QuickLogic(US:QUIK)2024-08-14 20:14Revenue Performance - Total revenue for Q2 2024 was $4.1 million, a decrease of 31% compared to the prior quarter, but an increase of 41% year-over-year[97]. - New product revenue in Q2 2024 was $3.1 million, down 37% from the previous quarter, but up 37% compared to Q2 2023[97]. - Mature product revenue was $1.1 million in Q2 2024, a decrease of 5% from the prior quarter, and an increase of 56% year-over-year[97]. - Total revenue for the three months ended June 30, 2024, was $4,127,000, representing a 41% increase from $2,921,000 in the same period of 2023[103]. - New product revenue increased by $824,000, or 37%, to $3,057,000, accounting for 74% of total revenues in Q2 2024[105]. - Total revenue for the six months ended June 30, 2024, was $10,134,000, a 44% increase from $7,054,000 in the same period of 2023[115]. - eFPGA IP revenue for the six months ended June 30, 2024, was $6.6 million, up from $4.7 million in the same period of 2023, primarily driven by professional services revenue[117]. - Revenue for the six months ended June 30, 2024, was $10,134,000, a 44% increase from $7,054,000 in the same period of 2023[119]. Profitability and Loss - The company reported a net loss of $1.6 million for Q2 2024, compared to a net income of $0.1 million in the prior quarter and a net loss of $2.3 million in Q2 2023[98]. - Gross profit margin improved to 51% in Q2 2024, compared to 41% in Q2 2023[102]. - Gross profit for the three months ended June 30, 2024, was $2,105,000, a 75% increase from $1,203,000 in Q2 2023, reflecting a gross margin of 51%[106]. - Gross profit increased by $2,495,000, or 69%, to $6,088,000, compared to $3,593,000 in the prior year[119]. Expenses - Research and development expenses accounted for 37% of revenue in Q2 2024, down from 52% in Q2 2023[102]. - Selling, general, and administrative expenses represented 51% of revenue in Q2 2024, down from 65% in Q2 2023[102]. - Operating expenses for the three months ended June 30, 2024, totaled $3,622,000, a 6% increase from $3,429,000 in the same period of 2023[108]. - R&D expenses for Q2 2024 were $1,527,000, representing 37% of total revenues, a slight increase from $1,505,000 in Q2 2023[108]. - R&D expenses decreased by $148,000, or 5%, to $2,986,000, representing 29% of total revenues, down from 44% in the previous year[121]. - SG&A expenses increased by $661,000, or 17%, to $4,446,000, accounting for 44% of total revenues[121]. - Total operating expenses rose by $513,000, or 7%, to $7,432,000, compared to $6,919,000 in the same period last year[121]. Financial Management - Interest expense decreased by $10,000 to $(40,000) in Q2 2024, while interest income and other income increased by $1,000, reflecting improved financial management[112]. - Interest expense for the six months ended June 30, 2024, was $(109,000), a slight increase of $1,000 from $(108,000) in the prior year[123]. - Interest income and other expense, net, decreased by $75,000, or 119%, resulting in a net of $12,000 compared to $(63,000) in the previous year[123]. Cash Flow and Assets - As of June 30, 2024, cash, cash equivalents, and restricted cash totaled $23.3 million, with $20.0 million drawn from a revolving line of credit[129]. - For the six months ended June 30, 2024, net cash used in operating activities was $0.1 million, primarily due to a net loss of $1.4 million, adjusted for non-cash charges of $4.3 million[139]. - Cash outflow from changes in operating assets and liabilities was approximately $2.9 million, mainly due to decreases in accounts payable and accrued liabilities[139]. - Cash used in investing activities for the six months ended June 30, 2024, was $4.5 million, primarily for capital expenditures related to licensed software and specialized semiconductor tooling[141]. - Cash provided by financing activities for the six months ended June 30, 2024, was $3.2 million, mainly from net proceeds of $3.7 million from common stock issuance[142]. Innovation and Strategy - The company expects revenue growth to be driven mainly by eFPGA IP and silicon solutions, with contributions from SensiML AI Software[89]. - The company has three patent applications pending, indicating ongoing innovation efforts[85]. - Manufacturing strategies have been adjusted to reduce costs and improve competitiveness across various markets[88]. Internal Controls - There were no changes in internal control over financial reporting that materially affected the company during the reporting period[146]. - Management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2024[145].