QuickLogic(US:QUIK)2020-05-12 04:52Financial Data and Key Metrics Changes - For Q1 2020, revenue was $2.2 million, down from $3.2 million in Q1 2019, reflecting a decline due to COVID-19 impacts [45][46] - Non-GAAP gross margin in Q1 was 52.2%, compared to 62.8% in the same quarter last year, primarily due to product mix changes [48] - Non-GAAP net loss in Q1 was $3.1 million, or $0.37 per share, compared to a net loss of $2.5 million, or $0.37 per share in Q1 2019 [51] Business Line Data and Key Metrics Changes - New product revenue for Q1 was $540,000, down from $690,000 in Q1 2019, mainly due to a decline in display bridge sales [46] - Mature product revenue was $1.7 million, compared to $2.5 million in Q1 2019, affected by changes in demand from aerospace and avionics customers [47] - The company expects mature product sales to account for about half of total revenue for the year [19] Market Data and Key Metrics Changes - The military market remains stable, with no significant budget impacts reported due to COVID-19, as many designs are already completed [90] - The smartphone market with Kyocera is strong, with no COVID-19 related impacts observed, and the company anticipates launching additional phones later in the year [28][66] - The consumer and industrial IoT market is seeing deepening collaborations with Flextronics and Infineon, although marketing activities have been delayed due to the pandemic [29][84] Company Strategy and Development Direction - The company is focusing on three areas for revenue growth: mature products, SoC products with multinational OEMs, and the SensiML AI SaaS platform [18] - A strategic initiative with a mega-cap platform company is expected to significantly expand the user base for QuickLogic's solutions [34] - The company is also launching a special trial version of the SensiML AI platform to assist during the pandemic [43] Management's Comments on Operating Environment and Future Outlook - The company anticipates a 20% revenue impact for fiscal 2020 due to COVID-19, but expects sequential revenue increases in Q2 and beyond [14][15] - Management remains confident in achieving profitability, with a revenue target of around $6 million needed to reach non-GAAP profitability [44] - The company is actively addressing supply chain challenges and is optimistic about future growth despite current uncertainties [21][60] Other Important Information - The company secured a $1.2 million Paycheck Protection Program loan to support payroll and benefits during the pandemic [58] - Cash at the end of Q1 was $19.0 million, down from $21.6 million at the end of the previous quarter [52] Q&A Session Summary Question: What are the drivers for the new products segment recovering from $500,000 to $1.1 million? - The majority of the recovery is driven by Kyocera, along with contributions from IP licensing and smaller new product deals [64] Question: Is there any change in the forecast for Kyocera due to COVID-19? - There have been no significant changes in the forecast, and the company expects a linear ramp throughout the year [66] Question: Can you clarify the situation with the SmartTV remote control? - The customer had to revert to an older design due to delays in testing and product launches caused by COVID-19 [70] Question: Are there any COVID-related issues at the fab? - No issues from the wafer fab point of view, but assembly capacity has been impacted due to strict transportation policies [77] Question: What is the expected revenue impact from COVID-19 for the full year? - The revenue outlook is now expected to be in the lower to mid-teens percentage range [86] Question: How is the military market performing amid COVID-19? - The military market remains stable, with no significant budget impacts, and ongoing projects are expected to progress once teams return to work [90]