QuickLogic Announces Fourth Quarter and Fiscal 2012 Results

QuickLogic Announces Fourth Quarter and Fiscal 2012 Results 
SUNNYVALE, CA -- (Marketwire) -- 02/06/13 --  QuickLogic Corporation
(NASDAQ: QUIK), the leader in low-power Customer Specific Standard
Products (CSSPs), today announced the financial results for its
fourth quarter and fiscal year ended December 30, 2012. 
Total revenue for the fourth quarter of 2012 was $3.1 million, down
16% sequentially and down 29% from the fourth quarter of 2011. During
the fourth quarter, new product revenue of $1.0 million was down 35%
sequentially and down 41% from the fourth quarter of 2011.  
Under generally accepted accounting principles (GAAP), the net loss
for the fourth quarter of 2012 was $2.6 million or $0.06 per share,
compared with a net loss of $2.8 million, or $0.06 per share, in the
third quarter of 2012, and a net loss of $3.1 million, or $0.08 per
share, in the fourt
h quarter of 2011. Non-GAAP net loss for the
fourth quarter of 2012 was $2.0 million, or $0.04 per share, compared
with a non-GAAP net loss of $2.2 million, or $0.05 per share, in the
third quarter of 2012, and a non-GAAP net loss of $2.7 million, or
$0.07 per share, in the fourth quarter of 2011.  
Total revenue for 2012 was down 29% at $14.9 million, compared with
revenue of $21.0 million in 2011. GAAP net loss for 2012 was $12.3
million, or $0.29 per share, compared with a net loss of $7.6
million, or $0.21 per share, in 2011. Non-GAAP net loss for 2012 was
$10.3 million, or $0.25 per share, compared with a non-GAAP net loss
of $5.8 million, or $0.16 per share, in 2011. 
Conference Call  
QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard
Time today, February 6, 2013, 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 Standard
Time today. 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: 90137354. The call
recording will be archived until Tuesday, February 12, 2013 and the
webcast will be available for 12 months. 
About QuickLogic 
QuickLogic Corporation (NASDAQ: QUIK) is the inventor and pioneer of
innovative, customizable semiconductor solutions for mobile and
portable electronics original equipment manufacturers (OEMs) and
original design manufacturers (ODMs). These silicon plus software
solutions are called Customer Specific Standard Products (CSSPs).
CSSPs enable our customers to bring their products to market more
quickly and remain in the market longer, with the low power, cost and
size demanded by the mobile and portable electronics market. For more
information about QuickLogic and CSSPs, visit www.quicklogic.com.
Code: QUIK-G 
Non-GAAP Financial Measures  
QuickLogic reports financial information in accordance with GAAP, but
believes that non-GAAP financial measures are helpful in evaluating
its operating results and comparing its performance to comparable
companies. Accordingly, the Company excludes charges related to
stock-based compensation, restructuring, the write-down of the
Company's investment in TowerJazz Semiconductor Ltd., 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, QuickLogic, QuickPCI and QuickRAM 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. 


 
                                                                            
                           QUICKLOGIC CORPORATION                           
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS              
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                             Three Months Ended             Year Ended      
                      -------------------------------  -------------------- 
                       December   January   September   December   January  
                       30, 2012   1, 2012    30, 2012   30, 2012   1, 2012  
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Revenue               $   3,086  $   4,346  $   3,657  $  14,944  $  20,969 
Cost of revenue,                                                            
 excluding inventory                                                        
 write-down and                                                             
 related charges and                                                        
 long-lived asset                                                           
 impairment               1,546      2,181      1,916      7,431      7,807 
Inventory write-down                                                        
 and related charges         19        148          -        447        710 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit              1,521      2,017      1,741      7,066     12,452 
                                                                            
Operating expenses:                                                         
  Research and                                                              
   development            1,624      2
,450      1,865      8,743      9,836 
  Selling, general                                                          
   and administrative     2,377      2,548      2,658     10,481      9,965 
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) from                                                          
 operations              (2,480)    (2,981)    (2,782)   (12,158)    (7,349)
Interest expense            (12)        (5)       (12)       (61)       (36)
Interest income and                                                         
 other (expense), net       (32)       (93)        18        (77)      (159)
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) before                                                        
 income taxes            (2,524)    (3,079)    (2,776)   (12,296)    (7,544)
Provision for                                         
                      
 (benefit from)                                                             
 income taxes                35         31         22         18         50 
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)     $  (2,559) $  (3,110) $  (2,798) $ (12,314) $  (7,594)
                      =========  =========  =========  =========  ========= 
                                                                            
Net income (loss) per                                                       
 share:                                                                     
  Basic               $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)
                      =========  =========  =========  =========  ========= 
  Diluted             $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)
                      =========  =========  =========  =========  ========= 
                                                                            
Weighted average                                                            
 shares:                                                                    
  Basic                  44,400     38,482     44,122     41,831     36,792 
                      =========  =========  =========  =========  ========= 
  Diluted                44,400     38,482     44,122     41,831     36,792 
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                             Three Months Ended             Years Ended     
                      -------------------------------  -------------------- 
                       December   January   September   December   January  
                       30, 2012   1, 2012    30, 2012   30, 2012   1, 2012  
                      ---------  ---------  ---------  ---------  --------- 
GAAP loss from                                                              
 operations           $  (2,480) $  (2,981) $  (2,782) $ (12,158) $  (7,349)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                 
            
   within:                                                                  
    Cost of revenue          39         27         69        179        131 
    Research and                                                            
     development            116        104        147        455        458 
    Selling, general                                                        
     and                                                                    
     administrative         429        254        385      1,369      1,087 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
    Selling, general                                                        
     and                                                                    
     administrative           -          -         25         25        102 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP loss from                                                          
 operations     
      $  (1,896) $  (2,596) $  (2,156) $ (10,130) $  (5,571)
                      =========  =========  =========  =========  ========= 
                                                                            
GAAP net loss         $  (2,559) $  (3,110) $  (2,798) $ (12,314) $  (7,594)
  Adjustment for                                                            
   stock-based                                                              
   compensation                                                             
   within:                                                                  
    Cost of revenue          39         27         69        179        131 
    Research and                                                            
     development            116        104        147        455        458 
    Selling, general                                                        
     and                                                                    
     administrative         429        254        385      1,369      1,087 
  Adjustment for the                                                        
   write-off of                                                             
   equipment within:                                                        
    Selling, general                                                        
     and                                                                    
     administrative           -          -         25         25        102 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss     $  (1,975) $  (2,725) $  (2,172) $ (10,286) $  (5,816)
                      =========  =========  =========  =========  ========= 
                                                                            
GAAP net loss per                                                           
 share                $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)
  Adjustment for                                                            
   stock-based                                                              
   compensation            0.02       0.01       0.01       0.04       0.05 
  Adjustment for                                                            
   write-off of                                                             
   equipment                  -          -          *          *          * 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP net loss per                                                       
 share                $   (0.04) $   (0.07) $   (0.05) $   (0.25) $   (0.16)
                      =========  =========  =========  =========  ========= 
                                                                            
GAAP gross margin                                                           
 percentage                49.3%      46.4%      47.6%      47.3%      59.4%
  Adjustment for                                                            
   stock-based                                                              
   compensation             1.3%       0.6%       2.5%       1.3%       0.6%
  Adjustment for                                                            
   write-off of                                                             
   equipment                  -          -          *          *          * 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP gross margin                                                       
 percentage                50.6%      47.0%      50.1%      48.6%      60.0%
                      =========  =========  =========  =========  ========= 
                                                                            
* Figures were not considered in th
e reconciliation of Non-GAAP net loss per
share due to the insignificant amount.                                      
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                       December 30, 2012   January 1, 2012  
                                       -----------------  ----------------- 
                ASSETS                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents            $          22,578  $          20,203 
  Short-term investment in TowerJazz                                        
   Semiconductor Ltd.                                345                406 
  Accounts receivable, net                         1,242              1,585 
  Inventories                                      3,028              3,764 
  Other current assets                               986                613 
                                       -----------------  ----------------- 
    Total current assets                          28,179             26,571 
Property and equipment, net                        2,659              2,181 
Other assets                                         186                211 
                                       -----------------  ----------------- 
TOTAL ASSETS                           $          31,024  $          28,963 
                                       =================  ================= 
                                                                            
 LIABILITIES AND STOCKHOLDERS' EQUITY                                       
                                                                            
Current liabilities:                                                        
  Trade payables                       $           1,965  $           2,464 
  Accrued liabilities                              1,214              1,118 
  Deferred royalty revenue                             -                  8 
  Current portion of debt and capital                                       
   lease obligations                                 160                141 
                                       -----------------  ----------------- 
    Total current liabilities                      3,339              3,731 
                                       -----------------  ----------------- 
                                                                            
Long-term liabilities:                                                      
  Capital lease obligations, less                                           
   current portion                                   266                146 
  Other long-term liabilities                        141                148 
                                       -----------------  ----------------- 
    Total liabilities                              3,746              4,025 
                                       -----------------  ----------------- 
                                                                            
Stockholders' equity:                                                       
  Common stock, at par value                          45                 39 
  Additional paid-in capital                     204,797            190,025 
  Accumulated other comprehensive                                           
   income                                            (11)               113 
  Accumulated deficit                           (177,553)          (165,239)
                                       -----------------  ----------------- 
    Total stockholders' equity                    27,278             24,938 
                                       -----------------  ----------------- 
TOTAL LIABILITIES AND STOCKHOLDERS'                                         
 EQUITY                                $          31,024  $          28,963 
                                       =================  ================= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                            Percentage of Revenue       Change in Revenue   
                        ----------------------------  --------------------  
                          Q4     Q3   Fiscal  Fiscal  Q3 2012 to   2011 to  
                         2012   2012   2012    2011     Q4 2012      2012   
                        -----  -----  ------  ------  ----------   -------  
COMPOSITION OF REVENUE                                                      
Revenue by product (1):                                                     
  New products             33%    43%     40%     25%        (35)%      11% 
  Mature products          67%    57%     60%     75%         (1)%     (42)%
                                                                            
Revenue by geography:                                                       
  United States            41%    36%     34%     39%         (4)%     (39)%
  Japan                    21%    23%     22%     13%        (22)%      21% 
  Europe                   20%    20% 
    16%     20%        (16)%     (42)%
  Malaysia                 11%    11%     11%      9%        (15)%      (4)%
  Rest of North America     4%     2%      2%      2%         64%        0% 
  China                     3%     7%     12%     14%        (63)%     (43)%
  Rest of Asia Pacific      0%     1%      3%      3%        (71)%     (43)%
                                                                            
(1) New products represent products introduced since 2005, and include      
    ArcticLink, ArcticLink II, ArcticLink III, Eclipse II, PolarPro,        
    PolarPro II, and QuickPCI II products. Mature products include Eclipse, 
    pASIC1, pASIC2, pASIC3, QuickDSP, QuickFC, QuickMIPS, QuickPCI, QuickRAM
    and V3 products, 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