
|
|
Other current
assets
|
|
|
1,167
|
|
|
|
1,565
|
|
Total current
assets
|
|
|
30,105
|
|
|
|
28,364
|
|
Property and
equipment, net
|
|
|
563
|
|
|
|
830
|
|
Capitalized
internal-use software, net
|
|
|
844
|
|
|
|
333
|
|
Right of use
assets
|
|
|
1,995
|
|
|
|
2,370
|
|
Intangible assets,
net
|
|
|
897
|
|
|
|
1,008
|
|
Goodwill
|
|
|
185
|
|
|
|
185
|
|
Other
assets
|
|
|
279
|
|
|
|
314
|
|
TOTAL
ASSETS
|
|
$
|
34,868
|
|
|
$
|
33,404
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
1,010
|
|
|
|
1,003
|
|
Accrued
liabilities
|
|
|
1,368
|
|
|
|
1,133
|
|
Paycheck protection
program loan, current portion
|
|
|
660
|
|
|
|
—
|
|
Deferred
revenue
|
|
|
45
|
|
|
|
158
|
|
Current portion of
capital lease obligations
|
|
|
709
|
|
|
|
704
|
|
Total current
liabilities
|
|
|
18,792
|
|
|
|
17,998
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Paycheck protection
program loan, less current portion
|
|
|
532
|
|
|
|
—
|
|
Capital lease
obligations, less current portion
|
|
|
1,297
|
|
|
|
1,583
|
|
Total
liabilities
|
|
|
20,621
|
|
|
|
19,581
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, par
value
|
|
|
11
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
305,703
|
|
|
|
297,073
|
|
Accumulated
deficit
|
|
|
(291,467)
|
|
|
|
(283,258)
|
|
Total stockholders'
equity
|
|
|
14,247
|
|
|
|
13,823
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
34,868
|
|
|
$
|
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
|
|
|
Nine Months
Ended
|
|
|
|
September
27, 2020
|
|
|
September
29, 2019
|
|
|
June 28,
2020
|
|
|
September
27, 2020
|
|
|
September
29, 2019
|
|
US GAAP loss from
operations
|
|
$
|
(2,046)
|
|
|
$
|
(4,193)
|
|
|
$
|
(2,895)
|
|
|
$
|
(8,003)
|
|
|
$
|
(12,435)
|
|
Adjustment for
stock-based compensation
within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
37
|
|
|
|
15
|
|
|
|
31
|
|
|
|
80
|
|
|
|
59
|
|
Research and
development
|
|
|
51
|
|
|
|
521
|
|
|
|
486
|
|
|
|
73
|
|
|
|
1,708
|
|
Selling, general and
administrative
|
|
|
170
|
|
|
|
212
|
|
|
|
224
|
|
|
|
448
|
|
|
|
723
|
|
Restructuring expenses
and asset write-offs (1)
|
|
|
120
|
|
|
|
—
|
|
|
|
34
|
|
|
|
633
|
|
|
|
2
|
|
Non-GAAP loss from
operations
|
|
$
|
(1,668)
|
|
|
$
|
(3,445)
|
|
|
$
|
(2,120)
|
|
|
$
|
(6,769)
|
|
|
$
|
(9,943)
|
|
US GAAP net
loss
|
|
$
|
(2,065)
|
|
|
$
|
(4,271)
|
|
|
$
|
(2,979)
|
|
|
$
|
(8,209)
|
|
|
$
|
(12,381)
|
|
Adjustment for
stock-based compensation
within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
37
|
|
|
|
15
|
|
|
|
31
|
|
|
|
80
|
|
|
|
59
|
|
Research and
development
|
|
|
51
|
|
|
|
521
|
|
|
|
486
|
|
|
|
73
|
|
|
|
1,708
|
|
Selling, general and
administrative
|
|
|
170
|
|
|
|
212
|
|
|
|
224
|
|
|
|
448
|
|
|
|
723
|
|
Restructuring expenses
and asset write-offs (1)
|
|
|
120
|
|
|
|
—
|
|
|
|
34
|
|
|
|
633
|
|
|
|
2
|
|
Non-GAAP net
loss
|
|
$
|
(1,687)
|
|
|
$
|
(3,523)
|
|
|
$
|
(2,204)
|
|
|
$
|
(6,975)
|
|
|
$
|
(9,889)
|
|
US GAAP net loss
per share, basic and diluted (2)
|
|
$
|
(0.19)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.88)
|
|
|
$
|
(1.66)
|
|
Adjustment for
stock-based compensation
|
|
|
0.03
|
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
0.07
|
|
|
|
0.33
|
|
Restructuring expenses
and asset write-offs (1)
|
|
|
0.01
|
|
|
|
*
|
|
|
|
*
|
|
|
|
0.06
|
|
|
|
0
|
|
Non-GAAP net loss
per share, basic and diluted
|
|
$
|
(0.15)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.33)
|
|
US GAAP gross
margin percentage
|
|
|
51.9
|
%
|
|
|
48.2
|
%
|
|
|
45.7
|
%
|
|
|
49.6
|
%
|
|
|
54.3
|
%
|
Adjustment for
stock-based compensation
included in cost of revenue
|
|
|
2.0
|
%
|
|
|
0.7
|
%
|
|
|
1.4
|
%
|
|
|
1.3
|
%
|
|
|
0.8
|
%
|
Non-GAAP gross
margin percentage
|
|
|
53.9
|
%
|
|
|
48.9
|
%
|
|
|
47.1
|
%
|
|
|
50.9
|
%
|
|
|
55.1
|
%
|
|
* Figures were not
considered for reconciliation due to the insignificant
amount.
|
(1) Include asset
write-offs of $9,000 in the three and nine
months ended September 27, 2020 and $2,000 for the nine
months ended September 29, 2019.
|
(2) Net loss per
share for the three and nine months ended September 29,
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
|
|
|
|
Q3
2020
|
|
|
Q3
2019
|
|
|
Q2
2020
|
|
|
Q3 2020 to
Q3 2019
|
|
|
Q3 2020 to
Q2 2020
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
36
|
%
|
|
|
47
|
%
|
|
|
37
|
%
|
|
|
(37)
|
%
|
|
|
(22)
|
%
|
Mature
products
|
|
|
64
|
%
|
|
|
53
|
%
|
|
|
63
|
%
|
|
|
—
|
%
|
|
|
(17)
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
18
|
%
|
|
|
25
|
%
|
|
|
36
|
%
|
|
|
(39)
|
%
|
|
|
(59)
|
%
|
North
America
|
|
|
61
|
%
|
|
|
70
|
%
|
|
|
58
|
%
|
|
|
(28)
|
%
|
|
|
(15)
|
%
|
Europe
|
|
|
21
|
%
|
|
|
5
|
%
|
|
|
6
|
%
|
|
|
233
|
%
|
|
|
176
|
%
|
_____________________
|
(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