Core Insights - QuickLogic Corporation has secured a mid-6-figure contract to implement architectural enhancements for its embedded FPGA (eFPGA) Hard IP in a new customer ASIC based on Intel 18A technology, focusing on lowering power consumption, increasing performance, and reducing silicon area [1] - The enhancements are designed to be extensible to all advanced fabrication nodes, indicating a strategic move to cater to high-density eFPGA core requirements in ASICs and SoCs, as well as large discrete FPGA needs [1][2] Company Developments - QuickLogic is committed to collaborating with lead customers to identify and implement essential improvements, positioning itself to address the requirements for very high-density eFPGA cores and cost-sensitive applications [2] - The company believes that the significant PPA improvements developed under contract in 2025 will broaden the scope of markets and use-cases it can address [2]

Core Insights - Movellus' high-performance clocking technology has been selected for QuickLogic Corporation's Strategic Radiation Hardened FPGA program, enhancing the domestic supply chain for reliable programmable logic in strategic environments [1][2] Company Overview - Movellus specializes in power and performance optimization technology, applicable in edge AI devices and cloud datacenter solutions, with headquarters in Santa Clara, CA, and R&D centers in Michigan and Toronto [3] - QuickLogic Corporation is a fabless semiconductor company focusing on eFPGA Hard IP, discrete FPGAs, and endpoint AI solutions, utilizing cutting-edge technology and open-source tools for customizable, low-power solutions across various markets [5]

Core Insights - QuickLogic Corporation will exhibit and present at the GOMACTech Conference 2026, scheduled for March 9–12, 2026, in New Orleans, Louisiana [1] - The company will showcase its embedded FPGA technology, emphasizing its adaptability and risk reduction in advanced semiconductor platforms [1] Company Overview - QuickLogic is a fabless semiconductor company specializing in embedded FPGA (eFPGA) IP, ruggedized FPGAs, and endpoint AI solutions [1] - The company combines cutting-edge technology with open-source tools to provide customizable, low-power solutions across various markets, including aerospace, defense, industrial, computing, and consumer sectors [1] Event Details - Exhibit hours for the conference include March 10, 2026, from 12:00 PM to 8:00 PM and March 11, 2026, from 9:00 AM to 4:00 PM [1] - A technical poster presentation titled "Enabling Flexible Heterogeneous Integration with an eFPGA Chiplet on Intel® 18A" will be delivered by Trey Peterson on March 12, 2026, from 10:30 AM to 12:00 PM [1]

Core Insights - QuickLogic Corporation forecasts a revenue growth of 50% to 100% in 2026, driven by major government contracts and storefront initiatives [2] Management View - CEO Brian C. Faith noted that contract delays throughout 2025 led to significantly lower revenue than expected for the year [2] - Despite the revenue shortfall, the company achieved several tangible milestones that position it well for future growth [2]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [22] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [22] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [22] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [22][23] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per share in Q4 2024 [24] Business Line Data and Key Metrics Changes - The company is focusing on high-density eFPGA hard IP cores and expects significant revenue contributions from its storefront business model starting in 2026 [7][9] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its products [9] Market Data and Key Metrics Changes - The company is positioned to address both discrete and embedded FPGA designs across a full spectrum of radiation hardness requirements, leveraging its SRH FPGA test chip [11][14] - The company anticipates a mature product revenue of approximately $4 million for the full year 2026 [25] Company Strategy and Development Direction - The company plans to conduct three multi-project wafer (MPW) tape-outs in 2026, with costs covered by customer contracts [33] - The company is expanding its involvement with defense contractors and exploring opportunities in commercial markets [16][66] - The company aims to achieve between 50% and 100% revenue growth in 2026, supported by a solid foundation of government contracts and pending agreements [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 revenue was lower than expected due to contract delays but expressed confidence in achieving nearly 50% sequential revenue growth in Q1 2026 [7] - Management expects evaluations of test chips to occur in 2026, with actual development activities starting in the following year [46] - The company anticipates cash flow positivity in the second half of 2026, with net income also expected to improve during that period [48][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices, and discussions for divestiture are ongoing [20][21] - The company is working to secure a new banking partner to obtain more favorable terms and reduce its line of credit [31] Q&A Session Questions and Answers Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional contributions expected from government contracts and IP licenses [40][41] Question: What is the expected timing for wins with defense industrial bases (DIBs)? - Management expects evaluations to take place this year, with architecture understanding by the end of the fiscal year, leading to development activities next year [46] Question: Will the company be net income positive this year? - Management expects to be cash flow positive in the second half of the year, with net income also anticipated to improve during that period [48][51] Question: Can you elaborate on the dynamics of the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [53] Question: What is the competitive landscape for the company's products? - Management highlighted that the company is well-positioned in the market, particularly in the radiation-hardened FPGA space, with limited competition from U.S.-based companies [66][68]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [22] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [22] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [22] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [22][23] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per share in Q4 2024 [24] Business Line Data and Key Metrics Changes - The company is focusing on high-density eFPGA hard IP cores and expects significant revenue contributions from its storefront business model starting in 2026 [7][8] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its test chips [9][10] Market Data and Key Metrics Changes - The company is positioned to address both discrete and embedded FPGA designs across a full spectrum of radiation hardness requirements, expanding its serviceable addressable market (SAM) [11][14] - The company anticipates a mature product revenue of approximately $4 million for the full year 2026 [25] Company Strategy and Development Direction - The company plans to conduct three multi-project wafer (MPW) tape-outs in 2026, with costs covered by customer contracts [33] - The company is leveraging architectural enhancements to address lucrative markets for very high-density eFPGA cores in ASIC designs [14][33] - The company is exploring the potential to leverage FPGA as a chiplet co-packaged with microcontrollers, indicating a strategic move towards chiplet technology [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 50% to 100% revenue growth in 2026, supported by a solid foundation from government contracts and pending contracts in negotiation [34] - The company expects to be cash flow positive in the second half of the year, with net income also anticipated to be positive during that period [48][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices, but is in discussions for potential divestiture [20][21] - The company is working to secure a new banking partner to obtain more favorable terms and reduce its line of credit [31] Q&A Session Summary Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional contributions expected from government contracts and IP licenses [40][41] Question: What is the expected timing for wins with DIBs? - Management expects evaluations to take place this fiscal year, with actual development activity starting next year [46] Question: Will the company be net income positive this year? - Management expects to be net income positive in the second half of the year [51] Question: Can you clarify the dynamics of the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [53] Question: What is the trajectory of gross margins through the year? - Management anticipates Q1 gross margins around 45%, with potential increases in Q3 and Q4 [98]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [24] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [24] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [24] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [24][25] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per diluted share in Q4 2024 [26] Business Line Data and Key Metrics Changes - The company is focusing on both new and mature products, with new product revenue showing significant growth compared to the previous quarter [24] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its new products [9] Market Data and Key Metrics Changes - The company is positioned to benefit from contracts with the U.S. government, with a potential expansion of its contract to $89 million [34] - The company is also exploring opportunities in the commercial sector, with a focus on non-defense applications [65] Company Strategy and Development Direction - The company plans to accelerate its storefront business model in 2026, with three multi-project wafer (MPW) tape-outs planned [35] - Architectural enhancements have been developed to address lucrative markets for very high-density eFPGA cores [36] - The company aims to deliver between 50% and 100% revenue growth in 2026, supported by a solid foundation of government contracts and mature business [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 revenue was lower than expected due to contract delays but expressed confidence in achieving nearly 50% sequential revenue growth in Q1 2026 [6] - The company expects evaluations to take place this year with defense industry buyers, leading to potential development activity next year [47] - Management anticipates cash flow positivity in the second half of the year, with net income also expected to improve during that period [50][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices related to assets held for sale [21] - The company is in discussions with potential buyers for SensiML, focusing on AI and drone projects [22] Q&A Session Summary Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional revenue expected from government contracts and IP licenses [42] Question: What is the expected timing for wins with defense industry buyers? - Management expects evaluations to occur this year, with development activity starting next year [47] Question: Will the company be net income positive this year? - Management expects to be cash flow positive in the second half of the year, with net income also anticipated to improve during that period [50][51] Question: Can you elaborate on the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [55] Question: What is the competitive dynamic for the company's products? - Management highlighted that the company is well-positioned in the market, particularly in the defense sector, with few competitors meeting the same radiation hardness requirements [68]

Core Viewpoint - QuickLogic reported a quarterly loss of $0.17 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, and a decline from earnings of $0.04 per share a year ago [1] Financial Performance - The quarterly report showed an earnings surprise of -54.55%, with a previous expectation of a loss of $0.21 per share, while the actual loss was $0.19, resulting in a surprise of +9.52% [2] - QuickLogic's revenues for the quarter ended December 2025 were $3.73 million, exceeding the Zacks Consensus Estimate by 6.66%, but down from $5.7 million in the same quarter last year [3] Stock Performance - QuickLogic shares have increased by approximately 34.3% since the beginning of the year, compared to a gain of 0.5% for the S&P 500 [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of -$0.01 on revenues of $5.9 million for the upcoming quarter, and $0.05 on revenues of $26.3 million for the current fiscal year [8] - The Zacks Rank for QuickLogic is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Electronics - Semiconductors industry, to which QuickLogic belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Performance - Total revenue for Q4 2025 was $3.7 million, a decrease of 34.2% year-over-year and an increase of 84.0% quarter-over-quarter[3]. - New product revenue in Q4 2025 was approximately $2.8 million, down $1.8 million or 38.5% year-over-year, but up $1.8 million or 198.6% quarter-over-quarter[4]. - GAAP gross margin for Q4 2025 was 18.1%, down from 62.7% in Q4 2024 and improved from (23.3%) in Q3 2025[5]. - Non-GAAP net loss for Q4 2025 was ($2.9 million), or ($0.17) per share, compared to a net income of $0.6 million, or $0.04 per share, in Q4 2024[8]. - Operating expenses for Q4 2025 were $4.2 million, compared to $3.4 million in Q4 2024 and $3.5 million in Q3 2025[6]. - For Q4 2025, new products accounted for 76% of total revenue, a decrease of 39% compared to Q4 2024, but an increase of 199% compared to Q3 2025[29]. - Mature products represented 24% of total revenue in Q4 2025, showing a decline of 15% from Q4 2024 and an 18% decrease from Q3 2025[29]. - The gross margin percentage for continuing operations was 18.1% in Q4 2025, compared to 23.3% in Q4 2024[27]. - Non-GAAP net income per share for continuing operations was $(0.14) in Q4 2025, compared to $(0.03) in Q4 2024[27]. - The adjusted net income per share for continuing operations was $(0.15) in Q4 2025, compared to $(0.06) in Q4 2024[27]. - The company reported a gross margin percentage of 20.8% for continuing operations, down from 26.9% in Q4 2024[27]. Assets and Liabilities - Total assets decreased from $51,933 million in December 29, 2024, to $44,786 million in December 28, 2025, representing a decline of approximately 13.2%[24]. - Current liabilities decreased from $25,397 million in December 29, 2024, to $21,285 million in December 28, 2025, a reduction of about 16.5%[24]. - The company’s long-term liabilities decreased from $1,202 million in December 29, 2024, to $926 million in December 28, 2025, a reduction of approximately 22.9%[24]. - The company’s total liabilities decreased from $27,046 million in December 29, 2024, to $22,337 million in December 28, 2025, a decline of about 17.4%[24]. - Cash and cash equivalents decreased from $21,859 million in December 29, 2024, to $18,840 million in December 28, 2025, a decline of approximately 13.8%[24]. - Total stockholders' equity decreased from $24,887 million in December 29, 2024, to $22,449 million in December 28, 2025, a decrease of about 9.8%[24]. Operational Highlights - The U.S. Government awarded QuickLogic a $13 million tranche as part of an expanded contract, increasing the total contract ceiling to approximately $89 million[3]. - QuickLogic secured multiple new commercial eFPGA Hard IP design wins, including a high-performance data center production ASIC on a 12nm process node[9]. - The company entered the hardware cybersecurity market through a partnership with Idaho Scientific, enabling secure ASIC and SoC designs using QuickLogic eFPGA Hard IP[9]. - QuickLogic published a customer case study showing a 50% power savings when Epson transitioned from software to eFPGA for programmable algorithm processing[9]. - The company anticipates significant revenue growth beginning in 2026, supported by recent contract expansions and new product developments[3]. Revenue by Region - Revenue from Asia Pacific was 10% in Q4 2025, unchanged from Q4 2024, with a significant decline of 32% compared to Q3 2025[29]. - North America contributed 81% to total revenue in Q4 2025, down 38% from Q4 2024, but up 191% from Q3 2025[29]. - Europe saw a revenue increase to 9% in Q4 2025, up 23% from Q4 2024 and a remarkable 869% increase from Q3 2025[29]. Year-End Financial Summary - US GAAP operating loss for the year ended December 28, 2025, was $11,919 million, compared to a loss of $2,520 million for the year ended December 29, 2024[26]. - Non-GAAP net income from continuing operations for the year ended December 28, 2025, was a loss of $8,627 million, while the previous year reported a gain of $1,594 million[26]. - The company reported a non-GAAP operating loss of $8,193 million for the year ended December 28, 2025, compared to a gain of $1,979 million for the year ended December 29, 2024[26]. - The company’s inventories increased slightly from $940 million in December 29, 2024, to $956 million in December 28, 2025, an increase of about 1.7%[24]. - The revenue from new products in discontinued operations was 0% in Q4 2025, reflecting a 100% decline from Q4 2024[29].

Core Insights - QuickLogic Corporation (NASDAQ: QUIK) is a semiconductor company focused on developing platforms and intellectual property solutions for devices such as smartphones, wearables, and IoT devices [1] Price Target and Analyst Sentiment - The consensus price target for QuickLogic has remained stable at $10.00 over the past month and quarter, with a slight decrease from $10.50 a year ago, indicating tempered analyst expectations [2][6] - Oppenheimer analyst Martin Yang has set a higher price target of $11, reflecting a positive outlook despite the overall stability [2][6] Share Price Movement - QuickLogic's share price recently increased by 8.9% on above-average trading volume, indicating heightened investor interest [3][6] - Current earnings estimate revisions do not suggest sustained strength in the near future, reflecting mixed sentiment among investors [3][6] Strategic Transition - The company is planning a significant transition towards storefront revenue by 2026, which is expected to account for 10% of total revenues [4][6] - This strategic move is viewed as a key catalyst for improved valuation multiples, despite an anticipated revenue decline in 2025 due to delays in defense contracts and high concentration risk in revenue sources [4][6] Financial Comparison - In a financial comparison with indie Semiconductor, QuickLogic is considered a buy with a one-year price target of $8.6, suggesting a potential 10% increase from current levels [5]