QuickLogic Corporation

Feb 6, 2013

QuickLogic Announces Fourth Quarter and Fiscal 2012 Results

SUNNYVALE, CA -- (Marketwire) -- 02/06/13 -- QuickLogic Corporation (NASDAQ: QUIK), the leader in low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fourth quarter and fiscal year ended December 30, 2012.

Total revenue for the fourth quarter of 2012 was $3.1 million, down 16% sequentially and down 29% from the fourth quarter of 2011. During the fourth quarter, new product revenue of $1.0 million was down 35% sequentially and down 41% from the fourth quarter of 2011.

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2012 was $2.6 million or $0.06 per share, compared with a net loss of $2.8 million, or $0.06 per share, in the third quarter of 2012, and a net loss of $3.1 million, or $0.08 per share, in the fourth quarter of 2011. Non-GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $0.04 per share, compared with a non-GAAP net loss of $2.2 million, or $0.05 per share, in the third quarter of 2012, and a non-GAAP net loss of $2.7 million, or $0.07 per share, in the fourth quarter of 2011.

Total revenue for 2012 was down 29% at $14.9 million, compared with revenue of $21.0 million in 2011. GAAP net loss for 2012 was $12.3 million, or $0.29 per share, compared with a net loss of $7.6 million, or $0.21 per share, in 2011. Non-GAAP net loss for 2012 was $10.3 million, or $0.25 per share, compared with a non-GAAP net loss of $5.8 million, or $0.16 per share, in 2011.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 6, 2013, 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: 90137354. The call recording will be archived until Tuesday, February 12, 2013 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

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

                       December   January   September   December   January

                       30, 2012   1, 2012    30, 2012   30, 2012   1, 2012

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



Revenue               $   3,086  $   4,346  $   3,657  $  14,944  $  20,969

Cost of revenue,

 excluding inventory

 write-down and

 related charges and

 long-lived asset

 impairment               1,546      2,181      1,916      7,431      7,807

Inventory write-down

 and related charges         19        148          -        447        710

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

Gross profit              1,521      2,017      1,741      7,066     12,452



Operating expenses:

  Research and

   development            1,624      2,450      1,865      8,743      9,836

  Selling, general

   and administrative     2,377      2,548      2,658     10,481      9,965

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

Income (loss) from

 operations              (2,480)    (2,981)    (2,782)   (12,158)    (7,349)

Interest expense            (12)        (5)       (12)       (61)       (36)

Interest income and

 other (expense), net       (32)       (93)        18        (77)      (159)

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

Income (loss) before

 income taxes            (2,524)    (3,079)    (2,776)   (12,296)    (7,544)

Provision for

 (benefit from)

 income taxes                35         31         22         18         50

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

Net income (loss)     $  (2,559) $  (3,110) $  (2,798) $ (12,314) $  (7,594)

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



Net income (loss) per

 share:

  Basic               $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)

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

  Diluted             $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)

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



Weighted average

 shares:

  Basic                  44,400     38,482     44,122     41,831     36,792

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

  Diluted                44,400     38,482     44,122     41,831     36,792

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







                           QUICKLOGIC CORPORATION

    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

                  (In thousands, except per share amounts)

                                 (Unaudited)



                             Three Months Ended             Years Ended

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

                       December   January   September   December   January

                       30, 2012   1, 2012    30, 2012   30, 2012   1, 2012

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

GAAP loss from

 operations           $  (2,480) $  (2,981) $  (2,782) $ (12,158) $  (7,349)

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue          39         27         69        179        131

    Research and

     development            116        104        147        455        458

    Selling, general

     and

     administrative         429        254        385      1,369      1,087

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative           -          -         25         25        102

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

Non-GAAP loss from

 operations           $  (1,896) $  (2,596) $  (2,156) $ (10,130) $  (5,571)

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



GAAP net loss         $  (2,559) $  (3,110) $  (2,798) $ (12,314) $  (7,594)

  Adjustment for

   stock-based

   compensation

   within:

    Cost of revenue          39         27         69        179        131

    Research and

     development            116        104        147        455        458

    Selling, general

     and

     administrative         429        254        385      1,369      1,087

  Adjustment for the

   write-off of

   equipment within:

    Selling, general

     and

     administrative           -          -         25         25        102

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

Non-GAAP net loss     $  (1,975) $  (2,725) $  (2,172) $ (10,286) $  (5,816)

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



GAAP net loss per

 share                $   (0.06) $   (0.08) $   (0.06) $   (0.29) $   (0.21)

  Adjustment for

   stock-based

   compensation            0.02       0.01       0.01       0.04       0.05

  Adjustment for

   write-off of

   equipment                  -          -          *          *          *

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

Non-GAAP net loss per

 share                $   (0.04) $   (0.07) $   (0.05) $   (0.25) $   (0.16)

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



GAAP gross margin

 percentage                49.3%      46.4%      47.6%      47.3%      59.4%

  Adjustment for

   stock-based

   compensation             1.3%       0.6%       2.5%       1.3%       0.6%

  Adjustment for

   write-off of

   equipment                  -          -          *          *          *

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

Non-GAAP gross margin

 percentage                50.6%      47.0%      50.1%      48.6%      60.0%

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



* 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)



                                       December 30, 2012   January 1, 2012

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

                ASSETS



Current assets:

  Cash and cash equivalents            $          22,578  $          20,203

  Short-term investment in TowerJazz

   Semiconductor Ltd.                                345                406

  Accounts receivable, net                         1,242              1,585

  Inventories                                      3,028              3,764

  Other current assets                               986                613

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

    Total current assets                          28,179             26,571

Property and equipment, net                        2,659              2,181

Other assets                                         186                211

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

TOTAL ASSETS                           $          31,024  $          28,963

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



 LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

  Trade payables                       $           1,965  $           2,464

  Accrued liabilities                              1,214              1,118

  Deferred royalty revenue                             -                  8

  Current portion of debt and capital

   lease obligations                                 160                141

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

    Total current liabilities                      3,339              3,731

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



Long-term liabilities:

  Capital lease obligations, less

   current portion                                   266                146

  Other long-term liabilities                        141                148

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

    Total liabilities                              3,746              4,025

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



Stockholders' equity:

  Common stock, at par value                          45                 39

  Additional paid-in capital                     204,797            190,025

  Accumulated other comprehensive

   income                                            (11)               113

  Accumulated deficit                           (177,553)          (165,239)

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

    Total stockholders' equity                    27,278             24,938

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

TOTAL LIABILITIES AND STOCKHOLDERS'

 EQUITY                                $          31,024  $          28,963

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







                           QUICKLOGIC CORPORATION

                              SUPPLEMENTAL DATA

                                 (Unaudited)



                            Percentage of Revenue       Change in Revenue

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

                          Q4     Q3   Fiscal  Fiscal  Q3 2012 to   2011 to

                         2012   2012   2012    2011     Q4 2012      2012

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

COMPOSITION OF REVENUE

Revenue by product (1):

  New products             33%    43%     40%     25%        (35)%      11%

  Mature products          67%    57%     60%     75%         (1)%     (42)%



Revenue by geography:

  United States            41%    36%     34%     39%         (4)%     (39)%

  Japan                    21%    23%     22%     13%        (22)%      21%

  Europe                   20%    20%     16%     20%        (16)%     (42)%

  Malaysia                 11%    11%     11%      9%        (15)%      (4)%

  Rest of North America     4%     2%      2%      2%         64%        0%

  China                     3%     7%     12%     14%        (63)%     (43)%

  Rest of Asia Pacific      0%     1%      3%      3%        (71)%     (43)%



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

    ArcticLink, ArcticLink II, ArcticLink III, 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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