QuickLogic Corporation (NASDAQ:QUIK), a developer of ultra-low
power multi-core voice enabled SoCs, embedded FPGA IP, display
bridge and programmable logic solutions, announced its financial
results for the fiscal third quarter ended October 1, 2017.
Recent Accomplishments
- EOSTM S3 Sensor Processing Platform:
- Significantly expanded its Hearables engagement pipeline and
design wins.
- Strengthened EOS S3 product team with three new senior-level
positions for product management, hardware solutions architecture
and system engineering.
- Granted a patent by the United States Patent and Trademark
Office for the company’s Flexible Fusion Engine (FFE) used for
always-on sensor processing in the EOS S3 multi-core
processor.
- QuickLogic distributor Shinko Shoji demonstrated an EOS S3 CPU
module and evaluation board at CEATEC in Chiba, Japan.
- Embedded FPGA (eFPGA) Intellectual Property (IP)
Licensing:
- Qualified ArcticProTM eFPGA at SMIC to become the first eFPGA
IP available on its low power 40nm LL process.
- Partnered with AcconSys to expand ArcticPro eFPGA penetration
in China.
- Participated in several technical symposiums hosted by the
company’s fabrication partners’ GLOBALFOUNDRIES and SMIC, the 15th
Annual International System-on-a-Chip Conference, and ARM TechCon
2017.
Fiscal 2017 Third Quarter Financial
ResultsTotal revenue was $3.0 million, within the
company’s guidance, flat compared to the second quarter of 2017 and
up 6% compared to the third quarter of 2016. New product revenue
was $1.5 million, flat compared to the second quarter of 2017 and
up 10% compared to the third quarter of 2016. Mature product
revenue was $1.5 million, flat compared to both the second quarter
of 2017 and the third quarter of 2016. New product revenue
accounted for 50% of the total revenue in the third quarter of
2017, compared to 49% in the second quarter of 2017 and 48% in the
third quarter of 2016.
GAAP gross margin was 42.6%, down from 45.6% in the second
quarter of 2017 and up from 31.7% in the third quarter of 2016.
Non-GAAP gross margin was 43.7%, down from 46.3% in the second
quarter of 2017 and up from 34.1% in the third quarter of 2016.
GAAP operating expenses decreased slightly to $4.7 million, from
$4.9 million in the second quarter of 2017 and decreased
significantly from $5.5 million in the third quarter of 2016.
Non-GAAP operating expenses decreased slightly to $4.3 million,
compared to $4.6 million in the second quarter of 2017 and
decreased from $5.0 million in the third quarter of 2016.
GAAP net loss was $3.6 million, or $0.04 per share,
compared to $3.6 million, or $0.05 per share, in the second quarter
of 2017 and $4.6 million, or $0.07 per share, in the third quarter
of 2016. Non-GAAP net loss was lower at $3.1 million compared to
$3.3 million in the second quarter of 2017 and $4.1 million in
the third quarter of 2016. (See below for an explanation of
non-GAAP financial measures.)
Conference CallQuickLogic Corporation
(NASDAQ:QUIK) will hold a conference call at 2:30 p.m. Pacific
Standard Time / 5:30 p.m. Eastern Standard Time today, November 8,
2017, to discuss its current financial results. The conference call
will be webcasted and can be accessed via the Company's website at
http://ir.quicklogic.com/events.cfm. To join the live conference,
you may dial (877) 377-7094 and international participants
should dial (253) 237-1177 by 2:20 p.m. Pacific Standard Time.
The conference ID is 99397264. A recording of the call will be
available starting one hour after completion of the call. To access
the recording, please call (855) 859-2056 or (404) 537-3406
and reference the passcode: 99397264. The call recording will be
archived until Thursday, November 16, 2017, and the webcast will be
available for 12 months on the Company's website.
About QuickLogicQuickLogic Corporation
(NASDAQ:QUIK) enables OEMs to maximize battery life for highly
differentiated, immersive user experiences with Smartphone,
Wearable, Hearable and IoT devices. QuickLogic delivers these
benefits through industry leading ultra-low power customer
programmable SoC semiconductor solutions, embedded software, and
algorithm solutions for always-on voice and sensor processing. The
company's embedded FPGA initiative also enables SoC designers to
easily implement post production changes, and increase revenue by
providing hardware programmability to their end customers. For more
information about QuickLogic, please visit www.quicklogic.com.
QuickLogic uses its website (www.quicklogic.com), the company
blog QuikLogic HotSpot
(http://blog.quicklogic.com), 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 MeasuresQuickLogic reports
financial information in accordance with United States Generally
Accepted Accounting Principles, or US 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 GAAP. A reconciliation of US 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 GAAP financial measures and the
reconciliation of non-GAAP financial measures with their most
directly comparable US GAAP financial measures.
Forward Looking StatementsThis 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; changes in product
demand or supply; capacity constraints; and general economic
conditions. 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 November 8, 2017, 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.
QuickLogic and the QuickLogic logo are registered trademarks of
QuickLogic Corporation. All other brands or trademarks are the
property of their respective holders and should be treated as
such.
Company ContactSue CheungChief Financial
Officer(408) 990-4076Scheung@quicklogic.com
IR ContactMoriah Shilton/Kirsten Chapman(415)
433-3777ir@quicklogic.com
-Tables Follow -
QUICKLOGIC
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share
amounts)(Unaudited)
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 1, 2017 |
|
October 2, 2016 |
|
July 2, 2017 |
|
October 1, 2017 |
|
October 2, 2016 |
Revenue |
$ |
2,972 |
|
|
$ |
2,809 |
|
|
$ |
3,026 |
|
|
$ |
9,168 |
|
|
$ |
8,476 |
|
Cost of revenue |
1,706 |
|
|
1,918 |
|
|
1,646 |
|
|
5,149 |
|
|
5,653 |
|
Gross profit |
1,266 |
|
|
891 |
|
|
1,380 |
|
|
4,019 |
|
|
2,823 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
2,368 |
|
|
2,755 |
|
|
2,319 |
|
|
7,114 |
|
|
9,885 |
|
Selling,
general and administrative |
2,353 |
|
|
2,704 |
|
|
2,614 |
|
|
7,381 |
|
|
7,988 |
|
Total operating
expense |
4,721 |
|
|
5,459 |
|
|
4,933 |
|
|
14,495 |
|
|
17,873 |
|
Loss from
operations |
(3,455 |
) |
|
(4,568 |
) |
|
(3,553 |
) |
|
(10,476 |
) |
|
(15,050 |
) |
Interest expense |
(15 |
) |
|
(37 |
) |
|
(21 |
) |
|
(97 |
) |
|
(109 |
) |
Interest income and
other (expense), net |
(3 |
) |
|
(41 |
) |
|
1 |
|
|
(2 |
) |
|
(63 |
) |
Loss before income
taxes |
(3,473 |
) |
|
(4,646 |
) |
|
(3,573 |
) |
|
(10,575 |
) |
|
(15,222 |
) |
Provision for (benefit
from) income taxes |
77 |
|
|
(23 |
) |
|
34 |
|
|
147 |
|
|
68 |
|
Net loss |
$ |
(3,550 |
) |
|
$ |
(4,623 |
) |
|
$ |
(3,607 |
) |
|
$ |
(10,722 |
) |
|
$ |
(15,290 |
) |
Net loss per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.24 |
) |
Diluted |
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.24 |
) |
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
Basic |
80,125 |
|
|
67,781 |
|
|
79,799 |
|
|
76,267 |
|
|
64,522 |
|
Diluted |
80,125 |
|
|
67,781 |
|
|
79,799 |
|
|
76,267 |
|
|
64,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUICKLOGIC
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(in
thousands)(Unaudited)
|
|
|
|
|
|
|
October 1, 2017 |
|
January 1, 2017 (1) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
19,029 |
|
|
$ |
14,870 |
|
Accounts
receivable, net |
|
1,654 |
|
|
839 |
|
Inventories |
|
3,307 |
|
|
2,017 |
|
Other
current assets |
|
1,031 |
|
|
1,123 |
|
Total current assets |
|
25,021 |
|
|
18,849 |
|
Property and equipment,
net |
|
2,247 |
|
|
2,765 |
|
Other assets |
|
253 |
|
|
230 |
|
TOTAL
ASSETS |
|
$ |
27,521 |
|
|
$ |
21,844 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Revolving
line of credit |
|
$ |
6,000 |
|
|
$ |
6,000 |
|
Trade
payables |
|
1,647 |
|
|
2,018 |
|
Accrued
liabilities |
|
1,781 |
|
|
1,580 |
|
Deferred
Revenue |
|
— |
|
|
— |
|
Current
portion of capital lease obligations |
|
145 |
|
|
209 |
|
Total current liabilities |
|
9,573 |
|
|
9,807 |
|
Long-term
liabilities: |
|
|
|
|
Capital
lease obligations, less current portion |
|
129 |
|
|
— |
|
Other
long-term liabilities |
|
25 |
|
|
49 |
|
Total liabilities |
|
9,727 |
|
|
9,856 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock, par value |
|
80 |
|
|
68 |
|
Additional paid-in capital |
|
268,340 |
|
|
251,824 |
|
Accumulated deficit |
|
(250,626 |
) |
|
(239,904 |
) |
Total stockholders’ equity |
|
17,794 |
|
|
11,988 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
27,521 |
|
|
$ |
21,844 |
|
________________________
|
(1) |
Derived from the
January 1, 2017 audited balance sheet included in the 2016
Annual Report on Form 10-K of QuickLogic Corporation. |
QUICKLOGIC
CORPORATIONSUPPLEMENTAL RECONCILIATIONS OF US GAAP
AND NON-GAAP FINANCIAL MEASURES(in thousands,
except per share amounts and
percentages)(Unaudited)
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 1, 2017 |
|
October 2, 2016 |
|
July 2, 2017 |
|
October 1, 2017 |
|
October 2, 2016 |
US GAAP loss
from operations |
|
$ |
(3,455 |
) |
|
$ |
(4,568 |
) |
|
$ |
(3,553 |
) |
|
$ |
(10,476 |
) |
|
$ |
(15,050 |
) |
Adjustment for stock-based compensation within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
32 |
|
|
34 |
|
|
20 |
|
|
85 |
|
|
119 |
|
Research
and development |
|
151 |
|
|
137 |
|
|
134 |
|
|
424 |
|
|
603 |
|
Selling,
general and administrative |
|
212 |
|
|
286 |
|
|
193 |
|
|
551 |
|
|
736 |
|
Adjustment for the write-off of equipment within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
— |
|
|
33 |
|
|
— |
|
|
|
|
33 |
|
Research
and development |
|
10 |
|
|
1 |
|
|
— |
|
|
10 |
|
|
313 |
|
Selling,
general and administrative |
|
— |
|
|
5 |
|
|
— |
|
|
|
|
5 |
|
Adjustment for restructuring costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Non-GAAP loss
from operations |
|
$ |
(3,050 |
) |
|
$ |
(4,072 |
) |
|
$ |
(3,206 |
) |
|
$ |
(9,406 |
) |
|
$ |
(13,241 |
) |
US GAAP net
loss |
|
$ |
(3,550 |
) |
|
$ |
(4,623 |
) |
|
$ |
(3,607 |
) |
|
$ |
(10,722 |
) |
|
$ |
(15,290 |
) |
Adjustment for stock-based compensation within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
32 |
|
|
34 |
|
|
20 |
|
|
85 |
|
|
119 |
|
Research
and development |
|
151 |
|
|
137 |
|
|
134 |
|
|
424 |
|
|
603 |
|
Selling,
general and administrative |
|
212 |
|
|
286 |
|
|
193 |
|
|
551 |
|
|
736 |
|
Adjustment for the write-off of equipment within: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
— |
|
|
33 |
|
|
— |
|
|
— |
|
|
33 |
|
Research
and development |
|
10 |
|
|
1 |
|
|
— |
|
|
10 |
|
|
313 |
|
Selling,
general and administrative |
|
— |
|
|
5 |
|
|
— |
|
|
|
|
5 |
|
Non-GAAP net
loss |
|
$ |
(3,145 |
) |
|
$ |
(4,127 |
) |
|
$ |
(3,260 |
) |
|
$ |
(9,652 |
) |
|
$ |
(13,481 |
) |
US GAAP net
loss per share |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.24 |
) |
Adjustment for stock-based compensation |
|
* |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
Adjustment for the write-off of equipment |
|
* |
|
* |
|
— |
|
|
* |
|
0.01 |
|
Non-GAAP net
loss per share |
|
$ |
(0.04 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.21 |
) |
US GAAP gross
margin percentage |
|
42.6 |
% |
|
31.7 |
% |
|
45.6 |
% |
|
43.8 |
% |
|
33.3 |
% |
Adjustment for stock-based compensation |
|
1.1 |
% |
|
1.2 |
% |
|
0.7 |
% |
|
1.0 |
% |
|
1.4 |
% |
Adjustment for the write-off of equipment |
|
* |
|
1.2 |
% |
|
— |
% |
|
* |
|
0.4 |
% |
Non-GAAP gross
margin percentage |
|
43.7 |
% |
|
34.1 |
% |
|
46.3 |
% |
|
44.8 |
% |
|
35.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Figures were not considered for
reconciliation due to the insignificant amount.
QUICKLOGIC
CORPORATIONSUPPLEMENTAL
DATA(Unaudited)
|
|
|
|
|
|
|
Percentage of Revenue |
|
Change in Revenue |
|
|
Q3 2017 |
|
Q3 2016 |
|
Q2 2017 |
|
Q3 2016 to Q3 2017 |
|
Q2 2017 to Q3 2017 |
COMPOSITION OF
REVENUE |
|
|
|
|
|
|
|
|
|
|
Revenue by product:
(1) |
|
|
|
|
|
|
|
|
|
|
New
products |
|
50% |
|
|
48% |
|
|
49% |
|
|
10% |
|
|
(1)% |
|
Mature
products |
|
50% |
|
|
52% |
|
|
51% |
|
|
2% |
|
|
(3)% |
|
Revenue by
geography: |
|
|
|
|
|
|
|
|
|
|
Asia
Pacific |
|
49% |
|
|
62% |
|
|
55% |
|
|
(16)% |
|
|
(13)% |
|
North
America |
|
39% |
|
|
24% |
|
|
36% |
|
|
70% |
|
|
6% |
|
Europe |
|
12% |
|
|
14% |
|
|
9% |
|
|
(10)% |
|
|
38% |
|
_____________________
|
(1) |
New products include
all products manufactured on 180 nanometer or smaller semiconductor
processes. eFPGA IP license revenue is also included in new product
revenue. Mature products include all products produced on
semiconductor processes larger than 180 nanometers. |
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