QuickLogic Announces $5.26 Million Contract Award

Rhea-AI Summary

QuickLogic (NASDAQ: QUIK) announced a $5.26 million contract award from the Department of Defense (DoD). This marks the third tranche of the Strategic Radiation Hardened (SRH) Contract initiated in August 2022. QuickLogic will act as the Prime Contractor, partnering with Honeywell Aerospace and Everspin Technologies. The project focuses on developing and demonstrating SRH high-reliability Field Programmable Gate Array (FPGA) technology for strategic and space system requirements. CEO Brian Faith highlighted the company's 30+ years of experience in delivering FPGA technology to aerospace and defense sectors.

Positive

• $5.26 million contract award adds to revenue.
• Continued partnership with DoD underscores trust and reliability.
• Collaboration with reputable subcontractors like Honeywell Aerospace and Everspin Technologies.
• Enhances QuickLogic's profile in the Aerospace and Defense Industrial Base (DIB).

Negative

• No immediate revenue impact reported.
• Potential risks associated with meeting stringent SRH design objectives.

Financial Analyst

The new contract awarded to QuickLogic has significant implications for the company's financial health and future growth prospects. With this $5.26 million award, QuickLogic strengthens its foothold in the defense sector, a market known for long-term, high-value contracts. This revenue injection will likely improve quarterly earnings and cash flow stability. Importantly, collaborating with well-established partners like Honeywell Aerospace and Everspin Technologies enhances QuickLogic's reputation and may lead to more substantial contracts in the future. However, investors should note that while the contract bolsters revenue, the long-term benefits are dependent on successful project execution and the continuation of government funding for such initiatives.

Tech Expert

QuickLogic's continued development of Strategic Radiation Hardened (SRH) high reliability FPGA technology is a notable achievement in the tech industry. SRH FPGAs are important for space and defense applications due to their ability to withstand extreme radiation conditions. This contract positions QuickLogic as a key player in a niche yet vital market. The involvement of industry giants like Honeywell Aerospace and Everspin Technologies suggests strong validation of QuickLogic's technological capabilities. However, the highly specialized nature of SRH FPGAs means that QuickLogic must continuously innovate to stay ahead of competitors. For retail investors, this contract signifies QuickLogic's strong technical foundation and potential for future technological advancements, although the niche market limits broad commercial applicability.

Market Research Analyst

The awarding of this contract highlights QuickLogic's strategic positioning within the defense and aerospace markets. The defense sector typically requires long lead times and rigorous validation processes, indicating that QuickLogic has met stringent criteria. This can be seen as a positive indicator of the company's operational excellence and reliability. However, the dependency on government contracts may pose risks, as shifts in defense budgets or policy changes could impact future opportunities. For retail investors, understanding these dynamics is crucial; while the immediate outlook appears strong, the long-term success will hinge on broader market conditions and QuickLogic's ability to secure ongoing and new contracts in this specialized field.

• This award is the third tranche of the Strategic Radiation Hardened Contract that was initiated in August of 2022
• QuickLogic will continue as the Prime Contractor collaborating with subcontractors including Honeywell Aerospace and Everspin Technologies

SAN JOSE, Calif., July 8, 2024 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK), a developer of embedded FPGA (eFPGA) Hard IP, ruggedized FPGAs and endpoint AI solutions, announced today it has been awarded a $5.26 million Contract to continue the development and demonstration of a Strategic Radiation Hardened (SRH) high reliability Field Programmable Gate Array (FPGA) technology to support identified and future Department of Defense (DoD) strategic and space system requirements.

"QuickLogic is honored to have been chosen by the US Government to continue as the Prime Contractor for this highly specialized and mission critical program," said Brian Faith president and CEO of QuickLogic. "This project builds on the company's 30+ year heritage of delivering FPGA technology to Aerospace companies and Defense Industrial Base (DIB) and will extend our capabilities to support SRH design objectives."

About QuickLogic
QuickLogic Corporation (NASDAQ: QUIK) is a fabless semiconductor company that develops innovative embedded FPGA (eFPGA) Hard 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 quicklogic.com.

QuickLogic and logo are registered trademarks of QuickLogic. All other trademarks are the property of their respective holders and should be treated as such.

 

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SOURCE QuickLogic Corporation

FAQ

What is the value of QuickLogic's latest contract award?

QuickLogic has been awarded a $5.26 million contract.

When was the Strategic Radiation Hardened Contract initiated?

The Strategic Radiation Hardened (SRH) Contract was initiated in August 2022.

Who are QuickLogic's partners for the SRH project?

QuickLogic is partnering with Honeywell Aerospace and Everspin Technologies.

What does the latest DoD contract focus on?

The contract focuses on the development and demonstration of SRH high-reliability FPGA technology for strategic and space system requirements.

How does this contract affect QuickLogic's position in the market?

The contract enhances QuickLogic's profile in the Aerospace and Defense Industrial Base (DIB) and adds $5.26 million to its revenue.