QuickLogic Announces Fourth Quarter and Fiscal 2012 Results

SUNNYVALE, CA--(Marketwire - Feb 6, 2013) - QuickLogic Corporation (NASDAQ: QUIK), the leader in low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fourth quarter and fiscal year ended December 30, 2012.

Total revenue for the fourth quarter of 2012 was $3.1 million, down 16% sequentially and down 29% from the fourth quarter of 2011. During the fourth quarter, new product revenue of $1.0 million was down 35% sequentially and down 41% from the fourth quarter of 2011.

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2012 was $2.6 million or $0.06 per share, compared with a net loss of $2.8 million, or $0.06 per share, in the third quarter of 2012, and a net loss of $3.1 million, or $0.08 per share, in the fourth quarter of 2011. Non-GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $0.04 per share, compared with a non-GAAP net loss of $2.2 million, or $0.05 per share, in the third quarter of 2012, and a non-GAAP net loss of $2.7 million, or $0.07 per share, in the fourth quarter of 2011.

Total revenue for 2012 was down 29% at $14.9 million, compared with revenue of $21.0 million in 2011. GAAP net loss for 2012 was $12.3 million, or $0.29 per share, compared with a net loss of $7.6 million, or $0.21 per share, in 2011. Non-GAAP net loss for 2012 was $10.3 million, or $0.25 per share, compared with a non-GAAP net loss of $5.8 million, or $0.16 per share, in 2011.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 6, 2013, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To join the live conference, please dial (877) 377-7094 by 2:20 p.m. Pacific Standard 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: 90137354. The call recording will be archived until Tuesday, February 12, 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 write-down of the Company's investment in TowerJazz Semiconductor Ltd., 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 the revenue generating potential of new products, 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.

QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
			Three Months Ended												Year Ended
			December 30, 2012				January 1, 2012				September 30, 2012				December 30, 2012				January 1, 2012
Revenue			$	3,086			$	4,346			$	3,657			$	14,944			$	20,969
Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment				1,546				2,181				1,916				7,431				7,807
Inventory write-down and related charges				19				148				-				447				710
Gross profit				1,521				2,017				1,741				7,066				12,452
Operating expenses:
	Research and development			1,624				2,450				1,865				8,743				9,836
	Selling, general and administrative			2,377				2,548				2,658				10,481				9,965
Income (loss) from operations				(2,480	)			(2,981	)			(2,782	)			(12,158	)			(7,349	)
Interest expense				(12	)			(5	)			(12	)			(61	)			(36	)
Interest income and other (expense), net				(32	)			(93	)			18				(77	)			(159	)
Income (loss) before income taxes				(2,524	)			(3,079	)			(2,776	)			(12,296	)			(7,544	)
Provision for (benefit from) income taxes				35				31				22				18				50
Net income (loss)			$	(2,559	)		$	(3,110	)		$	(2,798	)		$	(12,314	)		$	(7,594	)
Net income (loss) per share:
	Basic		$	(0.06	)		$	(0.08	)		$	(0.06	)		$	(0.29	)		$	(0.21	)
	Diluted		$	(0.06	)		$	(0.08	)		$	(0.06	)		$	(0.29	)		$	(0.21	)
Weighted average shares:
	Basic			44,400				38,482				44,122				41,831				36,792
	Diluted			44,400				38,482				44,122				41,831				36,792

QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
				Three Months Ended												Years Ended
				December 30, 2012				January 1, 2012				September 30, 2012				December 30, 2012				January 1, 2012
GAAP loss from operations				$	(2,480	)		$	(2,981	)		$	(2,782	)		$	(12,158	)		$	(7,349	)
	Adjustment for stock-based compensation within:
		Cost of revenue			39				27				69				179				131
		Research and development			116				104				147				455				458
		Selling, general and administrative			429				254				385				1,369				1,087
	Adjustment for the write-off of equipment within:
		Selling, general and administrative			-				-				25				25				102
Non-GAAP loss from operations				$	(1,896	)		$	(2,596	)		$	(2,156	)		$	(10,130	)		$	(5,571	)
GAAP net loss				$	(2,559	)		$	(3,110	)		$	(2,798	)		$	(12,314	)		$	(7,594	)
	Adjustment for stock-based compensation within:
		Cost of revenue			39				27				69				179				131
		Research and development			116				104				147				455				458
		Selling, general and administrative			429				254				385				1,369				1,087
	Adjustment for the write-off of equipment within:
		Selling, general and administrative			-				-				25				25				102
Non-GAAP net loss				$	(1,975	)		$	(2,725	)		$	(2,172	)		$	(10,286	)		$	(5,816	)
GAAP net loss per share				$	(0.06	)		$	(0.08	)		$	(0.06	)		$	(0.29	)		$	(0.21	)
	Adjustment for stock-based compensation				0.02				0.01				0.01				0.04				0.05
	Adjustment for write-off of equipment				-				-				*				*				*
Non-GAAP net loss per share				$	(0.04	)		$	(0.07	)		$	(0.05	)		$	(0.25	)		$	(0.16	)
GAAP gross margin percentage					49.3	%			46.4	%			47.6	%			47.3	%			59.4	%
	Adjustment for stock-based compensation				1.3	%			0.6	%			2.5	%			1.3	%			0.6	%
	Adjustment for write-off of equipment				-				-				*				*				*
Non-GAAP gross margin percentage					50.6	%			47.0	%			50.1	%			48.6	%			60.0	%

* Figures were not considered in the reconciliation of Non-GAAP net loss per share due to the insignificant amount.

QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
				December 30, 2012				January 1, 2012
ASSETS
Current assets:
	Cash and cash equivalents			$	22,578			$	20,203
	Short-term investment in TowerJazz Semiconductor Ltd.				345				406
	Accounts receivable, net				1,242				1,585
	Inventories				3,028				3,764
	Other current assets				986				613
		Total current assets			28,179				26,571
Property and equipment, net					2,659				2,181
Other assets					186				211
TOTAL ASSETS				$	31,024			$	28,963
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Trade payables			$	1,965			$	2,464
	Accrued liabilities				1,214				1,118
	Deferred royalty revenue				-				8
	Current portion of debt and capital lease obligations				160				141
		Total current liabilities			3,339				3,731
Long-term liabilities:
	Capital lease obligations, less current portion				266				146
	Other long-term liabilities				141				148
		Total liabilities			3,746				4,025
Stockholders' equity:
	Common stock, at par value				45				39
	Additional paid-in capital				204,797				190,025
	Accumulated other comprehensive income				(11	)			113
	Accumulated deficit				(177,553	)			(165,239	)
		Total stockholders' equity			27,278				24,938
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	31,024			$	28,963

QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
			Percentage of Revenue												Change in Revenue
			Q4 2012			Q3 2012			Fiscal 2012			Fiscal 2011			Q3 2012 to Q4 2012			2011 to 2012
COMPOSITION OF REVENUE
Revenue by product (1):
	New products		33	%		43	%		40	%		25	%		(35	)%		11	%
	Mature products		67	%		57	%		60	%		75	%		(1	)%		(42	)%
Revenue by geography:
	United States		41	%		36	%		34	%		39	%		(4	)%		(39	)%
	Japan		21	%		23	%		22	%		13	%		(22	)%		21	%
	Europe		20	%		20	%		16	%		20	%		(16	)%		(42	)%
	Malaysia		11	%		11	%		11	%		9	%		(15	)%		(4	)%
	Rest of North America		4	%		2	%		2	%		2	%		64	%		0	%
	China		3	%		7	%		12	%		14	%		(63	)%		(43	)%
	Rest of Asia Pacific		0	%		1	%		3	%		3	%		(71	)%		(43	)%

(1)		New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, ArcticLink III, Eclipse II, PolarPro, PolarPro II, and QuickPCI II products. Mature products include Eclipse, pASIC1, pASIC2, pASIC3, QuickDSP, QuickFC, QuickMIPS, QuickPCI, QuickRAM and V3 products, as well as royalty revenue, programming hardware and software.