QuickLogic Announces Fiscal 2008 First Quarter Results - VEE(TM) Rapidly Gaining Design Traction
SUNNYVALE, Calif.--(BUSINESS WIRE)--
QuickLogic Corporation (NASDAQ:QUIK), the lowest power programmable solutions leader, today announced the financial results for its fiscal first quarter ended March 30, 2008.
Total revenue for the first quarter of 2008 was $11.0 million, up three percent from the fourth quarter of 2007 and up 77 percent from the first quarter of 2007. The sequential growth in revenue was primarily due to higher end-of-life and mature product revenue; this growth was partially offset by a decline in new product revenue. Revenue from new products, mature products and end-of-life products each increased significantly compared to the first quarter of 2007.
Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2008 was $1.4 million, or $0.05 per share, compared with a net loss of $1.7 million, or $0.06 per share, in the fourth quarter of 2007 and a net loss of $5.9 million, or $0.20 per share, in the first quarter of 2007. Non-GAAP net loss for the first quarter of 2008 was $712,000, or $0.02 per share, compared with a non-GAAP net loss of $1.1 million, or $0.04 per share, in the fourth quarter of 2007 and a non-GAAP net loss of $5.5 million, or $0.19 per share, in the first quarter of 2007.
QuickLogic reports certain financial measures, including net loss, in accordance with GAAP and also on a non-GAAP basis. Non-GAAP results, where applicable, exclude stock-based compensation recorded in accordance with Statement of Financial Accounting Standards (SFAS) No. 123(R), "Share-based Payment" and the write-off of long-lived assets. For a full reconciliation of GAAP net loss to non-GAAP net loss, please refer to the schedule on page 5 of this press release.
"Our results were in line with or better than our guidance for the first quarter, and new product revenue, while down sequentially, was at the high end of our guidance for the quarter," said E. Thomas Hart, chairman, president and CEO. "During the first quarter we launched our Visual Enhancement Engine, or VEE, which addresses the mobile market's need to provide users with a vastly improved user viewing experience even while significantly extending battery life. Top customers, in our target markets, see VEE as a clear way to differentiate their products as video moves into hand-held, battery-powered prosumer products."
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, April 24, 2008, to discuss the first quarter financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To participate, please call (877) 548-7911 by 2:20 p.m. Pacific Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (719) 457-0820 and reference the pass code: 4474570. The call recording will be archived until May 1, 2008 and the webcast will be available for 12 months.
About QuickLogic
QuickLogic Corporation (NASDAQ:QUIK) is the inventor and pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics OEMs and ODMs. These silicon plus software solutions are called Customer Specific Standard Products (CSSPs). CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market. For more information about QuickLogic and CSSPs, visit www.quicklogic.com.
Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation and the effect of the write-off of long-lived assets in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. For a full reconciliation of these GAAP measures to non-GAAP measures, please refer to the schedule on page 5 of this press release. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.
Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company's core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company's future periods, and serve as a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.
Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable GAAP financial measures.
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made by our CEO relating to design activity of our new products and the revenue generating potential of such new products, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from any such forward-looking statements. Factors that could cause actual results to differ materially include: delays in the market acceptance of the Company's new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers' products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; and general economic conditions. These factors and others are described in more detail in the Company's public reports filed with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases.
The QuickLogic name, pASIC, PolarPro, QuickPCI and QuickRAM are registered trademarks of and the QuickLogic logo, ArcticLink, Eclipse and VEE are trademarks of QuickLogic. All other brands or trademarks are the property of their respective holders and should be treated as such.
Note to Editors: Financial Tables Follow
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
----------------------------------------------
March 30, 2008 April 1, 2007 December 30, 2007
-------------- ------------- -----------------
Revenue $11,023 $ 6,242 $10,745
Cost of revenue,
excluding inventory
write-down and related
charges 4,302 2,936 5,312
Inventory write-down
and related charges 956 2,465 408
-------------- ------------- -----------------
Gross profit 5,765 841 5,025
Operating expenses:
Research and
development 2,821 2,287 2,549
Selling, general and
administrative 4,320 4,593 4,230
-------------- ------------- -----------------
Total operating
expenses 7,141 6,880 6,779
-------------- ------------- -----------------
Loss from operations (1,376) (6,039) (1,754)
Interest expense (71) (85) (54)
Interest income and
other, net 104 246 142
-------------- ------------- -----------------
Loss before income
taxes (1,343) (5,878) (1,666)
Provision for income
taxes 34 15 4
-------------- ------------- -----------------
Net loss $(1,377) $(5,893) $(1,670)
============== ============= =================
Net loss per share:
Basic $ (0.05) $ (0.20) $ (0.06)
============== ============= =================
Diluted $ (0.05) $ (0.20) $ (0.06)
============== ============= =================
Weighted average
shares:
Basic 29,406 28,814 29,267
============== ============= =================
Diluted 29,406 28,814 29,267
============== ============= =================
QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
--------------------------
March April 1, December
30, 2007 30,
2008 2007
-------- -------- --------
GAAP loss from operations $(1,376) $(6,039) $(1,754)
Adjustment for the write-off of long-
lived assets within:
Cost of revenue -- -- 161
Adjustment for stock-based compensation
within:
Cost of revenue 65 55 53
Research and development 158 85 103
Selling, general and administrative 442 241 287
-------- -------- --------
Non-GAAP loss from operations $ (711) $(5,658) $(1,150)
======== ======== ========
GAAP net loss $(1,377) $(5,893) $(1,670)
Adjustment for the write-off of long-
lived assets within:
Cost of revenue -- -- 161
Adjustment for stock-based compensation
within:
Cost of revenue 65 55 53
Research and development 158 85 103
Selling, general and administrative 442 241 287
-------- -------- --------
Non-GAAP net loss $ (712) $(5,512) $(1,066)
======== ======== ========
GAAP net loss per share $ (0.05) $ (0.20) $ (0.06)
Adjustment for the write-off of long-lived
assets and stock-based compensation 0.03 0.01 0.02
-------- -------- --------
Non-GAAP net loss per share $ (0.02) $ (0.19) $ (0.04)
======== ======== ========
GAAP weighted average shares 29,406 28,814 29,267
Adjustment for the write-off of long-
lived assets and stock-based
compensation -- -- --
-------- -------- --------
Non-GAAP weighted average shares 29,406 28,814 29,267
======== ======== ========
GAAP gross margin percentage 52.3% 13.5% 46.8%
Adjustment for the write-off of long-
lived assets and stock-based
compensation
0.6% 0.9% 2.0%
-------- -------- --------
Non-GAAP gross margin percentage 52.9% 14.4% 48.8%
======== ======== ========
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 30, December 30,
2008 2007(1)
---------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 19,322 $ 20,868
Short-term investment in Tower Semiconductor
Ltd. 939 1,279
Accounts receivable, net 3,709 2,634
Inventories 4,569 5,770
Other current assets 1,595 1,607
---------- ------------
Total current assets 30,134 32,158
Property and equipment, net 5,438 5,877
Investment in Tower Semiconductor Ltd. 473 644
Other assets 2,609 2,745
---------- ------------
TOTAL ASSETS $ 38,654 $ 41,424
========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables $ 2,773 $ 4,207
Accrued liabilities 2,675 2,228
Deferred income on shipments to distributors 650 516
Deferred royalty revenue 389 431
Current portion of debt and capital lease
obligations 2,353 2,497
---------- ------------
Total current liabilities 8,840 9,879
---------- ------------
Long-term liabilities:
Debt and capital lease obligations, less
current portion 1,969 2,527
---------- ------------
Total liabilities 10,809 12,406
---------- ------------
Stockholders' equity:
Common stock, at par value 29 29
Additional paid-in capital 168,013 167,298
Accumulated other comprehensive income
(loss) (161) 350
Accumulated deficit (140,036) (138,659)
---------- ------------
Total stockholders' equity 27,845 29,018
---------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 38,654 $ 41,424
========== ============
(1) Derived from the December 30, 2007 audited balance sheet included in the 2007 Annual Report on Form 10-K of QuickLogic Corporation.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of Change in Revenue
Revenue
-------------- ---------------------
Q1 Q1 Q4 Q1 2007 to Q4 2007 to
2008 2007 2007 Q1 2008 Q1 2008
---- ---- ---- ---------- ----------
COMPOSITION OF REVENUE
Revenue by product (1):
New products 24% 10% 33% 329% (26%)
Mature products 39% 56% 39% 23% 4%
End-of-life products 37% 34% 28% 93% 34%
Revenue by geography:
North America 45% 65% 41% 21% 12%
Europe 16% 13% 16% 111% 2%
Asia Pacific 31% 12% 33% 381% (2%)
Japan 8% 10% 10% 43% (21%)
Revenue by end-customer segment:
Instrumentation and test 52% 34% 55% 175% (4%)
Military and aerospace systems 9% 15% 10% 7% (3%)
Datacom and telecom 23% 28% 12% 43% 96%
Graphics and imaging 14% 19% 17% 29% (17%)
Computing 2% 4% 6% (9%) (60%)
(1) The Company changed the definition of its product families in the third quarter of 2007 and has adjusted prior periods to conform with the new definitions. New products include ArcticLink(TM), PolarPro(R), Eclipse(TM) II and QuickPCI(R) II products. Mature products include QuickRAM(R), pASIC(R) 3, Eclipse, QuickDSP and QuickFC products, as well as royalty revenue, programming hardware and software. End-of-life products include pASIC 1, pASIC 2, V3, QuickPCI and QuickMIPS products.
Code: QUIK-E
Source: QuickLogic Corporation
Released April 24, 2008
