Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549 
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 14, 2018
QuickLogic Corporation
(Exact name of registrant as specified in its charter)  
 
 
 
 
 
Delaware
 
000-22671
 
77-0188504
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
1277 Orleans Drive, Sunnyvale, CA
 
 
 
94089-1138
(Address of principal executive offices)
 
 
 
(Zip Code)
Registrant’s telephone number, including area code (408) 990-4000
N/A
(Former name or former address, if changed since last report) 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



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Section 2 – Financial Information
Item 2.02 Results of Operation and Financial Condition.

On February 14, 2018, QuickLogic Corporation (“QuickLogic”) issued a press release regarding it’s financial results for the fourth quarter and fiscal year ended December 31, 2017. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

QuickLogic is making reference to non-GAAP financial information in the press release. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.

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Section 9 – Financial Statements and Exhibits
Item 9.01(d) Exhibits.
The following exhibit is furnished as a part of this report:
 
99.1
Press release of QuickLogic Corporation reporting financial results for the fourth quarter and fiscal year ended December 31, 2017.


3



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
Date: February 14, 2018
 
QuickLogic Corporation
 
 
 
 
/s/ Suping (Sue) Cheung
 
 
 
 
 
Suping (Sue) Cheung
Vice President, Finance and Chief Financial Officer


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EXHIBIT INDEX
 
 
 
 
Exhibit
No.
  
Description
 
 
  
Press release of QuickLogic Corporation reporting financial results for the fourth quarter and fiscal year ended December 31, 2017.


Exhibit


Exhibit 99.1
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12059714&doc=3

QuickLogic Reports Fourth Quarter and Fiscal 2017 Results

SUNNYVALE, Calif. - February 14, 2018 - QuickLogic Corporation (NASDAQ: QUIK), a developer of ultra-low power multi-core voice enabled SoCs, embedded FPGA IP, display bridge and programmable logic solutions, announced its financial results for the fourth quarter and fiscal year ended December 31, 2017.

Recent Accomplishments
EOSTM S3 Sensor Processing Platform:
Nine new customer products using QuickLogic’s EOS S3 voice-enabled Sensor Processing SoC were displayed at 2018 CES, these included:
GGEC chose EOS S3 for its voice-enabled Bluetooth® sport earphone manufactured for Tencent to enable its new cloud-based digital voice assistant service called DingDang.
Cleer selected EOS S3 to enable Amazon’s Alexa Voice Services (AVS) for its EDGE Voice wireless headphone product, a 2018 CES Innovation Awards honoree.
Cleer selected EOS S3 to enable AVS for its second-generation Stage portable smart speaker. The first-generation Stage won a Best of Show award at the June Consumer Electronics show.
Climax Technology Company selected EOS S3 to enable always-on / always-listening capability for its next generation “Voice Extender” smart home / senior care product.
Shenzhen AONI Electronic, Ltd. selected EOS for its Bluetooth-enabled sport earphone and Active Noise Canceling (ANC) Bluetooth headphone set, both of which enable users to connect to AVS.
Announced Voice Over Bluetooth Low Energy (BLE) Reference Design for EOS S3 in conjunction with Nordic Semi.


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Embedded FPGA (eFPGA) Intellectual Property (IP) Licensing:
Completed the test chip tape-out for GLOBALFOUNDRIES 22FDX® FD-SOI Process.
Collaborated with Mentor® to optimize its Precision Synthesis software to support the ArcticProTM architecture used in QuickLogic’s eFPGA.

Fourth Quarter Fiscal Year 2017 Financial Results
Total revenue for the fourth quarter of 2017 was $3.0 million, within the company’s guidance, flat compared to the third quarter of 2017 and up 1% compared to the fourth quarter of 2016. New product revenue was $1.0 million in the fourth quarter of 2017, 34% lower than third quarter of 2017 and 39% lower than fourth quarter of 2016. Mature product revenue was $2.0 million in the fourth quarter of 2017, up 34% compared to the third quarter of 2017 and up 49% compared to the fourth quarter of 2016. Lower new product revenue in the fourth quarter of 2017 was primarily due to lower shipments of the ArcticLink® III VX Display Bridge. New product revenue accounted for 33% of the total revenue in the fourth quarter of 2017, compared to 50% in the third quarter of 2017 and 54% in the fourth quarter of 2016.

Fourth quarter GAAP gross margin was 50.4%, up from 42.6% in the third quarter of 2017 and up from 32.3% in the fourth quarter of 2016. Fourth quarter Non-GAAP gross margin was 51.6%, up from 43.7% in the third quarter of 2017 and up from 33.3% in the fourth quarter of 2016.

Fourth quarter 2017 GAAP operating expenses increased slightly to $5.0 million, from $4.7 million in the third quarter of 2017 and the fourth quarter of 2016. Fourth quarter 2017 Non-GAAP operating expenses also increased slightly to $4.6 million, compared to $4.3 million in the third quarter of 2017 and flat compared to the fourth quarter of 2016.

Fourth quarter 2017 GAAP net loss was $3.4 million, or $0.04 per share, compared to $3.6 million, or $0.04 per share, in the third quarter of 2017 and $3.9 million, or $0.05 per share, in the fourth quarter of 2016. Fourth quarter 2017 Non-GAAP net loss was lower at $3.0 million, or $0.04 per share, compared to $3.1 million, or $0.04 per share, in the third quarter of 2017 and $3.7 million, or $0.05 per share, in the fourth quarter of 2016. (See below for an explanation of non-GAAP financial measures.)

2



Fiscal 2017 Results
For the fiscal year 2017, total revenue was $12.1 million, up 6% compared to $11.4 million in fiscal 2016. New product revenue for fiscal 2017 was $5.8 million, up 4% from fiscal 2016. Mature product revenue was $6.3 million, up 9% from fiscal 2016.

Fiscal 2017 GAAP gross margin was 46%, up from 33% in fiscal 2016. Non-GAAP gross margin for 2017 was also 46%, up from 35% in fiscal 2016.

GAAP operating expenses for fiscal 2017 were $19.5 million, down 14% compared to $22.6 million in fiscal 2016. Non-GAAP operating expenses for fiscal 2017 were $18.1 million, down 13% compared to $20.8 million in fiscal 2016.

GAAP net loss for fiscal 2017 was $14.1 million, or $0.18 per share, compared to $19.1 million, or $0.29 per share in fiscal 2016. Non-GAAP net loss was lower at $12.7 million, or $0.17 per share for fiscal 2017, compared to $17.2 million, or $0.26 per share, for fiscal 2016.

Conference Call
QuickLogic Corporation (NASDAQ: QUIK) will hold a conference call at 2:30 p.m. Pacific Standard Time / 5:30 p.m. Eastern Standard Time today, February 14, 2018, to discuss its current financial results. The conference call will be webcasted and can be accessed via the Company's website at http://ir.quicklogic.com/events.cfm. To join the live conference, you may dial (877) 377-7094 and international participants should dial (253) 237-1177 by 2:20 p.m. Pacific Standard Time. The conference ID is 5749499. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (855) 859-2056 or (404) 537-3406 and reference the passcode: 5749499. The call recording will be archived until Thursday, February 22, 2018 and the webcast will be available for 12 months on the Company's website.

About QuickLogic
QuickLogic Corporation (NASDAQ: QUIK) enables OEMs to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable, Hearable and IoT devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable SoC semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. The company's embedded FPGA initiative also enables SoC designers to easily implement post production changes, and increase revenue by providing hardware programmability to their end customers. For more information about QuickLogic, please visit www.quicklogic.com.

QuickLogic uses its website (www.quicklogic.com), the company blog QuickLogic HotSpot
(http://blog.quicklogic.com), corporate Twitter account (@QuickLogic_Corp), Facebook page

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(https://www.facebook.com/QuickLogic), and LinkedIn page
(https://www.linkedin.com/company/13512/) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and QuickLogic may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company’s website and its social media accounts in addition to following the company’s press releases, SEC filings, public conference calls, and webcasts.

Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with United States Generally Accepted Accounting Principles, or US 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, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. 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 the Company's 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 US 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 US GAAP financial measures.

Forward Looking Statements
This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: 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 and other potential factors and uncertainties that could cause actual results to differ from the results predicted are described in more detail in the Company’s public reports filed with the Securities and

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Exchange Commission (the "SEC"), including the risks discussed in the “Risk Factors” section in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the Company’s prior press releases, which are available on the Company's Investor Relations website at
http://ir.quicklogic.com/and on the SEC website at www.sec.gov. In addition, please note that the date of this press release is February 14, 2018, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
ArcticLink, QuickLogic and the QuickLogic logo are registered trademarks and EOS and ArcticPro are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.



Company Contact
Sue Cheung
Chief Financial Officer
(408) 990-4076
Scheung@quicklogic.com

IR Contact
Moriah Shilton/Kirsten Chapman
(415) 433-3777
ir@quicklogic.com

Code: QUIK-E


-Tables Follow -
























5




QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended
 
Year Ended
 
December 31, 2017
 
January 1, 2017
 
October 1, 2017
 
December 31, 2017
 
January 1, 2017
Revenue
$
2,981

 
$
2,945

 
$
2,972

 
$
12,149

 
$
11,421

Cost of revenue
1,478

 
1,995

 
1,706

 
6,627

 
7,648

Gross profit
1,503

 
950

 
1,266

 
5,522

 
3,773

Operating expenses:
 
 
 
 

 
 
 
 
Research and development
2,458

 
2,380

 
2,368

 
9,572

 
12,265

Selling, general and administrative
2,519

 
2,322

 
2,353

 
9,900

 
10,310

Total operating expense
4,977

 
4,702

 
4,721

 
19,472

 
22,575

Loss from operations
(3,474
)
 
(3,752
)
 
(3,455
)
 
(13,950
)
 
(18,802
)
Interest expense
(18
)
 
(66
)
 
(15
)
 
(115
)
 
(175
)
Interest income and other (expense), net
23

 
(43
)
 
(3
)
 
21

 
(106
)
Loss before income taxes
(3,469
)
 
(3,861
)
 
(3,473
)
 
(14,044
)
 
(19,083
)
Provision for (benefit from) income taxes
(60
)
 
(3
)
 
77

 
87

 
65

Net loss
$
(3,409
)
 
$
(3,858
)
 
$
(3,550
)
 
$
(14,131
)
 
$
(19,148
)
Net loss per share:
 
 
 
 

 
 
 
 
Basic
$
(0.04
)
 
$
(0.05
)
 
$
(0.04
)
 
$
(0.18
)
 
$
(0.29
)
Diluted
$
(0.04
)
 
$
(0.05
)
 
$
(0.04
)
 
$
(0.18
)
 
$
(0.29
)
Weighted average shares:
 
 
 
 

 
 
 
 
Basic
80,353

 
67,941

 
80,125

 
77,291

 
65,377

Diluted
80,353

 
67,941

 
80,125

 
77,291

 
65,377


























6




QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
 
 
 
December 31, 2017
 
January 1, 2017 (1)
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
16,527

 
$
14,870

Accounts receivable, net
 
925

 
839

Inventories
 
3,559

 
2,017

Other current assets
 
997

 
1,123

Total current assets
 
22,008

 
18,849

Property and equipment, net
 
2,375

 
2,765

Other assets
 
253

 
230

TOTAL ASSETS
 
$
24,636

 
$
21,844

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 
Current liabilities:
 

 
 
Revolving line of credit
 
$
6,000

 
$
6,000

Trade payables
 
1,437

 
2,018

Accrued liabilities
 
1,653

 
1,580

Current portion of capital lease obligations
 
299

 
209

Total current liabilities
 
9,389

 
9,807

Long-term liabilities:
 

 
 
Capital lease obligations, less current portion
 
355

 

Other long-term liabilities
 
14

 
49

Total liabilities
 
9,758

 
9,856

Stockholders’ equity:
 

 
 
Common stock, par value
 
80

 
68

Additional paid-in capital
 
268,833

 
251,824

Accumulated deficit
 
(254,035
)
 
(239,904
)
Total stockholders’ equity
 
14,878

 
11,988

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
24,636

 
$
21,844

 
________________________
(1)
Derived from the January 1, 2017 audited balance sheet included in the 2016 Annual Report on Form 10-K of QuickLogic Corporation.
















7




QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts and percentages)
(Unaudited)
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
2017
 
January 1, 2017
 
October 1,
2017
 
December 31,
2017
 
January 1,
2017
US GAAP loss from operations
 
$
(3,474
)
 
$
(3,752
)
 
$
(3,455
)
 
$
(13,950
)
 
$
(18,802
)
Adjustment for stock-based compensation within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
36

 
13

 
32

 
121

 
132

Research and development
 
190

 
55

 
151

 
614

 
658

Selling, general and administrative
 
155

 
57

 
212

 
706

 
793

Adjustment for the write-off of equipment within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 

 
17

 

 

 
50

       Research and development
 
2

 

 
10

 
12

 
313

       Selling, general and administrative
 

 

 

 

 
5

Non-GAAP loss from operations
 
$
(3,091
)
 
$
(3,610
)
 
$
(3,050
)
 
$
(12,497
)
 
$
(16,851
)
US GAAP net loss
 
$
(3,409
)
 
$
(3,858
)
 
$
(3,550
)
 
$
(14,131
)
 
$
(19,148
)
Adjustment for stock-based compensation within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
36

 
13

 
32

 
121

 
132

Research and development
 
190

 
55

 
151

 
614

 
658

Selling, general and administrative
 
155

 
57

 
212

 
706

 
793

Adjustment for the write-off of equipment within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 

 
17

 

 

 
50

       Research and development
 
2

 

 
10

 
12

 
313

       Selling, general and administrative
 

 

 

 

 
5

Non-GAAP net loss
 
$
(3,026
)
 
$
(3,716
)
 
$
(3,145
)
 
$
(12,678
)
 
$
(17,197
)
US GAAP net loss per share
 
$
(0.04
)
 
$
(0.05
)
 
$
(0.04
)
 
$
(0.18
)
 
$
(0.29
)
Adjustment for stock-based compensation
 
*

 
*

 
*

 
0.01

 
0.03

Adjustment for the write-off of equipment
 
*

 
*

 
*

 
*

 
*

Non-GAAP net loss per share
 
$
(0.04
)
 
$
(0.05
)
 
$
(0.04
)
 
$
(0.17
)
 
$
(0.26
)
US GAAP gross margin percentage
 
50.4
%
 
32.3
%
 
42.6
%
 
45.5
%
 
33.0
%
Adjustment for stock-based compensation
 
1.2
%
 
0.4
%
 
1.1
%
 
0.9
%
 
1.2
%
       Adjustment for the write-off of equipment
 
*

 
0.6
%
 
*

 
*

 
0.4
%
Non-GAAP gross margin percentage
 
51.6
%
 
33.3
%
 
43.7
%
 
46.4
%
 
34.6
%

* Figures were not considered for reconciliation due to the insignificant amount.









8




QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
 
 
 
Percentage of Revenue
 
 
 
Change in Revenue
 
 
Q4 2017
 
Q3 2017
 
Fiscal 2017
 
Fiscal 2016
 
Q3 2017 to
Q4 2017
 
2016 to 2017
COMPOSITION OF REVENUE
 

 

 

 
 
 

 

Revenue by product: (1)
 

 

 

 
 
 

 

New products
 
33
%
 
50
%
 
48
%
 
49
%
 
(34
)%
 
4
 %
Mature products
 
67
%
 
50
%
 
52
%
 
51
%
 
34
 %
 
9
 %
Revenue by geography:
 

 

 

 
 
 

 

Asia Pacific
 
32
%
 
49
%
 
48
%
 
63
%
 
(35
)%
 
(19
)%
North America
 
32
%
 
39
%
 
36
%
 
25
%
 
(18
)%
 
49
 %
Europe
 
37
%
 
12
%
 
17
%
 
12
%
 
204
 %
 
45
 %
 
_____________________
(1)
New products include all products manufactured on 180 nanometer or smaller semiconductor processes. eFPGA IP license revenue is also included in new product revenue. Mature products include all products produced on semiconductor processes larger than 180 nanometers.


9