QuickLogic Announces Fiscal 2007 First Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--
QuickLogic Corporation (NASDAQ:QUIK), the lowest power programmable solutions leader, today announced the financial results for its fiscal first quarter ended April 1, 2007.
Revenue for the first quarter of 2007 was $6.2 million, down 19 percent from $7.7 million in the fourth quarter of 2006 and 33 percent from $9.3 million in the first quarter of 2006. The change in revenue was primarily due to the continued decline in pASIC(R) 1 and pASIC 2 products as a result of their previously announced end-of-life, lower customer demand, and the stage in the production life-cycle of customers using our new products. New products - Eclipse(TM) II, QuickPCI(R) II, PolarPro(TM) and QuickMIPS - contributed 14 percent of revenue in the first quarter of 2007, compared with 18 percent of revenue in the fourth quarter of 2006 and 12 percent of revenue in the first quarter of 2006.
Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2007 was $5.9 million, or $0.20 per share, compared with a net loss of $3.3 million, or $0.12 per share, in the fourth quarter of 2006 and a net loss of $1.2 million, or $0.04 per share, in the first quarter of 2006. Non-GAAP net loss for the first quarter of 2007 was $5.5 million, or $0.19 per share, compared with a non-GAAP net loss of $3.0 million, or $0.11 per share, in the fourth quarter of 2006 and a non-GAAP net loss of $776,000, or $0.03 per share, in the first quarter of 2006.
QuickLogic reports certain financial measures, including net income (loss), in accordance with GAAP and also on a non-GAAP basis to highlight infrequent or non-recurring charges. Non-GAAP results, where applicable, exclude stock-based compensation recorded in accordance with Statement of Financial Accounting Standards (SFAS) No. 123R, "Share-based Payment" and the write-off of long-lived assets. For a full reconciliation of GAAP net loss to non-GAAP net loss, please refer to the schedule on page 5 of this press release.
"Even though our revenue and other financial results were within guidance, we are certainly not satisfied with this level of revenue and the resulting losses," said E. Thomas Hart, chairman, president and CEO. "We believe that our new sales and marketing personnel along with the introduction of Customer Specific Standard Products (CSSPs) are already showing signs of success. Interest from focus customers in our target markets and design activity using our new solutions, especially the recently announced ArcticLink(TM) Solution Platform, continues to grow. We believe that we will have some exciting customer wins to announce during the next several quarters."
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, April 26, 2007, to discuss the first quarter financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com/investors. To participate, please call (913) 312-1303 by 2:20 p.m. Pacific Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (719) 457-0820 and reference the pass code: 4395343. The call recording will be archived until May 3, 2007 and the webcast will be available for 12 months.
About QuickLogic
QuickLogic Corporation (NASDAQ:QUIK) is the leading provider of the lowest power programmable solutions for the portable electronics, industrial, communications and military markets. Our latest products - ArcticLink, PolarPro, Eclipse II and QuickPCI II - are being used to implement bridge and control solutions in embedded systems requiring Wi-Fi, DVB-H and IDE or CE-ATA based disk drives. QuickLogic's proprietary ViaLink(R) technology offers significant benefits for programmable logic, including the lowest power, instant on capability and bulletproof intellectual property security. The Company is located at 1277 Orleans Drive, Sunnyvale, CA 94089-1138. Website: www.quicklogic.com
Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with generally accepted accounting principles (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 and the effect of the write-off of long-lived assets in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. For a full reconciliation of these GAAP measures to non-GAAP measures, please refer to the schedule on page 5 of this press release. 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 the basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash compensation paid to employees and executive officers.
Investors should note, however, that the non-GAAP financial measures used by the Company may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. The Company 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 to 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 made by our CEO relating to design activity of our new products and the revenue generating potential of such new products, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from any such 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 pASIC 1 and pASIC 2 revenue, which has declined due to their end-of-life; 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.
The QuickLogic name and logo, QuickPCI and ViaLink are registered trademarks of and ArcticLink, Eclipse and PolarPro 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
------------------------------
April 1, April 2, December 31,
2007 2006 2006
-------- -------- ------------
Revenue $ 6,242 $ 9,333 $ 7,744
Cost of revenue, excluding excess
inventory and related charges 2,936 3,528 3,224
Excess inventory and related charges 2,465 232 1,163
-------- -------- ------------
Gross profit 841 5,573 3,357
Operating expenses:
Research and development 2,287 2,400 2,117
Selling, general and administrative 4,593 4,617 4,857
-------- -------- ------------
Total operating expenses 6,880 7,017 6,974
-------- -------- ------------
Loss from operations (6,039) (1,444) (3,617)
Interest expense (85) (74) (94)
Interest income and other, net 246 292 400
-------- -------- ------------
Loss before income taxes (5,878) (1,226) (3,311)
Provision for income taxes 15 2 25
-------- -------- ------------
Net loss $(5,893) $(1,228) $ (3,336)
======== ======== ============
Net loss per share:
Basic $ (0.20) $ (0.04) $ (0.12)
======== ======== ============
Diluted $ (0.20) $ (0.04) $ (0.12)
======== ======== ============
Weighted average shares:
Basic 28,814 28,059 28,680
======== ======== ============
Diluted 28,814 28,059 28,680
======== ======== ============
QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)
Three Months Ended
------------------------------
April 1, April 2, December 31,
2007 2006 2006
-------- -------- ------------
GAAP loss from operations $(6,039) $(1,444) $ (3,617)
Adjustment for stock-based
compensation within:
Cost of revenue 55 49 45
Research and development 85 146 47
Selling, general and administrative 241 257 208
-------- -------- ------------
Non-GAAP loss from operations $(5,658) $ (992) $ (3,317)
======== ======== ============
GAAP net loss $(5,893) $(1,228) $ (3,336)
Adjustment for stock-based
compensation within:
Cost of revenue 55 49 45
Research and development 85 146 47
Selling, general and administrative 241 257 208
-------- -------- ------------
Non-GAAP net loss $(5,512) $ (776) $ (3,036)
======== ======== ============
GAAP net loss per share $ (0.20) $ (0.04) $ (0.12)
Adjustment for stock-based
compensation 0.01 0.01 0.01
-------- -------- ------------
Non-GAAP net loss per share $ (0.19) $ (0.03) $ (0.11)
======== ======== ============
GAAP weighted average shares 28,814 28,059 28,680
Adjustment for stock-based
compensation -- -- --
-------- -------- ------------
Non-GAAP weighted average shares 28,814 28,059 28,680
======== ======== ============
GAAP gross margin percentage 13.5% 59.7% 43.3%
Adjustment for stock-based
compensation 0.9% 0.5% 0.6%
-------- -------- ------------
Non-GAAP gross margin percentage 14.4% 60.2% 43.9%
======== ======== ============
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 1, December 31,
2007 2006(1)
---------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 21,120 $ 24,621
Short-term investment in Tower Semiconductor
Ltd. 1,530 1,530
Accounts receivable, net 2,231 2,839
Inventory 6,473 9,064
Other current assets 1,645 1,894
---------- ------------
Total current assets 32,999 39,948
Property and equipment, net 5,011 5,480
Investment in Tower Semiconductor Ltd. 769 769
Other assets 4,017 4,038
---------- ------------
TOTAL ASSETS $ 42,796 $ 50,235
========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables $ 2,182 $ 4,383
Accrued liabilities 2,640 2,462
Deferred income on shipments to distributors 1,594 1,152
Deferred royalty revenue 959 960
Current portion of debt and capital lease
obligations 1,992 2,292
---------- ------------
Total current liabilities 9,367 11,249
Long-term liabilities:
Debt and capital lease obligations, less
current portion 1,238 1,618
---------- ------------
Total liabilities 10,605 12,867
---------- ------------
Stockholders' equity:
Common stock, at par value 29 29
Additional paid-in capital 164,854 164,138
Accumulated other comprehensive income 726 726
Accumulated deficit (133,418) (127,525)
---------- ------------
Total stockholders' equity 32,191 37,368
---------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 42,796 $ 50,235
========== ============
(1) Derived from the December 31, 2006 audited balance sheet included
in the 2006 Annual Report on Form 10-K of QuickLogic Corporation.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of
Revenue Change in Revenue
----------------- ---------------------
Q1 Q1 Q4 Q1 2006 to Q4 2006 to
2007 2006 2006 Q1 2007 Q1 2007
----- ----- ----- ---------- ----------
COMPOSITION OF REVENUE
Revenue by product (1):
New products 14% 12% 18% (22%) (41%)
Mature products 63% 55% 60% (24%) (15%)
End-of-life products 23% 33% 22% (53%) (15%)
Revenue by geography:
North America 65% 58% 59% (25%) (10%)
Europe 13% 22% 24% (59%) (54%)
Japan 10% 11% 8% (38%) (6%)
Rest of world 12% 9% 9% (19%) --
Revenue by end-customer
segment:
Instrumentation and test 34% 40% 41% (45%) (35%)
Military and aerospace
systems 15% 16% 20% (35%) (37%)
Datacom and telecom 28% 28% 23% (33%) (5%)
Graphics and imaging 19% 8% 11% 65% 41%
Computing 4% 8% 5% (63%) (24%)
------------------------------
(1) New products include PolarPro, Eclipse II, QuickPCI II and
QuickMIPS products. Mature products include pASIC 3, QuickRAM,
Eclipse, QuickPCI, QuickDSP and QuickFC products, as well as royalty
revenue, programming hardware and software. End-of-life products
include pASIC 1, pASIC 2 and V3 products.
Source: QuickLogic Corporation
Released April 26, 2007
