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QuickLogic Announces Fiscal 2014 Third Quarter Results

SUNNYVALE, CA -- (Marketwired) -- Oct 29, 2014 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power Customer Specific Standard Products (CSSPs), today announced the financial results for its fiscal third quarter ended September 28, 2014.

Total revenue for the third quarter of 2014 was $4.1 million, representing a decrease of 40% sequentially and 55% from the third quarter of 2013. New product revenue for the third quarter of 2014 was $2.2 million, down 50% sequentially and 69% compared to the third quarter of 2013. New product revenue accounted for 54% of the total revenue in the third quarter. Mature product revenue was $1.9 million in the third quarter of 2014, down 20% sequentially and 2% from the third quarter of 2013.

Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the third quarter of 2014 was $3.9 million, or $0.07 per share, compared with a net loss of $2.9 million, or $0.05 per share, in the second quarter of 2014 and a net loss of $2.3 million, or $0.05 per share, in the third quarter of 2013. Non-GAAP net loss for the third quarter of 2014 was $3.5 million, or $0.06 per share, compared with a non-GAAP net loss of $2.3 million, or $0.04 per share, in the second quarter of 2014 and a non-GAAP net loss of $2 million, or $0.04 per share, in the third quarter of 2013.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, October 29, 2014, 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, you may 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: 21578171. The call recording will be archived until Wednesday, November 5, 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. 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.

QuickLogic is a registered trademark and the QuickLogic logo is a trademark 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  
                      -------------------------------  -------------------- 
                      September  September   June 29,  September  September 
                       28, 2014   29, 2013     2014     28, 2014   29, 2013 
                      ---------  ---------  ---------  ---------  --------- 
Revenue               $   4,124  $   9,066  $   6,836  $  22,124  $  17,209 
Cost of revenue,                                                            
 excluding inventory                                                        
 write-down               2,364      5,907      3,785     13,191     10,831 
Inventory write-down         (3)       130         35         96        379 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit              1,763      3,029      3,016      8,837      5,999 
Operating expenses:                                                         
  Research and                                                              
   development            3,057      2,052      3,056      8,754      5,902 
  Selling, general and                                                      
   administrative         2,579      3,207      2,848      8,892      8,648 
  Restructuring cost         --        (32)        --         --        181 
                      ---------  ---------  ---------  ---------  --------- 
Total operating                                                             
 expense                  5,636      5,227      5,904     17,646     14,731 
                      ---------  ---------  ---------  ---------  --------- 
Loss from operations     (3,873)    (2,198)    (2,888)    (8,809)    (8,732)
Gain on sale of                                                             
 TowerJazz                                                                  
 Semiconductor Ltd.                                                         
 shares                      --         --         --         --        181 
Interest expense            (34)        (8)       (17)       (67)       (37)
Interest income and                                                         
 other (expense), net       (17)       (74)       (36)       (79)      (130)
                      ---------  ---------  ---------  ---------  --------- 
Loss before income                                                          
 taxes                   (3,924)    (2,280)    (2,941)    (8,955)    (8,718)
Provision for (benefit                                                      
 from) income taxes           6        (18)       (44)       (18)       369 
                      ---------  ---------  ---------  ---------  --------- 
Net loss              $  (3,930) $  (2,262) $  (2,897) $  (8,937) $  (9,087)
                      =========  =========  =========  =========  ========= 
Net loss per share:                                                         
  Basic               $   (0.07) $   (0.05) $   (0.05) $   (0.16) $   (0.20)
                      =========  =========  =========  =========  ========= 
  Diluted             $   (0.07) $   (0.05) $   (0.05) $   (0.16) $   (0.20)
                      =========  =========  =========  =========  ========= 
Weighted average                                                            
 shares:                                                                    
  Basic                  55,812     44,761     55,379     55,208     44,640 
                      =========  =========  =========  =========  ========= 
  Diluted                55,812     44,761     55,379     55,208     44,640 
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                                            
                                               September 28,   December 29, 
                                                    2014         2013 (1)   
                                               -------------  ------------- 
                     ASSETS                                                 
Current assets:                                                             
  Cash and cash equivalents                    $      31,159  $      37,406 
  Accounts receivable, net                             1,747          3,261 
  Inventories                                          6,878          4,136 
  Other current assets                                   964          1,272 
                                               -------------  ------------- 
    Total current assets                              40,748         46,075 
Property and equipment, net                            2,889          2,840 
Other assets                                             228            211 
                                               -------------  ------------- 
TOTAL ASSETS                                   $      43,865  $      49,126 
                                               =============  ============= 
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
Current liabilities:                                                        
  Revolving line of credit                     $       1,000  $       1,000 
  Trade payables                                       1,724          3,578 
  Accrued liabilities                                  1,839          3,519 
  Current portion of capital lease obligations           223            177 
                                               -------------  ------------- 
    Total current liabilities                          4,786          8,274 
Long-term liabilities:                                                      
  Capital lease obligations, less current                                   
   portion                                               225            133 
  Other long-term liabilities                             64            121 
                                               -------------  ------------- 
    Total liabilities                                  5,075          8,528 
                                               -------------  ------------- 
Stockholders' equity:                                                       
  Common stock, at par value                              56             54 
  Additional paid-in capital                         237,500        230,373 
  Accumulated deficit                               (198,766)      (189,829)
                                               -------------  ------------- 
    Total stockholders' equity                        38,790         40,598 
                                               -------------  ------------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $      43,865  $      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 RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                                                                            
                             Three Months Ended          Nine Months Ended  
                      -------------------------------  -------------------- 
                      September  September   June 29,  September  September 
                       28, 2014   29, 2013     2014     28, 2014   29, 2013 
                      ---------  ---------  ---------  ---------  --------- 
GAAP loss from                                                              
 operations           $  (3,873) $  (2,198) $  (2,888) $  (8,809) $  (8,732)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                             
   within:                                                                  
    Cost of revenue          32         24         36        110         76 
    Research and                                                            
     development            176         74        221        750        286 
    Selling, general                                                        
     and                                                                    
     administrative         244        232        309        890        705 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
  Selling, general and                                                      
   administrative             5          3         --          5          3 
  Adjustment for                                                            
   restructuring costs       --        (32)        --         --        181 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP loss from                                                          
 operations           $  (3,416) $  (1,897) $  (2,322) $  (7,054) $  (7,481)
                      =========  =========  =========  =========  ========= 
GAAP net loss         $  (3,930) $  (2,262) $  (2,897) $  (8,937) $  (9,087)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                             
   within:                                                                  
    Cost of revenue          32         24         36        110         76 
    Research and                                                            
     development            176         74        221        750        286 
    Selling, general                                                        
     and                                                                    
     administrative         244        232        309        890        705 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
  Selling, general and                                                      
   administrative             5          3         --          5          3 
  Adjustment for                                                            
   restructuring costs       --        (32)        --         --        181 
  Adjustment for gain                                                       
   on sale of                                                               
   TowerJazz                                                                
   Semiconductor Ltd.                                                       
   shares                    --         --         --         --       (181)
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive                                                            
   income                    --         --         --         --        273 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss     $  (3,473) $  (1,961) $  (2,331) $  (7,182) $  (7,744)
                      =========  =========  =========  =========  ========= 
GAAP net loss per                                                           
 share                $   (0.07) $   (0.05) $   (0.05) $   (0.16) $   (0.20)
  Adjustment for                                                            
   stock-based                                                              
   compensation            0.01       0.01       0.01       0.03       0.02 
  Adjustment for the                                                        
   write-off of                                                             
   equipment                  *          *         --          *          * 
  Adjustment for                                                            
   restructuring costs       --          *         --         --       0.01 
  Adjustment for gain                                                       
   on sale of                                                               
   TowerJazz                                                                
   Semiconductor Ltd.                                                       
   shares                    --         --         --         --      (0.01)
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive                                                            
   income                    --         --         --         --       0.01 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss per                                                       
 share                $   (0.06) $   (0.04) $   (0.04) $   (0.13) $   (0.17)
                      =========  =========  =========  =========  ========= 
GAAP gross margin                                                           
 percentage                42.7%      33.4%      44.1%      39.9%      34.9%
  Adjustment for                                                            
   stock-based                                                              
   compensation             0.8%       0.3%       0.5%       0.5%       0.4%
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP gross margin                                                       
 percentage                43.5%      33.7%      44.6%      40.4%      35.3%
                      =========  =========  =========  =========  ========= 
                                                                            

* Figures were not considered for reconciliation due to the insignificant amount.

                                                                            
                                                                            
                                                                            
                          QUICKLOGIC CORPORATION                            
                             SUPPLEMENTAL DATA                              
                                (Unaudited)                                 
                                                                            
                                                                            
                          Percentage of Revenue       Change in Revenue     
                        -------------------------  -----------------------  
                                                   Q3 2013 to   Q2 2014 to  
                        Q3 2014  Q3 2013  Q2 2014    Q3 2014      Q3 2014   
                        -------  -------  -------  ----------   ----------  
COMPOSITION OF REVENUE                                                      
Revenue by product: (1)                                                     
  New products               54%      79%      66%        (69)%        (50)%
  Mature products            46%      21%      34%         (2)%        (20)%
Revenue by geography:                                                       
  Asia Pacific               57%      83%      66%        (69)%        (48)%
  Europe                     17%       6%      20%         22%         (48)%
  North America              26%      11%      14%          6%          11% 

_____________________

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

Email Contact

Andrea Vedanayagam
(408) 656-4494

Email Contact