QuickLogic Announces Fiscal 2011 Third Quarter Results
In accordance with the company's guidance for the quarter, total revenue for the third quarter of 2011 was
Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2011 was
Conference Call
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Non-GAAP Financial Measures
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
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
ArcticLink, pASIC, PolarPro,
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended ------------------------------- -------------------- October October July 3, October October 2, 2011 3, 2010 2011 2, 2011 3, 2010 --------- --------- --------- --------- --------- Revenue $ 5,339 $ 7,333 $ 5,737 $ 16,623 $19,241 Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment 1,897 2,619 1,908 5,626 7,215 Inventory write-down and related charges 386 17 58 562 90 --------- --------- --------- --------- --------- Gross profit 3,056 4,697 3,771 10,435 11,936 Operating expenses: Research and development 2,271 1,817 3,312 7,386 5,410 Selling, general and administrative 2,267 2,535 2,543 7,417 7,388 --------- --------- --------- --------- --------- Income (loss) from operations (1,482) 345 (2,084) (4,368) (862) Gain on sale of TowerJazz Semiconductor Ltd. shares 993 Interest expense (5) (12) (18) (31) (57) Interest income and other (expense), net (49) 25 (13) (66) (46) --------- --------- --------- --------- --------- Income (loss) before income taxes (1,536) 358 (2,115) (4,465) 28 Provision for (benefit from) income taxes 10 (192) (55) 19 (164) --------- --------- --------- --------- --------- Net income (loss) $ (1,546) $ 550 $(2,060) $ (4,484) $ 192 ========= ========= ========= ========= ========= Net income (loss) per share: Basic $ (0.04) $ 0.02 $ (0.05) $ (0.12) $ 0.01 ========= ========= ========= ========= ========= Diluted $ (0.04) $ 0.01 $ (0.05) $ (0.12) $ 0.01 ========= ========= ========= ========= ========= Weighted average shares: Basic 38,418 35,634 38,376 38,303 35,436 ========= ========= ========= ========= ========= Diluted 38,418 38,711 38,376 38,303 37,911 ========= ========= ========= ========= ========= QUICKLOGIC CORPORATION SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended -------------------------------- --------------------- October October July 3, October October 2, 2011 3, 2010 2011 2, 2011 3, 2010 --------- --------- --------- --------- --------- GAAP income (loss) from operations $ (1,482) $ 345 $ (2,084) $ (4,368) $ (862) Adjustment for stock-based compensation within: Cost of revenue 34 34 35 104 120 Research and development 114 147 119 354 502 Selling, general and administrative 264 387 282 833 1,231 Adjustment for the write-off of equipment within: Selling, general and administrative 102 8 - 102 8 --------- --------- --------- --------- --------- Non-GAAP income (loss) from operations $ (968) $ 921 $ (1,648) $ (2,975) $ 999 ========= ========= ========= ========= ========= GAAP net income (loss) $ (1,546) $ 550 $ (2,060) $ (4,484) $ 192 Adjustment for stock-based compensation within: Cost of revenue 34 34 35 104 120 Research and development 114 147 119 354 502 Selling, general and administrative 264 387 282 833 1,231 Adjustment for the write-off of equipment within: Selling, general and administrative 102 8 - 102 8 Adjustment for gain on sale of TowerJazzSemiconductor Ltd. Shares - - - (993) Adjustment for tax effect on other comprehensive income - (209) - (209) --------- --------- --------- --------- --------- Non-GAAP net income (loss) $ (1,032) $ 917 $ (1,624) $ (3,091) $ 851 ========= ========= ========= ========= ========= GAAP net income (loss) per share $ (0.04) $ 0.01 $ (0.05) $ (0.12) $ 0.01 Adjustment for stock-based compensation 0.01 0.02 0.01 0.04 0.05 Adjustment for write-off of equipment * * - * * Adjustment for gain on sale of TowerJazzSemiconductor Ltd. Shares - - - - (0.03) Adjustment for tax effect on other comprehensive income - (0.01) - - (0.01) --------- --------- --------- --------- --------- Non-GAAP net income (loss) per share $ (0.03) $ 0.02 $ (0.04) $ (0.08) $ 0.02 ========= ========= ========= ========= ========= GAAP gross margin percentage 57.2% 64.1% 65.7% 62.8% 62.0% Adjustment for stock-based compensation 0.7 0.4 0.6 0.6 0.7 --------- --------- --------- --------- --------- Non-GAAP gross margin percentage 57.9% 64.5% 66.3% 63.4% 62.7% ========= ========= ========= ========= =========
* Figures were not considered in the reconciliation of GAAP and Non-GAAP measures due to the insignificant amount.
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) October 2, January 2, 2011 2011(1) ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 21,571 $ 21,956 Short-term investment in TowerJazz Semiconductor Ltd. 425 909 Accounts receivable, net 1,978 4,143 Inventories 3,862 3,344 Other current assets 661 772 ------------- ------------- Total current assets 28,497 31,124 Property and equipment, net 1,935 2,312 Other assets 202 192 ------------- ------------- TOTAL ASSETS $ 30,634 $ 33,628 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving line of credit $ - $ - Trade payables 1,924 2,152 Accrued liabilities 1,041 1,303 Deferred income on shipments to distributors 90 328 Current portion of debt and capital lease obligations 37 408 ------------- ------------- Total current liabilities 3,092 4,191 ------------- ------------- Long-term liabilities: Capital lease obligations, less current portion - - Other long-term liabilities 127 124 ------------- ------------- Total liabilities 3,219 4,315 ------------- ------------- Stockholders' equity: Common stock, at par value 39 38 Additional paid-in capital 189,373 186,304 Accumulated other comprehensive income 132 616 Accumulated deficit (162,129) (157,645) ------------- ------------- Total stockholders' equity 27,415 29,313 ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 30,634 $ 33,628 ============= ============= (1) Derived from theJanuary 2, 2011 audited balance sheet included in the 2010 Annual Report on Form 10-K ofQuickLogic Corporation . QUICKLOGIC CORPORATION SUPPLEMENTAL DATA (Unaudited) Percentage of Revenue Change in Revenue ------------------------------- ------------------- Q2 2011 Q3 2010 Q3 Q2 Q3 to to 2011 2011 2010 Q3 2011 Q3 2011 --------- --------- --------- -------- -------- COMPOSITION OF REVENUE Revenue by product (1) New products 23% 21% 38% 3% (56)% Mature products 77% 79% 62% (9)% (10)% --------- --------- --------- 100% 100% 100% ========= ========= ========= Revenue by geography North America 35% 34% 35% (7)% (28)% Europe 31% 24% 10% 24% 120% Rest of world 23% 31% 45% (31)% (62)% Japan 11% 11% 10% (5)% (21)% --------- --------- --------- 100% 100% 100% ========= ========= ========= (1) New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, 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 ContactAndrea Vedanayagam (408) 656-4494 Email Contact
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Released November 1, 2011