SOURCE: QuickLogic

QuickLogic

August 03, 2016 16:00 ET

QuickLogic Announces Fiscal 2016 Second Quarter Results

SUNNYVALE, CA--(Marketwired - Aug 3, 2016) - QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power programmable sensor processing solutions, today announced the financial results for its fiscal second quarter ended July 3, 2016.

Total revenue for the second quarter of 2016 was $2.72 million, representing a decrease of 8% compared to $2.95 million in the first quarter of 2016 and a decrease of 45% compared to $4.97 million in the second quarter of 2015. New product revenue for the second quarter of 2016 was $1.20 million, a decrease of 20% compared to $1.49 million in the first quarter of 2016 and a decrease of 59% compared to $2.95 million in the second quarter of 2015. During the second quarter of 2016, mature product revenue was $1.52 million, an increase of 4% compared to $1.46 million sequentially and a decrease of 25% compared to $2.02 million in the second quarter of 2015. New product revenue accounted for 44% of the total revenue in the second quarter of 2016 compared to 51% in the first quarter of 2016 and 59% in the second quarter of 2015.

Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the second quarter of 2016 was $5.57 million, or $0.08 per share, compared to a net loss of $5.09 million, or $0.09 per share in the first quarter of 2016 and a net loss of $4.28 million, or $0.08 per share, in the second quarter of 2015. Non-GAAP net loss for the second quarter of 2016 was $4.82 million, or $0.07 per share, compared to a non-GAAP net loss of $4.53 million, or $0.08 per share in the first quarter of 2016 and a non-GAAP net loss of $3.62 million, or $0.06 per share, in the second quarter of 2015.

GAAP and Non-GAAP cost of goods (COGS) for three and six months period ended July 3, 2016, include an inventory reserve of $203,000 for PolarPro III product. This reserve had an impact of 7.5% and 3% on gross margins for the three and six months period ended July 3, 2016. GAAP research and development (R&D) costs include a fixed asset write down of $312,000. This write down was eliminated in the presentation of non-GAAP consolidated statement of operation in the three and six months period ended July 3, 2016. The Impact of the write down on the earnings per share for the three and six months period ended July 3, 2016 was not material.

Conference Call

QuickLogic Corporation (NASDAQ: QUIK) will hold a conference call at 2:30 p.m. Pacific Daylight Saving Time/ 5:30 p.m. Eastern Daylight Saving Time today, August 3, 2016, to discuss its current financial results. The conference call will be webcasted and can be accessed via the Company's website at http://ir.quicklogic.com/events.cfm. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Saving Time. 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: 50333781. The call recording will be archived until Wednesday, August 10, 2016 and the webcast will be available for 12 months on the Company's website.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) enables OEMs to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable and IoT devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable SoC semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. For more information about QuickLogic, visit www.quicklogic.com.

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 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 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.

Forward Looking Statements

This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results 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, 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 and other potential factors and uncertainties that could cause actual results to differ from the results predicted 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 as August 3, 2016, 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 the QuickLogic logo are registered trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.

   
   
QUICKLOGIC CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
(Unaudited)  
   
    Three Months Ended     Six Months Ended  
    July 3, 2016     June 28, 2015     April 3, 2016     July 3, 2016     June 28, 2015  
Revenue   $ 2,717     $ 4,973     $ 2,950     $ 5,667     $ 11,132  
Cost of revenue     1,941       2,830       1,794       3,735       6,110  
Gross profit     776       2,143       1,156       1,932       5,022  
Operating expenses:                                        
  Research and development     3,683       3,493       3,447       7,130       6,970  
  Selling, general and administrative     2,591       2,690       2,693       5,284       5,650  
  Restructuring cost     --       169       --       --       169  
Total operating expense     6,274       6,352       6,140       12,414       12,789  
Loss from operations     (5,498 )     (4,209 )     (4,984 )     (10,482 )     (7,767 )
Interest expense     (34 )     (15 )     (38 )     (72 )     (29 )
Interest income and other (expense), net     (15 )     (33 )     (7 )     (22 )     (59 )
Loss before income taxes     (5,547 )     (4,257 )     (5,029 )     (10,576 )     (7,855 )
Provision for income taxes     27       21       64       91       61  
Net loss   $ (5,574 )   $ (4,278 )   $ (5,093 )   $ (10,667 )   $ (7,916 )
Net loss per share:                                        
  Basic   $ (0.08 )   $ (0.08 )   $ (0.09 )   $ (0.17 )   $ (0.14 )
  Diluted   $ (0.08 )   $ (0.08 )   $ (0.09 )   $ (0.17 )   $ (0.14 )
Weighted average shares:                                        
  Basic     67,415       56,359       58,371       62,893       56,275  
  Diluted     67,415       56,359       58,371       62,893       56,275  
                                         
   
   
QUICKLOGIC CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
   
    July 3, 2016     January 3, 2016 (1)  
ASSETS            
Current assets:                
  Cash and cash equivalents   $ 18,970     $ 19,136  
  Accounts receivable, net     1,485       1,601  
  Inventories     2,318       2,878  
  Other current assets     983       1,312  
    Total current assets     23,756       24,927  
Property and equipment, net     3,090       3,315  
Other assets     307       219  
TOTAL ASSETS   $ 27,153     $ 28,461  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Trade payables   $ 1,537     $ 4,032  
  Accrued liabilities     1,434       1,482  
  Current portion of capital lease obligations     142       281  
    Total current liabilities     3,113       5,795  
Long-term liabilities:                
  Revolving line of credit     4,000       2,000  
  Capital lease obligations, less current portion     109       208  
  Other long-term liabilities     120       133  
    Total liabilities     7,342       8,136  
Stockholders' equity:                
  Common stock, at par value     68       57  
  Additional paid-in capital     251,166       241,024  
  Accumulated deficit     (231,423 )     (220,756 )
    Total stockholders' equity     19,811       20,325  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 27,153     $ 28,461  
(1)   Derived from the January 3, 2016 audited balance sheet included in the 2015 Annual Report on Form 10-K of QuickLogic Corporation.
     
   
   
QUICKLOGIC CORPORATION  
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES  
(In thousands, except per share amounts and percentages)  
(Unaudited)  
   
    Three Months Ended     Six Months Ended  
    July 3, 2016     June 28, 2015     April 3, 2016     July 3, 2016     June 28, 2015  
GAAP loss from operations   $ (5,498 )   $ (4,209 )   $ (4,984 )   $ (10,482 )   $ (7,767 )
  Adjustment for stock-based compensation within:                                        
    Cost of revenue     47       27       38       85       66  
    Research and development     175       212       291       466       403  
    Selling, general and administrative     217       252       233       450       519  
  Adjustment for the write-off of equipment within:                                        
  Research and development     312       --       --       312       --  
  Adjustment for restructuring costs     --       169       --       --       169  
Non-GAAP loss from operations   $ (4,747 )   $ (3,549 )   $ (4,422 )   $ (9,169 )   $ (6,610 )
GAAP net loss   $ (5,574 )   $ (4,278 )   $ (5,093 )   $ (10,667 )   $ (7,916 )
  Adjustment for stock-based compensation within:                                        
    Cost of revenue     47       27       38       85       66  
    Research and development     175       212       291       466       403  
    Selling, general and administrative     217       252       233       450       519  
  Adjustment for the write-off of equipment within:                                        
  Research and development     312       --       --       312       --  
  Adjustment for restructuring costs     --       169       --       --       169  
Non-GAAP net loss   $ (4,823 )   $ (3,618 )   $ (4,531 )   $ (9,354 )   $ (6,759 )
GAAP net loss per share   $ (0.08 )   $ (0.08 )   $ (0.09 )   $ (0.17 )   $ (0.14 )
  Adjustment for stock-based compensation     0.01       0.01       0.01       0.02       0.02  
  Adjustment for the write-off of equipment       *      --       --         *      --  
  Adjustment for restructuring costs     --       0.01       --       --         * 
Non-GAAP net loss per share   $ (0.07 )   $ (0.06 )   $ (0.08 )   $ (0.15 )   $ (0.12 )
GAAP gross margin percentage     28.6 %     43.1 %     39.2 %     34.1 %     45.1 %
  Adjustment for stock-based compensation     1.7 %     0.5 %     1.3 %     1.5 %     0.6 %
  Adjustment for the write-off equipment       *     -- %     -- %       *      -- %
  Adjustment for restructuring costs     -- %       *      -- %     -- %       * 
Non-GAAP gross margin percentage     30.3 %     43.6 %     40.5 %     35.6 %     45.7 %
                                         
* Figures were not considered for reconciliation due to the insignificant amount.  
                                         
   
   
QUICKLOGIC CORPORATION  
SUPPLEMENTAL DATA  
(Unaudited)  
   
    Percentage of Revenue     Change in Revenue  
    Q2 2016     Q2 2015     Q1 2016     Q2 2015 to
Q2 2016
    Q1 2016 to
Q2 2016
 
COMPOSITION OF REVENUE                              
Revenue by product: (1)                              
  New products   44 %   59 %   51 %   (59 )%   (20 )%
  Mature products   56 %   41 %   49 %   (25 )%   4 %
Revenue by geography:                              
  Asia Pacific   65 %   70 %   58 %   (49 )%   3 %
  North America   24 %   22 %   28 %   (41 )%   (22 )%
  Europe   11 %   8 %   14 %   (26 )%   (26 )%
(1)   New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers.

Contact Information

  • Contacts:
    Sue Cheung
    Principal Accounting Officer and Corporate Controller
    (408) 990-4076
    Email Contact

    Andrea Vedanayagam
    (408) 656-4494
    Email Contact