QuickLogic Announces Fourth Quarter and Fiscal 2013 Results

QuickLogic Announces Fourth Quarter and Fiscal 2013 Results 
New Product Revenue More than Triples in 2013 
SUNNYVALE, CA -- (Marketwired) -- 02/05/14 --  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 29, 2013. 
Total revenue for the fourth quarter of 2013 was $8.9 million, down
2% sequentially and up 187% from the fourth quarter of 2012. During
the fourth quarter, new product revenue of $7.0 million was down 1%
sequentially and up 601% from the fourth quarter of 2012. 
Total revenue for 2013 was up 74% at $26.1 million, compared with
total revenue of $14.9 million in 2012. In 2013, new product revenue
was up 208% at $18.2 million, compared with new product revenue of
$5.9 million in 2012. 
Under generally accepted accounting principles (GAAP), the net loss
for the fourth quarter of 2013 was $3.2 million or $0.06 per share,
compared with a net loss of $2.3 million, or $0.05 per share, in the
third quarter of 2013, and a net loss of $2.6 million, or $0.06 per
share, in the fourth quarter of 2012. Non-GAAP net loss for the
fourth quarter of 2013 was $2.2 million, or $0.04 per share, compared
with a non-GAAP net loss of $2.0 million, or $0.04 per share, in the
third quarter of 2013, and a non-GAAP net loss of $2.0 million, or
$0.04 per share, in the fourth quarter of 2012.  
GAAP net loss for 2013 was $12.3 million, or $0.27 per share,
compared with a net loss of $12.3 million, or $0.29 per share, in
2012. Non-GAAP net loss for 2013 was $9.9 million, or $0.22 per
share, compared with a non-GAAP net loss of $10.3 million, or $0.25
per share, in 2012. 
Conference Call 
 QuickLogic will hold a conference call at 2:30 p.m.
Pacific Standard Time today, February 5, 2014, 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:
43763797. The call recording will be archived until Wednesday,
February 12, 2014 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 OEMs and 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 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. 


 
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS              
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                            Three Months Ended              Year Ended      
                     --------------------------------  -------------------- 
                      December   December   September   December   December 
                      29, 2013   30, 2012   29, 2013    29, 2013   30, 2012 
                     ---------  ---------  ----------  ---------  --------- 
                                                                            
Revenue              $   8,863  $   3,086  $    9,066  $  26,072  $  14,944 
Cost of revenue,                                                            
 excluding inventory                                                        
 write-down              5,923      1,546       5,907     16,754      7,431 
Inventory write-down       172         19         130        551        447 
                                                                            
                     ---------  ---------  ----------  ---------  --------- 
Gross profit             2,768      1,521       3,029      8,767      7,066 
Operating expenses:                                                         
  Research and                                                              
   development           2,473      1,624       2,052      8,375      8,743 
  Selling, general                                                          
   and                                                                      
   administrative        3,354      2,377       3,207     12,002     10,481 
  Restructuring cost                                                        
   (credit)                  -          -         (32)       181          - 
                                                                            
                     ---------  ---------  ----------  ---------  --------- 
Income (loss) from                                                          
 operations             (3,059)    (2,480)     (2,198)   (11,791)   (12,158)
Gain on sale of                                                             
 TowerJazz                                                                  
 Semiconductor Ltd.                                                         
 shares                      -          -           -        181          - 
Interest expense           (17)       (12)         (8)       (54)       (61)
Interest income and                                                         
 other (expense),                                                           
 net                       (27)       (32)        (74)      (157)       (77)
                                                                            
                     ---------  ---------  ----------  ---------  --------- 
Income (loss) before                                                        
 income taxes           (3,103)    (2,524)     (2,280)   (11,821)   (12,296)
Provision for                                                               
 (benefit from)                                                             
 income taxes               86         35         (18)       455         18 
                                                                            
                     ---------  ---------  ----------  ---------  --------- 
Net income (loss)    $  (3,189) $  (2,559) $   (2,262) $ (1
2,276) $ (12,314)
                     =========  =========  ==========  =========  ========= 
                                                                            
Net income (loss)                                                           
 per share:                                                                 
  Basic              $   (0.06) $   (0.06) $    (0.05) $   (0.27) $   (0.29)
                     =========  =========  ==========  =========  ========= 
  Diluted            $   (0.06) $   (0.06) $    (0.05) $   (0.27) $   (0.29)
                     =========  =========  ==========  =========  ========= 
                                                                            
Weighted average                                                            
 shares:                                                                    
  Basic                 49,130     44,400      44,761     45,762     41,831 
                     =========  =========  ==========  =========  ========= 
  Diluted               49,130     44,400      44,761     45,762     41,831 
                     =========  =========  ==========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                                Three Months Ended           Year Ended     
                          -----------------------------  ------------------ 
                          December  December  September  December  December 
                          29, 2013  30, 2012   29, 2013  29, 2013  30, 2012 
                          --------  --------  ---------  --------  -------- 
GAAP income (loss) from                                                     
 operations               $ (3,059) $ (2,480) $  (2,198) $(11,791) $(12,158)
  Adjustment for stock-                                                     
   based compensation                                                       
   within:                                                                  
    Cost of revenue            156        39         24       232       179 
    Research and                                                            
     development               380       116         74       666       455 
    Selling, general and                                                    
     administrative            376       429        232     1,081     1,369 
  Adjustment for the                                                        
   write-off of equipment                                                   
   within:                                                                  
    Cost of revenue             66         -          -        66         - 
    Selling, general and                                                    
     administrative             27         -          3        30        25 
  Adjustment for                                                            
   restructuring costs                                                      
   (credit)                      -         -        (32)      181         - 
                          --------  --------  ---------  --------  -------- 
Non-GAAP income (loss)                                                      
 from operations          $ (2,054) $ (1,896) $  (1,897) $ (9,535) $(10,130)
                          ========  ========  =========  ========  ======== 
                                                                            
GAAP net income (loss
)    $ (3,189) $ (2,559) $  (2,262) $(12,276) $(12,314)
  Adjustment for stock-                                                     
   based compensation                                                       
   within:                                                                  
    Cost of revenue            156        39         24       232       179 
    Research and                                                            
     development               380       116         74       666       455 
    Selling, general and                                                    
     administrative            376       429        232     1,081     1,369 
  Adjustment for the                                                        
   write-off of equipment                                                   
   within:                                                                  
    Cost of revenue             66         -          -        66         - 
    Selling, general and                                                    
     administrative             27         -          3        30        25 
    Other expense                                                           
  Adjustment for                                                            
   restructuring costs                                                      
   (credit)                      -         -        (32)      181         - 
  Adjustment for gain on                                                    
   sale of TowerJazz                                                        
   Semiconductor Ltd.                                                       
   shares                        -         -          -      (181)        - 
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive income          -         -          -       273         - 
                          --------  --------  ---------  --------  -------- 
Non-GAAP net income                                                         
 (loss)                   $ (2,184) $ (1,975) $  (1,961) $ (9,928) $(10,286)
                          ========  ========  =========  ========  ======== 
                                                                            
GAAP net income (loss)                                                      
 per share                $  (0.06) $  (0.06) $   (0.05) $  (0.27) $  (0.29)
  Adjustment for stock-                                                     
   based compensation         0.02      0.02       0.01      0.04      0.04 
  Adjustment for write-                                                     
   off of equipment              *         -          *         *         * 
  Adjustment for                                                            
   restructuring costs                                                      
   (credit)                      -         -       
   *      0.01         - 
  Adjustment for gain on                                                    
   sale of TowerJazz                                                        
   Semiconductor Ltd.                                                       
   shares                        -         -          -     (0.01)        - 
  Adjustment for tax                                                        
   effect on other                                                          
   comprehensive income          -         -          -      0.01         - 
                          --------  --------  ---------  --------  -------- 
Non-GAAP net income                                                         
 (loss) per share         $  (0.04) $  (0.04) $   (0.04) $  (0.22) $  (0.25)
                          ========  ========  =========  ========  ======== 
                                                                            
GAAP gross margin                                                           
 percentage                   31.2%     49.3%      33.4%     33.6%     47.3%
  Adjustment for stock-                                                     
   based compensation          1.8       1.3        0.3       0.9       1.3 
  Adjustment for                                                            
   restructuring costs                                                      
   (credit)                      -         -          *         *         - 
  Adjustment for write-                                                     
   off of equipment            0.7         -          -       0.3         * 
                                                                            
                          --------  --------  ---------  --------  -------- 
Non-GAAP gross margin                                                       
 percentage                   33.7%     50.6%      33.7%     34.8%     48.6%
                          ========  ========  =========  ========  ======== 
                                                                            
                                                                            
* Figures were not considered in the reconciliation of Non-GAAP net loss per
share and gross margin percentage due to the insignificant amount.          
                                                                            

 
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                            December 29,     December 30,   
                                                 2013           2012(1)     
                                           ---------------  --------------- 
                  ASSETS                                                    
                                                                            
Current assets:                                                             
  Cash and cash equivalents                $        37,406  $        22,578 
  Short-term investment in TowerJazz                                        
   Semiconductor Ltd.                                    -              345 
  Accounts receivable, net                           3,261            1,242 
  Inventories                                        4,136            3,028 
  Other current assets                               1,272              986 
                                           ---------------  --------------- 
    Total current assets                            46,075           28,179 
                                           ---------------  --------------- 
Property and equipment, net                          2,840            2,659 
Other assets                                           211              186 
                                                                            
                                           ---------------  --------------- 
TOTAL ASSETS                               $        49,126  $        31,024 
                                           ===============  =============== 
                                                                            
   LIABILITIES AND STOCKHOLDERS' EQUITY                                     
                                                                            
Current liabilities:                                                        
  Revolving line of credit                 $         1,000  $             - 
  Trade payables                                     3,578            1,965 
  Accrued l
iabilities                                3,519            1,214 
  Current portion of capital lease                                          
   obligations                                         177              160 
                                           ---------------  --------------- 
    Total current liabilities                        8,274            3,339 
                                           ---------------  --------------- 
                                                                            
Long-term liabilities:                                                      
  Capital lease obligations, less current                                   
   portion                                             133              266 
  Other long-term liabilities                          121              141 
                                           ---------------  --------------- 
    Total liabilities                                8,528            3,746 
                                           ---------------  --------------- 
                                                                            
Stockholders' equity:                                                       
  Common stock, at par value                            54               45 
  Additional paid-in capital                       229,220          204,797 
  Accumulated other comprehensive income                                    
   (loss)                                                -              (11)
  Accumulated deficit                             (188,676)        (177,553)
                                           ---------------  --------------- 
    Total stockholders' equity                      40,598           27,278 
                                           ---------------  --------------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $        49,126  $        31,024 
                                           ===============  =============== 
                                                                            
(1) Derived from the December 30, 2012 audited balance sheet included in the
2012 Annual Report on Form 10K of QuickLogic Corporation.                   
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                         Percentage of Revenue         Change in Revenue    
                   --------------------------------  ---------------------  
                     Q4     Q3    Fiscal    Fiscal    Q3 2013 to   2012 to  
                    2013   2013    2013      2012      Q4 2013       2013   
                   -----  -----  --------  --------  -----------   -------  
COMPOSITION OF                                                              
 REVENUE                                                                    
Revenue by                                                                  
 product: (1)                                                               
  New products        79%    79%       70%       40%          (1)%     208% 
  Mature products     21%    21%       30%       60%          (6)%     (13)%
                                                                            
Revenue by                                                                  
 geography:                                                                 
  Korea               69%    68%       56%        -            -     29849% 
  United States        9%    11%       14%       34%         (21)%     (26)%
  Japan                6%     5%        8%       22
%          24%      (38)%
  Malaysia             6%     6%        8%       11%         (10)%      21% 
  Europe               5%     6%        7%       16%         (26)%     (26)%
  China                4%     4%        5%       12%          11%      (30)%
  Rest of North                                                             
   America             1%     -         2%        2%         160%       42% 
  Rest of Asia                                                              
   Pacific             -      -         -         3%         (46)%     (82)%
(1) New products include ArcticLink(R), ArcticLink II, ArcticLink III,        
Eclipse(TM) II, PolarPro(R), PolarPro II, PolarPro III, 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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