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QuickLogic Announces Fiscal 2016 Third Quarter Results

SUNNYVALE, CA -- (Marketwired) -- Nov 02, 2016 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power programmable sensor processing solutions, today announced the financial results for its fiscal third quarter ended October 2, 2016.

Total revenue for the third quarter of 2016 was $2.81 million, representing an increase of 3% compared to $2.72 million in the second quarter of 2016 and a decrease of 33% compared to $4.19 million in the third quarter of 2015. New product revenue for the third quarter of 2016 was $1.34 million, an increase of 12% compared to $1.20 million in the second quarter of 2016 and a decrease of 53% compared to $2.85 million in the third quarter of 2015. During the third quarter of 2016, mature product revenue was $1.47 million, a decrease of 3% compared to $1.52 million in the second quarter of 2016 and an increase of 10% compared to $1.34 million in the third quarter of 2015. New product revenue accounted for 48% of the total revenue in the third quarter of 2016 compared to 44% in the second quarter of 2016 and 68% in the third quarter of 2015.

Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the third quarter of 2016 was $4.62 million, or $0.07 per share, compared to a net loss of $5.57 million, or $0.08 per share in the second quarter of 2016 and a net loss of $5.09 million, or $0.09 per share, in the third quarter of 2015. Non-GAAP net loss for the third quarter of 2016 was $4.13 million, or $0.06 per share, compared to a non-GAAP net loss of $4.82 million, or $0.07 per share, in the second quarter of 2016 and a non-GAAP net loss of $4.52 million, or $0.08 per share, in the third quarter of 2015 (see below for an explanation of non-GAAP financial measures).

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, November 2, 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: 94480585. The call recording will be archived until Wednesday, November 9, 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, and enhanced visual experiences. For more information about QuickLogic, please 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 is November 2, 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          Nine Months Ended  
                      -------------------------------  -------------------- 
                       October   September   July 3,    October   September 
                       2, 2016    27, 2015     2016     2, 2016    27, 2015 
                      ---------  ---------  ---------  ---------  --------- 
Revenue               $   2,809  $   4,194  $   2,717  $   8,476  $  15,326 
Cost of revenue           1,918      2,952      1,941      5,653      9,062 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit                891      1,242        776      2,823      6,264 
Operating expenses:                                                         
  Research and                                                              
   development            2,755      3,684      3,683      9,885     10,654 
  Selling, general                                                          
   and administrative     2,704      2,508      2,591      7,988      8,158 
  Restructuring cost         --         77         --         --        246 
                      ---------  ---------  ---------  ---------  --------- 
Total operating                                                             
 expense                  5,459      6,269      6,274     17,873     19,058 
                      ---------  ---------  ---------  ---------  --------- 
Loss from operations     (4,568)    (5,027)    (5,498)   (15,050)   (12,794)
Interest expense            (37)       (35)       (34)      (109)       (64)
Interest income and                                                         
 other (expense), net       (41)       (39)       (15)       (63)       (98)
                      ---------  ---------  ---------  ---------  --------- 
Loss before income                                                          
 taxes                   (4,646)    (5,101)    (5,547)   (15,222)   (12,956)
Provision for                                                               
 (benefit from)                                                             
 income taxes               (23)       (15)        27         68         46 
                      ---------  ---------  ---------  ---------  --------- 
Net loss              $  (4,623) $  (5,086) $  (5,574) $ (15,290) $ (13,002)
                      =========  =========  =========  =========  ========= 
Net loss per share:                                                         
  Basic               $   (0.07) $   (0.09) $   (0.08) $   (0.24) $   (0.23)
                      =========  =========  =========  =========  ========= 
  Diluted             $   (0.07) $   (0.09) $   (0.08) $   (0.24) $   (0.23)
                      =========  =========  =========  =========  ========= 
Weighted average                                                            
 shares:                                                                    
  Basic                  67,781     56,588     67,415     64,522     56,379 
                      =========  =========  =========  =========  ========= 
  Diluted                67,781     56,588     67,415     64,522     56,379 
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                               October 2,      January 3,   
                                                  2016          2016 (1)    
                                             --------------  -------------- 
ASSETS                                                                      
  Current assets:                                                           
  Cash and cash equivalents                  $       17,761  $       19,136 
  Accounts receivable, net                            1,022           1,601 
  Inventories                                         1,443           2,878 
  Other current assets                                1,081           1,312 
                                             --------------  -------------- 
    Total current assets                             21,307          24,927 
Property and equipment, net                           3,073           3,315 
Other assets                                            247             219 
                                             --------------  -------------- 
TOTAL ASSETS                                 $       24,627  $       28,461 
                                             ==============  ============== 
  LIABILITIES AND STOCKHOLDERS' EQUITY                                      
Current liabilities:                                                        
  Revolving line of credit                   $        5,000  $           -- 
  Trade payables                                      1,624           4,032 
  Accrued liabilities                                 2,075           1,482 
  Deferred Revenue                                       --              -- 
  Current portion of capital lease                                          
   obligations                                          208             281 
                                             --------------  -------------- 
  Total current liabilities                           8,907           5,795 
Long-term liabilities:                                                      
  Revolving line of credit                               --           2,000 
  Capital lease obligations, less current                                   
   portion                                               22             208 
  Other long-term liabilities                            57             133 
                                             --------------  -------------- 
    Total liabilities                                 8,986           8,136 
                                             --------------  -------------- 
Stockholders' equity:                                                       
  Common stock, at par value                             68              57 
  Additional paid-in capital                        251,619         241,024 
  Accumulated deficit                              (236,046)       (220,756)
                                             --------------  -------------- 
    Total stockholders' equity                       15,641          20,325 
                                             --------------  -------------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $       24,627  $       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          Nine Months Ended  
                      -------------------------------  -------------------- 
                       October   September   July 3,    October   September 
                       2, 2016    27, 2015     2016     2, 2016    27, 2015 
                      ---------  ---------  ---------  ---------  --------- 
GAAP loss from                                                              
 operations           $  (4,568) $  (5,027) $  (5,498) $ (15,050) $ (12,794)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                             
   within:                                                                  
    Cost of revenue          34         29         47        119         95 
    Research and                                                            
     development            137        210        175        603        613 
    Selling, general                                                        
     and                                                                    
     administrative         286        240        217        736        759 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
    Cost of revenue          33          8         --         33          8 
    Research and                                                            
     development              1         --        312        313         -- 
    Selling, general                                                        
     and                                                                    
     administrative           5         --         --          5         -- 
  Adjustment for                                                            
   restructuring                                                            
   costs                     --         77         --         --        246 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP loss from                                                          
 operations           $  (4,072) $  (4,463) $  (4,747) $ (13,241) $ (11,073)
                      =========  =========  =========  =========  ========= 
GAAP net loss         $  (4,623) $  (5,086) $  (5,574) $ (15,290) $ (13,002)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                             
   within:                                                                  
    Cost of revenue          34         29         47        119         95 
    Research and                                                            
     development            137        210        175        603        613 
    Selling, general                                                        
     and                                                                    
     administrative         286        240        217        736        759 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
    Cost of revenue          33          8         --         33          8 
    Research and                                                            
     development              1         --        312        313         -- 
    Selling, general                                                        
     and                                                                    
     administrative           5         --         --          5         -- 
  Adjustment for                                                            
   restructuring                                                            
   costs                     --         77         --         --        246 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss     $  (4,127) $  (4,522) $  (4,823) $ (13,481) $ (11,281)
                      =========  =========  =========  =========  ========= 
GAAP net loss per                                                           
 share                $   (0.07) $   (0.09) $   (0.08) $   (0.24) $   (0.23)
  Adjustment for                                                            
   stock-based                                                              
   compensation            0.01       0.01       0.01       0.02       0.03 
  Adjustment for the                                                        
   write-off of                                                             
   equipment                  *          *          *       0.01          * 
  Adjustment for                                                            
   restructuring                                                            
   costs                     --          *         --         --          * 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss per                                                       
 share                $   (0.06) $   (0.08) $   (0.07) $   (0.21) $   (0.20)
                      =========  =========  =========  =========  ========= 
GAAP gross margin                                                           
 percentage                31.7%      29.6%      28.6%      33.3%      40.9%
  Adjustment for                                                            
   stock-based                                                              
   compensation             1.2%       0.7%       1.7%       1.4%       0.6%
  Adjustment for the                                                        
   write-off of                                                             
   equipment                1.2%       0.2%        --%       0.4%         * 
                      =========  =========  =========  =========  ========= 
Non-GAAP gross margin                                                       
 percentage                34.1%      30.5%      30.3%      35.1%      41.5%
                      =========  =========  =========  =========  ========= 
  * Figures were not considered for reconciliation due to the insignificant 
                                   amount.                                  
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                               Percentage of Revenue     Change in Revenue  
                           ----------------------------  -----------------  
                                                         Q3 2015   Q2 2016  
                                                            to        to    
                            Q3 2016   Q3 2015   Q2 2016  Q3 2016   Q3 2016  
                           --------  --------  --------  -------   -------  
COMPOSITION OF REVENUE                                                      
Revenue by product: (1)                                                     
  New products                   48%       68%       44%     (53)%      12% 
  Mature products                52%       32%       56%      10%       (3)%
Revenue by geography:                                                       
  Asia Pacific                   62%       73%       65%     (43)%      (3)%
  North America                  24%       16%       24%      (1)%       7% 
  Europe                         14%       11%       11%     (13)%      34% 
                                                                            
(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.         
                                                                            
                                                                            

Contacts: 
Sue Cheung
Vice President, Finance and Chief Accounting Officer
(408) 990-4076

Email Contact 

Andrea Vedanayagam
(408) 656-4494

Email Contact