You said, "VP of WW engineering leaving ahead of this massive revenue ramp. What does that tell you?
Here is the QUIK press release on 6-6-16. "On June 6, 2016, QuickLogic Corp and Mr. Maxine Bouvat-Merlin, the Company's Vice President of Worldwide Engineering negotiated a separation agreement that will result in Mr. Bouvat-Merlin leaving the Company effective June 15, 2016. The terms of the separation agreement are under review.
On an interim basis, all of the Company's R & D functions will report to Dr. Tim Saxe, Senior Vice President of Engineering and Chief Technology Officer. Dr. Saxe, who has been with QuickLOgic since 2001, is the inventor of the patent-pending Flexible Fusion Engine (FFE) technology and drove the original definition of the recently released EOS S3 Sensor Processor System on a Chip (SoC)."
As I recall, Maxine Bouvat-Merlin, was hired by Andy Pease about 5 years ago. The 6-6-16 press release says Dr. Tim Saxe, who is Senior Vice President of Engineering and Chief Technology Officer (Bouvat-Merlin was only Vice President of Worldwide Engineering), was hired in 2001 and is credited with being the inventor of the FFE technology "and drove the original definition of the recently released EOS S3 Sensor Processor System on a Chip (SoC).
The press release suggests to me that perhaps Bouvat-Merlin was not as productive as Dr. Saxe and did not live up to Andy's expectations, and that Bouvat-Merlin was asked to resign. His resignation would also save QUIK some significant money, excluding any separation agreement.
I completely agree with you. The operators in QUIK are trying to squeeze out the last of the "weak" stockholders, causing them to sell their QUIK stock here at .98, currently.
Today, is June 20. Andy said that QUIK would be shipping pre-production shipments of their new EOS S3 Sensor Platform at the end of Q2, 2016. Here is Andy's exact quote from the QUIK 2nd QTR conference call.
"Last quarter I mentioned that we won an EOS S3 Sensor Processing Platform design with a Tier One smartphone company for a wearable device, and that we had additional smart connectivity and sensor processing engagements with the same customer. Since the last conference call, our engagement activity with this tier one customer has expanded substantially. We are intensively engaged with this customer to optimize these opportunities, and we are dedicating resources to ensure a successful launch of their first S3-based design....We are scheduled to ship preproduction volumes of our S3 platform at the end of Q2 to support this product launch". These shipments of the EOS S3 are likely to commence in the next few days, if they have not already begun.
Here is a quote from Andy Pease in the transcript of QUIK's 1st QTR 2016 conference call. "...we now have engagements with four of the top-ten smartphone companies in the world. In addition to these, we are also closely engaged with several of the largest and most widely recognized wearable device manufacturers in the world." As I recall, the word "several" means more than 2.
Here is a quote from the article, "The Next Big Battle in Tech Is for Your Wrist.: Does That Make Fitbit a Buy?", by Jamal Carnette, June 18, 2016. "Wearables have been touted as the next big thing in consumer technology. The newest report from International Data Corporation, or IDC, confirms the catch-all designation of smartwatches, fitness trackers, trackable clothing, and eyewear is slated to grow 20% annually through 2020--much higher than growth estimates for traditional computing devices like computers, smartphones, and tablets. This is very good news for QUIK. Andy Pease's use of the word "several" in QUIK's recent cc, suggests that Fitbit, and perhaps Garmin, may be 2 of the "largest and most widely recognized wearable device manufacturers in the world" with which QUIK currently has engagements. I exclude Apple, because often Apple likes to use internally developed chips rather than use an outside supplier. Samsung, which is already a QUIK customer, remains a 3rd possibility. Any one of these companies selecting QUIK for their new Sensor products would translate into a high volume production order.
You said, ..."During the conference it was asked if eos can process GPS data and the answer is no." While technically correct, your answer is misleading.
Here are the quotes from QUIK's 2nd QTR conference call on May 4, regarding QUIK's EOS.
Andy Pease: "We do not have the GPS processor in there (EOS).
Bob Schoenfield: "But you could connect to GPS module through the EOS S3...I'm wearing a watch right now...it is not using QuickLogic but it has a microcontroller in it, in the GPS, so, it is definitely possible you could do that with the EOS S3."
In this current technology cycle, as I pointed out in one of my recent posts, QuickLogic is actually ahead of the cycle (curve). You continue to ignore this. Customers and potential customers, have been able to "make do" with their existing chip solutions to provide the need for increasing battery power/efficiency and a longer battery life, necessitated by the increasing number of applications (apps) that they were adding to their smartphones. No more. They now have reached the point where their exiting chip solutions are not able to provide the additional battery power and longer battery life to power these new apps. Now, these customers have reached the point where they need QUIK's new EOS S3 Sensor Processing Platform, which QUIK says is "The World's Most Advanced Sensor Processing System". This is supported by the increase in QUIK's major customer engagements in the last 6 months from 9 to 19, and the fact that QUIK now has engagements with 4 of the Top 10 smartphone companies in the world. I agree, it is now imperative that at the 2nd QTR conference call on August 3, Andy Pease announce several major production orders that have now been converted from engagements to orders. I believe this will happen, proving the skeptics wrong, and proving that QUIK has been transformed into a real growth company.
Sentiment: Strong Buy
I agree with you, that what is most important is that QUIK get its S2 and new EOS S3 Sensor Hub platform products adopted by major smartphone companies. All I am saying, is that there is evidence that the 2nd half of 2016 will be stronger than the 1st half of this year. At the margin, that can be helpful to QUIK. It is always helpful to "have the wind at your back". A stronger 2nd half '16, may cause some smartphone companies to get off their "duff" and move from engagements, to placing production orders with QUIK. Andy has suggested in his recent cc comments, that there are some customers who are just waiting to place their production orders, they just have to "pull the trigger" and do it. But I believe, that if QUIK's new products are as good as Andy Pease says they are, the economy could be in a recession, and QUIK could still do well. Would not that be a pleasant surprise?
Here are a few quotes from the above article in today's, "The Wall Street Journal", 6-1-2016, page A2.
"Personal spending,...increased 1.0% in April from a month earlier,...That was biggest one-month jump since August 2009...After a six-month lull, consumers emerged able and willing to spend more freely in early spring,...This is good news for the economy as solid employment, firming wage growth and upbeat confidence should support the upbeat momentum in the second half of the year."
This is good news, and provides a positive and supportive backdrop for QuickLogic's own outlook for strong new product revenue growth in the 2nd half of 2016, and accelerating new product revenue growth in 2017. With consumers more likely to buy a new smartphone, smart watch and fitness tracker in this more kindly environment, some smartphone manufacturers will be more likely to accelerate their move from engagements, and place production orders now for QUIK's S2 and new EOS S3 sensor products. After all, smartphone, smart watch and fitness tracker manufacturers, want to have their newest products on the shelves by early October in time for the Holiday Selling Season.
Whether this cycle for Sensor Hubs is short or long, the point is that QUIK is very well positioned with its new EOS S3 Sensor Processing Platform versus its competition. Rather than being late to market, this time QUIK was actually ahead of the market (curve). QUIK has had to wait until its potential customers have run out of battery power/efficiency and battery life with their old battery/chip solutions due to their addition of new applications (apps), before they needed QUIK's new product. Now, the customers need more battery power/efficiency and longer battery life, and QUIK has the product that can do just that, with the EOS S3. An old adage in business is, "Find A Need And Fill it'. QUIK has now done that with the EOS S3, with astute foresight as to what the market needs and maybe a little bit of good luck.
About 8-12 months ago, I believe it was in one of QUIK's quarterly conference calls, that Andy Pease included several slides in his presentation(visible if you accessed the cc via QUIK's website). At least one slide showed that QUIK's potential smartphone and I of T customers were projected to add additional applications (apps) to their new products over the next year or so. The slide also showed that these new apps would add to the need for increased battery power and battery life. One slide showed that QUIK's customers had about 8-12 months left on their old battery/chips solutions before the old chips could no longer handle the continuing increase in apps. At that point, QUIK's customers would need to switch to a new chip/solution that offered increased battery power/efficiency and increased battery life. I believe that point in time is now, and QUIK's customers generally cannot add any more apps to their smartphones, wearables, and IoT devices, because their old battery/chip solutions have no additional power left to give. I believe QUIK's customers are at the point right now, where they need QUIK's new EOS S3 Sensor Processing Platform which "is the lowest system power sensor processing solution in the market today." I believe the increase from 9 to 19 substantial customer engagements in the last 6 months, including "four of the top-ten smartphone companies in the world" and one "top-ten smartphone OEM in China", supports this thesis. With standards now being resolved, QUIK appears well positioned to be one of the big beneficiaries of Internet of Things.
You are wrong. QuickLogic is very much involved with the Internet of Things. Here is the description on The QuickLogic website for its new product: "Introducing the EOS Sensor Processing Platform...The World's Most Advanced Sensor Processing System...The new EOS S3 sensor processing platform is a multi-core system that enables a vast array of concurrent, MIPS-intensive sensor applications from rudimentary to computationally demanding, MIPS-intensive, algorithms on smartphone, wearable, and Internet of Things (IoT) devices."
Dr. Timothy Saxe, Senior VP and Technology Officer at QuickLogic, made a presentation at the IoT Summit Program in March 2015. His presentation was titled, "What Wearables Design Teaches Us about IoT".
QuickLogic was named in the Barron's article, "These Are The Companies Prepared For The 'Internet Of Things' Revolution", July 26, 2014, by Myles Udland/Tiernan Ray.