QuickLogic Corporation

Nov 1, 2011

QuickLogic Announces Fiscal 2011 Third Quarter Results

SUNNYVALE, CA -- (MARKET WIRE) -- 11/01/11 -- QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced the financial results for its fiscal third quarter ended October 2, 2011.

In accordance with the company's guidance for the quarter, total revenue for the third quarter of 2011 was $5.3 million. Revenue was down 7% sequentially and 27% compared to the third quarter of 2010. During the third quarter, new product revenue increased 3% sequentially to $1.2 million, representing 23% of total revenue. During the third quarter, mature product revenue decreased 9% sequentially to $4.1 million, representing 77% of total revenue in the third quarter.

Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2011 was $1.5 million, or $0.04 per diluted share, compared with a net loss of $2.1 million, or $0.05 per diluted share, in the second quarter of 2011 and a net income of $0.6 million, or $0.01 per diluted share, in the third quarter of 2010. Non-GAAP net loss for the third quarter of 2011 was $1.0 million, or $0.03 per diluted share, compared with a non-GAAP net loss of $1.6 million, or $0.04 per diluted share, in the second quarter of 2011 and a non-GAAP net income of $0.9 million, or $0.02 per diluted share, in the third quarter of 2010.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, November 1, 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, please 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: 21256625. The call recording will be archived until Friday, November 4, 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 write-down of the Company's investment in TowerJazz Semiconductor Ltd., 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 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 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, QuickLogic, QuickPCI and QuickRAM are registered trademarks and Eclipse 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          Nine Months Ended

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

                       October    October    July 3,    October    October

                       2, 2011    3, 2010      2011     2, 2011    3, 2010

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



Revenue               $   5,339    $ 7,333    $ 5,737  $  16,623    $19,241

Cost of revenue,

 excluding inventory

 write-down and

 related charges and

 long-lived asset

 impairment               1,897      2,619      1,908      5,626      7,215

Inventory write-down

 and related charges        386         17         58        562         90

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

Gross profit              3,056      4,697      3,771     10,435     11,936

Operating expenses:

  Research and

   development            2,271      1,817      3,312      7,386      5,410

  Selling, general

   and administrative     2,267      2,535      2,543      7,417      7,388

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

Income (loss) from

 operations              (1,482)       345     (2,084)    (4,368)      (862)

Gain on sale of

 TowerJazz

 Semiconductor Ltd.

 shares                                                                 993

Interest expense             (5)       (12)       (18)       (31)       (57)

Interest income and

 other (expense), net       (49)        25        (13)       (66)       (46)

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

Income (loss) before

 income taxes            (1,536)       358     (2,115)    (4,465)        28

Provision for

 (benefit from)

 income taxes                10       (192)       (55)        19       (164)

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

Net income (loss)     $  (1,546)   $   550    $(2,060) $  (4,484)   $   192

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



Net income (loss) per

 share:

  Basic               $   (0.04)   $  0.02    $ (0.05) $   (0.12)   $  0.01

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

  Diluted             $   (0.04)   $  0.01    $ (0.05) $   (0.12)   $  0.01

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



Weighted average

 shares:

  Basic                  38,418     35,634     38,376     38,303     35,436

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

  Diluted                38,418     38,711     38,376     38,303     37,911

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







                           QUICKLOGIC CORPORATION

    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

                  (In thousands, except per share amounts)

                                (Unaudited)



                             Three Months Ended          Nine Months Ended

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

                       October    October    July 3,    October    October

                       2, 2011    3, 2010      2011     2, 2011    3, 2010

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

GAAP income (loss)

 from operations      $  (1,482)   $   345  $  (2,084) $  (4,368) $    (862)

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue          34         34         35        104        120

    Research and

     development            114        147        119        354        502

    Selling, general

     and

     administrative         264        387        282        833      1,231

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative         102          8          -        102          8

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

Non-GAAP income

 (loss) from

 operations           $    (968)   $   921  $  (1,648) $  (2,975) $     999

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



GAAP net income

 (loss)               $ (1,546)    $   550  $  (2,060) $  (4,484) $     192

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue          34         34         35        104        120

    Research and

     development            114        147        119        354        502

    Selling, general

     and

     administrative         264        387        282        833      1,231

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative         102          8          -        102          8

  Adjustment for gain

   on sale of

   TowerJazz

   Semiconductor Ltd.

   Shares                     -          -          -                  (993)

  Adjustment for tax

   effect on other

   comprehensive

   income                     -       (209)         -                  (209)

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

Non-GAAP net income

 (loss)               $  (1,032)   $   917  $  (1,624) $  (3,091) $     851

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



GAAP net income

 (loss) per share     $   (0.04)   $  0.01  $   (0.05) $   (0.12) $    0.01

  Adjustment for

   stock-based

   compensation            0.01       0.02       0.01       0.04       0.05

  Adjustment for

   write-off of

   equipment                  *          *          -          *          *

  Adjustment for gain

   on sale of

   TowerJazz

   Semiconductor Ltd.

   Shares                     -          -          -          -      (0.03)

  Adjustment for tax

   effect on other

   comprehensive

   income                     -      (0.01)         -          -      (0.01)

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

Non-GAAP net income

 (loss) per share     $   (0.03)   $  0.02  $   (0.04) $   (0.08) $    0.02

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



GAAP gross margin

 percentage                57.2%      64.1%      65.7%      62.8%      62.0%

  Adjustment for

   stock-based

   compensation             0.7        0.4        0.6        0.6        0.7

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

Non-GAAP gross margin

 percentage                57.9%      64.5%      66.3%      63.4%      62.7%

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



* Figures were not considered in the reconciliation of GAAP and Non-GAAP measures due to the insignificant amount.




                           QUICKLOGIC CORPORATION

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)

                                (Unaudited)



                                                 October 2,     January 2,

                                                    2011         2011(1)

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

                    ASSETS



Current assets:

  Cash and cash equivalents                    $      21,571  $      21,956

  Short-term investment in TowerJazz

   Semiconductor Ltd.                                    425            909

  Accounts receivable, net                             1,978          4,143

  Inventories                                          3,862          3,344

  Other current assets                                   661            772

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

    Total current assets                              28,497         31,124

Property and equipment, net                            1,935          2,312

Other assets                                             202            192

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

TOTAL ASSETS                                   $      30,634  $      33,628

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



     LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

  Revolving line of credit                     $           -  $           -

  Trade payables                                       1,924          2,152

  Accrued liabilities                                  1,041          1,303

  Deferred income on shipments to distributors            90            328

  Current portion of debt and capital lease

   obligations                                            37            408

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

    Total current liabilities                          3,092          4,191

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



Long-term liabilities:

  Capital lease obligations, less current

   portion                                                 -              -

  Other long-term liabilities                            127            124

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

    Total liabilities                                  3,219          4,315

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



Stockholders' equity:

  Common stock, at par value                              39             38

  Additional paid-in capital                         189,373        186,304

  Accumulated other comprehensive income                 132            616

  Accumulated deficit                               (162,129)      (157,645)

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

    Total stockholders' equity                        27,415         29,313

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



TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $      30,634  $      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

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

                                                        Q2 2011    Q3 2010

                          Q3         Q2         Q3        to         to

                         2011       2011       2010     Q3 2011    Q3 2011

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

COMPOSITION OF

 REVENUE

Revenue by product

 (1)

  New products               23%        21%        38%        3%       (56)%

  Mature products            77%        79%        62%       (9)%      (10)%

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

                            100%       100%       100%

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



Revenue by geography

  North America              35%        34%        35%       (7)%      (28)%

  Europe                     31%        24%        10%       24%       120%

  Rest of world              23%        31%        45%      (31)%      (62)%

  Japan                      11%        11%        10%       (5)%      (21)%

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

                            100%       100%       100%

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



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

     ArcticLink, ArcticLink II, Eclipse II, PolarPro, PolarPro II, and

     QuickPCI II products. Mature products include Eclipse, pASIC1, pASIC2,

     pASIC3, 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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