QuickLogic Reports Fiscal 2022 Third Quarter Results
QuickLogic Corporation (NASDAQ: QUIK) announced its third quarter financial results for fiscal 2022, reporting total revenue of $3.5 million, a decrease of 23.8% from the previous quarter and 10.3% year-over-year. New product revenue fell by 28.1% quarter-over-quarter to $2.3 million, while mature product revenue was $1.2 million, reflecting a 14.4% decline from Q2 but a 9.7% increase year-over-year. The company reported a GAAP net loss of $1.3 million or $0.11 per share. QuickLogic also highlighted the commencement of a $6.9 million government contract, promising future contributions to revenue.
- Awarded $6.9 million government contract with potential to increase by $72 million over four years.
- Total GAAP operating expenses decreased to $2.9 million from $3.2 million in Q2 2022.
- Total revenue decreased by 23.8% compared to Q2 2022 and 10.3% year-over-year.
- New product revenue fell 28.1% from Q2 2022, primarily due to reduced smart connectivity and sensor product sales.
- GAAP gross margin decreased to 48.5% from 56.0% in Q2 2022 and 70.8% in Q3 2021.
- GAAP net loss was $1.3 million, worsening from a net loss of $0.5 million in Q2 2022.
Execution of Recently Awarded
SAN JOSE, Calif., Nov. 15, 2022 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK) ("QuickLogic" or the "Company"), a developer of ultra-low power multi-core voice enabled SoCs, embedded FPGA IP, and Endpoint AI solutions, today announced its financial results for the third quarter of fiscal 2022, ended October 2, 2022.
Recent Highlights
- As previously announced, on August 8, 2022, the Company signed a
$6.9 million government contract for Strategic Radiation Hardened FPGA Technology. The Company's deliverables will be due over the course of twelve months. In addition, subject to completion of such deliverables and at the option of the customer, the total contract value has the potential to increase an additional$72 million over the span of four years. - Raised approximately
$3.2 million with strategic investment by institutional investors.
Fiscal 2022 Third Quarter Financial Results
Total revenue for the third quarter of fiscal 2022 was
New product revenue was approximately
Mature product revenue was
Third quarter 2022 GAAP gross margin was
Third quarter 2022 non-GAAP gross margin was
Third quarter 2022 GAAP operating expenses were
Third quarter 2022 non-GAAP operating expenses were
Third quarter 2022 GAAP net loss was
Third quarter 2022 non-GAAP net loss was
___________
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, November 15, 2022, 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 starting approximately one hour after completion. To access the recording, please call (412) 317-6671 and reference the passcode 13733707.
The call recording, which can be accessed by phone, will be archived through November 22, 2022, and the webcast will be available for 12 months on the Company's website.
About QuickLogic
QuickLogic is a fabless semiconductor company that develops low power, multi-core semiconductor platforms and Intellectual Property (IP) for Artificial Intelligence (AI), voice and sensor processing. The solutions include an embedded FPGA IP (eFPGA) for hardware acceleration and pre-processing, and heterogeneous multi-core SoCs that integrate eFPGA with other processors and peripherals. The Analytics Toolkit from the Company's wholly owned subsidiary, SensiML Corporation, completes the end-to-end solution with accurate sensor algorithms using AI technology. The full range of platforms, software tools and eFPGA IP enables the practical and efficient adoption of AI, voice and sensor processing across the multitude of mobile, wearable, hearable, consumer, industrial, edge and endpoint IoT applications. For more information, visit www.quicklogic.com and https://www.quicklogic.com/blog/.
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, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income in calculating non-GAAP (i) loss from operations, (ii) net loss, (iii) net 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 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; the unpredictable and ongoing impact of the COVID-19 pandemic; 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 November 15, 2022, 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 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 | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
October 2, | October 3, | July 3, 2022 | October 2, | October 3, | ||||||||||||||||
Revenue | $ | 3,459 | $ | 3,858 | $ | 4,541 | $ | 12,096 | $ | 8,980 | ||||||||||
Cost of revenue | 1,781 | 1,126 | 1,997 | 5,413 | 3,638 | |||||||||||||||
Gross profit | 1,678 | 2,732 | 2,544 | 6,683 | 5,342 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 1,018 | 1,807 | 1,190 | 3,541 | 5,346 | |||||||||||||||
Selling, general and administrative | 1,900 | 2,186 | 1,981 | 6,018 | 5,927 | |||||||||||||||
Total operating expense | 2,918 | 3,993 | 3,171 | 9,559 | 11,273 | |||||||||||||||
Loss from operations | (1,240) | (1,261) | (627) | (2,876) | (5,931) | |||||||||||||||
Interest expense | (44) | (35) | (22) | (98) | (99) | |||||||||||||||
Gain on forgiveness of debt | — | — | — | — | 1,192 | |||||||||||||||
Interest and other (expense) income, net | (60) | (7) | 142 | (42) | (59) | |||||||||||||||
Loss before income taxes | (1,344) | (1,303) | (507) | (3,016) | (4,897) | |||||||||||||||
Provision for (benefit from) income taxes | 3 | (21) | 17 | 19 | 136 | |||||||||||||||
Net loss | $ | (1,347) | $ | (1,282) | $ | (524) | $ | (3,035) | $ | (5,033) | ||||||||||
Net loss per share: | ||||||||||||||||||||
Basic and Diluted | $ | (0.11) | $ | (0.11) | $ | (0.04) | $ | (0.24) | $ | (0.44) | ||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic and Diluted | 12,664 | 11,573 | 12,412 | 12,401 | 11,441 | |||||||||||||||
Note: Net loss equals to comprehensive loss for all periods presented. |
QUICKLOGIC CORPORATION | ||||||||
October 2, 2022 | January 2, 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ | 20,036 | $ | 19,605 | ||||
Accounts receivable, net(1) | 3,905 | 1,294 | ||||||
Inventories | 2,201 | 2,078 | ||||||
Other current assets | 1,357 | 1,181 | ||||||
Total current assets | 27,499 | 24,158 | ||||||
Property and equipment, net | 514 | 499 | ||||||
Capitalized internal-use software, net | 1,451 | 1,241 | ||||||
Right of use assets | 944 | 1,529 | ||||||
Intangible assets, net | 672 | 752 | ||||||
Goodwill | 185 | 185 | ||||||
Investment In Non-Affiliate | 300 | 300 | ||||||
Other assets | 191 | 309 | ||||||
TOTAL ASSETS | $ | 31,756 | $ | 28,973 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Revolving line of credit | $ | 15,000 | $ | 15,000 | ||||
Trade payables | 1,602 | 934 | ||||||
Accrued liabilities | 1,513 | 1,665 | ||||||
Deferred revenue | 216 | 455 | ||||||
Lease liabilities, current | 646 | 819 | ||||||
Total current liabilities | 18,977 | 18,873 | ||||||
Long-term liabilities: | ||||||||
Lease liabilities, non-current | 346 | 744 | ||||||
Other long-term liabilities | 125 | 147 | ||||||
Total liabilities | 19,448 | 19,764 | ||||||
Stockholders' equity: | ||||||||
Common stock, par value | 13 | 12 | ||||||
Additional paid-in capital | 316,355 | 310,222 | ||||||
Accumulated deficit | (304,060) | (301,025) | ||||||
Total stockholders' equity | 12,308 | 9,209 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 31,756 | $ | 28,973 | ||||
(1) Accounts receivables includes contract assets of | ||||||||
QUICKLOGIC CORPORATION | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
October 2, | October 3, | July 3, 2022 | October 2, | October 3, | ||||||||||||||||
US GAAP loss from operations | $ | (1,240) | $ | (1,261) | $ | (627) | $ | (2,876) | $ | (5,931) | ||||||||||
Adjustment for stock-based compensation | ||||||||||||||||||||
Cost of revenue | 44 | 78 | 117 | 217 | 132 | |||||||||||||||
Research and development | 149 | 282 | 91 | 325 | 521 | |||||||||||||||
Selling, general and administrative | 294 | 525 | 269 | 805 | 802 | |||||||||||||||
Non-GAAP loss from operations | $ | (753) | $ | (376) | $ | (150) | $ | (1,529) | $ | (4,476) | ||||||||||
US GAAP net loss | $ | (1,347) | $ | (1,282) | $ | (524) | $ | (3,035) | $ | (5,033) | ||||||||||
Adjustment for stock-based compensation | ||||||||||||||||||||
Cost of revenue | 44 | 78 | 117 | 217 | 132 | |||||||||||||||
Research and development | 149 | 282 | 91 | 325 | 521 | |||||||||||||||
Selling, general and administrative | 294 | 525 | 269 | 805 | 802 | |||||||||||||||
Non-GAAP net loss | $ | (860) | $ | (397) | $ | (47) | $ | (1,688) | $ | (3,578) | ||||||||||
US GAAP net loss per share, basic and diluted | $ | (0.11) | $ | (0.11) | $ | (0.04) | $ | (0.24) | $ | (0.44) | ||||||||||
Adjustment for stock-based compensation | 0.04 | 0.08 | 0.04 | 0.10 | 0.13 | |||||||||||||||
Non-GAAP net loss per share, basic and diluted | $ | (0.07) | $ | (0.03) | $ | — | $ | (0.14) | $ | (0.31) | ||||||||||
US GAAP gross margin percentage | 48.5 | % | 70.8 | % | 56.0 | % | 55.2 | % | 59.5 | % | ||||||||||
Adjustment for stock-based compensation | 1.3 | % | 2.0 | % | 2.6 | % | 1.8 | % | 1.5 | % | ||||||||||
Non-GAAP gross margin percentage | 49.8 | % | 72.8 | % | 58.6 | % | 57.0 | % | 61.0 | % | ||||||||||
QUICKLOGIC CORPORATION | ||||||||||||||||||||
Percentage of Revenue | Change in Revenue | |||||||||||||||||||
Q3 2022 | Q3 2021 | Q2 2022 | Q3 2022 to | Q3 2022 to | ||||||||||||||||
COMPOSITION OF REVENUE | ||||||||||||||||||||
Revenue by product: (1) | ||||||||||||||||||||
New products | 65 | % | 71 | % | 69 | % | (18) | % | (28) | % | ||||||||||
Mature products | 35 | % | 29 | % | 31 | % | 10 | % | (14) | % | ||||||||||
Revenue by geography: | ||||||||||||||||||||
Asia Pacific | 23 | % | 20 | % | 18 | % | 3 | % | (7) | % | ||||||||||
North America | 69 | % | 67 | % | 68 | % | (8) | % | (22) | % | ||||||||||
Europe | 8 | % | 13 | % | 14 | % | (41) | % | (54) | % | ||||||||||
___________________ | ||
(1) | New products include all products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA intellectual | |
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SOURCE QuickLogic Corporation
FAQ
What are the key financial results for QuickLogic in Q3 2022?
What caused the decline in QuickLogic's new product revenue in Q3 2022?
How does the $6.9 million contract impact QuickLogic's future revenue?
What was QuickLogic's gross margin in Q3 2022?
