QuickLogic Announces Fourth Quarter and Fiscal 2014 Results

SUNNYVALE, CA -- (Marketwired) -- 02/04/15 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power Customer Specific Standard Products (CSSPs), today announced the financial results for its fourth quarter and fiscal year ended December 28, 2014.

Total revenue for the fourth quarter of 2014 was $5.7 million, representing an increase of 39% compared to $4.1 million in the third quarter of 2014. New product revenue for the fourth quarter of 2014 was $3.7 million, an increase of 68% compared to $2.2 million in the third quarter of 2014. Total revenue for 2014 was up 7% at $27.8 million, compared with total revenue of $26 million in 2013. In 2014, new product revenue was up 6% at $19.3 million, compared with new product revenue of $18.2 million in 2013.

Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the fourth quarter of 2014 was $4.1 million, or $0.07 per share, compared with a net loss of $3.9 million, or $0.07 per share, in the third quarter of 2014 and a net loss of $3.2 million, or $0.06 per share, in the fourth quarter of 2013. Non-GAAP net loss for the fourth quarter of 2014 was $3.7 million, or $0.06 per share, compared with a non-GAAP net loss of $3.5 million, or $0.06 per share, in the third quarter of 2014 and a non-GAAP net loss of $2.2 million, or $0.04 per share, in the fourth quarter of 2013.

GAAP net loss for 2014 was $13.1 million, or $0.23 per share, compared with a net loss of $12.3 million, or $0.27 per share, in 2013. Non-GAAP net loss for 2014 was $10.8 million, or $0.19 per share, compared with a non-GAAP net loss of $9.9 million, or $0.22 per share, in 2013.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 4, 2015, 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, you may dial (877) 377-7094 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 (404) 537-3406 and reference the passcode: 67815194. The call recording will be archived until Wednesday, February 11, 2015 and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the leading provider of ultra-low power, customizable Sensor Hub, Display, and Connectivity semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs. Called Customer Specific Standard Products (CSSPs), these programmable 'silicon plus software' solutions enable our customers to bring hardware-differentiated products to market quickly and cost effectively. 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. 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.

QuickLogic is a registered trademark and the QuickLogic logo is a trademark 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   December   September   December   December
                      28, 2014   29, 2013   28, 2014    28, 2014   29, 2013
                     ---------  ---------  ----------  ---------  ---------
Revenue              $   5,721  $   8,863  $    4,124  $  27,845  $  26,072
Cost of revenue,
 excluding inventory
 write-down              3,487      5,923       2,364     16,678     16,754
Inventory write-down
 (sold)                     22        172          (3)       118        551
                     ---------  ---------  ----------  ---------  ---------
Gross profit             2,212      2,768       1,763     11,049      8,767
Operating expenses:
  Research and
   development           3,432      2,473       3,057     12,186      8,375
  Selling, general
   and
   administrative        2,771      3,354       2,579     11,663     12,002
  Restructuring cost        --         --          --         --        181
                     ---------  ---------  ----------  ---------  ---------
Total operating
 expense                 6,203      5,827       5,636     23,849     20,558
                     ---------  ---------  ----------  ---------  ---------
Loss from operations    (3,991)    (3,059)     (3,873)   (12,800)   (11,791)
Gain on sale of
 TowerJazz
 Semiconductor Ltd.
 shares                     --         --          --         --        181
Interest expense           (18)       (17)        (34)       (85)       (54)
Interest income and
 other (expense),
 net                       (47)       (27)        (17)      (126)      (157)
                     ---------  ---------  ----------  ---------  ---------
Loss before income
 taxes                  (4,056)    (3,103)     (3,924)   (13,011)   (11,821)
Provision for income
 taxes                      86         86           6         68        455
                     ---------  ---------  ----------  ---------  ---------
Net loss             $  (4,142) $  (3,189) $   (3,930) $ (13,079) $ (12,276)
                     =========  =========  ==========  =========  =========
Net loss per share:
  Basic              $   (0.07) $   (0.06) $    (0.07) $   (0.23) $   (0.27)
                     =========  =========  ==========  =========  =========
  Diluted            $   (0.07) $   (0.06) $    (0.07) $   (0.23) $   (0.27)
                     =========  =========  ==========  =========  =========
Weighted average
 shares:
  Basic                 55,982     49,130      55,812     55,401     45,762
                     =========  =========  ==========  =========  =========
  Diluted               55,982     49,130      55,812     55,401     45,762
                     =========  =========  ==========  =========  =========



                           QUICKLOGIC CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                (Unaudited)

                                              December 28,    December 29,
                                                  2014          2013 (1)
                                             --------------  --------------
                   ASSETS
Current assets:
  Cash and cash equivalents                  $       30,050  $       37,406
  Accounts receivable, net                            1,552           3,261
  Inventories                                         4,952           4,136
  Other current assets                                1,146           1,272
                                             --------------  --------------
    Total current assets                             37,700          46,075
Property and equipment, net                           3,217           2,840
Other assets                                            222             211
                                             --------------  --------------
TOTAL ASSETS                                 $       41,139  $       49,126
                                             ==============  ==============
    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Revolving line of credit                   $           --  $        1,000
  Trade payables                                      2,506           3,578
  Accrued liabilities                                 1,574           3,519
  Current portion of capital lease
   obligations                                          225             177
                                             --------------  --------------
    Total current liabilities                         4,305           8,274
Long-term liabilities:
  Revolving line of credit                            1,000              --
  Capital lease obligations, less current
   portion                                              191             133
  Other long-term liabilities                            76             121
                                             --------------  --------------
    Total liabilities                                 5,572           8,528
                                             --------------  --------------
Stockholders' equity:
  Common stock, at par value                             56              54
  Additional paid-in capital                        238,419         230,373
  Accumulated deficit                              (202,908)       (189,829)
                                             --------------  --------------
    Total stockholders' equity                       35,567          40,598
                                             --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $       41,139  $       49,126
                                             ==============  ==============

(1)   Derived from the December 29, 2013 audited balance sheet included in
      the 2013 Annual Report on Form 10-K of QuickLogic Corporation.



                           QUICKLOGIC CORPORATION
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share amounts)
                                (Unaudited)

                            Three Months Ended              Year Ended
                     --------------------------------  --------------------
                      December   December   September   December   December
                      28, 2014   29, 2013   28, 2014    28, 2014   29, 2013
                     ---------  ---------  ----------  ---------  ---------
GAAP loss from
 operations          $  (3,991) $  (3,059) $   (3,873) $ (12,800) $ (11,791)
  Adjustment for
   stock-based
   compensation
   within:
    Cost of revenue         27        156          32        137        232
    Research and
     development           174        380         176        924        666
    Selling, general
     and
     administrative        291        376         244      1,181      1,081
  Adjustment for the
   write-off of
   equipment within:
    Cost of revenue         --         66          --         --         66
  Selling, general
   and
   administrative           --         27           5          5         30
  Adjustment for
   restructuring
   costs                    --         --          --         --        181
                     ---------  ---------  ----------  ---------  ---------
Non-GAAP loss from
 operations          $  (3,499) $  (2,054) $   (3,416) $ (10,553) $  (9,535)
                     =========  =========  ==========  =========  =========
GAAP net loss        $  (4,142) $  (3,189) $   (3,930) $ (13,079) $ (12,276)
  Adjustment for
   stock-based
   compensation
   within:
    Cost of revenue         27        156          32        137        232
    Research and
     development           174        380         176        924        666
    Selling, general
     and
     administrative        291        376         244      1,181      1,081
  Adjustment for the
   write-off of
   equipment within:
    Cost of revenue         --         66          --         --         66
    Selling, general
     and
     administrative         --         27           5          5         30
  Adjustment for
   restructuring
   costs                    --         --          --         --        181
  Adjustment for
   gain on sale of
   TowerJazz
   Semiconductor
   Ltd. shares              --         --          --         --       (181)
  Adjustment for tax
   effect on other
   comprehensive
   income                   --         --          --         --        273
                     ---------  ---------  ----------  ---------  ---------
Non-GAAP net loss    $  (3,650) $  (2,184) $   (3,473) $ (10,832) $  (9,928)
                     =========  =========  ==========  =========  =========
GAAP net loss per
 share               $   (0.07) $   (0.06) $    (0.07) $   (0.23) $   (0.27)
  Adjustment for
   stock-based
   compensation           0.01       0.02        0.01       0.04       0.04
  Adjustment for the
   write-off of
   equipment                --          *          --         --          *
  Adjustment for
   restructuring
   costs                    --         --          --         --       0.01
  Adjustment for
   gain on sale of
   TowerJazz
   Semiconductor
   Ltd. shares              --         --          --         --      (0.01)
  Adjustment for tax
   effect on other
   comprehensive
   income                   --         --          --         --       0.01
                     ---------  ---------  ----------  ---------  ---------
Non-GAAP net loss
 per share           $   (0.06) $   (0.04) $    (0.06) $   (0.19) $   (0.22)
                     =========  =========  ==========  =========  =========
GAAP gross margin
 percentage               38.7%      31.2%       42.7%      39.7%      33.6%
  Adjustment for
   stock-based
   compensation            0.4%       1.8%        0.8%       0.5%       0.9%
  Adjustment for the
   write-off
   equipment                --%       0.7%         --%        --%       0.3%
  Adjustment for
   restructuring
   costs                    --%        --%         --%        --%         *
                     =========  =========  ==========  =========  =========
Non-GAAP gross
 margin percentage        39.1%      33.7%       43.5%      40.2%      34.8%
                     =========  =========  ==========  =========  =========

* Figures were not considered for reconciliation due to the insignificant amount.


                           QUICKLOGIC CORPORATION
                             SUPPLEMENTAL DATA
                                (Unaudited)

                             Percentage of Revenue        Change in Revenue
                      ----------------------------------  -----------------
                                                          Q3 2014
                                         Fiscal   Fiscal     to     2013 to
                      Q4 2014  Q3 2014    2014     2013   Q4 2014     2014
                      -------  -------  -------  -------  -------   -------
COMPOSITION OF
 REVENUE
Revenue by product:
 (1)
  New products             64%      54%      69%      70%      68%        6%
  Mature products          36%      46%      31%      30%       8%        9%
Revenue by geography:
  Asia Pacific             70%      57%      72%      77%      70%       --%
  Europe                   10%      17%      12%       7%     (16)%      89%
  North America            20%      26%      16%      16%       7%        3%

(1)   New products include all products manufactured on 180 nanometer or
      smaller semiconductor processes. Mature products include all products
      produced on semiconductor processes larger than 180 nanometers.


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