QuickLogic Announces Fiscal 2012 Third Quarter Results

Marketwired

SUNNYVALE, CA--(Marketwire - Oct 30, 2012) - QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced financial results for its fiscal third quarter ended September 30, 2012.

In accordance with the company's guidance for the quarter, total revenue for the third quarter of 2012 was $3.7 million. Revenue was down 10% sequentially and down 32% compared to the third quarter of 2011. During the third quarter of 2012, new product revenue decreased 9% sequentially to $1.6 million, representing 43% of total revenue. During the third quarter, mature product revenue decreased 11% sequentially to $2.1 million, representing 57% of total revenue in the third quarter.

Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2012 was $2.8 million, or $0.06 per share, compared with a net loss of $3.2 million, or $0.08 per share, in the second quarter of 2012 and a net loss of $1.5 million, or $0.04 per share, in the third quarter of 2011. Non-GAAP net loss for the third quarter of 2012 was $2.2 million, or $0.05 per share, compared with a non-GAAP net loss of $2.8 million, or $0.07 per share, in the second quarter of 2012 and a non-GAAP net loss of $1.0 million, or $0.03 per share, in the third quarter of 2011. 

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, October 30, 2012, 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: 47075076. The call recording will be archived until Tuesday, November 6, 2012 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 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.

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 30, 2012     October 2, 2011     July 1,
2012
    September 30, 2012     October 2, 2011  
                                         
Revenue   $ 3,657     $ 5,339     $ 4,071     $ 11,858     $ 16,623  
Cost of revenue, excluding inventory
  write-down and related charges and
  long-lived asset impairment
    1,916       1,897       1,927       5,885       5,626  
Inventory write-down and related
  charges
    -       386       99       428       562  
Gross profit     1,741       3,056       2,045       5,545       10,435  
Operating expenses:                                        
  Research and development     1,865       2,271       2,452       7,119       7,386  
  Selling, general and administrative     2,658       2,267       2,749       8,104       7,417  
Income (loss) from operations     (2,782 )     (1,482 )     (3,156 )     (9,678 )     (4,368 )
Interest expense     (12 )     (5 )     (24 )     (49 )     (31 )
Interest income and other (expense),
  net
    18       (49 )     (50 )     (45 )     (66 )
Income (loss) before income taxes     (2,776 )     (1,536 )     (3,230 )     (9,772 )     (4,465 )
Provision for (benefit from) income taxes     22       10       6       (17 )     19  
Net income (loss)   $ (2,798 )   $ (1,546 )   $ (3,236 )   $ (9,755 )   $ (4,484 )
                                         
Net income (loss) per share:                                        
  Basic & Diluted   $ (0.06 )   $ (0.04 )   $ (0.08 )   $ (0.24 )   $ (0.12 )
                                         
Weighted average shares:                                        
  Basic & Diluted     44,122       38,418       40,154       40,975       38,303  
                                         
                                         
                                         
 
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 30, 2012     October 2, 2011     July 1,
2012
    September 30, 2012     October 2, 2011  
GAAP income (loss) from operations $ (2,782 )   $ (1,482 )   $ (3,156 )   $ (9,678 )   $ (4,368 )
  Adjustment for stock-based compensation within:                                      
    Cost of revenue   69       34       39       140       104  
    Research and development   147       114       99       339       354  
    Selling, general and administrative   385       264       296       940       833  
  Adjustment for the write-off of equipment within:                                      
    Selling, general and administrative   3       102       -       3       102  
    Cost of revenue   22       -       -       22       -  
Non-GAAP income (loss) from operations $ (2,156 )   $ (968 )   $ (2,722 )   $ (8,234 )   $ (2,975 )
                                       
GAAP net income (loss) $ (2,798 )   $ (1,546 )   $ (3,236 )   $ (9,755 )   $ (4,484 )
  Adjustment for stock-based compensation within:                                    
    Cost of revenue   69       34       39       140       104  
    Research and development   147       114       99       339       354  
    Selling, general and administrative   385       264       296       940       833  
  Adjustment for the write-off of equipment within:                                      
    Selling, general and administrative   3       102       -       3       102  
    Cost of revenue   22       -       -       22       -  
Non-GAAP net income (loss) $ (2,172 )   $ (1,032 )   $ (2,802 )   $ (8,311 )   $ (3,091 )
                                       
GAAP net income (loss) per share $ (0.06 )   $ (0.04 )   $ (0.08 )   $ (0.24 )   $ (0.12 )
  Adjustment for stock-based compensation   0.01       0.01       0.01       0.04       0.04  
  Adjustment for write-off of equipment   *       *       -       *       *  
Non-GAAP net income (loss) per share $ (0.05 )   $ (0.03 )   $ (0.07 )   $ (0.20 )   $ (0.08 )
                                       
GAAP gross margin percentage   47.6 %     57.2 %     50.2 %     46.8 %     62.8 %
  Adjustment for stock-based compensation   1.9       0.7       1.0       1.2       0.6  
  Adjustment for the write-off of equipment   0.6       -       -       0.2       -  
Non-GAAP gross margin percentage   50.1 %     57.9 %     51.2 %     48.2 %     63.4 %
                     
* Figures were not considered in the reconciliaiton of Non-GAAP net loss per share due to the insignificant amount.    
                     
                     
                     
   
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
   
   
    September 30, 2012     January 1, 2012(1)  
ASSETS                
                 
Current assets:                
  Cash and cash equivalents   $ 24,948     $ 20,203  
  Short-term investment in TowerJazz Semiconductor Ltd.     380       406  
  Accounts receivable, net     1,335       1,585  
  Inventories     2,516       3,764  
  Other current assets     951       613  
    Total current assets     30,130       26,571  
Property and equipment, net     2,915       2,181  
Other assets     202       211  
TOTAL ASSETS   $ 33,247     $ 28,963  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities:                
  Trade payables   $ 1,535     $ 2,464  
  Accrued liabilities and deferred income     1,803       1,126  
  Current portion of debt and capital lease obligations     418       141  
    Total current liabilities     3,756       3,731  
                 
Long-term liabilities:                
  Capital lease obligations, less current portion     304       146  
  Other long-term liabilities     147       148  
    Total liabilities     4,207       4,025  
                 
Stockholders' equity:                
  Common stock, at par value     44       39  
  Additional paid-in capital     203,966       190,025  
  Accumulated other comprehensive income     24       113  
  Accumulated deficit     (174,994 )     (165,239 )
    Total stockholders' equity     29,040       24,938  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 33,247     $ 28,963  
                 
(1)   Derived from the January 1, 2012 audited balance sheet included in the 2011 Annual Report on Form 10-K of QuickLogic Corporation.
     
     
     
 
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
 
 
  Percentage of Revenue   Change in Revenue
  Q3 2012   Q2 2012   Q3 2011   Q2 2012 to Q3 2012   Q3 2011 to Q3 2012
COMPOSITION OF REVENUE                  
Revenue by product (1)                  
  New products 43%   42%   23%   (9)%   27%
  Mature products 57%   58%   77%   (11)%   (49)%
  100%   100%   100%        
                   
Revenue by geography                  
  United States 36%   29%   33%   11%   (24)%
  Japan 23%   23%   11%   (9)%   45%
  Europe 20%   15%   31%   22%   (56)%
  Malaysia 11%   8%   8%   19%   (6)%
  China 7%   21%   11%   (69)%   (56)%
  Rest of North America 2%   1%   2%   31%   (41)%
  Rest of Asia Pacific 1%   3%   4%   (75)%   (84)%
  100%   100%   100%        
                   
(1)   New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, Eclipse™ II, PolarPro®, PolarPro II, 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.
     
Contact:

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

Andrea Vedanayagam
(408) 656-4494
Email Contact

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