QuickLogic Announces Fiscal 2012 Third Quarter Results

QuickLogic Announces Fiscal 2012 Third Quarter Results 
SUNNYVALE, CA -- (Marketwire) -- 10/30/12 --  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 p
lus 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   October    July 1,   September   October  
                      30, 2012    2, 2011      2012     30, 2012   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   October    July 1,    September   October  
                     30, 2012    2, 2011      2012     30, 2012    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,    January 1,   
                                                  2012           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   
                             ----------------------- -----------------------
                                                      Q2 2012 to  Q3 2011 to
                             Q3 2012 Q2 2012 Q3 2011   Q3 2012     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(R), ArcticLink II, Eclipse(TM) II, PolarPro(R), PolarPro II, 
and   
     QuickPCI II. Mature products include Eclipse, EclipsePlus, pASIC(R) 1,   
     pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM, and V3, as   
     well as royalty revenue, programming hardware and software.            

  
Contacts:
Ralph S. Marimon
Vice President of Finance
Chief Financial Officer
(408) 990-4000
rsmarimon@quicklogic.com 
Andrea Vedanayagam
(408) 656-4494
ir@quicklogic.com 
 
 
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