QuickLogic(US:QUIK)2025-11-12 21:19Revenue Performance - In Q3 2025, the company generated total revenue from continuing operations of $2.0 million, a decrease of 45% compared to the prior quarter and a decrease of 52% year-over-year[129]. - New product revenue from continuing operations in Q3 2025 was $1.0 million, a decrease of 67% from the prior quarter and a decrease of 73% year-over-year[129]. - Mature product revenue from continuing operations was $1.1 million in Q3 2025, an increase of 40% compared to the prior quarter and an increase of 46% year-over-year[129]. - Total revenue for the three months ended September 28, 2025, decreased by $2.2 million, or 52%, compared to the same period in 2024, primarily due to declines in new product revenues[136]. - New product revenue for the three months ended September 28, 2025, was $953,000, a decrease of $2.52 million or 73% from $3.47 million in the same period in 2024[139]. - Total revenue for the nine months ended September 28, 2025, was $10.04 million, a decrease of $3.93 million or 28% from $13.97 million in the same period in 2024[148]. - New product revenue for the nine months ended September 28, 2025, was $7.62 million, down $3.42 million or 31% from $11.04 million in the same period in 2024[150]. - eFPGA IP revenue for the nine months ended September 28, 2025, was $6.89 million, a decrease of $3.12 million or 31% from $10.01 million in the same period in 2024[150]. Net Loss and Profitability - The company reported a net loss from continuing operations of $4.0 million in Q3 2025, compared to a net loss of $2.7 million in the prior quarter and a net loss of $1.8 million in Q3 2024[131]. - Gross profit for the three months ended September 28, 2025, was a loss of $472,000, reflecting a 119% decrease compared to a gross profit of $2.49 million in the same quarter of 2024[140]. - Gross profit for the nine months ended September 28, 2025, decreased by $6.2 million, or 72%, compared to the same period in 2024, reflecting a 28% decrease in revenues and a 41% increase in cost of revenue[151]. - The effective tax rate for the third quarter ended September 28, 2025, was (0.12)%, compared to (0.60)% for the same period in the prior year[147]. Operating Expenses - Research and development (R&D) expenses for the three months ended September 28, 2025, were $1.4 million, representing 69% of total revenues, a decrease of $400,000 or 22% from the prior year[142]. - Selling, general and administrative (SG&A) expenses for the three months ended September 28, 2025, were $2.06 million, accounting for 101% of total revenues, a decrease of $235,000 or 10% from the same period in 2024[142]. - Total operating expenses for the nine months ended September 28, 2025, were $10.789 million, a decrease of $415 thousand, or 4%, compared to $11.204 million in the same period in 2024[152]. - Research and development (R&D) expenses decreased by $607 thousand, or 14%, to $3.859 million for the nine months ended September 28, 2025, primarily due to increased labor allocations to cost of revenue[153]. - Selling, general and administrative (SG&A) expenses decreased by $183 thousand, or 3%, to $6.555 million for the nine months ended September 28, 2025, mainly due to reduced compensation and incentives[155]. Cash Flow and Liquidity - For the nine months ended September 28, 2025, net cash used in operating activities was $1.4 million, primarily due to a net loss of $8.9 million[182]. - Cash used in investing activities for the nine months ended September 28, 2025, was $4.5 million, mainly for capital expenditures related to licensed software and specialized semiconductor tooling[184]. - Cash provided by financing activities for the nine months ended September 28, 2025, was $1.4 million, primarily from net proceeds of $6.1 million from common stock issuance[186]. - The company believes that existing cash and cash equivalents, along with proceeds from recent financing, will be sufficient to fund operations and capital expenditures for the next twelve months[174]. - The company anticipates that sales from new product offerings and existing cash will be sufficient to satisfy operations and capital expenditures, but cannot assure the ability to raise additional capital if needed[177]. - The cash inflow from changes in operating assets and liabilities for the nine months ended September 28, 2025, was approximately $0.3 million[182]. Assets and Liabilities - Total assets decreased by approximately $5.8 million, primarily due to a $4.5 million reduction in cash and cash equivalents[162]. - Liabilities decreased by approximately $5.7 million, attributed to greater payments than borrowings on the revolving line of credit and payments on notes payable[163]. - Equity decreased by $0.2 million due to an $8.9 million net loss for the nine months ended September 28, 2025, partially offset by an $8.7 million increase in additional paid-in capital[164]. - As of September 28, 2025, the company had $15.0 million outstanding on the Revolving Facility with an interest rate of 7.75%[168]. - As of September 28, 2025, the company had $1.8 million in outstanding notes payable and $15.0 million under its Revolving Facility[178]. Strategic Initiatives - The company discontinued operations at its wholly-owned subsidiary, SensiML Corporation, and is exploring options for its sale[112]. - The company expects business growth to be driven mainly by eFPGA IP and silicon solutions, requiring strong revenue growth to sustain profitability[119]. - The company collaborates with multiple partners for co-marketing and co-selling initiatives, including Infineon Technologies and STMicroelectronics[115]. - The company has a total of four patent applications pending[114]. - The company has changed its manufacturing strategies to reduce costs and improve efficiency across its silicon solution platforms[118]. - The company does not maintain any off-balance sheet partnerships or arrangements[189].