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Should QuickLogic Corporation's (NASDAQ:QUIK) Recent Earnings Worry You?

Simply Wall St

Assessing QuickLogic Corporation's (NASDAQ:QUIK) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess QUIK's recent performance announced on 30 June 2019 and evaluate these figures to its longer term trend and industry movements.

View our latest analysis for QuickLogic

Did QUIK's recent earnings growth beat the long-term trend and the industry?

QUIK is loss-making, with the most recent trailing twelve-month earnings of -US$14.4m (from 30 June 2019), which compared to last year has become more negative. However, the company's loss seem to be contracting over the medium term, with the five-year earnings average of -US$14.7m. Each year, for the past five years QUIK has seen an annual decline in revenue of -23%, on average. This adverse movement is a driver of the company's inability to reach breakeven.

Scanning growth from a sector-level, the US semiconductor industry has been

NasdaqCM:QUIK Income Statement, August 17th 2019

Although QuickLogic is loss-making, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of US$21m) over the next year. This is a sign of good cash management.

What does this mean?

Though QuickLogic's past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most useful step is to assess company-specific issues QuickLogic may be facing and whether management guidance has consistently been met in the past. You should continue to research QuickLogic to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for QUIK’s future growth? Take a look at our free research report of analyst consensus for QUIK’s outlook.
  2. Financial Health: Are QUIK’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.