QuickLogic Announces Fiscal 2009 Third Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)-- QuickLogic Corporation (NASDAQ: QUIK), the lowest power programmable semiconductor solutions leader, today announced the financial results for its fiscal third quarter ended September 27, 2009.
Total revenue for the third quarter of 2009 was $3.3 million, up 14% from the second quarter of 2009 and down 47% from the third quarter of 2008. The sequential increase of revenue was primarily due to an increase in new product revenue and strong bookings towards the end of the second quarter. During the third quarter, new product revenue increased 67% to $1.4 million from $0.8 million in the second quarter of 2009. This sequential increase in new product revenue was mainly due to our customer specific standard product (CSSP) customers going into production in the third quarter.
Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2009 was $3.0 million, or $0.10 per share, compared with a net loss of $3.2 million, or $0.11 per share, in the second quarter of 2009 and a net loss of $0.6 million, or $0.02 per share, in the third quarter of 2008. Non-GAAP net loss for the third quarter of 2009 was $1.9 million, or $0.06 per share, compared with a non-GAAP net loss of $2.7 million, or $0.09 per share, in the second quarter of 2009 and a non-GAAP net loss of $0.2 million, or $0.01 per share, in the third quarter of 2008.
"We are pleased with the significant growth of new product shipments in the third quarter of this year," said Tom Hart, QuickLogic's Chairman of the Board and CEO. "This increase is primarily associated with our strategic focus of driving CSSPs into high growth mobile, battery-powered handheld electronics segments, such as wireless, broadband data cards. The new product bookings were strong in the third quarter, which should lead to another increase in new product revenue in the fourth quarter."
QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, October 27, 2009, to discuss the third quarter financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To participate, please call (888) 378-4361 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 (719) 457-0820 or (888) 203-1112 and reference the passcode: 9997974. The call recording will be archived until Friday, October 30, 2009 and the webcast will be available for 12 months.
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 Nine Months Ended September September June 28, September September 28, 27, 28, 2009 27, 2008 2009 2008 2009 Revenue $ 3,332 $ 6,230 $ 2,911 $ 10,795 $ 25,996 Cost of revenue, excluding inventory write-down and 1,955 2,575 1,531 5,127 10,687 related charges and long-lived asset impairment Inventory write-down and 231 203 58 467 1,331 related charges Long-lived asset 150 - - 150 1,545 impairment Gross profit 996 3,452 1,322 5,051 12,433 Operating expenses: Research and 1,400 1,354 1,877 4,889 6,785 development Selling, general and 2,525 2,666 2,709 7,877 10,956 administrative Long-lived asset - - - - 468 impairment Restructuring - - - - 452 costs Loss from (2,929 ) (568 ) (3,264 ) (7,715 ) (6,228 ) operations Write-down of investment in Tower - (417 ) Semiconductor Ltd. Interest (31 ) (59 ) (23 ) (78 ) (202 ) expense Interest income and (30 ) (46 ) 45 (31 ) 88 other, net Loss before (2,990 ) (673 ) (3,242 ) (7,824 ) (6,759 ) income taxes Provision for (benefit from) 7 (58 ) (15 ) (4 ) (24 ) income taxes Net loss $ (2,997 ) $ (615 ) $ (3,227 ) $ (7,820 ) $ (6,735 ) Net loss per share: Basic $ (0.10 ) $ (0.02 ) $ (0.11 ) $ (0.26 ) $ (0.23 ) Diluted $ (0.10 ) $ (0.02 ) $ (0.11 ) $ (0.26 ) $ (0.23 ) Weighted average shares: Basic 30,322 29,772 30,081 30,104 29,589 Diluted 30,322 29,772 30,081 30,104 29,589
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 September June 28, September September 27, 28, 2009 27, 28, 2009 2008 2009 2008 GAAP loss from $ (2,929 ) $ (568 ) $ (3,264 ) $ (7,715 ) $ (6,228 ) operations Adjustment for stock-based compensation within: Cost of 110 49 71 232 220 revenue Research and 213 89 138 439 443 development Selling, general and 535 251 358 1,138 1,308 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 96 30 - 96 30 revenue Selling, general and 2 - - 2 15 administrative Adjustment for restructuring - - - - 452 costs Non-GAAP loss from $ (1,823 ) $ (149 ) $ (2,697 ) $ (5,658 ) $ (1,747 ) operations GAAP net loss $ (2,997 ) $ (615 ) $ (3,227 ) $ (7,820 ) $ (6,735 ) Adjustment for stock-based compensation within: Cost of 110 49 71 232 220 revenue Research and 213 89 138 439 443 development Selling, general and 535 251 358 1,138 1,308 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 96 30 - 96 30 revenue Selling, general and 2 - - 2 15 administrative Other expense - - - 13 - Adjustment for restructuring - - - - 452 costs Adjustment for write-down of investment in - - - - 417 Tower Semiconductor Ltd. Non-GAAP net $ (1,891 ) $ (196 ) $ (2,660 ) $ (5,750 ) $ (1,837 ) loss GAAP net loss $ (0.10 ) $ (0.02 ) $ (0.11 ) $ (0.26 ) $ (0.23 ) per share Adjustment for stock-based 0.03 0.01 0.02 0.06 0.07 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 - - - - 0.01 Tower Semiconductor Ltd. Non-GAAP net $ (0.06 ) $ (0.01 ) $ (0.09 ) $ (0.19 ) $ (0.06 ) loss per share GAAP gross margin 29.9 % 55.4 % 45.4 % 46.8 % 47.8 % percentage Adjustment for stock-based 3.3 0.8 2.5 2.1 0.8 compensation Adjustment for write-off of 4.5 - - 1.4 5.9 long-lived asset Adjustment for write-off of 2.9 0.5 - 0.9 0.2 equipment Non-GAAP gross margin 40.6 % 56.7 % 47.9 % 51.2 % 54.7 % 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) September 27, 2009 December 28, 2008(1) ASSETS Current assets: Cash and cash equivalents $ 13,886 $ 19,376 Short-term investment in Tower 823 116 Semiconductor Ltd. Accounts receivable, net 1,981 1,746 Inventories 1,844 1,900 Other current assets 612 833 Total current assets 19,146 23,971 Property and equipment, net 3,008 3,493 Investment in Tower Semiconductor 414 59 Ltd. Other assets 461 903 TOTAL ASSETS $ 23,029 $ 28,426 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving line of credit $ 2,000 $ 2,000 Trade payables 2,136 1,992 Accrued liabilities 1,114 1,537 Deferred income on shipments to 7 282 distributors Deferred royalty revenue 63 - Current portion of debt and capital 436 753 lease obligations Total current liabilities 5,756 6,564 Long-term liabilities: Debt and capital lease obligations, 264 - less current portion Total liabilities 6,020 6,564 Stockholders' equity: Common stock, at par value 30 30 Additional paid-in capital 171,751 169,846 Accumulated other comprehensive 1,062 - income Accumulated deficit (155,834) (148,014) Total stockholders' equity 17,009 21,862 TOTAL LIABILITIES AND STOCKHOLDERS' $ 23,029 $ 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 Q3 2009 Q3 2008 Q2 2009 Q3 2008 to Q2 2009 to Q3 2009 Q3 2009 COMPOSITION OF REVENUE Revenue by product (1): New products 41% 23% 28% -4% 67% Mature products 57% 74% 65% -59% 2% End-of-life products 2% 3% 7% -68% -72% Revenue by geography: North America 47% 33% 47% -23% 17% Europe 20% 14% 19% -26% 15% Rest of world 26% 42% 19% -66% 63% Japan 7% 11% 15% -69% -51%
(1) New products 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 October 27, 2009