QuickLogic Announces Fiscal 2013 First Quarter Results

SUNNYVALE, CA--(Marketwired - May 1, 2013) - QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fiscal first quarter ended March 31, 2013.

Total revenue for the first quarter of 2013 was $3.0 million, down 2% from the fourth quarter of 2012 and down 27% from the first quarter of 2012. During the first quarter, new product revenue decreased 6% to $941,000 from $1.0 million in the fourth quarter of 2012. New product revenue accounted for 31% of the total revenue in the first quarter. During the first quarter, mature product revenue remained flat at $2.1 million sequentially. Mature product revenue accounted for 69% of the total revenue in the first quarter.

Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2013 was $3.6 million, or $0.08 per share, compared with a net loss of $2.6 million, or $0.06 per share, in the fourth quarter of 2012 and a net loss of $3.7 million, or $0.10 per share, in the first quarter of 2012. Non-GAAP net loss for the first quarter of 2013 was $3.1 million, or $0.07 per share, compared with a non-GAAP net loss of $2.0 million, or $0.04 per share, in the fourth quarter of 2012 and a non-GAAP net loss of $3.3 million, or $0.09 per share, in the first quarter of 2012.

 "New product revenue in the first quarter was lower than expected due to a delay in the receipt of an expected large order from a tier one consumer electronics company. This order has since been received and we are on track to meet our forecast for the first half of the year," stated Andy Pease, QuickLogic's President and CEO.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, May 1, 2013, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at http://ir.quicklogic.com/events.cfm. To join the live conference, please dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Time today. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 41216066. The call recording will be archived until Wednesday, May 8, 2013, and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the inventor and pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics original equipment manufacturers (OEMs) and original design manufacturers (ODMs). These silicon plus software solutions are called Customer Specific Standard Products (CSSPs). CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market. For more information about QuickLogic and CSSPs, visit www.quicklogic.com. Code: QUIK-G

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with 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 Company 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 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 GAAP financial measures.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements relating to new product revenue meeting forecast for the first half of the year, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from the results described in these forward-looking statements. Factors that could cause actual results to differ materially include: 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 factors and others are described in more detail in the Company's public reports filed with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases.

ArcticLink, pASIC, PolarPro, QuickLogic, QuickPCI and QuickRAM are registered trademarks and Eclipse and the QuickLogic logo are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.

Note to Editors: Financial Tables Follow

QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
			Three Months Ended
			March 31, 2013				April 1, 2012				December 30, 2012
Revenue			$	3,017			$	4,130			$	3,086
Cost of revenue, excluding inventory write-down				1,643				2,042				1,546
Inventory write-down				343				329				19
				1,031				1,759				1,521
Gross profit
Operating expenses:
	Research and development			2,008				2,802				1,624
	Selling, general and administrative			2,530				2,697				2,377
	Restructuring cost			7				-				-
Income (loss) from operations				(3,514	)			(3,740	)			(2,480	)
Interest expense				(9	)			(13	)			(12	)
Interest income and other (expense), net				(4	)			(13	)			(32	)
Income (loss) before income taxes				(3,527	)			(3,766	)			(2,524	)
Provision for (benefit from) income taxes				57				(45	)			35
Net income (loss)			$	(3,584	)		$	(3,721	)		$	(2,559	)
Net income (loss) per share:
	Basic		$	(0.08	)		$	(0.10	)		$	(0.06	)
	Diluted		$	(0.08	)		$	(0.10	)		$	(0.06	)
Weighted average shares:
	Basic			44,517				38,495				44,400
	Diluted			44,517				38,495				44,400

QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
				Three Months Ended
				March 31, 2013				April 1, 2012				December 30, 2012
GAAP income (loss) from operations				$	(3,514	)		$	(3,740	)		$	(2,480	)
	Adjustment for stock-based compensation within:
		Cost of revenue			30				32				39
		Research and development			166				93				116
		Selling, general and administrative			256				259				429
	Adjustment for restructuring costs				7				-				-
Non-GAAP income (loss) from operations				$	(3,055	)		$	(3,356	)		$	(1,896	)
GAAP net income (loss)				$	(3,584	)		$	(3,721	)		$	(2,559	)
	Adjustment for stock-based compensation within:
		Cost of revenue			30				32				39
		Research and development			166				93				116
		Selling, general and administrative			256				259				429
	Adjustment for restructuring costs				7				-				-
Non-GAAP net income (loss)				$	(3,125	)		$	(3,337	)		$	(1,975	)
GAAP net income (loss) per share				$	(0.08	)		$	(0.10	)		$	(0.06	)
	Adjustment for stock-based compensation				0.01				0.01				0.02
	Adjustment for restructuring costs				*				-				-
Non-GAAP net income (loss) per share				$	(0.07	)		$	(0.09	)		$	(0.04	)
GAAP gross margin percentage					34.2	%			42.6	%			49.3	%
	Adjustment for stock-based compensation				1.0	%			0.8	%			1.3	%
	Adjustment for restructuring costs				*				-				-
Non-GAAP gross margin percentage					35.2	%			43.4	%			50.6	%

* Figures were not considered in the reconciliation due to the insignificant amount.

QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
			March 31, 2013			December 30, 2012(1)
ASSETS
Current assets:
	Cash and cash equivalents		$	19,659		$	22,578
	Short-term investment in TowerJazz Semiconductor Ltd.			303			345
	Accounts receivable, net			1,392			1,242
	Inventories			2,525			3,028
	Other current assets			846			986
		Total current assets		24,725			28,179
Property and equipment, net				2,404			2,659
Other assets				207			186
TOTAL ASSETS			$	27,336		$	31,024
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Trade payables		$	1,393		$	1,965
	Accrued liabilities			1,289			1,214
	Current portion of capital lease obligations			239			160
		Total current liabilities		2,921			3,339
Long-term liabilities:
	Capital lease obligations, less current portion			135			266
	Other long-term liabilities			167			141
		Total liabilities		3,223			3,746
Stockholders' equity:
	Common stock, at par value			45			45
	Additional paid-in capital			205,259			204,797
	Accumulated other comprehensive income			(54	)		(11	)
	Accumulated deficit			(181,137	)		(177,553	)
		Total stockholders' equity		24,113			27,278
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	27,336		$	31,024

(1)		Derived from the December 30, 2012 audited balance sheet included in the 2012 Annual Report on Form 10-K of QuickLogic Corporation.

QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
			Percentage of Revenue						Change in Revenue
			Q1 2013		Q1 2012		Q4 2012		Q1 2012 to Q1 2013		Q4 2012 to Q1 2013
COMPOSITION OF REVENUE
Revenue by product (1):
	New products		31%		40%		33%		(43)%		(6)%
	Mature products		69%		60%		67%		(17)%		0%
Revenue by geography:
	United States		31%		32%		41%		(28)%		(25)%
	Malaysia		23%		15%		11%		13%		95%
	Japan		20%		21%		21%		(32)%		(9)%
	Europe		15%		12%		20%		(7)%		(26)%
	Rest of North America		6%		2%		4%		65%		66%
	China		4%		12%		3%		(74)%		32%
	Rest of Asia Pacific		1%		6%		0%		(86)%		236%

(1)		New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®, PolarPro II, and QuickPCI® II. Mature products include Eclipse, EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM®, and V3, as well as royalty revenue, programming hardware and software.