QuickLogic Corporation

Oct 30, 2012

QuickLogic Announces Fiscal 2012 Third Quarter Results

SUNNYVALE, CA -- (Marketwire) -- 10/30/12 -- QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced financial results for its fiscal third quarter ended September 30, 2012.

In accordance with the company's guidance for the quarter, total revenue for the third quarter of 2012 was $3.7 million. Revenue was down 10% sequentially and down 32% compared to the third quarter of 2011. During the third quarter of 2012, new product revenue decreased 9% sequentially to $1.6 million, representing 43% of total revenue. During the third quarter, mature product revenue decreased 11% sequentially to $2.1 million, representing 57% of total revenue in the third quarter.

Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2012 was $2.8 million, or $0.06 per share, compared with a net loss of $3.2 million, or $0.08 per share, in the second quarter of 2012 and a net loss of $1.5 million, or $0.04 per share, in the third quarter of 2011. Non-GAAP net loss for the third quarter of 2012 was $2.2 million, or $0.05 per share, compared with a non-GAAP net loss of $2.8 million, or $0.07 per share, in the second quarter of 2012 and a non-GAAP net loss of $1.0 million, or $0.03 per share, in the third quarter of 2011.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, October 30, 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 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: 47075076. The call recording will be archived until Tuesday, November 6, 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 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.

Note to Editors: Financial Tables Follow




                           QUICKLOGIC CORPORATION

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                  (In thousands, except per share amounts)

                                (Unaudited)





                            Three Months Ended           Nine Months Ended

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

                      September   October    July 1,   September   October

                      30, 2012    2, 2011      2012     30, 2012   2, 2011

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



Revenue              $    3,657  $   5,339  $   4,071  $  11,858  $  16,623

Cost of revenue,

 excluding inventory

 write-down and

 related charges and

 long-lived asset

 impairment               1,916      1,897      1,927      5,885      5,626

Inventory write-down

 and related charges          -        386         99        428        562

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

Gross profit              1,741      3,056      2,045      5,545     10,435

Operating expenses:

  Research and

   development            1,865      2,271      2,452      7,119      7,386

  Selling, general

   and

   administrative         2,658      2,267      2,749      8,104      7,417

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

Income (loss) from

 operations              (2,782)    (1,482)    (3,156)    (9,678)    (4,368)

Interest expense            (12)        (5)       (24)       (49)       (31)

Interest income and

 other (expense),

 net                         18        (49)       (50)       (45)       (66)

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

Income (loss) before

 income taxes            (2,776)    (1,536)    (3,230)    (9,772)    (4,465)

Provision for

 (benefit from)

 income taxes                22         10          6        (17)        19

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

Net income (loss)    $   (2,798) $  (1,546) $  (3,236) $  (9,755) $  (4,484)

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



Net income (loss)

 per share:

  Basic & Diluted    $    (0.06) $   (0.04) $   (0.08) $   (0.24) $   (0.12)

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



Weighted average

 shares:

  Basic & Diluted        44,122     38,418     40,154     40,975     38,303

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









                           QUICKLOGIC CORPORATION

    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

                  (In thousands, except per share amounts)

                                 (Unaudited)





                           Three Months Ended           Nine Months Ended

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

                     September   October    July 1,    September   October

                     30, 2012    2, 2011      2012     30, 2012    2, 2011

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

GAAP income (loss)

 from operations    $   (2,782) $  (1,482) $  (3,156) $   (9,678) $  (4,368)

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue         69         34         39         140        104

    Research and

     development           147        114         99         339        354

    Selling, general

     and

     administrative        385        264        296         940        833

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative          3        102          -           3        102

    Cost of revenue         22          -          -          22          -

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

Non-GAAP income

 (loss) from

 operations         $   (2,156) $    (968) $  (2,722) $   (8,234) $  (2,975)

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



GAAP net income

 (loss)             $   (2,798) $  (1,546) $  (3,236) $   (9,755) $  (4,484)

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue         69         34         39         140        104

    Research and

     development           147        114         99         339        354

    Selling, general

     and

     administrative        385        264        296         940        833

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative          3        102          -           3        102

    Cost of revenue         22          -          -          22          -

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

Non-GAAP net income

 (loss)             $   (2,172) $  (1,032) $  (2,802) $   (8,311) $  (3,091)

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



GAAP net income

 (loss) per share   $    (0.06) $   (0.04) $   (0.08) $    (0.24) $   (0.12)

  Adjustment for

   stock-based

   compensation           0.01       0.01       0.01        0.04       0.04

  Adjustment for

   write-off of

   equipment                 *          *          -           *          *

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

Non-GAAP net income

 (loss) per share   $    (0.05) $   (0.03) $   (0.07) $    (0.20) $   (0.08)

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



GAAP gross margin

 percentage               47.6%      57.2%      50.2%       46.8%      62.8%

  Adjustment for

   stock-based

   compensation            1.9        0.7        1.0         1.2        0.6

  Adjustment for the

   write-off of

   equipment               0.6          -          -         0.2          -

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

Non-GAAP gross

 margin percentage        50.1%      57.9%      51.2%       48.2%      63.4%

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



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

per share due to the insignificant amount.









                           QUICKLOGIC CORPORATION

                   CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)

                                (Unaudited)





                                              September 30,    January 1,

                                                  2012           2012(1)

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

                   ASSETS



Current assets:

  Cash and cash equivalents                  $       24,948  $       20,203

  Short-term investment in TowerJazz

   Semiconductor Ltd.                                   380             406

  Accounts receivable, net                            1,335           1,585

  Inventories                                         2,516           3,764

  Other current assets                                  951             613

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

    Total current assets                             30,130          26,571

Property and equipment, net                           2,915           2,181

Other assets                                            202             211

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

TOTAL ASSETS                                 $       33,247  $       28,963

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



    LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

  Trade payables                             $        1,535  $        2,464

  Accrued liabilities and deferred income             1,803           1,126

  Current portion of debt and capital lease

   obligations                                          418             141

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

    Total current liabilities                         3,756           3,731

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



Long-term liabilities:

  Capital lease obligations, less current

   portion                                              304             146

  Other long-term liabilities                           147             148

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

    Total liabilities                                 4,207           4,025

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



Stockholders' equity:

  Common stock, at par value                             44              39

  Additional paid-in capital                        203,966         190,025

  Accumulated other comprehensive income                 24             113

  Accumulated deficit                              (174,994)       (165,239)

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

    Total stockholders' equity                       29,040          24,938

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

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $       33,247  $       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 2012 to  Q3 2011 to

                             Q3 2012 Q2 2012 Q3 2011   Q3 2012     Q3 2012

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

COMPOSITION OF REVENUE

Revenue by product (1)

    New products                 43%     42%     23%        (9)%         27%

    Mature products              57%     58%     77%       (11)%       (49)%

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

                                100%    100%    100%

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



Revenue by geography

    United States                36%     29%     33%         11%       (24)%

    Japan                        23%     23%     11%        (9)%         45%

    Europe                       20%     15%     31%         22%       (56)%

    Malaysia                     11%      8%      8%         19%        (6)%

    China                         7%     21%     11%       (69)%       (56)%

    Rest of North America         2%      1%      2%         31%       (41)%

    Rest of Asia Pacific          1%      3%      4%       (75)%       (84)%

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

                                100%    100%    100%

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



(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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