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QuickLogic Announces Fiscal 2014 First Quarter Results

SUNNYVALE, CA -- (Marketwired) -- Apr 30, 2014 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fiscal first quarter ended March 30, 2014.

Total revenue for the first quarter of 2014 was $11.2 million, up 26% and 270% from the fourth quarter of 2013 and from the first quarter of 2013, respectively. During the first quarter, new product revenue increased 27% to $8.9 million from $7.0 million in the fourth quarter of 2013. New product revenue accounted for 80% of the total revenue in the first quarter. During the first quarter, mature product revenue increased 24% to $2.2 million sequentially. Mature product revenue accounted for 20% of the total revenue in the first quarter.

Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2014 was $2.1 million, or $0.04 per share, compared with a net loss of $3.2 million, or $0.07 per share, in the fourth quarter of 2013 and a net loss of $3.6 million, or $0.08 per share, in the first quarter of 2013. Non-GAAP net loss for the first quarter of 2014 was $1.4 million, or $0.03 per share, compared with a non-GAAP net loss of $2.2 million, or $0.05 per share, in the fourth quarter of 2013 and a non-GAAP net loss of $3.1 million, or $0.07 per share, in the first quarter of 2013.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, April 30, 2014, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at http://ir.quicklogic.com/events.cfm. To join the live conference, please dial (877) 377-7094 by 2:20 p.m. Pacific Daylight 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: 30679000. The call recording will be archived until Wednesday, May 7, 2014, and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the leading provider of ultra-low power, customizable Sensor Hub, Display, and Connectivity semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs. Called Customer Specific Standard Products (CSSPs), these programmable 'silicon plus software' solutions enable our customers to bring hardware-differentiated products to market quickly and cost effectively. 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 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 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.

                                                                            
                           QUICKLOGIC CORPORATION                           
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS              
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                                             Three Months Ended             
                                ------------------------------------------- 
                                                                            
                                  March 30,      March 31,     December 29, 
                                     2014           2013           2013     
                                -------------  -------------  ------------- 
                                                                            
Revenue                         $      11,164  $       3,017  $       8,863 
Cost of revenue, excluding                                                  
 inventory write-down                   7,042          1,643          5,923 
Inventory write-down                       64            343            172 
                                -------------  -------------  ------------- 
Gross profit                            4,058          1,031          2,768 
Operating expenses:                                                         
  Research and development              2,641          2,008          2,473 
  Selling, general and                                                      
   administrative                       3,465          2,530          3,354 
  Restructuring cost                        -              7              - 
                                -------------  -------------  ------------- 
Total operating expense                 6,106          4,545          5,827 
                                -------------  -------------  ------------- 
Loss from operations                   (2,048)        (3,514)        (3,059)
                                                                            
Interest expense                          (16)            (9)           (17)
Interest income and other                                                   
 (expense), net                           (26)            (4)           (27)
                                -------------  -------------  ------------- 
Loss before income taxes               (2,090)        (3,527)        (3,103)
Provision for income taxes                 20             57             86 
                                -------------  -------------  ------------- 
Net loss                        $      (2,110) $      (3,584) $      (3,189)
                                =============  =============  ============= 
                                                                            
Net loss per share:                                                         
  Basic                         $       (0.04) $       (0.08) $       (0.07)
                                =============  =============  ============= 
  Diluted                       $       (0.04) $       (0.08) $       (0.07)
                                =============  =============  ============= 
                                                                            
Weighted average shares:                                                    
  Basic                                54,433         44,517         49,130 
                                =============  =============  ============= 
  Diluted                              54,433         44,517         49,130 
                                =============  =============  ============= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                                             Three Months Ended             
                                ------------------------------------------- 
                                                                            
                                  March 30,      March 31,     December 29, 
                                     2014           2013           2013     
                                -------------  -------------  ------------- 
GAAP loss from operations       $      (2,048) $      (3,514) $      (3,059)
  Adjustment for stock-based                                                
   compensation within:                                                     
    Cost of revenue                        42             30            156 
    Research and development              353            166            380 
    Selling, general and                                                    
     administrative                       337            256            376 
  Adjustment for the write-off                                              
   of equipment within:                                                     
    Cost of revenue                         -              -             66 
    Selling, general and                                                    
     administrative                         -              -             27 
  Adjustment for restructuring                                              
   costs                                    -              7              - 
                                -------------  -------------  ------------- 
Non-GAAP loss from operations   $      (1,316) $      (3,055) $      (2,054)
                                =============  =============  ============= 
                                                                            
GAAP net loss                   $      (2,110) $      (3,584) $      (3,189)
  Adjustment for stock-based                                                
   compensation within:                                                     
    Cost of revenue                        42             30            156 
    Research and development              353            166            380 
    Selling, general and                                                    
     administrative                       337            256            376 
  Adjustment for the write-off                                              
   of equipment within:                                                     
    Cost of revenue                         -              -             66 
    Selling, general and                                                    
     administrative                         -              -             27 
  Adjustment for restructuring                                              
   costs                                    -              7              - 
                                -------------  -------------  ------------- 
Non-GAAP net loss               $      (1,378) $      (3,125) $      (2,184)
                                =============  =============  ============= 
                                                                            
GAAP net loss per share         $       (0.04) $       (0.08) $       (0.07)
  Adjustment for stock-based                                                
   compensation                          0.01           0.01           0.02 
  Adjustment for write-off of                                               
   equipment                                -              -              * 
  Adjustment for restructuring                                              
   costs                                    -              *              - 
                                -------------  -------------  ------------- 
Non-GAAP net loss per share     $       (0.03) $       (0.07) $       (0.05)
                                =============  =============  ============= 
                                                                            
GAAP gross margin percentage             36.3%          34.2%          31.2%
  Adjustment for stock-based                                                
   compensation                           0.4%           1.0%           1.8%
  Adjustment for restructuring                                              
   costs                                    -              *              - 
  Adjustment for write-off of                                               
   equipment                                -              -            0.7%
                                -------------  -------------  ------------- 
Non-GAAP gross margin                                                       
 percentage                              36.7%          35.2%          33.7%
                                =============  =============  ============= 
                                                                            
* Figures were not considered in the reconciliation due to the insignificant
amount.                                                                     
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                 March 30,     December 29, 
                                                    2014         2013(1)    
                                               -------------  ------------- 
                    ASSETS                                                  
                                                                            
Current assets:                                                             
  Cash and cash equivalents                    $      37,112  $      37,406 
  Accounts receivable, net                             3,327          3,261 
  Inventories                                          5,224          4,136 
  Other current assets                                   924          1,272 
                                               -------------  ------------- 
    Total current assets                              46,587         46,075 
Property and equipment, net                            2,568          2,840 
Other assets                                             216            211 
                                               -------------  ------------- 
TOTAL ASSETS                                   $      49,371  $      49,126 
                                               =============  ============= 
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                                                            
Current liabilities:                                                        
  Revolving line of credit                     $       1,000  $       1,000 
  Trade payables                                       2,485          3,578 
  Accrued liabilities                                  2,644          3,519 
  Current portion of capital lease obligations           209            177 
                                               -------------  ------------- 
    Total current liabilities                          6,338          8,274 
                                                                            
Long-term liabilities:                                                      
  Capital lease obligations, less current                                   
   portion                                               100            133 
  Other long-term liabilities                            115            121 
                                               -------------  ------------- 
    Total liabilities                                  6,553          8,528 
                                               -------------  ------------- 
                                                                            
Stockholders' equity:                                                       
  Common stock, at par value                              55             54 
  Additional paid-in capital                         234,703        230,373 
  Accumulated deficit                               (191,940)      (189,829)
                                               -------------  ------------- 
    Total stockholders' equity                        42,818         40,598 
                                               -------------  ------------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $      49,371  $      49,126 
                                               =============  ============= 
                                                                            
(1) Derived from the December 29, 2013 audited balance sheet included in the
    2013 Annual Report on Form 10-K of QuickLogic Corporation.              
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                            Percentage of Revenue     Change in Revenue     
                           ----------------------  -----------------------  
                             Q1      Q1      Q4    Q1 2013 to   Q4 2013 to  
                            2014    2013    2013     Q1 2014      Q1 2014   
                           ------  ------  ------  ----------   ----------  
COMPOSITION OF REVENUE                                                      
Revenue by product (1):                                                     
  New products                 80%     31%     79%        848%          27% 
  Mature products              20%     69%     21%          8%          24% 
                                                                            
Revenue by geography:                                                       
  Korea                        70%      1%     69%      24897%          27% 
  United States                10%     31%      9%         13%          37% 
  Malaysia                      4%     23%      6%        (33)%         (8)%
  Japan                         6%     20%      6%         13%          29% 
  Europe                        7%     15%      5%         64%          73% 
  Rest of North America         0%      6%      1%        (80)%        (69)%
  China                         3%      4%      4%        193%           2% 
  Rest of Asia Pacific          0%      0%      0%       4229%         (41)%
                                                                            
(1) New products 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