QuickLogic Announces Fourth Quarter and Fiscal 2009 Results - Fourth Quarter New Product Revenue up 50% Sequentially
SUNNYVALE, Calif.--(BUSINESS WIRE)-- 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 3, 2010.
Total revenue for the fourth quarter of 2009 was $4.3 million, up 28% from the third quarter of 2009 and down 28% from the fourth quarter of 2008. The sequential increase of revenue is consistent with the revenue guidance given during the Company's October 27, 2009, third quarter earnings call. During the fourth quarter, new product revenue increased about 50% to $2.0 million from $1.4 million in the third quarter of 2009. This sequential increase in new product revenue accounted for roughly half of the total revenue in the fourth quarter.
Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2009 was $1.9 million, or $0.06 per share, compared with a net loss of $3.0 million, or $0.10 per share, in the third quarter of 2009 and a net loss of $2.6 million, or $0.09 per share, in the fourth quarter of 2008. Non-GAAP net loss for the fourth quarter of 2009 was $1.3 million, or $0.04 per share, compared with a non-GAAP net loss of $1.9 million, or $0.06 per share, in the third quarter of 2009 and a non-GAAP net loss of $1.2 million, or $0.04 per share, in the fourth quarter of 2008.
Revenue for 2009 was $15.1 million, compared with revenue of $31.9 million in 2008. Under GAAP, the net loss for 2009 was $9.8 million, or $0.32 per share, compared with a net loss of $9.4 million, or $0.32 per share, in 2008. Non-GAAP net loss for 2009 was $7.1 million, or $0.23 per share, compared with a non-GAAP net loss of $3.0 million, or $0.10 per share, in 2008.
"We are pleased with the significant growth of new product shipments during the fourth quarter, driven primarily by multiple 3G USB modem OEMs," said Tom Hart, QuickLogic's Chairman of the Board and CEO. "We have now established CSSPs with Tier 1 OEMs in the high growth, mobile electronics segment; a testament to our focus, innovative technology, and strong ecosystem of partners."
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 9, 2010, 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 participate in the conference, please call (877) 718-5107 by 2:20 p.m. Pacific Standard 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 passcode: 6740423. The call recording will be archived until Friday, February 12, 2010 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 Tower Semiconductor Ltd. 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. 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 made by our CEO 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 Years Ended
January 3, December 28, September January 3, December 28,
2010 2008 27, 2010 2008
2009
Revenue $ 4,279 $ 5,914 $ 3,332 $ 15,074 $ 31,910
Cost of
revenue,
excluding
inventory
write-down and 2,170 2,656 1,955 7,297 13,343
related
charges and
long-lived
asset
impairment
Inventory
write-down and (49 ) 267 231 418 1,598
related
charges
Long-lived
asset - - 150 150 1,545
impairment
Gross profit 2,158 2,991 996 7,209 15,424
Operating
expenses:
Research and 1,314 1,400 1,400 6,203 8,185
development
Selling,
general and 2,740 3,093 2,525 10,617 14,049
administrative
Long-lived
asset - - - - 468
impairment
Restructuring 59 50 - 59 502
costs
Loss from (1,955 ) (1,552 ) (2,929 ) (9,670 ) (7,780 )
operations
Write-down of
investment in
Tower - (981 ) - - (1,398 )
Semiconductor
Ltd.
Interest (15 ) (23 ) (31 ) (93 ) (225 )
expense
Interest
income and (23 ) (94 ) (30 ) (54 ) (6 )
other, net
Loss before (1,993 ) (2,650 ) (2,990 ) (9,817 ) (9,409 )
income taxes
Provision for
(benefit from) (59 ) (30 ) 7 (63 ) (54 )
income taxes
Net loss $ (1,934 ) $ (2,620 ) $ (2,997 ) $ (9,754 ) $ (9,355 )
Net loss per
share:
Basic $ (0.06 ) $ (0.09 ) $ (0.10 ) $ (0.32 ) $ (0.32 )
Diluted $ (0.06 ) $ (0.09 ) $ (0.10 ) $ (0.32 ) $ (0.32 )
Weighted
average
shares:
Basic 32,510 29,844 30,322 30,739 29,653
Diluted 32,510 29,844 30,322 30,739 29,653
QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Years Ended
January 3, December 28, September January 3, December 28,
2010 2008 27, 2009 2010 2008
GAAP loss from $ (1,955 ) $ (1,552 ) $ (2,929 ) $ (9,670 ) $ (7,780 )
operations
Adjustment for
stock-based
compensation
within:
Cost of 48 47 110 280 267
revenue
Research and 137 74 213 576 517
development
Selling,
general and 390 249 535 1,528 1,557
administrative
Adjustment for
long-lived
asset
impairment
within:
Cost of - - 150 150 1,545
revenue
Operating - - - - 468
expenses
Adjustment for
the write-off
of equipment
within:
Cost of - 12 96 96 42
revenue
Selling,
general and - - 2 15 15
administrative
Adjustment for
restructuring 59 50 - 59 502
costs
Non-GAAP loss
from $ (1,321 ) $ (1,120 ) $ (1,823 ) $ (6,966 ) $ (2,867 )
operations
GAAP net loss $ (1,934 ) $ (2,620 ) $ (2,997 ) $ (9,754 ) $ (9,355 )
Adjustment for
stock-based
compensation
within:
Cost of 48 47 110 280 267
revenue
Research and 137 74 213 576 517
development
Selling,
general and 390 249 535 1,528 1,557
administrative
Adjustment for
long-lived
asset
impairment
within:
Cost of - - 150 150 1,545
revenue
Operating - - - - 468
expenses
Adjustment for
the write-off
of equipment
within:
Cost of - 12 96 96 42
revenue
Selling,
general and - - 2 15 15
administrative
Other expense - - - - -
Adjustment for
restructuring 59 50 - 59 502
costs
Adjustment for
write-down of
investment in - 981 - - 1,398
Tower
Semiconductor
Ltd.
Non-GAAP net $ (1,300 ) $ (1,207 ) $ (1,891 ) $ (7,050 ) $ (3,044 )
loss
GAAP net loss $ (0.06 ) $ (0.09 ) $ (0.10 ) $ (0.32 ) $ (0.32 )
per share
Adjustment for
stock-based 0.02 0.01 0.03 0.08 0.08
compensation
Adjustment for
long-lived - - 0.01 0.01 0.07
asset
impairment
Adjustment for
write-off of - * * * *
equipment
Adjustment for
restructuring * * - * 0.02
costs
Adjustment for
write-down of
investment in - 0.04 - - 0.05
Tower
Semiconductor
Ltd.
Non-GAAP net $ (0.04 ) $ (0.04 ) $ (0.06 ) $ (0.23 ) $ (0.10 )
loss per share
GAAP gross
margin 50.4 % 50.6 % 29.9 % 47.8 % 48.3 %
percentage
Adjustment for
stock-based 1.1 0.8 3.3 1.9 0.8
compensation
Adjustment for
long-lived - - 4.5 1.0 4.8
asset
impairment
Adjustment for
write-off of - 0.2 2.9 0.6 0.2
equipment
Non-GAAP gross
margin 51.5 % 51.6 % 40.6 % 51.3 % 54.1 %
percentage
* 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 3, 2010 December 28, 2008(1)
ASSETS
Current assets:
Cash and cash equivalents $ 18,195 $ 19,376
Short-term investment in Tower 868 116
Semiconductor Ltd.
Accounts receivable, net 2,457 1,746
Inventories 2,119 1,900
Other current assets 536 833
Total current assets 24,175 23,971
Property and equipment, net 2,693 3,493
Investment in Tower Semiconductor Ltd. 437 59
Other assets 296 903
TOTAL ASSETS $ 27,601 $ 28,426
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit $ 2,000 $ 2,000
Trade payables 2,721 1,992
Accrued liabilities 1,108 1,537
Deferred income on shipments to - 282
distributors
Current portion of capital lease 249 753
obligations
Total current liabilities 6,078 6,564
Long-term liabilities:
Capital lease obligations, less current 264 -
portion
Total liabilities 6,342 6,564
Stockholders' equity:
Common stock, at par value 35 30
Additional paid-in capital 177,862 169,846
Accumulated other comprehensive income 1,130 -
Accumulated deficit (157,768 ) (148,014 )
Total stockholders' equity 21,259 21,862
TOTAL LIABILITIES AND STOCKHOLDERS' $ 27,601 $ 28,426
EQUITY
_________________________
(1) Derived from the December 28, 2008
audited balance sheet included in the
2008 Annual Report on Form 10-K of
QuickLogic Corporation.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of Revenue Change in Revenue
Q4 2009 Q3 2009 Fiscal Fiscal 2008 Q3 2009 to 2008 to 2009
2009 Q4 2009
COMPOSITION
OF REVENUE
Revenue by
product
(1):
New 48 % 41 % 32 % 25 % 50 % -40 %
products
Mature 50 % 57 % 64 % 54 % 14 % -44 %
products
End-of-life 2 % 2 % 4 % 21 % 11 % -91 %
products
Revenue by
geography:
North 33 % 47 % 45 % 41 % -10 % -48 %
America
Europe 16 % 20 % 19 % 15 % 2 % -40 %
Rest of 39 % 26 % 26 % 36 % 91 % -66 %
world
Japan 12 % 7 % 10 % 8 % 131 % -42 %
_________________________
(1) New products represent products introduced since 2005, and include
ArcticLink, PolarPro II, PolarPro, Eclipse II and QuickPCI II products.
Mature products include QuickRAM, pASIC(R) 3, Eclipse, QuickDSP and QuickFC
products, as well as royalty revenue, programming hardware and software.
End-of-life products include pASIC 1, pASIC 2, V3, QuickPCI and QuickMIPS
products.
Source: QuickLogic Corporation
Released February 9, 2010