QuickLogic Corporation

Jul 31, 2012

QuickLogic Announces Fiscal 2012 Second Quarter Results

SUNNYVALE, CA -- (Marketwire) -- 07/31/12 -- 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 1, 2012.

Total revenue for the second quarter of 2012 was $4.1 million, flat sequentially and down 29% from the second quarter of 2011. New product revenue for the second quarter of 2012 was $1.7 million, up 5% sequentially and up 44% compared to the second quarter of 2011. New product revenue accounted for 42% of the total revenue in the second quarter. Mature product revenue was $2.4 million in the second quarter of 2012, down 6% sequentially and down 48% from the second quarter of 2011.

Under generally accepted accounting principles (GAAP), the net loss for the second quarter of 2012 was $3.2 million, or $0.08 per share, compared with a net loss of $3.7 million, or $0.10 per share, in the first quarter of 2012 and a net loss of $2.1 million, or $0.05 per share, in the second quarter of 2011. Non-GAAP net loss for the second quarter of 2012 was $2.8 million, or $0.07 per share, compared with a non-GAAP net loss of $3.3 million, or $0.09 per share, in the first quarter of 2012 and a non-GAAP net loss of $1.6 million, or $0.04 per share, in the second quarter of 2011.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, July 31, 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, 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: 10981322. The call recording will be archived until Tuesday, August 7, 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 and QuickLogic 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        Six Months Ended

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

                            July 1,   July 3,  April 1,   July 1,   July 3,

                             2012      2011      2012      2012      2011

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



Revenue                    $  4,071  $  5,737  $  4,130  $  8,201  $ 11,284

Cost of revenue, excluding

 inventory write-down and

 related charges and long-

 lived asset impairment       1,927     1,908     2,042     3,969     3,729

Inventory write-down and

 related charges                 99        58       329       428       176

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

Gross profit                  2,045     3,771     1,759     3,804     7,379

Operating expenses:

  Research and development    2,452     3,312     2,802     5,254     5,115

  Selling, general and

   administrative             2,749     2,543     2,697     5,446     5,150

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

Income (loss) from

 operations                  (3,156)   (2,084)   (3,740)   (6,896)   (2,886)

Interest expense                (24)      (18)      (13)      (37)      (26)

Interest income and other

 (expense), net                 (50)      (13)      (13)      (63)      (17)

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

Income (loss) before

 income taxes                (3,230)   (2,115)   (3,766)   (6,996)   (2,929)

Provision for (benefit

 from) income taxes               6       (55)      (45)      (39)        9

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

Net income (loss)          $ (3,236) $ (2,060) $ (3,721) $ (6,957) $ (2,938)

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



Net income (loss) per

 share:

  Basic                    $  (0.08) $  (0.05) $  (0.10) $  (0.18) $  (0.07)

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

  Diluted                  $  (0.08) $  (0.05) $  (0.10) $  (0.18) $  (0.07)

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



Weighted average shares:

  Basic                      40,154    38,376    38,495    39,401    38,224

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

  Diluted                    40,154    38,376    38,495    39,401    38,224

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







                          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 1,  July 3,   April   July 1,  July 3,

                                  2012     2011   1, 2012    2012     2011

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

GAAP income (loss) from

 operations                     $(3,156) $(2,084) $(3,740) $(6,896) $(2,886)

  Adjustment for stock-based

   compensation within:

    Cost of revenue                  39       35       32       71       70

    Research and development         99      119       93      192      240

    Selling, general and

     administrative                 296      282      259      555      569

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

Non-GAAP income (loss) from

 operations                     $(2,722) $(1,648) $(3,356) $(6,078) $(2,007)

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



GAAP net income (loss)          $(3,236) $(2,060) $(3,721) $(6,957) $(2,938)

  Adjustment for stock-based

   compensation within:

    Cost of revenue                  39       35       32       71       70

    Research and development         99      119       93      192      240

    Selling, general and

     administrative                 296      282      259      555      569

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

Non-GAAP net income (loss)      $(2,802) $(1,624) $(3,337) $(6,139) $(2,059)

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



GAAP net income (loss) per

 share                          $ (0.08) $ (0.05) $ (0.10) $ (0.18) $ (0.07)

  Adjustment for stock-based

   compensation                    0.01     0.01     0.01     0.02     0.02

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

Non-GAAP net income (loss) per

 share                          $ (0.07) $ (0.04) $ (0.09) $ (0.16) $ (0.05)

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



GAAP gross margin percentage       50.2%    65.7%    42.6%    46.4%    65.4%

  Adjustment for stock-based

   compensation                     1.0      0.6      0.8      0.9      0.6



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

Non-GAAP gross margin

 percentage                        51.2%    66.3%    43.4%    47.3%    66.0%

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









                           QUICKLOGIC CORPORATION

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)

                                (Unaudited)



                                                     July 1,     January 1,

                                                       2012       2012 (1)

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

                      ASSETS



Current assets:

  Cash and cash equivalents                        $    26,867  $    20,203

  Short-term investment in TowerJazz Semiconductor

   Ltd.                                                    432          406

  Accounts receivable, net                               1,661        1,585

  Inventories                                            2,727        3,764

  Other current assets                                     862          613

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

    Total current assets                                32,549       26,571

Property and equipment, net                              2,711        2,181

Other assets                                               214          211

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

TOTAL ASSETS                                       $    35,474  $    28,963

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



       LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

  Trade payables                                   $     2,105  $     2,464

  Accrued liabilities                                    1,541        1,118

  Deferred royalty revenue                                   2            8

  Current portion of capital lease obligations             287          141

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

    Total current liabilities                            3,935        3,731

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



Long-term liabilities:

  Capital lease obligations, less current portion          469          146

  Other long-term liabilities                              139          148

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

    Total liabilities                                    4,543        4,025

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



Stockholders' equity:

  Common stock, at par value                                44           39

  Additional paid-in capital                           203,007      190,025

  Accumulated other comprehensive income                    76          113

  Accumulated deficit                                 (172,196)    (165,239)

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

    Total stockholders' equity                          30,931       24,938

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

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $    35,474  $    28,963

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



(1) Derived from the January 1, 2012 audited balance sheet included in the

    2011 Annual Report on Form 10-K of QuickLogic Corporation.







                          QUICKLOGIC CORPORATION

                             SUPPLEMENTAL DATA

                                 (Unaudited)





                              Percentage of Revenue     Change in Revenue

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

                                                       Q2 2011    Q1 2012

                                                          to         to

                            Q2 2012  Q2 2011  Q1 2012   Q2 2012    Q2 2012

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

COMPOSITION OF REVENUE

Revenue by product (1):

  New products                   42%      21%      40%       44%         5%

  Mature products                58%      79%      60%      (48)%       (6)%



Revenue by geography:

  United States                  29%      33%      32%      (38)%      (10)%

  Japan                          23%      11%      21%       51%         6%

  China                          21%      19%      12%      (23)%       65%

  Europe                         15%      23%      12%      (56)%       23%

  Malaysia                        8%      11%      15%      (41)%      (43)%

  Rest of Asia Pacific            3%       2%       6%        3%       (46)%

  Rest of North America           1%       1%       2%      (15)%      (51)%



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

    ArcticLink®, ArcticLink II, Eclipse™ II, PolarPro®, PolarPro II, and

    QuickPCI II. Mature products include Eclipse, EclipsePlus, pASIC® 1,

    pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM, and V3, 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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