U.S. Markets closed

Edited Transcript of QUIK earnings conference call or presentation 6-Nov-19 10:00pm GMT

Q3 2019 QuickLogic Corp Earnings Call

SUNNYVALE Nov 14, 2019 (Thomson StreetEvents) -- Edited Transcript of QuickLogic Corp earnings conference call or presentation Wednesday, November 6, 2019 at 10:00:00pm GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Brian C. Faith

QuickLogic Corporation - President, CEO & Director

* Suping Cheung

QuickLogic Corporation - CFO & VP of Finance

================================================================================

Conference Call Participants

================================================================================

* Richard Cutts Shannon

Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst

* Rick Neaton;Rivershore Investment Research;President

* Sujeeva Desilva

Roth Capital Partners, LLC, Research Division - Senior Research Analyst

* Zhihua Yang

Oppenheimer & Co. Inc., Research Division - Associate

* Jim Fanucchi

Darrow Associates Inc. - Head of Silicon Valley Operations

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Ladies and gentlemen, good afternoon. At this time, I'd like to welcome everyone to QuickLogic Corporation's Third Quarter Fiscal Year 2019 Earnings Results Conference Call. As a reminder, today's call is being recorded for replay purposes through November 13, 2019.

I would now like to turn the conference over to Mr. Jim Fanucchi of Darrow Associates. Mr. Fanucchi, please go ahead.

--------------------------------------------------------------------------------

Jim Fanucchi, Darrow Associates Inc. - Head of Silicon Valley Operations [2]

--------------------------------------------------------------------------------

Thank you, operator and thanks to all of you for joining us. Our speakers today are Brian Faith, President and Chief Executive Officer; and Dr. Sue Cheung, Chief Financial Officer.

As a reminder, some of the comments QuickLogic makes today are forward-looking statements that involve risks and uncertainties, including but not limited to stated expectations relating to revenue from new and mature products, statements pertaining to QuickLogic's future stock performance, design activity and its ability to convert new design opportunities into production shipments, timing and market acceptance of its customers' products, schedule changes and projected production start dates that could impact the timing of shipments, the company's future evaluation systems, broadening our ecosystem partners, expected results and financial expectations for revenue, gross margin, operating expenses, profitability and cash.

These statements should be considered in conjunction with the cautionary warnings that appear in QuickLogic's SEC filings. For additional information, please refer to the company's SEC filings posted on its website and the SEC's website. Investors are cautioned that all forward-looking statements in this call involve risks and uncertainties and that future events may differ materially from the statements made. For more details of the risks, uncertainties and assumptions, please refer to those discussed under the heading Risk Factors in most recent annual report on Form 10-K, most recent quarterly report on Form 10-Q, recent Form 8-K and other documents we periodically file with the SEC.

These forward-looking statements are made as of today, the day of this conference call and management undertakes no obligation to revise or publicly release any revisions to the forward-looking statements in light of any new information or future events.

In today's call, we will be reporting non-GAAP financial measures. These non-GAAP measures should not be considered as a substitute for or superior to financials prepared in accordance with GAAP. You may refer to the earnings release we issued today for a detailed reconciliation of our GAAP to non-GAAP results and other financial statements. We've also posted an updated financial table on our IR webpage that provides current and historical non-GAAP data.

Please note QuickLogic uses its website, the company blog, corporate Twitter account, Facebook page and LinkedIn page as channels of distribution of information about its products, its planned financial or other announcements, its attendance at upcoming investor and industry conferences and other matters. Such information may be deemed as material information and QuickLogic may use these channels to comply with its disclosure obligations under Regulation FD.

A copy of the prepared remarks made on today's call will be posted on QuickLogic's IR webpage shortly after the conclusion of today's earnings call.

And with that, I would now like to turn the call over to Brian.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [3]

--------------------------------------------------------------------------------

Thank you, Jim. Good afternoon, everyone, and thank you all for joining our Q3 fiscal 2019 financial results conference call.

I would like to start off today's call updating you on our near-term outlook including some significant new developments and then discuss the pathway, we will follow with the goal of achieving profitability early next year. Later, Sue will review our financial results.

As I mentioned in our call on August 6, there were several factors outside our control that cause us to reset our revenue expectations for both the third quarter and all of fiscal 2019. While some of these factors have been rectified there are still some items taking longer to complete than our customers initially expected. These items will have an impact on our fourth quarter outlook. And the continued dialog with our customers, it has recently become clear that some of the programs we believe would come back in Q4, are not going to materialize this quarter. As a result of these evolving conditions, we are taking a conservative approach to our outlook. Currently, our fiscal 2019 guidance is for total revenue of $10.4 million plus or minus $300,000. This translates to annual sales, approximately $3 million lower than the previous outlook.

In addition, while we expect Q4 gross profit margin to be approximately 60% for the full year of 2019 we will see gross margin in the high '50s, slightly lower than the range we thought in August. While we generally don't give financial outlook more than a one quarter at a time, I want to offer the following. We currently believe that we should see a healthy increase in revenue in Q1, accompanied by a stronger gross profit margin as our revenue mix should include a higher percentage of SaaS and eFPGA IP sales. When combined with continued cost controls, we should be close to non-GAAP operating income breakeven at the end of Q1 2020 and we anticipate being breakeven or profitable in Q2 2020.

Furthermore, as Sue will discuss later. While we will use some cash in Q4, we expect the burn to be minimal in Q1 and close to neutral in Q2. We are obviously disappointed with these near term conditions. However, there have been several positive developments that we believe will serve as revenue and gross margin drivers starting at the beginning of fiscal 2020.

I'd now like to expand on some of the items influencing the fourth quarter. There are 4 specific areas that comprise the majority of the approximately $3 million delta between our current expectations and the previously forecasted revenue.

First, our EOS S3 hearable business continues to be impacted by changes in how customers are developing products that meet Amazon AVS specification. Most recently Amazon has released their own proprietary voice software. This has influence some of our customers to wait for the integration of that Amazon software onto EOS S3 prior to bringing their products to market. This factor combined with Amazon releasing their own TWS headphones for this holiday season has resulted in $1.1 million in lower revenue. To be clear, this is not a lost opportunity. Rather, it is just a push out into fiscal 2020 due to the delayed development schedules of our customers.

Second one of our larger expected eFPGA licenses has pushed out to next year. Impacting current quarter revenue by approximately $750,000. All offer additional color on our eFPGA business later in my prepared remarks.

Third, within our mature product revenue, while our business with the US Navy is solid and budgets have been confirmed, some of the other military business we expected in Q4 has also been pushed into the first half of 2020. This will negatively impact fourth quarter revenue by approximately $400,000.

Lastly, several of the sensible quick AI customers, we expect it to convert to full sensible SaaS subscriptions have taken longer to get through their evaluation period. Thereby shifting revenue from these 2 areas to 2020. This resulted in lower than expected Q4 revenue by about $500,000. Combined, these 4 factors account for nearly $2.8 million of the $3 million delta. While each of these areas are below our recent expectations. We are confident the issues are short term, we expect a portion of this revenue to be realized starting in Q1.

I now want to offer some additional color on each area and discuss why we are confident that revenue ramp is imminent. Starting with our mature product segment. The push out of shipments to the US military customers that impacted our revenue over the second half of fiscal 2019 is being resolved. While we expect to see some of the military orders starting to come back to this quarter, it will not be at the pace we anticipated when we spoke back in August. We expect to see the balance of the delayed military orders come back in Q2 2020.

Moving to our EOS S3 related products, the ongoing trade conflict with China has caused several of our customers to delay their new product introductions, as I mentioned in our last call, a specific Chinese consumer electronics manufacturer pushed out the introduction schedule for one of our largest 2019 design wins that we were originally told what happened for the 2019 holiday shopping season. We still believe this project will be deployed for the 2020 product introduction cycle.

The silver lining with this issue is that we have successfully leverage this [Alizon] Technology for a voice-enabled remote control with a well-known and fast-growing streaming and smart TV provider. They recently gave us a firmer launch date of Q2 2020. The reason I say the date is firmer is that the timing is not dependent on any TV manufacturer, bringing it to market. This new design is completely in the hands of the consumer platform provider. The potential could be into the hundreds of thousands of dollars per quarter. In the hearables market, we have a clear path forward for Amazon AVS or Alexa Voice Service compliant hearable designs.

We have successfully concluded a large suite of tests and believe that we have 2 viable solutions for customers that past both certification and qualification testing. With these hurdles behind us and the revised schedules we have received from our customers, I believe revenue generated by hearable designs will ramp more significantly in Q1 2020. Separately, we recently established a partnership with [Azmostic] which is rapidly developing traction for its new ultralow-power Bluetooth Low Energy Solution. Leveraging this and our new partnership with Retune DSP, we have already won a new design with a large consumer electronics OEM for a second, voice-enabled TV remote control.

The release schedule for this design has shifted to Q2 2020, the customer expects to ship several hundred thousand units next year. In addition, we are engaged with this customer on a second design that is significantly higher volume potential that is scheduled to launch in 2020. In addition, our largest ODM customer was the only third-party company that we are aware of that we're showing truly wireless stereo or TWS AirPod like headphones and Amazon's boost at the September IFA conference in Berlin. This customer has started several engagements now with OEMs who are interested in white labeling this product as their own ABS compatible TWS headphones.

Our partner is still targeting to be complete with their AVS development kit and ABS ODM design on the Amazon web pages during this quarter. We believe inclusion on Amazon AVS websites will lead to several new OEM engagements that will result in volume shipments from QuickLogic in the first half of 2020. On another positive note, I'm very pleased to confirm our Japanese smartphone customer is integrating our technology across a broader range of their products. Their first phone with EOS S3 inside was on carrier shelves in August and we have now shipped pre-production orders of EOS S3 for 3 additional phones that they expect to launch before year-end, bringing our total number of models to 4.

Since we are meeting this OEM stringent power requirements, we hope to expand the number of models that include an EOS S3. In June, we announced a new integrated alarm system or IaaS reference design from Infineon the targets home commercial and industrial IoT applications. Several well-known consumer-focused companies continue to evaluate the reference design for integration into their products. While it is too early to predict specific launch dates by end customers, we do believe we will generate revenue from the starting in the middle of 2020. On top of this, a large module manufacturer as already designed a new low-cost module based on the Infineon IAS that OEMs can easily integrate into finished IoT designs. This module is scheduled for introduction in early 2020.

Now I'd like to cover several positive updates on our eFPGA business. As I mentioned in the last call, in Q2, we finalized a license agreement with a prime military contractor that has been commissioned by the DoD to evaluate and recommend embedded FPGA solutions and suppliers as an update they continue to progress with their evaluation of our test chip as well as our eFPGA core through their design flow. As I've noted before military contractors already represent a large market for discrete eFPGAs and the Department of Defense is taking steps now that will make it easier for its contractors to incorporate embedded FPGA again ASIC designs.

We believe we are well position to address this trend for certain ASICs that we'll use FD SOI manufacturing processes. As further evidence of this emerging trend, we are now more deeply engaged with a separate military contractor for our 22-nanometer FDSOI eFPGA. We are targeting an evaluation agreement for the first part of fiscal 2020 that could lead to a full license in the second half of the year.

Last quarter, I had told you, we expected to finalize testing of the ETH Zurich Parallel Ultra Low Power IC that includes our eFPGA IP. After a longer than anticipated delay the test chip is up and running now in our labs. I want to highlight that this test chip has led to a new engagement that we will touch on shortly.

In September, we announced that nations technologies selected our eFPGA to power its next-generation, low-power IoT SOC. While this agreement generates only modest revenue in the near term, it enables us and the customer to fast track SOC license agreements that we believe will generate considerably more revenue starting in the second half of 2020. Our eFPGA strategy continues to evolve and we believe the promise it holds for our future is significant.

I have often discussed the need for a more scalable go-to-market strategy, and we believe that comes through tapping into the reach of more platform companies. By platform companies, we mean well known mega cap sized companies or ones they have a strategy around connecting a massive number of users with services. These massive users in fragmented markets drive sufficiently large volumes that create a served available market large enough for our SOC business to co-exist with other SOC players where we can license our eFPGA.

Last year, we signed an evaluation license with C-SKY who was acquired by Alibaba to be their SOC Company moving forward. D-sky was subsequently renamed to [Pintogo] and now is driving all the semiconductor development for Alibaba. Ultimately Alibaba wants more devices connected to their services. As such, they are creating an ecosystem similar to SiFive, what SiFive is doing creating SOC templates such that semiconductor companies and system OEMs can bring derivative products to market quickly and cost effectively. I am pleased to announce we were selected by a Pintogo to join their IP ecosystem alliance. And that we are the only eFPGA company included and the recently announced template SOC codenamed cordless.

This IoT SOC, template but is targeted for 2020. Barring any worsening of trade tensions with China, we believe that it will drive significant eFPGA adoption moving forward. Pintogo use the license, we had previously agreed to under our MTLA for this sort of a test chip. And then any future users of the template for their own SOC will generate an IP license and royalties upon unit shipment. We are very optimistic about the potential of this initiative with Alibaba for our eFPGA business.

Another exciting initiative for us related to our more scalable go-to-market strategy for eFPGA has now expanded in the last month to be a much broader scope in originally anticipated. This one is also with a well-known mega cap sized global company. What started as an eFPGA discussion has broadened significantly. I am very excited to announce that we have signed an agreement with this company to jointly develop in bring to market an IoT development platform that is based on the EOS S3 as the host processor. To enable the broadest served available market, we will launch this platform with open source tooling support for both the ARM MCU and the eFPGA core in EOS S3.

We are now jointly engaged with a third party company who has a track record of delivering open source tools. We also have a commitment from this mega-cap company to launch thousands of low-cost development kits into the market. Our largest deployment ever by 2 orders of magnitude. We are targeting to launch these before the end of Q1 2020. Moreover, we believe multiple AI software solutions will be ported to this platform including SensiML. We believe this initiative will be a catalyst for each of our business units. First, it could drive an EOS S3 user base 2 orders of magnitude larger than what we have today. Second, it should drive significantly more exposure for a SensiML and subsequent SaaS subscriptions.

Lastly, we believe it will drive a more meaningful eFPGA IP license agreement with the same company I alluded to earlier. One of our assumptions from our previous earnings call was that the above IP license would be executed in Q4 and drive a near 7 digit license fee in the quarter, while the push out of this IP license to next year is disappointing, I firmly believe the resulting agreement we have negotiated with this company is a substantially higher aggregate value to QuickLogic which will commence in the current quarter. We look forward to updating progress on this initiative during our next call.

I'll conclude with some additional comments on our QuickAI and SensiML business. SensiML continues to gain momentum as more companies explore how AI can be integrated into their suite of products. Does this macro trend accelerates and more dollars are invested in this area, we are dedicating more resources to the sensible team and technology. The funnel for SensiML continues to expand including additional global Fortune 500 companies.

SensiML closed Q3 of the total of 26 customers, 7 of which are global Fortune 500 companies. This total is up from 12 customers in Q2 and 3 in Q1. Currently, the majority of them are still using the low-cost evaluation version of the product not yet on the full SaaS product to generate significantly higher revenue.

We anticipate increasing our total during Q4 from our initiatives with our distribution partners as well as with MCU partnerships, such as our most recent one with STMicro. We currently expect SensiML end the year with approximately 40 customers, most of which serve the industrial markets. These types of customers tend to have much longer evaluation and decision-making periods. As a result, we have seen of the conversion time from a valuation to full SaaS license is taking longer than we had anticipated. Therefore, our objective of cash flow and non-GAAP profitability for the SensiML business unit is more likely to be achieved in mid-2020. The good news is that industrial customers tend to have a much longer and more predictable revenue stream, which should offset the seasonality of our consumer-oriented business. In order to accelerate scalable growth, we have recently hired a Director of Software Sales with experience in AI Software and SaaS business models.

I've covered a lot of ground in his opening remarks. The bottom line is that while there is short term lumpiness in our business, I am confident that we have the levers in place to deliver revenue growth and improved overall financial performance in 2020.

I would now like to turn the call over to Sue. For a discussion of our recent financial performance and for Q4 outlook. Sue?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [4]

--------------------------------------------------------------------------------

Thank you, Brian. Good afternoon and thanks to everyone for joining us. For the third quarter of fiscal 2019, total revenue was $2.2 million. This compares with the revenue of $3.5 million in third quarter last year. The decline from Q3 last year, which was our highest revenue quarter since the fourth quarter fiscal 2015 was mainly due to lower shipments of our mature and display bridge products. Within our Q3 revenue sales of new products were $1 million. This compares with $1.5 million in the third quarter last year.

While we did have higher revenue from other new product sales, they did not make up for the significant decline in display bridge sales. Our mature product revenue was $1.1 million, a decrease compared with $2 million in Q3 last year. The change was due to lower shipments to customers in the inventory and aerospace sectors.

In third quarter of 2019, we have 4 customers each accounting for 10% or greater of sales. Non-GAAP gross margin in Q3 was 48.9% compared with 50.5% in the same quarter last year. The flat gross margin profile comps despite a nearly 40% lower revenue than Q3 last year, showing the strength of our diversified product and customer mix. Non-GAAP operating expenses for Q3 2019 were approximately $4.5 million which was the same as Q3 last year.

As a reminder, our all packs from Q3 last year was a prior to the expenses associated with the SensiML acquisition that closed earlier this year. Within our Q3 2019 OpEx, R&D expenses were $2.6 million and SG&A expenses were $1.9 million. This compares with R&D and SG&A, both at a $2.2 million in Q3 2018. There are approximately $300,000 of decline in SG&A from the same quarter last year resulted from a combination of items including lower consulting expenses and reduced cost resulting from our facility move earlier this year.

The net total for other income expense and taxes in Q3 was a $78,000 charge, compared with an expense of $33,000 in third quarter last year. Non-GAAP net loss in Q3 was $3.5 million or $0.03 per share. This compares with a net loss of $2.7 million or $0.03 per share in the third quarter last year. Finally, the total cash at the end of Q3 was $24.8 million compared with $28.2 million at the end of last quarter. Our cash balance at the end of the third quarter also includes the $50 million draw from the revolving line of credit.

Now moving to our forecast for the fourth quarter of 2019, which will end on December 29. Our revenue guidance for the fourth quarter as $3 plus or minus 10%. We believe that total revenue will be comprised of approximately $1.3 million of new product revenue and at $1.7 million of mature product revenue. With our guidance for higher revenue, which includes additional SaaS sales and our corresponding better absorption of manufacturing overhead. We currently believe our non-GAAP gross margin while improved to approximately 60% plus or minus 3%. We're forecasting total non-GAAP operating expenses while decline to approximately $4.2 million plus or minus $300,000.

Within operating expenses, we expect our R&D to be approximately $2.5 million and SG&A to be approximately $1.7 million. This continue the improvement in our OpEx as it being driven by ongoing cost controls the lower cost of our new facility in San Jose and the roll off of the one-time moving expenses we discussed last quarter. After interest expense other income and taxes at the midpoint of this ranges we currently forecast non-GAAP net loss while be approximately $2.4 million or $0.02 per share based on about 116 million shares outstanding.

Most of the difference between our GAAP to non-GAAP results is our stock-based compensation expense, which we expect to be approximately $760,000. We expect this expense will remain in the mid $700,000 range for the foreseeable future. Finally, in Q4, we expect the lower cash usage in the range of $2.8 million to $3.2 million as Brian mentioned earlier, we should be close to our non-GAAP operating income breakeven at the end of Q1 this in turn should that translate into minimal cash usage for the first quarter next year and the cash flow breakeven in Q2 of 2020.

With that, let me now turn the call back over to Brian for his closing remarks.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [5]

--------------------------------------------------------------------------------

Thank you, Sue. Before concluding my remarks, I'd like to take a moment to discuss the preliminary proxy filing we made on October 7 asking for shareholder approval to execute a reverse split of our common stock, if this is needed to remain listed on the NASDAQ Capital Market. As I discussed in the blog post at a accompany defiling. There are steps we must take to maintain our compliance for trading on the NASDAQ Capital Market, if our stock does not close with at least a $1 bid price for 10 consecutive days prior to January 30, 2020.

The Board has not made a final decision on whether it will execute a reverse split nor determined to final split ratio. The special meeting is simply to have shareholder approval should it need to be used to reverse split path to remain in compliance with NASDAQ. In closing, while we are disappointed to not have achieved our fiscal 2019 financial goals that we discussed during the year, I am convinced that the design wins with recognizable OEMs, new ecosystem partnerships and product introductions addressing new growth markets creates a clear pathway to delivering improved financial performance in fiscal 2020.

During this ramp to profitability, I believe we have the balance sheet to support our financial objectives. I am again reiterating that we currently do not expect the need to raise further cash via an offering. While it is too early to discuss a detailed outlook for fiscal year 2020, the commitments we have received from customers and mix of business we currently expect gives us greater confidence that we will not only significantly increased revenue, but again deliver a solid increase in our annual non-GAAP gross profit margin for the fourth straight year.

Before opening the call for Q&A, I want to let everyone know QuickLogic will be participating in some upcoming investor events. A few of the highlights include the Craig-Hallum Alpha Select Conference in New York on November 12, the LD Micro Conference in Los Angeles on December 11 and the Consumer Electronics Show in Las Vegas, January 7th through the 10th. All the events we plan to attend will be available on the Events section of our website.

That completes our prepared remarks. Operator, I would now like to open the call for questions.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) Our first question will come from Suji Desilva, ROTH Capital.

--------------------------------------------------------------------------------

Sujeeva Desilva, Roth Capital Partners, LLC, Research Division - Senior Research Analyst [2]

--------------------------------------------------------------------------------

So just to get some outstanding in the revenues, how much display bridge is left at the run rate?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [3]

--------------------------------------------------------------------------------

It's de minimis now as of this quarter.

--------------------------------------------------------------------------------

Sujeeva Desilva, Roth Capital Partners, LLC, Research Division - Senior Research Analyst [4]

--------------------------------------------------------------------------------

Okay. Great. And then the large consumer company you've talked about the last few quarters I think always last few years, I don't know if I heard an update about that customer on the call whether in some other comments. So if you could kind of remind us what was happening with that customer that'd be helpful?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [5]

--------------------------------------------------------------------------------

Yes. So the consumer electronics company that we talked about for January when they have the product demonstrated to U.S., that for the first OEM deployment with these trade issues to China, specifically tariffs that we're going to be applied to that end product coming into the US on this last wave of tariff. So what I said on the previous call was that they were not going to launch that this year, and they were going to push it to next year. And what I reiterated on the call at this time, was that we were still expecting that to be system in 2020 product life cycle. That's on that specific one.

Now what we also get more clarity on this call was that that design led to a remote control design for our content and streaming company and they are doing a remote control that is completely under their own control and we are -- the plan of record in there that's the design win for us and that we expect that will actually have a launch date of Q2 of 2020. And again, we've said it's firm because they have control their own destiny. They are not doing this as a design that a TV manufacturer have to ultimately sign-off/on.

--------------------------------------------------------------------------------

Sujeeva Desilva, Roth Capital Partners, LLC, Research Division - Senior Research Analyst [6]

--------------------------------------------------------------------------------

Okay, that's helpful. And then on the headset market, I mean Amazon (inaudible). And then hearing that there is near term challenges for the China customers, coupled with Amazon putting out their own. Can you just kind of wrap that whole dynamic into what's made it harder for unity your customers' ramp?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [7]

--------------------------------------------------------------------------------

Okay. Yes, obviously some of this was complicated with the trade tensions and what could be shipped into the U.S. without getting hit by tariffs. I would say the more recent challenges has been that Amazon put out their own voice recognition software, which we alluded to on the call here because that software is free, customers are wanting to integrate free software from Amazon as voice recognition as opposed to paying and other company for the voice recognition. So that's pushed out the actual launch cycle for some of these guys as a result of that.

As it relates to Amazon, specifically with the TWS, I think it's actually is somewhat disappointing, we're not the first product way from them, but it's not a lot of opportunity for us. I think in many ways it actually makes the market more real to people and you can imagine that a lot of OEMs that we're talking to now that are working with the ODM that we are in and could be using that as a white label product for the foreseeable future. Meaning that when you go to your consumer electronics, so you're not going to just see Apple AirPods and Amazon TWS you're going to see a whole host of people that are very similar in form factor and hopefully white labeling, the products that we're in.

--------------------------------------------------------------------------------

Sujeeva Desilva, Roth Capital Partners, LLC, Research Division - Senior Research Analyst [8]

--------------------------------------------------------------------------------

Okay. Good. Two last topics for questions first of all, in Japan on the smartphone customer we have there, what are your expectations for unit at the end of '19 are you where you expect to be or ahead or behind that and if so what's the delta versus what you expect in a few quarters ago.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [9]

--------------------------------------------------------------------------------

So from a few quarters ago I think anyone on the last call, we said that we are below expectations for the year by a few hundred thousand units for that customer, which translates into a little more than a few hundred thousand dollars but we were expecting that we would be in around 4 phones shipping this year and we are going to hit from a phone launch point of view, I think we're going to hit that based on what we just said on this call. Just the unit a million dollars will be a little bit below what we had expected earlier in the year.

Now it's worth noting also since you brought that customer. I remember we have this MOU that covers 2 years where the phones. So I am expecting that we're going to be in this next wave if phone next year based on the same customer, where they're taking current design and then iterating that leveraging all of the software could put into yield chip. Remember they spent like almost 2 years, recording to their own software in the yields and they want to maximize that R&D investment in more part as well.

--------------------------------------------------------------------------------

Sujeeva Desilva, Roth Capital Partners, LLC, Research Division - Senior Research Analyst [10]

--------------------------------------------------------------------------------

And last question eFPGA embedded FPGA, what's a good expectation or kind of way to frame, what are the 2020 revenue opportunities for that. Any royalties in that Brian?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [11]

--------------------------------------------------------------------------------

So I would not factoring any royalties. I think the royalty flywheel starts in 2021 at this point, if you look at a lot of the designs that we have now that I talked on the call there typically like 2020, mid-2020 tape-outs, that's going to result in a 2021 royalty flywheel. As far as the licensing revenue goes for next year, I don't think greater points to nail down a specific number, but I definitely think it's going to be in the couple of million-ish type range based on again these kind current customers that we've talked about and then getting that larger IP deal in close with mega cap-based company that I mentioned on the call for the first time today.

--------------------------------------------------------------------------------

Operator [12]

--------------------------------------------------------------------------------

(Operator Instructions) Next we'll hear from Richard Shannon, Craig Hallum.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [13]

--------------------------------------------------------------------------------

Lots of things to ask about -- some of my topics covered here, but maybe just as a simple question here, I think for 10% customers you mentioned there were 4 of them. Any of the opportunities that you discussed that you've seen some ramps in newer products amongst those 4 customers are now 10 percenters?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [14]

--------------------------------------------------------------------------------

There I think -- I think this new product, Richard.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [15]

--------------------------------------------------------------------------------

Is one of them the Japanese OEM?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [16]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [17]

--------------------------------------------------------------------------------

Okay, that's kind of what I guess. Let's see jump over to SensiML. It sounds like you're making some good progress, maybe not as fast as you had hoped, but certainly addressing the industrial market here certainly understandable that the valuations, take some time. I guess, Brian, maybe if I could kind of check off the kind of the bad case scenario here about evaluations taking longer. Are you seeing any customers doing evaluations and dropping off in any manner. You still see them engaged is just taking a little bit longer?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [18]

--------------------------------------------------------------------------------

It's largely it's been taking longer. I think a lot of cases what we found is that customers are trying to use some of their own hardware to gather data and use the SensiML cloud and inevitably they introduce Air into their systems and the way they test, which is why we're trying to influence people to use our hardware development kits instead of their own systems for that level of testing to kind of get through this evaluation phase much faster. And we've also come out with a new launch of software actually recently, we didn't get airtime to it on the call today.

But we've come out with a new version on the website that supposed to make it easier and faster to get through this evaluation phase. So now I have the funnel in front of me, I don't see anybody that's fine up there was falling off (inaudible) of our point of view, there is still ongoing. And just exercising that before they commit to the level of SaaS that we'd like them too.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [19]

--------------------------------------------------------------------------------

Okay. And then you said you just hired a new person here for the central does a key member whose sales are engineering point of view, but is their experience of how long these evaluations stay consistent with their experience in the past before coming to QuickLogic?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [20]

--------------------------------------------------------------------------------

I haven't asked the question of this individual yet I am intending to actually just started last week, they added to sales director, it's going to be end of it sounds more organization really driving forward closing more of these deals with really our focus. So one of the nice piece a background of this individual is that they have experienced selling SaaS and selling AI Software. So I think the ramp time will be short, they're going to be handed over these thousands of leads that we have now generated from these different webinars and distribution programs that we have and I think we're going to start to see an increase in the closure rate and a decrease in the amount of time it takes to get to that point from that experience.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [21]

--------------------------------------------------------------------------------

Okay. Fair enough. And maybe a couple of quick questions for Sue, on the numbers here. If I caught your comments right you're expecting improvement in the first quarter approaching breakeven. Then getting there in the second quarter, maybe if you could detail what a minimum level of sales do you think it will take to get to breakeven?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [22]

--------------------------------------------------------------------------------

So we're thinking now and the revenue, total revenue level of approximately $6 million of plus-minus 10% and with the gross margin at about low 60% level.

--------------------------------------------------------------------------------

Richard Cutts Shannon, Craig-Hallum Capital Group LLC, Research Division - Senior Research Analyst [23]

--------------------------------------------------------------------------------

Okay. And while it probably can do the math quick enough in my head, but does that imply OpEx that kind of a similar level that you're guiding to for the fourth quarter.

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [24]

--------------------------------------------------------------------------------

Yes, much stable as what I guided for Q4 level.

--------------------------------------------------------------------------------

Operator [25]

--------------------------------------------------------------------------------

Our next question today comes from Martin Yang, Oppenheimer.

--------------------------------------------------------------------------------

Zhihua Yang, Oppenheimer & Co. Inc., Research Division - Associate [26]

--------------------------------------------------------------------------------

So my question, first is on the 1Q expectations is the 750,000 license agreement is that expect it to be pushed out into 1Q '20 or do you -- expect that to be realized later than 1Q '20?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [27]

--------------------------------------------------------------------------------

At this more or mildly being spread out through the year, not all lump in Q1.

--------------------------------------------------------------------------------

Zhihua Yang, Oppenheimer & Co. Inc., Research Division - Associate [28]

--------------------------------------------------------------------------------

Got it. And for -- when you mentioned the mega cap customers that can increase your as platform, are they intended to focus only on industrial IoT or is that a mixture of consumer, industrial and other verticals.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [29]

--------------------------------------------------------------------------------

It's actually a mixture. It is not just industrial it's definitely -- I'd say more on the consumer side in the industrial in fact, but I think the development that we're doing with them will lend itself very well to people who would like to use in an industrial-type applications.

--------------------------------------------------------------------------------

Zhihua Yang, Oppenheimer & Co. Inc., Research Division - Associate [30]

--------------------------------------------------------------------------------

And have you discussed more specific and devices that those problems are targeted too?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [31]

--------------------------------------------------------------------------------

No, I haven't, in fact, this is the first time ever spoken publicly about this whole engagement that's been going on for well, -- sure way to say that the majority of people on this call used products like that every day.

--------------------------------------------------------------------------------

Zhihua Yang, Oppenheimer & Co. Inc., Research Division - Associate [32]

--------------------------------------------------------------------------------

Understood. And last question from me. So for in a hearable space, Amazon change in software is driving some of the delays are you seeing other drivers for instance your partnership with [Iroha] are you seeing any new developments from them?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [33]

--------------------------------------------------------------------------------

I don't know if you're talking about new partnership opportunities and new competitive situations which one you talking about?

--------------------------------------------------------------------------------

Zhihua Yang, Oppenheimer & Co. Inc., Research Division - Associate [34]

--------------------------------------------------------------------------------

I was referring to -- are you engaged with versus the equivalent chip designers similar to [Iroha] -- to deep in your penetration in the here bolt space?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [35]

--------------------------------------------------------------------------------

Yes, in fact that's given how long we've spend on the prepared remarks, or any of those types of details fell off the table. I think on the call, but I can reiterate them here in Q&A. So yes, I mean in the last quarter, we announced several new partnerships. I think one was with [Iroha] we're working with that Tech, which is the Chinese Bluetooth company that markets, which we did give some airtime during the call. All of these are folks that had some level of penetration into these applications already and we're kind of getting on the bandwagon with them as far as bringing the whole solution to those same customers.

So these partnerships are definitely helping. In some cases, they're bringing us to decision makers that we are not really calling on in other cases; it's a reverse we're bringing them into different people. But it's really important actually because in the consumer space in particular customers like to start from a known good verified starting point, they don't like to do a lot of development on the fly and so by us pre verifying these solutions with these big semiconductor companies sort of validates what we're doing and it accelerates the customer development cycle.

--------------------------------------------------------------------------------

Operator [36]

--------------------------------------------------------------------------------

Next up is Rick Neaton, Rivershore Investment Research.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [37]

--------------------------------------------------------------------------------

I'd like some reclassification about Infineon, last call you mentioned that you expected some production late in Q4 of this year of that of a module or a product coming from that reference design is that one of the pushouts or is that still on-track.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [38]

--------------------------------------------------------------------------------

So we are expecting to ship some from us to them to build out some of these systems and but I think the bigger launch from them will actually be pushed out a little bit from what we thought last time and some of that's just due to the qualification of all of their AI Software that they're running on the EOS S3.But we do have in our forecast to ship to that design in this quarter.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [39]

--------------------------------------------------------------------------------

Okay. I didn't hear you mention anything about the feature smartphone that your Japanese customer had scheduled to release in Q2 of next year, is that still on track?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [40]

--------------------------------------------------------------------------------

Absolutely, it's on track.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [41]

--------------------------------------------------------------------------------

And then contract in speaking about your expectations for Q1 is this guidance or should it be viewed as something short of guidance?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [42]

--------------------------------------------------------------------------------

Well, I'm not going to change our policy, which is to give guidance for current quarter, but I would say it's a very well thought out outlook and the drivers that it's going to take to get to that point of the operating income and the balance sheet.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [43]

--------------------------------------------------------------------------------

And so Sue, we should model $4.2 million of non-GAAP operating expenses for Q1 of next year, is that what you're saying?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [44]

--------------------------------------------------------------------------------

I want the model a bit lower than that of $4.2 million midpoint I want that model that at the lower end of that midpoint that range, so get us to breakeven point.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [45]

--------------------------------------------------------------------------------

I was trying to reconcile your $6 million plus or minus, with the 60% gross margin leaves about a $600,000 delta between breakeven and your $4.2 million.

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [46]

--------------------------------------------------------------------------------

So that kind of captured at the few while 2 point of the gross margin improvement or the OpEx level adjustments. So that's where we navigating close to breakeven and to Q2 next year then we're comfortable saying breakeven.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [47]

--------------------------------------------------------------------------------

Are you seeing Non-GAAP OpEx at about $4 million a quarter than in each of the 2 quarters in the first half of next year?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [48]

--------------------------------------------------------------------------------

That's our goal to achieve that level of OpEx spending.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [49]

--------------------------------------------------------------------------------

Okay. But that's not a forecast yet that's a goal?

--------------------------------------------------------------------------------

Suping Cheung, QuickLogic Corporation - CFO & VP of Finance [50]

--------------------------------------------------------------------------------

That we're pretty comfortable saying that as well.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [51]

--------------------------------------------------------------------------------

Okay, Brian. At the last conference call, you said you expected 50 to 100 SensiML customers by year-end and now you scale that back to 40. So what's the reason for the big difference in your expectations?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [52]

--------------------------------------------------------------------------------

Really boils down to two things Rick. One is that, as I alluded to in the call. We did think that people we get through this evaluation phase SensiML much faster than what they've shown, some of those have actually caused us to go back and come out with this more reduced fixed version of the of software that we just launched. So that's one thing that we're doing to try to accelerate that.

The second is that I did mention in the call, so that we are officially a partner of STMicro so SensiML has their software running on the STMicro MCU. We had a very prominent kiosk at the ST developers conference in Santa Clara meaning SensiML. And our vision there was that they would also be pulling in more of these opportunities that would convert to SaaS licenses sooner than what they have. I think I maybe you overestimated how fast the large European company would move and I was on the wrong side of that estimate.

So I think we're re-scaling this to 40 for the year, but I still think foundationally and fundamentally being part of FTEs ecosystem partner program and then actually getting trained up on the solution and becoming an ARM for SensiML. I think the end is going to accelerate this one bigger more comfortable. And in the last think I would say is just having a semi-conductor company sell software is like challenging people's DNA at some point. And so we hired salesperson for SensiML because we want to get breakthrough that law. And I think having somebody that got experience selling AI and selling SaaS and getting these thousand leads there going to be able to convert at a much faster rate. So in retrospect I wish we hired a sale person dedicate for this, but we're trying to be very mindful of OpEx we went on that path. Hopefully that answers your question.

--------------------------------------------------------------------------------

Rick Neaton;Rivershore Investment Research;President, [53]

--------------------------------------------------------------------------------

Yes, it does thank you Brian. As an investor how should that person be viewing the confidence in your outlook for Q1 '20, given all the changes that happened in the last 2 conference call?

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [54]

--------------------------------------------------------------------------------

Yes, thinking about that, before the call. And I think this is where we need step back and look at to score for a second and just realize that now we really have so many different items as wins that big customers that we didn't have like a year ago that was so well diversified. And I think if we look at those different milestones in the different partnerships we put in place and these deal now that I talk about that we signed, I think that should give -- that certainly give me and our management team I hope that gives investors that same sense of confidence that I have because so much diversified customers.

The firm commitment I mean think about last year, we still had shipped a phone with Japanese smartphone, and now we're going to exit this year with 4 phones launch. So I think the evidence of there now that this really is on the cost. I will add one another thing. This whole deal with as mega Cap Company again I haven't talk about this deal before except today, this is a big company putting money and resources behind this initiative for thousands of kits started to the market with this software.

You can argue that's a big company but they're going to have the reputation attached to this as well and they choice ESS3 as the host possessor. So I think there's something there and we can all take from that and also that's the another reason we're getting the confidence to tied its turn down and Q1 will be that quarter.

--------------------------------------------------------------------------------

Operator [55]

--------------------------------------------------------------------------------

And everyone that's all this time we have for questions today. I'd like to hand things back to Brian Faith, for any additional or closing remarks.

--------------------------------------------------------------------------------

Brian C. Faith, QuickLogic Corporation - President, CEO & Director [56]

--------------------------------------------------------------------------------

Yes. Thank you for your participation in today's call and continued support. We look forward to speaking with you again when we report our fiscal fourth quarter results and early February next year. Thank you and goodbye.

--------------------------------------------------------------------------------

Operator [57]

--------------------------------------------------------------------------------

Ladies and gentlemen, that does conclude today's conference. Thank you all for your participation. You may now disconnect.

  • How China can build a hospital for coronavirus patients in a week
    U.S.
    Quartz

    How China can build a hospital for coronavirus patients in a week

    In Wuhan, China, there's a riveting sideshow in the unfolding drama to contain the fast-spreading coronavirus strain that has already claimed 132 lives and infected over 6,000, as of the latest confirmed count. The majority of those infected are in Wuhan, and the Chinese government is putting its resources into building new medical facilities, fast. Broadcast by Chinese state media, drone footage of the construction site shows a ballet of bulldozers digging the foundation and a parade of trucks hauling in steel cable, cement, pre-fab parts and power generators.

  • While we wait for Tesla's earnings report, here's how its profit per vehicle compares
    Business
    Autoblog

    While we wait for Tesla's earnings report, here's how its profit per vehicle compares

    The electric carmaker's stock has more than doubled since Tesla's previous quarterly report on Oct. 23, when it posted a surprise profit that was viewed as a milestone for the company. Still, a Reuters analysis of Tesla's and other luxury carmakers' operating profit per vehicle — a metric closely watched by auto executives — shows Tesla still has a long way to go before reaching the steady profits of rivals Porsche, BMW and Mercedes-Benz. At an average of roughly $17,750 per vehicle, operating profit at luxury carmaker Porsche, for example, has been stable over the past four years.

  • Hackers are ramping up attacks on retirement accounts — how to keep yourself safe
    Business
    MarketWatch

    Hackers are ramping up attacks on retirement accounts — how to keep yourself safe

    The thought of losing your life savings to hackers can be terrifying — and it's why two of Houston financial adviser Michelle Gessner's clients didn't want to consolidate their retirement assets, even if the move would be financially savvy. “The question is real and understandable,” Gessner said. Gessner was able to talk them through their fears, and showed them the custodians she works with — such as Fidelity, TD Ameritrade (AMTD) and Schwab (SCHW) — all guarantee protection in the event of a hack.

  • Beyond Meat Products Pulled From Tim Hortons Canada Shops
    Business
    Bloomberg

    Beyond Meat Products Pulled From Tim Hortons Canada Shops

    The chain had been serving the Beyond Burger and a Beyond Meat breakfast sandwich made with the company's imitation sausage products. Beyond shares sank as much as 3.9% to $115.40 in early trading Wednesday after Bloomberg's report. The rollback marks a rare setback for the plant-based meat maker, which currently has partnerships with Carl's Jr., Hardee's and Dunkin' Donuts in the U.S., and recently announced an expansion of its partnership with Subway in Canada to begin serving meatball subs nationwide.

  • Baby boomers commit the ‘7 deadly sins’ of retirement planning
    Business
    MarketWatch

    Baby boomers commit the ‘7 deadly sins’ of retirement planning

    Boomer Expectations for Retirement,” a new annual study from the Insured Retirement Institute — a trade body for the annuity industry — makes shocking reading. Most boomers are unprepared for retirement, even as they approach it or enter it. Amazingly, barely one in 10 has enough saved up.

  • Facebook stock tumbles despite earnings beat
    Business
    Yahoo Finance

    Facebook stock tumbles despite earnings beat

    Despite reporting a beat on the top and bottom lines during its fourth quarter, Facebook (FB) stock tumbled more than 6% in after-hours trading. Here were the numbers for Facebook's fourth quarter compared with Bloomberg-compiled estimates: Revenue: $21.08 billion vs. $20.89 billion expected, +25% YoY Earnings per share: $2.56 vs. $2.53 expected Daily Active Users: 1.66 billion vs. 1.65 billion expected, +9% YoY Monthly Active Users: 2.50 billion vs. 2.49 billion expected, +8% YoY Facebook's ad revenue totaled $20.74 billion during the fourth quarter, which was better than Wall Street estimates of $20.56 billion.

  • California Governor Reiterates State Takeover Is an Option for PG&E
    Business
    Bloomberg

    California Governor Reiterates State Takeover Is an Option for PG&E

    At an event in Sacramento, Newsom said his administration has laid out “detailed terms” on what a takeover would look like and is working on it with legislative leaders in case it's needed. The San Francisco-based company faces a June deadline to exit court protection to be able to tap a state fund for fire damages, and Newsom has raised concerns about its bankruptcy plan. “It has to to be completely reimagined, completely transformed company,” Newsom said at the Public Policy Institute of California event, which came on the one-year anniversary of the utility's bankruptcy filing.

  • Does The Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) Share Price Tend To Follow The Market?
    Business
    Simply Wall St.

    Does The Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) Share Price Tend To Follow The Market?

    Anyone researching Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories.

  • Witnesses describe Bryant helicopter crash
    News
    Associated Press Videos

    Witnesses describe Bryant helicopter crash

    A witness says the helicopter crash that killed nine people including former NBA star Kobe Bryant in Calabasas, California on Sunday sounded like 'a big thud. Jan.

  • Penn National's average casino customer is in their 50s. It's betting Barstool Sports can change that.
    Business
    American City Business Journals

    Penn National's average casino customer is in their 50s. It's betting Barstool Sports can change that.

    Penn National Gaming Inc. is betting that its move to take a minority stake in Barstool Sports will drive the sports media company's younger audience to its 41 casinos. Jay Snowden, CEO of the Wyomissing-based gaming operator, said on an investor call on Wednesday that the company's average casino customer is in their mid-50s, and both Barstool's audience and sports bettors tend to skew younger. “Sports betting is a great nexus for us to start to attract and convert younger sports bettors,” Snowden said.

  • GE’s stock soars after earnings, as CEO Culp says turnaround is ‘gaining traction’
    Business
    MarketWatch

    GE’s stock soars after earnings, as CEO Culp says turnaround is ‘gaining traction’

    Shares of General Electric Co. climbed toward a more than one-year high Wednesday, after the long-struggling industrial conglomerate reported profit, revenue and free cash flow beats, and commentary from Chief Executive Larry Culp suggested the worst is behind the company. After calling 2019 a “reset” year, Culp capped his first full calendar year in charge of GE by saying on the post-earnings conference call with analysts that he was seeing “evidence of momentum” across the company. “Despite areas of volatility in aggregate, we have a positive trajectory in 2020,” Culp said, according to a transcript provided by FactSet.

  • 'Bilking taxpayers': Warren demands $22 million owed by student loan servicer Navient
    Business
    Yahoo Finance

    'Bilking taxpayers': Warren demands $22 million owed by student loan servicer Navient

    It's not just American student loan borrowers who owe money to the federal government. Navient, one of the biggest U.S. student loan lenders, has owed the federal government $22.3 million for over a decade and still hasn't paid it back. In a letter to Education Secretary Betsy DeVos, shared exclusively with Yahoo Finance, Senator Elizabeth Warren (D-MA) urged her to make haste on collecting that amount from Navient.

  • Once-hot DNA testing unicorn 23andMe is in serious trouble
    Business
    Yahoo Finance

    Once-hot DNA testing unicorn 23andMe is in serious trouble

    Silicon Valley DNA testing company 23andMe, which has raised nearly $800 million in funding and was last valued at $2.5 billion, cut 14% of its workforce last week. The cause is a slowdown in sales of its direct-to-consumer DNA kits, which run $100, $200, or $500 depending on how much information you want about your ancestry, genetic composition, health and wellness, carrier status, and vulnerability to certain diseases. DNA tests went boom in 2018, with the number of consumers who had bought one doubling to 26 million; now sales have gone bust.

  • S3 Partners names its top short squeeze candidates
    Business
    Yahoo Finance Video

    S3 Partners names its top short squeeze candidates

    S3 Partners is out with its list of stocks that could be primed for short squeezes — or a surge in share prices — as short sellers are forced to cut their losses. Yahoo Finance's Zack Guzman and Sibile Marcellus discuss with Salt Financial President, Alfred Eskandar.

  • Jeff Bezos throws a D.C. shindig and Amazon employees protest policy
    Business
    American City Business Journals

    Jeff Bezos throws a D.C. shindig and Amazon employees protest policy

    That stock dip cost CEO and founder Jeff Bezos roughly $2.6 billion in stock value. quot;Scourge of counterfeiting": So, back to the DHS report. The Trump administration said it will clamp down on counterfeit products by targeting sellers and the online platforms they use in a move that could affect Amazon.

  • Follow these 5 rules and you can become rich
    News
    MarketWatch

    Follow these 5 rules and you can become rich

    While money will come easier for some of us than for others, the concepts behind building wealth aren't complicated, and the money principles I used to achieve my goals are straightforward. Let's take a look at the five money principles I used to retire young, and how you can take more control over your finances and make your money work for you. You won't need to be a gifted student or a highly-paid professional to start putting these money principles into action right away.

  • Want to retire early? Tanja Hester went from freewheeling spender to financial independence, and says it’s simpler than you think
    News
    MarketWatch

    Want to retire early? Tanja Hester went from freewheeling spender to financial independence, and says it’s simpler than you think

    When Tanja Hester retired a little over a year ago at age 38, she was considered a personal finance icon to many: She and her husband, Mark, 41, had managed to save enough to live on for the rest of their lives. When Hester was starting out, she had a more conventional approach to earning and spending — and made a lot of common mistakes. Investing felt too intimidating — and Hester kept her fledgling savings in a garden-variety bank account with a meager interest rate that didn't keep up with inflation, losing spending power in the process.

  • 3 “Strong Buy” Dividend Stocks Yielding At Least 6%
    Business
    TipRanks

    3 “Strong Buy” Dividend Stocks Yielding At Least 6%

    Among S&P listed companies, the average dividend yield of 2% still beats interest rates and bond returns. And remember: there is no ceiling on dividend yields. We've used TipRanks' Stock Screener tool to seek out small- and mid-cap stocks with high dividends – that is, with yields exceeding 6%.

  • The Roth strategy we wish we’d built for early retirement
    Business
    MarketWatch

    The Roth strategy we wish we’d built for early retirement

    It's fair to say there are several things we'd do differently if we were to go back and save for early retirement all over again, because we didn't do this perfectly by any means. There are the things we'd do differently if we were starting right now, but the biggest thing we'd change no matter when we were saving and no matter what the markets were doing at that point is do a better job of saving money in Roth IRA accounts. Yes, we have Roth regrets.

  • Business
    GuruFocus.com

    McDonald's 4th-Quarter Earnings Rise on Strong Comps

    McDonald's (NYSE:MCD) released its fourth-quarter earnings on Jan. 29 before the opening bell. The company posted strong earnings and revenue for the quarter, meeting Wall Street's estimates. Global comps in the reported quarter surged 5.9%, which surpassed Wall Street's growth estimate of 5.2%.

  • The Micron Technology (NASDAQ:MU) Share Price Has Gained 134%, So Why Not Pay It Some Attention?
    Business
    Simply Wall St.

    The Micron Technology (NASDAQ:MU) Share Price Has Gained 134%, So Why Not Pay It Some Attention?

    By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Micron Technology became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

  • ‘He owed a lot of back taxes.’ My ex-husband forgot to sign paperwork to split a sizable investment account — then he died suddenly. Can his estate claim that money?
    Business
    MarketWatch

    ‘He owed a lot of back taxes.’ My ex-husband forgot to sign paperwork to split a sizable investment account — then he died suddenly. Can his estate claim that money?

    Dear Moneyist, I divorced a little over a year ago, and my ex-husband died suddenly. One of our investment accounts was ordered to be split $30,000/$60,000, as per our divorce agreement. I signed my paperwork, but he never got around to it.

  • Mastercard Posts 4th-Quarter Earnings Beat on Strong Market
    Business
    GuruFocus.com

    Mastercard Posts 4th-Quarter Earnings Beat on Strong Market

    For the quarter, the credit services company announced revenue of $4.41 billion, net income of $2.10 billion and GAAP diluted earnings per share of $2.07, compared to revenue of $3.8 billion, net income of $0.89 billion and GAAP earnings of 87 cents per share in the prior-year quarter. On average, analysts were predicting revenue of $4.40 billion and earnings of $1.87 per share. MA 30-Year Financial Data The intrinsic value of MA Peter Lynch Chart of MA Revenue for the full year was $16.9 billion compared to $15.0 billion in 2018, while net income came in at $8.1 billion compared to $5.9 billion in the prior year and earnings per share were $7.94 compared to $5.60.

  • Warren, Sanders wealth taxes could double US trade deficit, study finds
    Politics
    Fox Business

    Warren, Sanders wealth taxes could double US trade deficit, study finds

    Wealth-tax proposals championed by Democratic presidential candidates Elizabeth Warren and Bernie Sanders could significantly increase the trade deficit over the next decade, according to a paper published this week. The Tax Foundation, a conservative think tank based in Washington, D.C., estimated that the average trade deficit from 2020 to 2029 would more than double under both progressive candidates' proposals. The deficit would increase from the Congressional Budget Office's estimate of 3.10 percent to 6.94 percent under Warren's proposal and 7.53 percent under Sanders'.

  • Who Has Been Buying AT&T Inc. (NYSE:T) Shares?
    Business
    Simply Wall St.

    Who Has Been Buying AT&T Inc. (NYSE:T) Shares?

    It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. Insider transactions are not the most important thing when it comes to long-term investing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company's stock when the firm is about to reveal new agreements with customers and suppliers'.