QuickLogic(US:QUIK)2024-08-14 01:55Financial Data and Key Metrics Changes - In Q2 2024, revenue rose 41% year-over-year to $4.1 million but decreased 31% compared to Q1 2024, primarily due to contract timing and lower Connectivity revenue [19] - Non-GAAP gross margin for Q2 was 53.1%, up from 44.2% in Q2 2023 but down from 70.3% in Q1 2024 [19] - Non-GAAP net loss was $0.7 million, or $0.05 per share, compared to a loss of $1.7 million, or $0.12 per share, in Q2 2023 [20] Business Line Data and Key Metrics Changes - New product revenue in Q2 was $3.1 million, up 37% year-over-year but down 37% from Q1 2024 [19] - Mature product revenue was $1.1 million, up 56% year-over-year and flat compared to Q1 2024 [19] Market Data and Key Metrics Changes - The company anticipates Q3 2024 revenue of approximately $4.2 million, with $3.5 million from new products and $0.7 million from mature products [22] - The total cash at the end of Q2 was $23.3 million, down from $27.4 million at the end of Q1 2024 [21] Company Strategy and Development Direction - The company aims to leverage its eFPGA Hard IP business across new customers and market sectors, with a focus on expanding its fabrication nodes [8] - The partnership with CTG is expected to enhance demand fulfillment and creation, particularly within the Defense Industrial Base [15][40] - The company is targeting to be the first eFPGA provider to offer Hard eFPGA IP on Intel's 18A node, with significant interest from customers [28] Management's Comments on Operating Environment and Future Outlook - Management has lowered the full-year growth projection to 15% due to scheduling push-outs, but expects a sharp rebound in Q4 2024 [5][22] - The company is optimistic about future revenue growth from its IP contracts and anticipates cash flow positivity for fiscal 2024 [23] Other Important Information - The company has received a $5.26 million tranche for a Strategic Radiation Hardened FPGA government contract, with a total potential value of $72 million [7] - The company is on track to report record revenue for SensiML in 2024, driven by its open-source strategy [17] Q&A Session Summary Question: Revenue push-outs and their impact - Management confirmed that approximately $3 million of revenue is being pushed into next year due to customer-related delays [28] Question: Status on Intel 18A node - Management believes they will be the first eFPGA company to offer Hard eFPGA IP on the Intel 18A node [28] Question: Storefront revenue and sales funnel - More than half of the $189 million sales funnel is related to storefront deals, with actual storefront revenue expected to be significantly higher [29] Question: Strategic Rad Hard deal and future revenues - The $72 million contract is for development, with potential storefront revenue expected to be in the hundreds of millions once the device is completed [31] Question: Consistency of push-outs - Push-outs are primarily due to funding issues and project schedule shifts, mainly in aerospace and defense sectors [35] Question: Impact of CTG partnership - The CTG partnership is expected to accelerate qualified opportunities in the sales funnel, enhancing both demand fulfillment and creation [40]