QUICKLOGIC CORPORATION SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended ---------------------------- ------------------ June 29, June 30, March June 29, June 30, 2014 2013 30, 2014 2014 2013 -------- -------- -------- -------- -------- GAAP loss from operations $ (2,888) $ (3,020) $ (2,048) $ (4,936) $ (6,534) Adjustment for stock- based compensation within: Cost of revenue 36 22 42 78 52 Research and development 221 46 353 574 212 Selling, general and administrative 309 217 337 646 473 Adjustment for restructuring costs - 206 - - 213 -------- -------- -------- -------- -------- Non-GAAP loss from operations $ (2,322) $ (2,529) $ (1,316) $ (3,638) $ (5,584) ======== ======== ======== ======== ======== GAAP net loss $ (2,897) $ (3,241) $ (2,110) $ (5,007) $ (6,825) Adjustment for stock- based compensation within: Cost of revenue 36 22 42 78 52 Research and development 221 46 353 574 212 Selling, general and administrative 309 217 337 646 473 Adjustment for restructuring costs - 206 - - 213 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 loss $ (2,331) $ (2,658) $ (1,378) $ (3,709) $ (5,783) ======== ======== ======== ======== ======== GAAP net loss per share $ (0.05) $ (0.07) $ (0.04) $ (0.09) $ (0.15) Adjustment for stock- based compensation 0.01 0.01 0.01 0.02 0.02 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 loss per share $ (0.04) $ (0.05) $ (0.03) $ (0.07) $ (0.12) ======== ======== ======== ======== ======== GAAP gross margin percentage 44.1% 37.8% 36.3% 39.3% 36.5% Adjustment for stock- based compensation 0.5% 0.4% 0.4% 0.4% 0.6% -------- -------- -------- -------- -------- Non-GAAP gross margin percentage 44.6% 38.2% 36.7% 39.7% 37.1% ======== ======== ======== ======== ======== QUICKLOGIC CORPORATION SUPPLEMENTAL DATA (Unaudited) Percentage of Revenue Change in Revenue ------------------------- ----------------- Q2 2013 Q1 2014 to Q2 to Q2 Q2 2014 Q2 2013 Q1 2014 2014 2014 ------- ------- ------- ------- ------- COMPOSITION OF REVENUE Revenue by product (1): New products 66% 60% 80% 45% (50)% Mature products 34% 40% 20% 16% 5% Revenue by geography: Korea 39% 46% 70% 12% (66)% Europe 20% 7% 7% 300% 84% United States 13% 20% 10% (13)% (16)% Malaysia 10% 7% 4% 99% 50% Japan 9% 10% 6% 26% (6)% China 8% 7% 3% 39% 35% Rest of North America 1% 2% 0% (35)% 128% Rest of Asia Pacific 0% 1% 0% (63)% 180%