QuickLogic(US:QUIK)2025-11-11 23:30Financial Data and Key Metrics Changes - Total third-quarter revenue was $2 million, down 52.5% from Q3 2024 and down 45% compared to Q2 2025 [22] - Non-GAAP gross margin in Q3 was a negative 11.9%, compared to 65.3% in Q3 2024 and 31% in Q2 2025 [23] - Non-GAAP net loss was $3.2 million or $0.19 per diluted share, compared to a loss of $0.9 million or $0.06 per diluted share in Q3 2024 [24] Business Line Data and Key Metrics Changes - New product revenue in Q3 was $1 million, down 73.1% from Q3 2024 and down 67.3% compared to Q2 2025 [22] - Mature product revenue was $1.1 million, up from $0.7 million in Q3 2024 and up from $0.8 million in Q2 2025 [22] Market Data and Key Metrics Changes - The company is targeting total revenue of $6 million for Q4, with a significant portion dependent on a nearly $3 million contract forecasted to be awarded late in the quarter [26][27] - If the contract is awarded late, total revenue for Q4 could be as low as $3.5 million [27] Company Strategy and Development Direction - The company is focusing on expanding its served available market to include very high-density eFPGA hard IP designs targeting advanced fabrication nodes [6] - The strategic initiative includes the development of an SRH FPGA test chip to secure design wins and accelerate storefront business [10][12] - The company anticipates that storefront revenue could represent about 10% of total revenue in 2026, driven by increased demand from defense industrial base (DIB) customers [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the rebound of U.S. government strategic radiation hard FPGA programs despite potential delays due to government shutdowns [38] - The company expects to see a significant increase in revenue recognition from government contracts in Q4 and 2026 [14][33] Other Important Information - Total cash at the close of Q3 was $17.3 million, down from $19.2 million at the close of Q2 2025 [25] - The company raised approximately $2 million using its existing ATM in October, preparing for potential delayed payments associated with U.S. government contracts [29] Q&A Session Summary Question: What impact is the government shutdown having on your business? - Management noted that while there are delays in some projects, existing contracts are not seeing delays, and they anticipate a rebound once funding resumes [38][39] Question: Can you size the range of storefront revenue expected in 2026? - Management indicated that storefront revenue could be significant, potentially around 10% of total revenue, with expectations for notable growth compared to 2025 [41] Question: How do the opportunities with GlobalFoundries 12LP compare to other foundries? - Management believes the 12LP opportunity is larger due to its strategic rad-hard FPGA and IP licensing potential, which could lead to hundreds of millions in revenue [52][56] Question: What is the expected share count for 2025? - The expected ending share count for 2025 is approximately 17 million shares [80] Question: What caused the significant revenue decline forecasted for 2025? - Management explained that the decline is due to the timing of large IP contracts, which if not recognized in the current fiscal year, significantly impacts revenue percentages [82]