Company Performance - QuickLogic's stock closed at $5.71, reflecting a decrease of -0.52% from the previous day's closing price, underperforming compared to the S&P 500's loss of 0.33% [1] - Over the last month, QuickLogic's shares have decreased by 21.48%, significantly underperforming the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03% [2] - QuickLogic is projected to report earnings of -$0.08 per share, indicating a year-over-year decline of 172.73%, with expected revenue of $4 million, down 33.44% from the prior-year quarter [3] Future Outlook - For the full year, analysts expect QuickLogic to report earnings of $0.16 per share and revenue of $24.37 million, representing increases of +300% and +21.15% respectively from the previous year [4] - Recent adjustments to analyst estimates for QuickLogic indicate changing near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [5] Valuation and Industry Context - QuickLogic currently has a Forward P/E ratio of 37.03, which is a premium compared to the industry average Forward P/E of 24.27 [8] - The Electronics - Semiconductors industry, to which QuickLogic belongs, has a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [8]

Company Overview - QuickLogic Corporation is a fabless semiconductor company providing innovative programmable silicon and software platforms, focusing on eFPGA IP, SoCs, and AI software [31]. - The company has changed its manufacturing strategies to reduce costs, enabling silicon solutions to be used in a range of products from low to high volume [36]. - The company has a network of fourteen active distributors in North America and nineteen active distributors and sales representatives throughout Europe and Asia to support international business [64]. - The company maintains cash balances exceeding the FDIC insurance limit, which poses a risk of losing uninsured funds if a financial institution fails [115]. - The company has 15,799,036 shares of common stock outstanding, held by 75 stockholders of record [207]. Revenue and Growth - The company expects revenue growth to be driven mainly by eFPGA IP and silicon solutions, with a strong emphasis on new product platforms currently in development [37]. - QuickLogic's new products include eFPGA IP licensing, silicon products like EOS™, QuickAI™, and AI/ML software from its subsidiary SensiML, contributing to the new products revenue category [32]. - The company expects business growth to be driven by new products, including eFPGA IP licenses and various solutions, with a focus on achieving profitability through strong revenue growth from these products [150]. - Sales under contracts with the U.S. Government represented 54% of total net sales in 2024, highlighting dependency on government funding [173]. - One customer represented approximately 54% of total revenue for the year ended December 29, 2024, while another customer represented 70% of total revenue for the year ended December 31, 2023 [66]. Product Development and Technology - QuickLogic's eFPGA IP is developed on various process nodes, including 12nm to 250nm, with a roadmap to sub-10nm nodes, enhancing scalability and support [35]. - The company’s programmable logic technology enables customized designs, low power consumption, and rapid time-to-market, which are highly valued by customers [51]. - QuickLogic's eFPGA IP technology allows ASIC and SoC developers to make post-manufacturing design changes quickly while maintaining low power consumption [60]. - The company is focused on enhancing its eFPGA IP solutions and FPGA User Tools to meet emerging industry standards [70]. - QuickLogic's SensiML Analytics Toolkit provides an end-to-end development platform for IoT sensor algorithms using AI, enhancing the capabilities of their products [60]. Financial Performance and Risks - The company has incurred losses in past years and may face challenges in generating sufficient revenue or raising additional financing to fund future losses [21]. - The company may need to obtain additional funds through strategic divestiture or selling debt/equity securities to support operations if cash flow levels are not achieved [91]. - The company has experienced net losses in past years while developing new products, with stable gross margins for both new and mature products [90]. - The company anticipates fluctuations in average selling prices due to historical downward price pressure and recent supply chain shortages [141]. - The lengthy sales cycle for products may lead to cancellations or changes in customer plans, adversely affecting revenue levels [156]. Market and Competition - The FPGA market was valued at $12.1 billion in 2024 and is projected to reach $25.8 billion by 2029, growing at a CAGR of 16.4% during the forecast period [45]. - The company faces significant competition in the semiconductor industry, which could adversely affect its business and results of operations [136]. - The company faces competition from various suppliers, including ASSPs, low-power FPGAs, and ASICs, which could materially affect its business and financial condition [188]. - The company has entered into strategic licensing and collaborative partnerships to gain access to new semiconductor products and technologies, but the anticipated benefits may not materialize [192]. - The company has entered into multiple large eFPGA-related contracts with customers in the Aerospace and Defense market since 2022, indicating a renewed interest and expected growth in this area [49]. Operational Challenges - The company relies on subcontract manufacturers for product capacity, making it vulnerable to supply shortages and capacity limitations [94]. - The company relies on certain suppliers for manufacturing, and disruptions could lead to operational delays and negatively impact financial performance [118]. - The company does not maintain sufficient business interruption insurance, which could result in material adverse effects from catastrophic events [120]. - The company faces risks from potential changes in U.S. trade measures that could significantly impact costs and availability of raw materials [165]. - The company has implemented import and export control procedures but remains exposed to risks from compliance failures [167]. Cybersecurity and Compliance - Cybersecurity incidents, such as the January 2023 ransomware attack, can disrupt business operations and harm the company's reputation [96][98]. - The company maintains a comprehensive cybersecurity risk management program, which includes regular assessments and independent reviews [197]. - Compliance with evolving data protection regulations like GDPR and CCPA may require significant resources and could lead to fines if not adhered to [100][101]. - The company faces risks related to compliance with laws and regulations, which may increase costs and affect financial condition [146]. - The company is involved in legal actions related to intellectual property infringement, but is not currently a party to any material pending legal proceedings [203]. Employee and Management - The company had 59 employees as of December 29, 2024, with an average tenure of 8.40 years and a turnover rate of 6% for the fiscal year [75][76]. - The company maintains favorable employee relations, with no union representation among employees [75]. - The executive management team and the Board oversee the company's enterprise risk management process, including cybersecurity threats [201]. - The company must effectively attract and retain key personnel to ensure operational success, as competition for skilled employees is intense [107][108]. - The company may face challenges in attracting qualified outside board members due to increased liability concerns [126].

Core Viewpoint - QuickLogic Corporation has successfully amended its credit facility to maintain a $20 million line of credit and extend the maturity date to December 31, 2026, enhancing operational flexibility for ongoing projects [2]. Company Overview - QuickLogic Corporation is a fabless semiconductor company specializing in embedded FPGA (eFPGA) Hard IP, discrete FPGAs, and endpoint AI solutions, targeting industrial, aerospace, consumer, and computing markets [3]. Financial Update - The Eighth Amendment to the credit facility was effective March 17, 2025, allowing the company to continue its operations and support its large government contract and new eFPGA IP licenses [2]. - The maturity date of the credit facility has been extended from December 31, 2025, to December 31, 2026 [2]. Management Commentary - The Chief Financial Officer, Elias Nader, expressed satisfaction with the continued support from Heritage Bank, indicating that the extension of the credit facility provides enhanced operational flexibility [2].

Core Insights - QuickLogic Corporation will exhibit at GOMACTech 2025, showcasing its embedded FPGA (eFPGA) technology [1][2] - The Australis™ eFPGA IP Generator allows for rapid generation of customized eFPGA IP cores, addressing specific power, performance, and area (PPA) needs [2] - QuickLogic has over 30 years of experience in the Aerospace and Defense sectors, focusing on Size, Weight, and Power (SWaP) optimization while ensuring long-term supply assurance [3] Company Overview - QuickLogic is a fabless semiconductor company specializing in eFPGA Hard IP, discrete FPGAs, and endpoint AI solutions [4] - The company combines advanced technology with open-source tools to provide low-power, customizable solutions across various markets including industrial, aerospace, consumer, and computing [4] Event Details - GOMACTech 2025 will take place at the Pasadena Convention Center, with QuickLogic's booth located at 306 [2] - The exhibition dates are March 18, 2025, from 12:00 pm to 8:00 pm, and March 19, 2025, from 9:00 am to 4:00 pm [2]

Core Insights - QuickLogic Corporation has been selected by a Defense Industrial Base company for its eFPGA IP targeting GlobalFoundries' 12LP, a 12nm low-power process, with delivery scheduled for Q2 2025 [1][2] Company Overview - QuickLogic is a fabless semiconductor company that specializes in eFPGA Hard IP, discrete FPGAs, and endpoint AI solutions, focusing on delivering customizable, low-power solutions across various markets including industrial, aerospace, consumer, and computing [3] Industry Position - QuickLogic has established a strong reputation over more than three decades as a trusted supplier of SWaP-C-optimized programmable logic to the Defense Industrial Base, emphasizing its capability to provide rapid, design-specific solutions that mitigate program risk [2]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $5.7 million, down 24% from Q4 2023 but up 34% compared to Q3 2024 [38] - Non-GAAP gross margin in Q4 was 62%, compared to 78.3% in Q4 2023 and 60% in Q3 2024 [39] - Non-GAAP net income was $0.6 million, or $0.04 per diluted share, down from $2.6 million, or $0.18 per diluted share, in Q4 2023 [40] Business Line Data and Key Metrics Changes - New product revenue in Q4 was $4.7 million, down 32% from Q4 2023 but up 32% compared to Q3 2024 [38] - Mature product revenue was $1.0 million, up from $0.7 million in both Q4 2023 and Q3 2024 [38] Market Data and Key Metrics Changes - The company anticipates significant IP contract awards that will leverage investments made in 2024, particularly in the defense industrial base [51][54] - The company is the only supplier of eFPGA Hard IP optimized for Intel 18A, which is expected to drive future growth [54] Company Strategy and Development Direction - The company plans to diversify its end markets beyond the defense industrial base, targeting industrial, communications, and consumer sectors [58][90] - The company expects to expand its eFPGA Hard IP offerings to 9 or possibly 10 unique fabrication process technologies during 2025 [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a significant rebound in revenue and profitability beginning in Q2 2025, driven by new contract awards [10][45] - The company expects to be cash flow positive in Q2 and for the full year 2025 [51] Other Important Information - The company is exploring options for SensiML, including a potential sale, with a conclusion expected before the next earnings call [36] - The company has appointed a new VP of IP Sales, Andy Jaros, to leverage relationships with former FlexLogix customers [19][84] Q&A Session Summary Question: What are the expectations for Q2 revenue? - Management expects Q2 revenue to exceed $6 million, driven by new IP contracts [66] Question: How is the funnel for new opportunities developing? - The funnel has grown, primarily from new eFPGA opportunities, but specific quantitative metrics were not provided [71][72] Question: What is the outlook for Intel 18A opportunities? - Management believes there is strong demand for Intel 18A, particularly from the U.S. government and defense sectors, regardless of Intel's corporate structure [78][80] Question: What is the timeline for converting FlexLogix customers? - Management anticipates a shorter conversion period due to the new VP of IP Sales leveraging existing relationships [84] Question: How is the company diversifying its end markets? - The company is seeing growth in non-defense sectors, including industrial and consumer markets, and expects to close contracts in these areas [90]

QuickLogic Corporation (NASDAQ:QUIK) Q4 2024 Earnings Conference Call February 25, 2025 5:30 PM ET Company Participants Alison Ziegler - Investor Relations, Darrow Associates Brian Faith - President & Chief Executive Officer Elias Nader - Senior Vice President & Chief Financial Officer Conference Call Participants Richard Shannon - Craig-Hallum Capital Martin Yang - Oppenheimer & Company Operator Ladies and gentlemen, good afternoon. At this time, I would like to welcome everyone to QuickLogic Corporation's ...

Group 1: Earnings Performance - QuickLogic reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.18 per share a year ago [1] - The earnings surprise for this quarter was 33.33%, while the previous quarter saw a surprise of -20% with an actual loss of $0.06 per share against an expected loss of $0.05 [2] - Over the last four quarters, QuickLogic has surpassed consensus EPS estimates two times [2] Group 2: Revenue Analysis - The company posted revenues of $5.71 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.48%, and down from $7.48 million year-over-year [3] - QuickLogic has only topped consensus revenue estimates once over the last four quarters [3] Group 3: Stock Performance and Outlook - QuickLogic shares have declined approximately 38.7% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [4] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [7] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $6.4 million, and for the current fiscal year, it is $0.21 on revenues of $27.3 million [8] Group 4: Industry Context - The Electronics - Semiconductors industry, to which QuickLogic belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Revenue Performance - Total revenue for Q4 2024 was $5.7 million, a decrease of 23.7% compared to Q4 2023, but an increase of 33.5% compared to Q3 2024[4] - New product revenue in Q4 2024 was approximately $4.7 million, down $2.2 million or 31.8% year-over-year, but up $1.1 million or 31.7% sequentially[5] - Mature product revenue was $1.0 million in Q4 2024, compared to $0.7 million in both Q4 2023 and Q3 2024[6] - Revenue from new products constituted 82% of total revenue in Q4 2024, down from 91% in Q4 2023, indicating a decline of 32% year-over-year[29] - Mature products revenue increased to 18% of total revenue in Q4 2024, up from 9% in Q4 2023, marking a growth of 61%[29] - Revenue from Asia Pacific increased to 9% in Q4 2024, up from 6% in Q4 2023, reflecting a growth of 28%[29] - North America revenue decreased to 86% in Q4 2024, down from 92% in Q4 2023, a decline of 29%[29] Profitability and Margins - Q4 2024 GAAP gross margin was 59.8%, down from 77.1% in Q4 2023 and up from 55.8% in Q3 2024[6] - Q4 2024 non-GAAP net income was $0.6 million, or $0.04 per share, compared to $2.6 million, or $0.19 per share, in Q4 2023[9] - Non-GAAP net income for Q4 2024 was $563 thousand, compared to $2,647 thousand in Q4 2023, reflecting a decrease of 78.7%[27] - US GAAP net income for Q4 2024 was a loss of $305 thousand, compared to a profit of $2,042 thousand in Q4 2023[27] - Gross margin percentage under US GAAP for Q4 2024 was 59.8%, down from 77.1% in Q4 2023[27] Financial Position - Total assets increased to $51,933 million as of December 29, 2024, up from $47,792 million as of December 31, 2023, representing an increase of 4.5%[25] - Current liabilities decreased to $25,397 million, down from $29,630 million, a reduction of 14.3%[25] - Total stockholders' equity rose to $24,887 million as of December 29, 2024, compared to $16,895 million as of December 31, 2023, an increase of 47.1%[25] Strategic Developments - Awarded a $1.1 million eFPGA Hard IP contract with a new defense industrial base customer[10] - Announced a $6.6 million fourth tranche of the Strategic Radiation Hardened FPGA Technology US Government contract[10] - The company is on track to complete the first eFPGA Hard IP core optimized for Intel 18A during Q1 2025[10] - Signed a distribution agreement with Magenta to expand the distribution network to Turkiye and UAE[10] Future Outlook - The company expects to achieve non-GAAP profitability and positive cash flow for the full year 2025[3]

Core Insights - QuickLogic Corporation reported its financial results for the fiscal fourth quarter and fiscal year ending December 29, 2024, highlighting a strategic focus on revenue growth and profitability in 2025 [1][3]. Financial Performance - Total revenue for Q4 2024 was $5.7 million, a decrease of 23.7% year-over-year but an increase of 33.5% compared to Q3 2024 [4]. - New product revenue was approximately $4.7 million, down by $2.2 million or 31.8% year-over-year, but up by $1.1 million or 31.7% from Q3 2024 [5]. - Mature product revenue reached $1.0 million, compared to $0.7 million in both Q4 2023 and Q3 2024 [6]. - GAAP gross margin for Q4 2024 was 59.8%, down from 77.1% in Q4 2023 and up from 55.8% in Q3 2024 [6]. - Non-GAAP gross margin for Q4 2024 was 62.0%, compared to 78.3% in Q4 2023 and 60.0% in Q3 2024 [6]. Operating Expenses and Net Income - GAAP operating expenses for Q4 2024 were $3.6 million, slightly down from $3.7 million in Q4 2023 and $4.2 million in Q3 2024 [7]. - Non-GAAP operating expenses were $2.9 million, down from $3.1 million in Q4 2023 and $3.3 million in Q3 2024 [7]. - GAAP net loss for Q4 2024 was ($0.3 million), or ($0.02) per share, compared to net income of $2.0 million, or $0.15 per share, in Q4 2023 [8]. - Non-GAAP net income for Q4 2024 was $0.6 million, or $0.04 per share, compared to net income of $2.6 million, or $0.19 per share, in Q4 2023 [9]. Strategic Developments - The company is executing a Strategic Radiation Hardened FPGA contract with the US government and has seen opportunities arise following a competitor's exit from the market [3]. - QuickLogic is the first and currently the only company to offer eFPGA Hard IP for Intel 18A, positioning itself for revenue growth in 2025 [3]. - Recent contracts include a $1.1 million eFPGA Hard IP contract with a new defense customer and a $6.6 million tranche of the Strategic Radiation Hardened FPGA Technology contract [11]. Revenue Composition - In Q4 2024, new products accounted for 82% of revenue, down from 91% in Q4 2023, while mature products accounted for 18%, up from 9% [26]. - Geographically, North America represented 86% of revenue, down from 92% in Q4 2023, while Europe saw a significant increase of 90% year-over-year [26].