QuickLogic Reports First Quarter Fiscal 2024 Results, On Track for Revenue Growth of 30% and Positive Cash Flow in 2024
QuickLogic (NASDAQ: QUIK) announced its financial results for Q1 fiscal 2024, with notable revenue growth. The company reported a 45.3% increase in total revenue year-over-year, amounting to $6.0 million. New product revenue increased by 59.6% to $4.9 million. GAAP gross margin was 66.3%, and GAAP net income was $0.1 million, marking an improvement from a net loss in Q1 2023. Non-GAAP net income was $1.7 million. The company signed two new IP contracts and announced a strategic partnership to develop radiation-tolerant eFPGA IP. QuickLogic is on track for 30%+ revenue growth in 2024 and positive cash flow.
- Q1 2024 total revenue increased by 45.3% year-over-year to $6.0 million.
- New product revenue grew by 59.6% to $4.9 million compared to Q1 2023.
- GAAP gross margin improved to 66.3% from 57.8% in Q1 2023.
- Non-GAAP net income was $1.7 million, compared to a net loss of ($0.5 million) in Q1 2023.
- Signed two new IP contracts targeting 12nm fabrication nodes, expected to drive revenue growth in H2 2024.
- Strategic partnership with Zero-Error Systems America for radiation-tolerant eFPGA IP.
- SensiML secured a six-figure license agreement with a major microcontroller company.
- Sales funnel grew to a record $179 million.
- Q1 2024 total revenue decreased by 19.7% compared to Q4 2023.
- New product revenue declined by 28.6% from Q4 2023 to Q1 2024.
- GAAP gross margin decreased from 77.1% in Q4 2023 to 66.3% in Q1 2024.
- GAAP net income fell to $0.1 million from $2.0 million in Q4 2023.
- Non-GAAP net income decreased from $2.6 million in Q4 2023 to $1.7 million in Q1 2024.
Insights
The financial results reported by QuickLogic for the first quarter of fiscal 2024 are quite noteworthy, reflecting significant growth and positive financial performance. The company achieved a 45.3% year-over-year revenue increase, showcasing robust growth in new product revenue, which saw a 59.6% rise. Despite a quarter-over-quarter decline, these numbers highlight the company's strong momentum in the marketplace.
The GAAP gross margin improved to 66.3% from 57.8% in the previous year. This increase indicates improved efficiency and cost management. However, compared to the previous quarter's 77.1%, there is a noticeable decline, which might be due to seasonal fluctuations or specific project completions. The non-GAAP gross margin showed a similar trend, reinforcing this observation.
The transition from a net loss of
In the short term, investors might be concerned about the quarter-over-quarter decline in revenue and margins, but the long-term outlook appears promising with substantial year-over-year growth and strategic partnerships that could drive future revenue.
QuickLogic's progress in embedding FPGA technology and Endpoint AI solutions is significant. The announcement of new IP contracts targeting 12nm fabrication nodes at two separate foundries is a strategic move. This advanced node technology is essential for creating more efficient and powerful semiconductors, which could enhance the company's competitive edge in the tech industry.
The strategic partnership with Zero-Error Systems America to develop radiation-tolerant eFPGA IP for commercial space applications is particularly noteworthy. This niche market has stringent requirements and QuickLogic's venture into this area could open new revenue streams. The development of radiation-hardened technology also positions the company favorably within the aerospace and defense sectors.
Moreover, the release of the Aurora 2.6 eFPGA User Tool Suite reflects ongoing innovation. Expanding OS compatibility and increasing speed by up to 15% can attract a broader range of customers and applications, promoting growth in usage and adoption of their technology.
These technological advancements and strategic partnerships highlight QuickLogic’s commitment to innovation and market expansion, which bodes well for their long-term growth.
SAN JOSE, Calif. , May 13, 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 first quarter that ended March 31, 2024.
Recent Highlights
- Achieved greater than
40% year-over-year revenue growth in Q1 2024 that was driven by a nearly60% increase in new product sales - Signed two new IP contracts targeting 12nm fabrication nodes at two separate foundries that will drive revenue growth in the second half of the year
- Completed our work funded by the second tranche of the Strategic Radiation Hardened FPGA Technology government contract and anticipate the award of the third tranche later this quarter
- Announced a strategic partnership with Zero-Error Systems America to create radiation-tolerant eFPGA IP for commercial space applications
- Released Aurora 2.6 eFPGA User Tool Suite that expands OS compatibility and increases speed by up to
15% - SensiML secured a six-figure license agreement with a major microcontroller company
- Grew the sales funnel, which includes a diverse range of new IP customers and end markets, to a record
$179 million
"We are very pleased with our continued progress and believe we are well-positioned to achieve our
Fiscal First Quarter 2024 Financial Results
Total revenue for the first quarter of fiscal 2024 was
New product revenue was approximately
Mature product revenue was
First quarter 2024 GAAP gross margin was
First quarter 2024 non-GAAP gross margin was
First quarter 2024 GAAP operating expenses were
First quarter 2024 non-GAAP operating expenses were
First quarter 2024 GAAP net income was
First quarter 2024 non-GAAP net income was
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, May 13, 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 13746241.
The call recording, which can be accessed by phone, will be archived through May 20, 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
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
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; 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 May 13, 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
–Tables Follow –
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, 2024 | April 2, 2023 | December 31, 2023 | ||||||||||
Revenue | $ | 6,007 | $ | 4,133 | $ | 7,479 | ||||||
Cost of revenue | 2,024 | 1,743 | 1,713 | |||||||||
Gross profit | 3,983 | 2,390 | 5,766 | |||||||||
Operating expenses: | ||||||||||||
Research and development | 1,459 | 1,629 | 1,381 | |||||||||
Selling, general and administrative | 2,351 | 1,861 | 2,269 | |||||||||
Total operating expense | 3,810 | 3,490 | 3,650 | |||||||||
Operating income (loss) | 173 | (1,100) | 2,116 | |||||||||
Interest expense | (69) | (58) | (59) | |||||||||
Interest and other (expense) income, net | 11 | (63) | (17) | |||||||||
Income (loss) before income taxes | 115 | (1,221) | 2,040 | |||||||||
(Benefit from) provision for income taxes | 7 | 7 | (2) | |||||||||
Net income (loss) | $ | 108 | $ | (1,228) | $ | 2,042 | ||||||
Net income (loss) per share: | ||||||||||||
Basic | $ | 0.01 | $ | (0.09) | $ | 0.15 | ||||||
Diluted | $ | 0.01 | $ | (0.09) | $ | 0.14 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 14,177 | 13,215 | 13,989 | |||||||||
Diluted | 14,545 | 13,215 | 14,349 | |||||||||
Note: Net income (loss) equals to comprehensive income (loss) for all periods presented. |
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) | ||||||||
March 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ | 27,399 | $ | 24,606 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 1,560 | 1,625 | ||||||
Contract assets | 1,085 | 3,609 | ||||||
Note receivable | 1,214 | 1,200 | ||||||
Inventories | 1,923 | 2,029 | ||||||
Prepaid expenses and other current assets | 2,128 | 1,561 | ||||||
Total current assets | 35,309 | 34,630 | ||||||
Property and equipment, net | 12,420 | 8,948 | ||||||
Capitalized internal-use software, net | 2,147 | 2,069 | ||||||
Right of use assets, net | 916 | 981 | ||||||
Intangible assets, net | 510 | 537 | ||||||
Non-marketable equity investment | 300 | 300 | ||||||
Goodwill | 185 | 185 | ||||||
Other assets | 142 | 142 | ||||||
TOTAL ASSETS | $ | 51,929 | $ | 47,792 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Revolving line of credit | $ | 20,000 | $ | 20,000 | ||||
Trade payables | 4,892 | 4,657 | ||||||
Accrued liabilities | 1,545 | 2,673 | ||||||
Deferred revenue | 778 | 1,052 | ||||||
Notes payable, current | 993 | 946 | ||||||
Lease liabilities, current | 263 | 302 | ||||||
Total current liabilities | 28,471 | 29,630 | ||||||
Long-term liabilities: | ||||||||
Notes payable, non-current | 450 | 461 | ||||||
Lease liabilities, non-current | 636 | 681 | ||||||
Other long-term liabilities | 125 | 125 | ||||||
Total liabilities | 29,682 | 30,897 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 14 | 14 | ||||||
Additional paid-in capital | 327,680 | 322,436 | ||||||
Accumulated deficit | (305,447) | (305,555) | ||||||
Total stockholders' equity | 22,247 | 16,895 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 51,929 | $ | 47,792 | ||||
QUICKLOGIC CORPORATION SUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES (in thousands, except per share amounts and percentages) (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, 2024 | April 2, 2023 | December 31, 2023 | ||||||||||
US GAAP income (loss) from operations | $ | 173 | $ | (1,100) | $ | 2,116 | ||||||
Adjustment for stock-based compensation within: | ||||||||||||
Cost of revenue | 237 | 78 | 89 | |||||||||
Research and development | 357 | 184 | 82 | |||||||||
Selling, general and administrative | 969 | 453 | 434 | |||||||||
Non-GAAP income (loss) from operations | $ | 1,736 | $ | (385) | $ | 2,721 | ||||||
US GAAP net income (loss) | $ | 108 | $ | (1,228) | $ | 2,042 | ||||||
Adjustment for stock-based compensation within: | ||||||||||||
Cost of revenue | 237 | 78 | 89 | |||||||||
Research and development | 357 | 184 | 82 | |||||||||
Selling, general and administrative | 969 | 453 | 434 | |||||||||
Non-GAAP net income (loss) | $ | 1,671 | $ | (513) | $ | 2,647 | ||||||
US GAAP net income (loss) per share, basic | $ | 0.01 | $ | (0.09) | $ | 0.15 | ||||||
Adjustment for stock-based compensation | 0.11 | 0.05 | 0.04 | |||||||||
Non-GAAP net income (loss) per share, basic | $ | 0.12 | $ | (0.04) | $ | 0.19 | ||||||
US GAAP net income (loss) per share, diluted | $ | 0.01 | $ | (0.09) | $ | 0.14 | ||||||
Adjustment for stock-based compensation | 0.10 | 0.05 | 0.04 | |||||||||
Non-GAAP net income (loss) per share, diluted | $ | 0.11 | $ | (0.04) | $ | 0.18 | ||||||
US GAAP gross margin percentage | 66.3 | % | 57.8 | % | 77.1 | % | ||||||
Adjustment for stock-based compensation included in cost of revenue | 4.0 | % | 1.9 | % | 1.2 | % | ||||||
Non-GAAP gross margin percentage | 70.3 | % | 59.7 | % | 78.3 | % | ||||||
QUICKLOGIC CORPORATION SUPPLEMENTAL DATA (Unaudited) | ||||||||||||||||||||
Percentage of Revenue | Change in Revenue | |||||||||||||||||||
Q1 2024 | Q1 2023 | Q4 2023 | Q1 2024 to Q1 2023 | Q1 2024 to Q4 2023 | ||||||||||||||||
COMPOSITION OF REVENUE | ||||||||||||||||||||
Revenue by product: (1) | ||||||||||||||||||||
New products | 81 | % | 74 | % | 91 | % | 60 | % | (29) | % | ||||||||||
Mature products | 19 | % | 26 | % | 9 | % | 5 | % | 74 | % | ||||||||||
Revenue by geography: | ||||||||||||||||||||
12 | % | 17 | % | 6 | % | 2 | % | 71 | % | |||||||||||
84 | % | 80 | % | 92 | % | 52 | % | (27) | % | |||||||||||
4 | % | 3 | % | 2 | % | 131 | % | 58 | % | |||||||||||
_____________________ | ||
(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. | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/quicklogic-reports-first-quarter-fiscal-2024-results-on-track-for-revenue-growth-of-30-and-positive-cash-flow-in-2024-302143921.html
SOURCE QuickLogic Corporation
FAQ
What was QuickLogic's revenue growth in Q1 fiscal 2024?
How much did QuickLogic's new product revenue increase in Q1 2024?
What was QuickLogic's GAAP net income for Q1 2024?
What was the change in QuickLogic's non-GAAP net income in Q1 2024?
What new partnerships did QuickLogic announce in Q1 2024?
What was the sales funnel value for QuickLogic in Q1 2024?
How did QuickLogic's GAAP gross margin change in Q1 2024?
What drove QuickLogic's revenue growth in Q1 2024?
