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QuickLogic Announces Fiscal 2013 Third Quarter Results

SUNNYVALE, CA -- (Marketwired) -- Oct 30, 2013 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low-power Customer Specific Standard Products (CSSPs), today announced financial results for its fiscal third quarter ended September 29, 2013.

Total revenue for the third quarter of 2013 was $9.1 million. Revenue was up 77% sequentially and up 148% compared to the third quarter of 2012. During the third quarter of 2013, new product revenue increased 131% sequentially to $7.1 million, representing 79% of total revenue. During the third quarter, mature product revenue decreased 5% sequentially to $1.9 million, representing 21% of total revenue in the third quarter.

"New product revenue growth was higher than expected due to increased demand and a pull-in of certain shipments that were originally scheduled to ship in the fourth quarter," said Ralph Marimon, Chief Financial Officer. "These shipments were made ahead of schedule due to the timing of a national Chinese holiday."

Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2013 was $2.3 million, or $0.05 per share, compared with a net loss of $3.2 million, or $0.07 per share, in the second quarter of 2013 and a net loss of $2.8 million, or $0.06 per share, in the third quarter of 2012. Non-GAAP net loss for the third quarter of 2013 was $2.0 million, or $0.04 per share, compared with a non-GAAP net loss of $2.7 million, or $0.05 per share, in the second quarter of 2013 and a non-GAAP net loss of $2.2 million, or $0.05 per share, in the third quarter of 2012.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, October 30, 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 Daylight 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: 89538938. The call recording will be archived until Wednesday, November 6, 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 gain (loss) from sale 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. 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 and QuickLogic 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          Nine Months Ended  
                      -------------------------------  -------------------- 
                      September  September   June 30,  September  September 
                       29, 2013   30, 2012     2013     29, 2013   30, 2012 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Revenue               $   9,066  $   3,657  $   5,126  $  17,209  $  11,858 
Cost of revenue,                                                            
 excluding inventory                                                        
 write-down               5,907      1,916      3,281     10,831      5,885 
Inventory write-down        130                   (94)       379        428 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit              3,029      1,741      1,939      5,999      5,545 
Operating expenses:                                                         
  Research and                                                              
   development            2,052      1,865      1,842      5,902      7,119 
  Selling, general                                                          
   and administrative     3,207      2,658      2,911      8,648      8,104 
  Restructuring cost        (32)                  206        181            
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) from                                                          
 operations              (2,198)    (2,782)    (3,020)    (8,732)    (9,678)
Gain on sale of                                                             
 TowerJazz                                                                  
 Semiconductor Ltd.                                                         
 shares                                           181        181            
Interest expense             (8)       (12)       (20)       (37)       (49)
Interest income and                                                         
 other (expense), net       (74)        18        (52)      (130)       (45)
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) before                                                        
 income taxes            (2,280)    (2,776)    (2,911)    (8,718)    (9,772)
Provision for                                                               
 (benefit from)                                                             
 income taxes               (18)        22        330        369        (17)
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)     $  (2,262) $  (2,798) $  (3,241) $  (9,087) $  (9,755)
                      =========  =========  =========  =========  ========= 
                                                                            
Net income (loss) per                                                       
 share:                                                                     
  Basic               $   (0.05) $   (0.06) $   (0.07) $   (0.20) $   (0.24)
                      =========  =========  =========  =========  ========= 
  Diluted             $   (0.05) $   (0.06) $   (0.07) $   (0.20) $   (0.24)
                      =========  =========  =========  =========  ========= 
                                                                            
Weighted average                                                            
 shares:                                                                    
  Basic                  44,761     44,122     44,641     44,640     40,975 
                      =========  =========  =========  =========  ========= 
  Diluted                44,761     44,122     44,641     44,640     40,975 
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                                Three Months Ended        Nine Months Ended 
                           ----------------------------  -------------------
                           September September June 30,  September September
                           29, 2013  30, 2012    2013    29, 2013  30, 2012 
                           --------- --------- --------  --------- ---------
GAAP income (loss) from                                                     
 operations                $ (2,198) $ (2,782) $ (3,020) $ (8,732) $ (9,678)
  Adjustment for stock-                                                     
   based compensation                                                       
   within:                                                                  
    Cost of revenue              24        69        22        76       140 
    Research and                                                            
     development                 74       147        46       286       339 
    Selling, general and                                                    
     administrative             232       385       217       705       940 
  Adjustment for the                                                        
   write-off of equipment                                                   
   within:                                                                  
    Cost of revenue                        22                            22 
    Selling, general and                                                    
     administrative               3         3                   3         3 
  Adjustment for                                                            
   restructuring costs          (32)                206       181           
                           --------  --------  --------  --------  -------- 
Non-GAAP income (loss)                                                      
 from operations           $ (1,897) $ (2,156) $ (2,529) $ (7,481) $ (8,234)
                           ========  ========  ========  ========  ======== 
                                                                            
GAAP net income (loss)     $ (2,262) $ (2,798) $ (3,241) $ (9,087) $ (9,755)
  Adjustment for stock-                                                     
   based compensation                                                       
   within:                                                                  
    Cost of revenue              24        69        22        76       140 
    Research and                                                            
     development                 74       147        46       286       339 
    Selling, general and                                                    
     administrative             232       385       217       705       940 
  Adjustment for the                                                        
   write-off of equipment                                                   
   within:                                                                  
    Cost of revenue                        22                            22 
    Selling, general and                                                    
     administrative               3         3                   3         3 
  Adjustment for                                                            
   restructuring costs          (32)                206       181           
  Adjustment for gain on                                                    
   sale of TowerJazz                                                        
   Semiconductor Ltd.                                                       
   shares                                          (181)     (181)          
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive income                             273       273           
                           --------  --------  --------  --------  -------- 
Non-GAAP net income (loss) $ (1,961) $ (2,172) $ (2,658) $ (7,744) $ (8,311)
                           ========  ========  ========  ========  ======== 
                                                                            
GAAP net income (loss) per                                                  
 share                     $  (0.05) $  (0.06) $  (0.07) $  (0.20) $  (0.24)
  Adjustment for stock-                                                     
   based compensation          0.01      0.01      0.01      0.02      0.04 
  Adjustment for write-off                                                  
   of equipment                   *         *                   *         * 
  Adjustment for                                                            
   restructuring costs            *                0.01      0.01           
  Adjustment for gain on                                                    
   sale of TowerJazz                                                        
   Semiconductor Ltd.                                                       
   shares                                         (0.01)    (0.01)          
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive income                            0.01      0.01           
                           --------  --------  --------  --------  -------- 
Non-GAAP net income (loss)                                                  
 per share                 $  (0.04) $  (0.05) $  (0.05) $  (0.17) $  (0.20)
                           ========  ========  ========  ========  ======== 
                                                                            
GAAP gross margin                                                           
 percentage                    33.4%     47.6%     37.8%     34.9%     46.8%
  Adjustment for stock-                                                     
   based compensation           0.3       1.9       0.4       0.4       1.2 
  Adjustment for write-off                                                  
   of equipment                           0.6                           0.2 
                                                                            
                           --------  --------  --------  --------  -------- 
Non-GAAP gross margin                                                       
 percentage                    33.7%     50.1%     38.2%     35.3%     48.2%
                           ========  ========  ========  ========  ======== 
                                                                            
                                                                            
* Figures were not considered in the reconciliation of GAAP and Non-GAAP    
measures due to the insignificant amount.                                   
                                                                            
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                                                            
                                               September 29,   December 30, 
                                                    2013         2012(1)    
                                               -------------  ------------- 
                    ASSETS                                                  
                                                                            
Current assets:                                                             
  Cash and cash equivalents                    $      14,871  $      22,578 
  Short-term investment in TowerJazz                                        
   Semiconductor Ltd.                                      -            345 
  Accounts receivable, net                             4,995          1,242 
  Inventories                                          2,851          3,028 
  Other current assets                                   672            986 
                                               -------------  ------------- 
    Total current assets                              23,389         28,179 
                                               -------------  ------------- 
Property and equipment, net                            3,007          2,659 
Other assets                                             238            186 
                                               -------------  ------------- 
TOTAL ASSETS                                   $      26,634  $      31,024 
                                               =============  ============= 
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                                                            
Current liabilities:                                                        
  Revolving line of credit                     $       1,000  $           - 
  Trade payables                                       3,087          1,965 
  Accrued liabilities                                  2,606          1,214 
  Current portion of capital lease obligations           194            160 
                                               -------------  ------------- 
    Total current liabilities                          6,887          3,339 
                                               -------------  ------------- 
                                                                            
Long-term liabilities:                                                      
  Capital lease obligations, less current                                   
   portion                                                 -            266 
  Other long-term liabilities                            114            141 
                                               -------------  ------------- 
    Total liabilities                                  7,001          3,746 
                                               -------------  ------------- 
                                                                            
Stockholders' equity:                                                       
  Common stock, at par value                              45             45 
  Additional paid-in capital                         205,075        204,797 
  Accumulated other comprehensive income                   -            (11)
  Accumulated deficit                               (185,487)      (177,553)
                                               -------------  ------------- 
    Total stockholders' equity                        19,633         27,278 
                                                                            
                                               -------------  ------------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $      26,634  $      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 
                              -------------------------- -------------------
                                                          Q3 2012   Q2 2013 
                                                           to Q3     to Q3  
                               Q3 2013  Q3 2012  Q2 2013    2013      2013  
                              -------- -------- -------- --------- ---------
COMPOSITION OF REVENUE                                                      
                                                                            
Revenue by product (1):                                                     
  New products                   79%      43%      60%      358%      131%  
  Mature products                21%      57%      40%      (8)%      (5)%  
                                                                            
Revenue by geography:                                                       
  Korea                          68%      0%       46%       -        158%  
  United States                  11%      36%      20%     (25)%      (4)%  
  Europe                         6%       20%      7%      (21)%      70%   
  Malaysia                       6%       11%      7%       35%       60%   
  Japan                          5%       23%      10%     (50)%     (16)%  
  China                          4%       7%       7%       26%       (9)%  
  Rest of North America          0%       2%       2%      (32)%     (65)%  
  Rest of Asia Pacific           0%       1%       1%        8%      (59)%  
                                                                            
 (1) New products represent products introduced since 2005, and include     
     ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®,    
     PolarPro II, PolarPro III, 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.                                                 
                                                                            
                                                                            

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

Email Contact

Andrea Vedanayagam
(408) 656-4494

Email Contact