SAN
JOSE, Calif., Feb. 27,
2024 /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 2023 fourth quarter
and fiscal year that ended December 31,
2023.
Highlights
- Record GAAP net income of $2.0
million and record non-GAAP net income of $2.6 million for fiscal Q4 2023
- Revenue growth of 31% for fiscal 2023 over fiscal 2022
- Since launching our IP business model in 2020, total
revenue has grown 146%, and when coupling the significant increase
in gross profit with the modest decrease in operating expenses,
non-GAAP operating leverage increased by 251%
- Announces new IP contract targeting 12nm fabrication
node
- Sales funnel, which includes a diverse range of new IP
customers and end markets, grew to a record $168 million
- Line of credit increased to $20
million with the maturity date extended to the end of
2025
"I am very proud of the record profitability and the 31% annual
revenue growth we posted for fiscal year 2023," said Brian Faith, CEO of QuickLogic. "With the
expansion of our customer base and end markets that we anticipate
this year, we expect our growth trend and profitability to continue
in 2024 and beyond."
Fiscal Fourth Quarter 2023 Financial
Results
Total revenue for the fourth quarter
of fiscal 2023 was $7.5 million, an increase of
12.2% compared with the third quarter of 2023, and an
increase of 83.1% compared with the fourth quarter
of 2022.
New product revenue was approximately $6.8 million in the
fourth quarter of 2023, an increase of $0.7 million, or 12.0%, compared with the third
quarter of 2023, and an increase of $4.0
million, or 140.2%, compared with the fourth quarter of 2022. The
increase in new product revenue from the same period a year ago was
primarily due to higher eFPGA IP license and professional services
revenue due to the start of the next phase of the large eFPGA
contract and higher smart connectivity and sensor product
revenues.
Mature product revenue was $0.7
million in the fourth quarter of 2023, an increase of
$0.1 million, or 14.6%, compared with
the third quarter of 2023. Mature product revenue in the fourth
quarter of 2023 decreased 47.5% compared to the fourth quarter of
2022.
Fourth quarter 2023 GAAP gross margin was 77.1% compared with
76.9% in the third quarter of 2023, and 51.9% in the fourth quarter
of 2022.
Fourth quarter 2023 non-GAAP gross margin was 78.3% compared
with 78.0% in the third quarter of 2023, and 53.2% in the fourth
quarter of 2022.
Fourth quarter 2023 GAAP operating expenses were $3.7 million compared with $3.8 million in the third quarter of 2023, and
$3.0 million in the fourth quarter of
2022.
Fourth quarter 2023 non-GAAP operating expenses were
$3.1 million compared with
$3.3 million in the third quarter of
2023, and $2.4 million in the fourth
quarter of 2022.
Fourth quarter 2023 GAAP net income was $2.0 million, or $0.15 per basic share, or $ 0.14 per diluted share, compared with net
income of $1.2 million, or
$0.09 per basic share, or
$0.08 per diluted share, in the third
quarter of 2023, and a net loss of $1.2
million, or $0.09 per basic
and diluted share, in the fourth quarter of 2022.
Fourth quarter 2023 non-GAAP net income was $2.6 million, or $0.19 per basic share, or $ 0.18 per diluted share, compared with net
income of $1.8 million, or
$0.13 per basic and diluted share, in
the third quarter of 2023, and a net loss of $544 thousand, or $0.04 per basic and diluted share, in the fourth
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, February 27, 2024, 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 (844)
512-2921 and reference the passcode 13744470.
The call recording, which can be accessed by phone, will be
archived through March 5, 2024, and
the webcast will be available for 12 months on the Company's
website.
About QuickLogic
QuickLogic is a fabless semiconductor company that develops
innovative embedded FPGA (eFPGA) IP, discrete FPGAs, and FPGA SoCs
for a variety of industrial, aerospace and defense, edge and
endpoint AI, consumer, and computing applications. Our wholly owned
subsidiary, SensiML Corporation, completes the end-to-end solution
portfolio with AI / ML software that accelerates AI at the
edge/endpoint. For more information,
visit www.quicklogic.com/.
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 certain
charges related to stock-based compensation, 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
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; 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 February 27,
2024, 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
|
|
|
Year
Ended
|
|
|
|
December
31, 2023
|
|
|
January 1,
2023
|
|
|
October 1,
2023
|
|
|
December
31, 2023
|
|
|
January 1,
2023
|
|
Revenue
|
|
$
|
7,479
|
|
|
$
|
4,084
|
|
|
$
|
6,665
|
|
|
$
|
21,198
|
|
|
$
|
16,180
|
|
Cost of
revenue
|
|
|
1,713
|
|
|
|
1,965
|
|
|
|
1,537
|
|
|
$
|
6,711
|
|
|
|
7,378
|
|
Gross profit
|
|
|
5,766
|
|
|
|
2,119
|
|
|
|
5,128
|
|
|
$
|
14,487
|
|
|
|
8,802
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,381
|
|
|
|
1,460
|
|
|
|
1,933
|
|
|
$
|
6,448
|
|
|
|
5,001
|
|
Selling, general and
administrative
|
|
|
2,269
|
|
|
|
1,583
|
|
|
|
1,915
|
|
|
$
|
7,969
|
|
|
|
7,601
|
|
Total operating
expense
|
|
|
3,650
|
|
|
|
3,043
|
|
|
|
3,848
|
|
|
$
|
14,417
|
|
|
|
12,602
|
|
Operating income
(loss)
|
|
|
2,116
|
|
|
|
(924)
|
|
|
|
1,280
|
|
|
$
|
70
|
|
|
|
(3,800)
|
|
Interest
expense
|
|
|
(59)
|
|
|
|
(50)
|
|
|
|
(48)
|
|
|
$
|
(215)
|
|
|
|
(148)
|
|
Interest and other
(expense) income, net
|
|
|
(17)
|
|
|
|
(179)
|
|
|
|
(36)
|
|
|
$
|
(116)
|
|
|
|
(221)
|
|
Income (loss) before
income taxes
|
|
|
2,040
|
|
|
|
(1,153)
|
|
|
|
1,196
|
|
|
$
|
(261)
|
|
|
|
(4,169)
|
|
Provision for (benefit
from) income taxes
|
|
|
(2)
|
|
|
|
79
|
|
|
|
4
|
|
|
$
|
2
|
|
|
|
98
|
|
Net income
(loss)
|
|
$
|
2,042
|
|
|
$
|
(1,232)
|
|
|
$
|
1,192
|
|
|
$
|
(263)
|
|
|
$
|
(4,267)
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
0.15
|
|
|
$
|
(0.09)
|
|
|
$
|
0.09
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.34)
|
|
Diluted EPS
|
|
$
|
0.14
|
|
|
$
|
(0.09)
|
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.34)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,989
|
|
|
|
13,151
|
|
|
|
13,859
|
|
|
|
13,453
|
|
|
|
12,588
|
|
Diluted
|
|
|
14,349
|
|
|
|
13,151
|
|
|
|
14,131
|
|
|
|
13,453
|
|
|
|
12,588
|
|
|
Note: Net income (loss)
equals to comprehensive income (loss) for all periods
presented.
|
QUICKLOGIC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(Unaudited)
|
|
|
|
December 31,
2023
|
|
|
January 1,
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
|
24,606
|
|
|
$
|
19,201
|
|
Accounts receivable,
net of allowance for doubtful accounts of $34 and $18, as of
December 31, 2023 and January 1, 2023, respectively
|
|
|
1,625
|
|
|
|
2,689
|
|
Contract
assets
|
|
|
3,609
|
|
|
|
1,987
|
|
Note
receivable
|
|
|
1,200
|
|
|
|
—
|
|
Inventories
|
|
|
2,029
|
|
|
|
2,493
|
|
Prepaid expenses and
other current assets
|
|
|
1,561
|
|
|
|
1,570
|
|
Total current
assets
|
|
|
34,630
|
|
|
|
27,940
|
|
Property and equipment,
net
|
|
|
9,079
|
|
|
|
1,398
|
|
Capitalized
internal-use software, net
|
|
|
1,938
|
|
|
|
1,514
|
|
Right of use assets,
net
|
|
|
981
|
|
|
|
464
|
|
Intangible assets,
net
|
|
|
537
|
|
|
|
645
|
|
Non-marketable equity
investment
|
|
|
300
|
|
|
|
300
|
|
Goodwill
|
|
|
185
|
|
|
|
185
|
|
Other assets
|
|
|
142
|
|
|
|
140
|
|
TOTAL
ASSETS
|
|
$
|
47,792
|
|
|
$
|
32,586
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Revolving line of
credit
|
|
$
|
20,000
|
|
|
$
|
15,000
|
|
Trade
payables
|
|
|
4,657
|
|
|
|
2,391
|
|
Accrued
liabilities
|
|
|
2,673
|
|
|
|
1,509
|
|
Deferred
revenue
|
|
|
1,052
|
|
|
|
272
|
|
Note payable,
current
|
|
|
946
|
|
|
|
448
|
|
Lease liabilities,
current
|
|
|
302
|
|
|
|
402
|
|
Total current
liabilities
|
|
|
29,630
|
|
|
|
20,022
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Note payable,
non-current
|
|
|
461
|
|
|
|
439
|
|
Lease liabilities,
non-current
|
|
|
681
|
|
|
|
105
|
|
Other long-term
liabilities
|
|
|
125
|
|
|
|
125
|
|
Total
liabilities
|
|
|
30,897
|
|
|
|
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; 14,118 and 13,202 shares issued
and outstanding as of December 31, 2023 and January 1, 2023,
respectively
|
|
|
14
|
|
|
|
13
|
|
Additional paid-in
capital
|
|
|
322,436
|
|
|
|
317,174
|
|
Accumulated
deficit
|
|
|
(305,555)
|
|
|
|
(305,292)
|
|
Total stockholders'
equity
|
|
|
16,895
|
|
|
|
11,895
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
47,792
|
|
|
$
|
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
|
|
|
Year
Ended
|
|
|
|
December
31, 2023
|
|
|
January 1,
2023
|
|
|
October 1,
2023
|
|
|
December
31, 2023
|
|
|
January 1,
2023
|
|
US GAAP income
(loss) from operations
|
|
$
|
2,116
|
|
|
$
|
(924)
|
|
|
$
|
1,280
|
|
|
$
|
70
|
|
|
$
|
(3,800)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
89
|
|
|
|
55
|
|
|
|
73
|
|
|
|
328
|
|
|
|
272
|
|
Research and
development
|
|
|
82
|
|
|
|
327
|
|
|
|
171
|
|
|
|
595
|
|
|
|
652
|
|
Selling, general and
administrative
|
|
|
434
|
|
|
|
306
|
|
|
|
372
|
|
|
|
1,599
|
|
|
|
1,111
|
|
Non-GAAP income
(loss) from operations
|
|
$
|
2,721
|
|
|
$
|
(236)
|
|
|
$
|
1,896
|
|
|
$
|
2,592
|
|
|
$
|
(1,765)
|
|
US GAAP net income
(loss)
|
|
$
|
2,042
|
|
|
$
|
(1,232)
|
|
|
$
|
1,192
|
|
|
$
|
(263)
|
|
|
$
|
(4,267)
|
|
Adjustment for
stock-based compensation within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
89
|
|
|
|
55
|
|
|
|
73
|
|
|
|
328
|
|
|
|
272
|
|
Research and
development
|
|
|
82
|
|
|
|
327
|
|
|
|
171
|
|
|
|
595
|
|
|
|
652
|
|
Selling, general and
administrative
|
|
|
434
|
|
|
|
306
|
|
|
|
372
|
|
|
|
1,599
|
|
|
|
1,111
|
|
Non-GAAP net income
(loss)
|
|
$
|
2,647
|
|
|
$
|
(544)
|
|
|
$
|
1,808
|
|
|
$
|
2,259
|
|
|
$
|
(2,232)
|
|
US GAAP net income
(loss) per share, basic
|
|
$
|
0.15
|
|
|
$
|
(0.09)
|
|
|
$
|
0.09
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.34)
|
|
Adjustment for
stock-based compensation
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.04
|
|
|
|
0.19
|
|
|
|
0.16
|
|
Non-GAAP net income
(loss) per share, basic
|
|
$
|
0.19
|
|
|
$
|
(0.04)
|
|
|
$
|
0.13
|
|
|
$
|
0.17
|
|
|
$
|
(0.18)
|
|
US GAAP net income
(loss) per share, diluted
|
|
$
|
0.14
|
|
|
$
|
(0.09)
|
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.34)
|
|
Adjustment for
stock-based compensation
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
0.19
|
|
|
|
0.16
|
|
Non-GAAP net income
(loss) per share, diluted
|
|
$
|
0.18
|
|
|
$
|
(0.04)
|
|
|
$
|
0.13
|
|
|
$
|
0.17
|
|
|
$
|
(0.18)
|
|
US GAAP gross margin
percentage
|
|
|
77.1
|
%
|
|
|
51.9
|
%
|
|
|
76.9
|
%
|
|
|
68.3
|
%
|
|
|
54.4
|
%
|
Adjustment for
stock-based compensation included
in cost of revenue
|
|
|
1.2
|
%
|
|
|
1.3
|
%
|
|
|
1.1
|
%
|
|
|
1.6
|
%
|
|
|
1.7
|
%
|
Non-GAAP gross margin
percentage
|
|
|
78.3
|
%
|
|
|
53.2
|
%
|
|
|
78.0
|
%
|
|
|
69.9
|
%
|
|
|
56.1
|
%
|
QUICKLOGIC
CORPORATION
SUPPLEMENTAL
DATA
(Unaudited)
|
|
|
|
Percentage of
Revenue
|
|
|
Change in
Revenue
|
|
|
|
Q4
2023
|
|
|
Q4
2022
|
|
|
Q3
2023
|
|
|
Q4 2023 to
Q4 2022
|
|
|
Q4 2023 to
Q3 2023
|
|
COMPOSITION OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
products
|
|
|
91
|
%
|
|
|
70
|
%
|
|
|
91
|
%
|
|
|
140
|
%
|
|
|
12
|
%
|
Mature
products
|
|
|
9
|
%
|
|
|
30
|
%
|
|
|
9
|
%
|
|
|
(48)
|
%
|
|
|
15
|
%
|
Revenue by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
6
|
%
|
|
|
11
|
%
|
|
|
6
|
%
|
|
|
(4)
|
%
|
|
|
15
|
%
|
North
America
|
|
|
92
|
%
|
|
|
74
|
%
|
|
|
91
|
%
|
|
|
130
|
%
|
|
|
14
|
%
|
Europe
|
|
|
2
|
%
|
|
|
15
|
%
|
|
|
3
|
%
|
|
|
(76)
|
%
|
|
|
(39)
|
%
|
_____________________
|
(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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SOURCE QuickLogic Corporation