QuickLogic Corporation

Feb 7, 2012

QuickLogic Announces Fourth Quarter and Fiscal 2011 Results

SUNNYVALE, CA -- (MARKET WIRE) -- 02/07/12 -- QuickLogic Corporation (NASDAQ: QUIK), the lowest power programmable semiconductor solutions leader, today announced the financial results for its fourth quarter and fiscal year ended January 1, 2012.

Total revenue for the fourth quarter of 2011 was $4.3 million, down 19% sequentially and down 38% from the fourth quarter of 2010. During the fourth quarter, new product revenue of $1.7 million was up 39% sequentially and down 25% from the fourth quarter of 2010.

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2011 was $3.1 million or $0.08 per diluted share, compared with a net loss of $1.5 million, or $0.04 per diluted share, in the third quarter of 2011, and a net loss of $69,000, or $0.00 per diluted share, in the fourth quarter of 2010. Non-GAAP net loss for the fourth quarter of 2011 was $2.7 million, or $0.07 per diluted share, compared with a non-GAAP net loss of $1.0 million, or $0.03 per diluted share, in the third quarter of 2011, and a non-GAAP net income of $496,000, or $0.01 per diluted share, in the fourth quarter of 2010.

Total Revenue for 2011 was down 20% to $21.0 million, compared with revenue of $26.2 million in 2010. GAAP net loss for 2011 was $7.6 million, or $0.21 per diluted share, compared with a net income of $123,000, or $0.00 per diluted share, in 2010. Non-GAAP net loss for 2011 was $5.8 million, or $0.16 per diluted share, compared with a non-GAAP net income of $1.3 million, or $0.03 per diluted share, in 2010.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 7, 2012, 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 Standard Time today. 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: 46017221. The call recording will be archived until Friday, February 10, 2012 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                Year Ended

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

                 January 1,  January 2,  October 2,  January 1,  January 2,

                    2012        2011        2011        2012        2011

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



Revenue          $    4,346  $    6,958  $    5,339  $   20,969  $   26,199

Cost of revenue,

 excluding

 inventory

 write-down and

 related charges

 and long-lived

 asset

 impairment           2,181       2,283       1,897       7,807       9,498

Inventory write-

 down and

 related charges        148          21         386         710         111



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

Gross profit          2,017       4,654       3,056      12,452      16,590

Operating

 expenses:

 Research and

  development         2,450       2,048       2,271       9,836       7,458

 Selling,

  general and

  administrative      2,548       2,685       2,267       9,965      10,073



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

Income (loss)

 from operations     (2,981)        (79)     (1,482)     (7,349)       (941)

Gain on sale of

 TowerJazz

 Semiconductor

 Ltd. shares              -           -                                 993

Interest expense         (5)        (10)         (5)        (36)        (67)

Interest income

 and other

 (expense), net         (93)          -         (49)       (159)        (46)



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

Income (loss)

 before income

 taxes               (3,079)        (89)     (1,536)     (7,544)        (61)

Provision for

 (benefit from)

 income taxes            31         (20)         10          50        (184)



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

Net income

 (loss)          $   (3,110) $      (69) $   (1,546) $   (7,594) $      123

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



Net income

 (loss) per

 share:

 Basic           $    (0.08) $    (0.00) $    (0.04) $    (0.21) $     0.00

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

 Diluted         $    (0.08) $    (0.00) $    (0.04) $    (0.21) $     0.00

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



Weighted average

 shares:

 Basic               38,482      36,228      38,418      36,792      35,729

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

 Diluted             38,482      36,228      38,418      36,792      39,038

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





                           QUICKLOGIC CORPORATION

    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

                  (In thousands, except per share amounts)

                             (Unaudited)



                         Three Months Ended                Years Ended

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

                 January 1,  January 2,  October 2,  January 1,  January 2,

                    2012        2011        2011        2012        2011

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

GAAP loss from

 operations      $   (2,981) $      (79) $   (1,482) $   (7,349) $     (941)

 Adjustment for

  stock-based

  compensation

  within:

   Cost of

    revenue              27          49          34         131         169

   Research and

    development         104         143         114         458         645

   Selling,

    general and

    administrati

    ve                  254         373         264       1,087       1,604

 Adjustment for

  the write-off

  of equipment

  within:

   Selling,

    general and

    administrati

    ve                    -           -         102         102           -

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

Non-GAAP loss

 from operations $   (2,596) $      486  $     (968) $   (5,571) $    1,477

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



GAAP net loss    $   (3,110) $      (69) $   (1,546) $   (7,594) $      123

 Adjustment for

  stock-based

  compensation

  within:

   Cost of

    revenue              27          49          34         131         169

   Research and

    development         104         143         114         458         645

   Selling,

    general and

    administrati

    ve                  254         373         264       1,087       1,604

 Adjustment for

  the write-off

  of equipment

  within:

   Selling,

    general and

    administrati

    ve                    -           -         102         102           8

 Adjustment for

  write-down of

  investment in

  Tower

  Semiconductor

  Ltd.                    -           -           -           -        (993)

 Adjustment for

  tax effect on

  other

  comprehensive

  income                  -           -           -           -        (209)

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

Non-GAAP net

 loss            $   (2,725) $      496  $   (1,032) $   (5,816) $    1,347

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



GAAP net loss

 per share       $    (0.08) $     0.00  $    (0.04) $    (0.21) $     0.00

 Adjustment for

  stock-based

  compensation         0.01        0.01        0.01        0.05        0.06

 Adjustment for

  write-off of

  equipment               -           -           *           *           *

 Adjustment for

  write-down of

  investment in

  Tower

  Semiconductor

  Ltd.                    -           -           -           -       (0.02)

 Adjustment for

  tax effect on

  other

  comprehensive

  income                  -           -           -           -       (0.01)

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

Non-GAAP net

 loss per share  $    (0.07) $     0.01  $    (0.03) $    (0.16) $     0.03

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



GAAP gross

 margin

 percentage            46.4%       66.9%       57.2%       59.4%       63.3%

 Adjustment for

  stock-based

  compensation          0.6         0.7         0.7         0.6         0.7

 Adjustment for

  write-off of

  equipment               -           -           *           *           *

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

Non-GAAP gross

 margin

 percentage            47.0%       67.6%       57.9%       60.0%       64.0%

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



* 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 1, 2012    January 2, 2011

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

                ASSETS



Current assets:

  Cash and cash equivalents            $          20,203  $          21,956

  Short-term investment in TowerJazz

   Semiconductor Ltd.                                406                909

  Accounts receivable, net                         1,585              4,143

  Inventories                                      3,764              3,344

  Other current assets                               613                772

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

    Total current assets                          26,571             31,124

Property and equipment, net                        2,181              2,312

Other assets                                         211                192

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

TOTAL ASSETS                           $          28,963  $          33,628

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



 LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

  Revolving line of credit             $               -  $               -

  Trade payables                                   2,464              2,152

  Accrued liabilities                              1,118              1,303

  Deferred royalty revenue                             8                328

  Current portion of debt and capital

   lease obligations                                 141                408

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

    Total current liabilities                      3,731              4,191

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



Long-term liabilities:

  Capital lease obligations, less

   current portion                                   146                  -

  Other long-term liabilities                        148                124

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

    Total liabilities                              4,025              4,315

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



Stockholders' equity:

  Common stock, at par value                          39                 38

  Additional paid-in capital                     190,025            186,304

  Accumulated other comprehensive

   income                                            113                616

  Accumulated deficit                           (165,239)          (157,645)

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

    Total stockholders' equity                    24,938             29,313

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

TOTAL LIABILITIES AND STOCKHOLDERS'

 EQUITY                                $          28,963  $          33,628

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








                           QUICKLOGIC CORPORATION

                              SUPPLEMENTAL DATA

                              (Unaudited)



                            Percentage of Revenue        Change in Revenue

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



                                                         Q3 2011

                                        Fiscal   Fiscal   to Q4    2010 to

                     Q4 2011  Q3 2011    2011     2010     2011      2011

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

COMPOSITION OF

 REVENUE

Revenue by product

 (1):

  New products            39%      23%      25%      36%      39%      (43)%

  Mature products         61%      77%      75%      64%     (36)%      (7)%



Revenue by geography:

  North America           45%      35%      41%      35%       6%       (5)%

  Europe                   9%      31%      20%      17%     (76)%     (10)%

  Japan                   22%      11%      13%      11%      63%       (6)%

  China                   13%      11%      14%      27%      (8)%     (56)%

  Rest of world           11%      12%      12%      10%     (22)%      (7)%



(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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