QuickLogic Corporation

Aug 2, 2011

QuickLogic Announces Fiscal 2011 Second Quarter Results

SUNNYVALE, CA -- (MARKET WIRE) -- 08/02/11 -- QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced the financial results for its fiscal second quarter ended July 3, 2011.

Total revenue for the second quarter of 2011 was $5.7 million, up 3% sequentially and down 11% compared to the second quarter of 2010. During the second quarter, new product revenue stayed flat at $1.2 million sequentially and accounted for 21% of total revenue. During the second quarter, mature product revenue increased to $4.5 million from $4.3 million in the first quarter of 2011, accounting for 79% of total revenue in the second quarter of 2011.

Under generally accepted accounting principles (GAAP), the net loss for the second quarter of 2011 was $2.1 million, or $0.05 per share, compared with a net loss of $0.9 million, or $0.02 per share, in the first quarter of 2011 and a net loss of $0.2 million, or $0.01 per share, in the second quarter of 2010. Non-GAAP net loss for the second quarter of 2011 was $1.6 million, or $0.04 per share, compared with a non-GAAP net loss of $0.4 million, or $0.01 per share, in the first quarter of 2011 and a non-GAAP net income of $0.4 million, or $0.01 per diluted share, in the second quarter of 2010.

"As announced last week, Pantech's Vega 5 Tablet-Phone incorporating a VEE/DPO enabled CSSP began production in Q2," said Andy Pease, QuickLogic's President and CEO. "This represents the achievement of a significant milestone in our strategy and demonstrates that we are developing meaningful traction for CSSP based designs in our strategic market segments."

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, August 2, 2011, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 83426213. The call recording will be archived until Friday, August 5, 2011 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 original equipment manufacturers (OEMs) and original design manufacturers (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. Code: QUIK-G

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with 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 gain on sale of the Company's investment in TowerJazz Semiconductor Ltd. and the effect of the write-off of long-lived assets and equipment, 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 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 the revenue generating potential of new products, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from the results described in these 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.

ArcticLink, pASIC, PolarPro, and QuickLogic are registered trademarks and Eclipse, QuickPCI, QuickRAM and the QuickLogic logo are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.


                          QUICKLOGIC CORPORATION

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                 (In thousands, except per share amounts)

                                (Unaudited)



                                Three Months Ended        Six Months Ended

                          ----------------------------- -------------------

                           July 3,   July 4,   April 3,  July 3,   July 4,

                             2011      2010      2011      2011      2010

                          --------- --------- --------- --------- ---------



Revenue                   $   5,737 $   6,479 $   5,547 $  11,284 $  11,908

Cost of revenue, excluding

 inventory write-down and

 related charges and long-

 lived asset impairment       1,908     2,553     1,821     3,729     4,596

Inventory write-down and

 related charges                 58         -       118       176        73

                          --------- --------- --------- --------- ---------

Gross profit                  3,771     3,926     3,608     7,379     7,239

Operating expenses:

 Research and development     3,312     1,533     1,803     5,115     3,593

 Selling, general and

  administrative              2,543     2,518     2,607     5,150     4,853

                          --------- --------- --------- --------- ---------

Income (loss) from

 operations                  (2,084)     (125)     (802)   (2,886)   (1,207)

Gain on sale of TowerJazz

 Semiconductor Ltd. shares                            -         -       993

Interest expense                (18)      (27)       (8)      (26)      (45)

Interest income and other

 (expense), net                 (13)      (50)       (4)      (17)      (71)

                          --------- --------- --------- --------- ---------

Income (loss) before

 income taxes                (2,115)     (202)     (814)   (2,929)     (330)

Provision for (benefit

 from) income taxes             (55)       13        64         9        28

                          --------- --------- --------- --------- ---------

Net income (loss)         $  (2,060)$    (215)$    (878)$  (2,938)$    (358)

                          ========= ========= ========= ========= =========



Net income (loss) per

 share:

 Basic                    $   (0.05)$   (0.01)$   (0.02)$   (0.07)$   (0.01)

                          ========= ========= ========= ========= =========

 Diluted                  $   (0.05)$   (0.01)$   (0.02)$   (0.07)$   (0.01)

                          ========= ========= ========= ========= =========



Weighted average shares:

 Basic                       38,376    35,383    36,495    38,224    35,244

                          ========= ========= ========= ========= =========

 Diluted                     38,376    35,383    36,495    38,224    35,244

                          ========= ========= ========= ========= =========









                          QUICKLOGIC CORPORATION

   SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

                 (In thousands, except per share amounts)

                                (Unaudited)



                                Three Months Ended        Six Months Ended

                          ----------------------------- -------------------

                           July 3,   July 4,   April 3,  July 3,   July 4,

                             2011      2010      2011      2011      2010

                          --------- --------- --------- --------- ---------

GAAP loss from operations $  (2,084)$    (125)$    (802)$  (2,886)$  (1,207)

 Adjustment for stock-

  based compensation

  within:

  Cost of revenue                35        39        35        70        86

  Research and development      119       180       121       240       355

  Selling, general and

   administrative               282       414       287       569       844

                          --------- --------- --------- --------- ---------

Non-GAAP loss from

 operations               $  (1,648)$     508 $    (359)$  (2,007)$      78

                          ========= ========= ========= ========= =========



GAAP net loss             $  (2,060)$    (215)$    (878)$  (2,938)$    (358)

 Adjustment for stock-

  based compensation

  within:

  Cost of revenue                35        39        35        70        86

  Research and development      119       180       121       240       355

  Selling, general and

   administrative               282       414       287       569       844

 Adjustment for gain on

  sale of TowerJazz

  Semiconductor Ltd.

  shares                          -         -         -         -      (993)

                          --------- --------- --------- --------- ---------

Non-GAAP net loss         $  (1,624)$     418 $    (435)$  (2,059)$     (66)

                          ========= ========= ========= ========= =========



GAAP net loss per share   $   (0.05)$   (0.01)$   (0.02)$   (0.07)$   (0.01)

 Adjustment for stock-

  based compensation           0.01      0.02      0.01      0.02      0.04

 Adjustment for gain on

  sale of TowerJazz

  Semiconductor Ltd.

  shares                          -         -         -         -     (0.03)

                          --------- --------- --------- --------- ---------

Non-GAAP net loss per

 share                    $   (0.04)$    0.01 $   (0.01)$   (0.05)$   (0.00)

                          ========= ========= ========= ========= =========



GAAP gross margin

 percentage                    65.7%     60.6%     65.0%     65.4%     60.8%

 Adjustment for stock-

  based compensation            0.6       0.6       0.6       0.6       0.7

                          --------- --------- --------- --------- ---------

Non-GAAP gross margin

 percentage                    66.3%     61.2%     65.6%     66.0%     61.5%

                          ========= ========= ========= ========= =========



* Figures were not considered in the reconciliation of Non-GAAP net loss per

share due to the insignificant amount.










                           QUICKLOGIC CORPORATION

                   CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)

                                (Unaudited)



                                                               January 2,

                                             July 3, 2011       2011(1)

                                           ---------------  ---------------

                   ASSETS

Current assets:

  Cash and cash equivalents                $        21,439  $        21,956

  Short-term investment in TowerJazz

   Semiconductor Ltd.                                  767              909

  Accounts receivable, net                           3,124            4,143

  Inventories                                        4,051            3,344

  Other current assets                                 723              772

                                           ---------------  ---------------

    Total current assets                            30,104           31,124

Property and equipment, net                          2,174            2,312

Other assets                                           178              192

                                           ---------------  ---------------

TOTAL ASSETS                               $        32,456  $        33,628

                                           ===============  ===============



    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  Trade payables                           $         2,127  $         2,152

  Accrued liabilities                                1,087            1,303

  Deferred royalty revenue                             196              328

  Current portion of capital lease

   obligations                                         207              408

                                           ---------------  ---------------

    Total current liabilities                        3,617            4,191

                                           ---------------  ---------------

Long-term liabilities:

  Other long-term liabilities                           87              124

                                           ---------------  ---------------

    Total liabilities                                3,704            4,315

                                           ---------------  ---------------

Stockholders' equity:

  Common stock, at par value                            38               38

  Additional paid-in capital                       188,823          186,304

  Accumulated other comprehensive income               474              616

  Accumulated deficit                             (160,583)        (157,645)

                                           ---------------  ---------------

    Total stockholders' equity                      28,752           29,313

                                           ---------------  ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $        32,456  $        33,628

                                           ===============  ===============



(1) Derived from the January 2, 2011 audited balance sheet included in the

2010 Annual Report on Form 10-K of QuickLogic Corporation.









                           QUICKLOGIC CORPORATION

                              SUPPLEMENTAL DATA

                                 (Unaudited)



                            Percentage of Revenue       Change in Revenue

                        ----------------------------- ---------------------

                                                      Q1 2011 to Q2 2010 to

                         Q2 2011   Q1 2011   Q2 2010    Q2 2011    Q2 2011

                        --------- --------- --------- ---------- ----------

COMPOSITION OF REVENUE

Revenue by product (1):

  New products                 21%       22%       35%        -2%       -48%

  Mature products              79%       78%       65%         5%         9%



Revenue by geography:

  North America                34%       51%       33%       -31%        -8%

  Europe                       23%       13%       13%        87%        58%

  Rest of world                31%       25%       43%        28%       -35%

  Japan                        11%       10%       11%         7%       -15%



(1) New products represent products introduced since 2005, and include

ArcticLink, PolarPro, PolarPro II, Eclipse II and QuickPCI II products.

Mature products include Eclipse, pASIC 1, pASIC 2, pASIC 3, QuickDSP,

QuickFC, QuickMIPS, QuickPCI, QuickRAM and V3 products, as well as royalty

revenue, programming hardware and software.

Contacts:

Ralph S. Marimon

Vice President of Finance

Chief Financial Officer

(408) 990-4000

Email Contact



Andrea Vedanayagam

(408) 656-4494

Email Contact



Source: QuickLogic

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