QuickLogic Announces Strategic Process for SensiML
Rhea-AI Summary
QuickLogic (NASDAQ: QUIK) announced its Board of Directors is exploring strategic options for its wholly-owned subsidiary, SensiML, including potential sale discussions with strategic partners. The decision comes as QuickLogic aims to focus entirely on its core eFPGA Hard IP and ruggedized FPGA business.
The strategic shift is driven by recent successes, including eFPGA Hard IP design wins with strategic customers, expansion of government contracts, performance improvements in eFPGA Hard IP products, changes in the competitor landscape, and increased customer interest from former competitors' clients.
While SensiML's AI/ML capabilities initially aligned with QuickLogic's sensor processing focus, the company has decided to redirect all resources toward its core business model and Storefront opportunities due to the profitability of its eFPGA Hard IP and ruggedized FPGA products.
Positive
- Strategic focus on profitable core eFPGA Hard IP and ruggedized FPGA business
- Recent eFPGA Hard IP design wins with strategic customers
- Expansion of large government contracts
- Increased customer interest following market competitor landscape changes
- Performance improvements in eFPGA Hard IP products
Negative
- Potential divestment of SensiML subsidiary indicates departure from AI/ML market segment
News Market Reaction – QUIK
On the day this news was published, QUIK declined 10.25%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
With the increasing interest in applying Artificial Intelligence (AI) and Machine Learning (ML) in edge applications, there are clearly defined opportunities for SensiML's future growth. However, with the success of QuickLogic's eFPGA Hard IP and ruggedized FPGA business, the Company will focus all its resources on leveraging and growing the cornerstones of its core business model.
This decision has been influenced by recent events, including eFPGA Hard IP design wins with strategic customers, expansion of large government ruggedized FPGA and eFPGA Hard IP contracts, performance improvements of its eFPGA Hard IP products, the recent change in the eFPGA market competitor landscape, and an increase in inbound interest from customers of former eFPGA market competitors.
"When we acquired SensiML, there were clear leverage opportunities between its unique AI/ML software and our focus on sensor processing opportunities," said Brian Faith, CEO of QuickLogic. "However, with the success and profitability of our eFPGA Hard IP and ruggedized FPGA products we are electing to focus all of our resources towards the growth of our core business model and the Storefront opportunities it leverages."
We encourage you to read the Company's disclosures on Form 8-K filed with the SEC today in conjunction with the Company's Form 10-K filed on March 27, 2024, and previously filed quarterly financials on Forms 10-Q for additional information.
About QuickLogic
QuickLogic Corporation is a fabless semiconductor company specializing in eFPGA Hard IP, discrete FPGAs, and endpoint AI solutions. QuickLogic's unique approach combines cutting-edge technology with open-source tools to deliver highly customizable, low-power solutions for industrial, aerospace, consumer, and computing markets. For more information, visit www.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
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