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]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $5.7 million, down 24% from Q4 2023 but up 34% compared to Q3 2024 [38] - New product revenue in Q4 was $4.7 million, down 32% from Q4 2023 and up 32% 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, compared to $2.6 million, or $0.18 per diluted share, in Q4 2023 [40] - Total cash at the end of Q4 was $21.9 million, down from $22.4 million at the end of Q3 [42] Business Line Data and Key Metrics Changes - Mature product revenue was $1.0 million, up from $0.7 million in both Q4 2023 and Q3 2024 [38] - The company anticipates significant revenue growth and non-GAAP profitability beginning in Q2 2025 due to new contracts [10][45] Market Data and Key Metrics Changes - The company has established eFPGA Hard IP for six unique fabrication process technologies and expects to expand this to nine or ten during 2025 [55] - The acquisition of FlexLogix by Analog Devices has created a market opportunity for QuickLogic to fill the void left by FlexLogix's eFPGA IP [18] Company Strategy and Development Direction - The company is focusing on diversifying its end markets beyond the defense industrial base, including industrial and consumer sectors [90] - Investments made in 2024 are expected to yield solid returns as the company is positioned as the only supplier of eFPGA Hard IP optimized for Intel 18A [54][55] - The company plans to leverage existing contracts and new customer engagements to drive revenue growth [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a significant rebound in revenue and profitability starting in Q2 2025, driven by new contract awards [10][45] - The company is confident in achieving cash flow positivity 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 plans to implement an At-The-Market (ATM) offering to provide flexibility for managing cash flow and investments [52] Q&A Session Summary Question: What are the expectations for Q2 revenue? - Management expects Q2 revenue to exceed $6 million, driven by significant IP design contracts [66] Question: How is the funnel for new opportunities progressing? - The funnel has grown, primarily due to new eFPGA opportunities, although 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 expected timeframe for converting FlexLogix customers? - Management anticipates a shorter timeframe for converting FlexLogix customers into revenue, aided by the new VP of IP Sales [84] Question: How does the company plan to diversify its end markets? - The company is actively pursuing opportunities outside aerospace and defense, including industrial and consumer markets, leveraging the expertise of the new VP of IP Sales [90][92]

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].

Core Viewpoint - Brokerage recommendations, particularly for QuickLogic (QUIK), show a strong average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy, based on three recommendations from brokerage firms [2] Group 1: Brokerage Recommendations - QuickLogic has an ABR of 1.00, with all three recommendations classified as Strong Buy, representing 100% of the total recommendations [2] - Despite the positive ABR, reliance solely on brokerage recommendations for investment decisions may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [4][5] Group 2: Zacks Rank vs. ABR - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [7][10] - The Zacks Rank is distinct from ABR, as ABR is based solely on brokerage recommendations, while Zacks Rank utilizes a quantitative model reflecting earnings estimates [8] - The Zacks Rank is more timely in predicting future stock prices due to constant revisions by brokerage analysts, unlike the potentially outdated ABR [11] Group 3: QuickLogic's Earnings Estimates - The Zacks Consensus Estimate for QuickLogic remains unchanged at $0.03 for the current year, indicating steady analyst views on the company's earnings prospects [12] - The unchanged consensus estimate has led to a Zacks Rank of 3 (Hold) for QuickLogic, suggesting caution despite the Buy-equivalent ABR [13]