SOURCE: QuickLogic

QuickLogic

February 06, 2013 16:05 ET

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.
     

Contact Information

  • Contacts:

    Ralph S. Marimon
    Vice President of Finance
    Chief Financial Officer
    (408) 990-4000
    Email Contact

    Andrea Vedanayagam
    (408) 656-4494
    Email Contact