QuickLogic Reports Fourth Quarter and Fiscal 2019 Results
SAN JOSE, Calif., Feb. 12, 2020 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK) ("QuickLogic" or the "Company"), a developer of ultra-low power multi-core voice-enabled SoCs, embedded FPGA IP, and endpoint AI solutions, today announced its financial results for the fourth quarter and fiscal year 2019 ended December 29, 2019.
Recent Highlights
-- Won a key EOS S3 SoC design at Kyocera for their Torque G04 smartphone
-- Joined STMicroelectronics Partner Program so that developers using the
STM32 can implement intelligent IoT edge sensing using SensiML's
complete end-to-end AI workflow
-- Delivered FLEXino Sensor Fusion Development Kit, a complete solution for
IoT endpoint applications, with Flex and Infineon Technologies AG
-- Announced Renode support (an open source tool for embedded and IoT
development) for EOS S3 SoC with Antmicro
-- Announced restructuring plan to reduce operating expenses in order to
achieve profitability goal in fiscal year 2020
Fourth Quarter and Fiscal Year 2019 Financial Results
Total revenue for the fourth quarter of 2019 was $2.9 million, compared with $3.2 million in the fourth quarter of 2018. New product revenue was $0.7 million in the fourth quarter of 2019, 47% lower than the $1.3 million in the fourth quarter of 2018. Mature product revenue was $2.2 million in the fourth quarter of 2019, compared with $1.9 million in the fourth quarter of 2018.
Fourth quarter 2019 GAAP gross margin was 64.9%, compared with 51.7% in the fourth quarter of 2018. Fourth quarter 2019 Non-GAAP gross margin was 65.6%, compared with 52.6% in the fourth quarter of 2018. The increase in gross margin from the same quarter a year ago was mostly due to the higher mix of mature product revenue and additional SaaS business.
Fourth quarter 2019 GAAP operating expenses were $4.8 million, compared with $4.7 million in the fourth quarter of 2018. Fourth quarter 2019 Non-GAAP operating expenses were $4.2 million, compared with $4.3 million in the fourth quarter of 2018.
Fourth quarter 2019 GAAP net loss was $3.1 million, or $0.37 per share. This compares with $3.1 million, or $0.45 per share, in the fourth quarter of 2018. Fourth quarter 2019 non-GAAP net loss was $2.4 million, or $0.29 per share, compared with $2.6 million, or $0.38 per share, in the fourth quarter of 2018. Share and per share data have been adjusted to reflect the 1-for-14 reverse stock split that was completed on December 24, 2019.
Please see below for an explanation of the Company's non-GAAP financial measures.
Fiscal Year 2019 Results
For fiscal year 2019, total revenue was $10.3 million, compared with $12.6 million in fiscal year 2018. New product revenue for fiscal year 2019 was $3.1 million, compared with $5.7 million in fiscal year 2018. Mature product revenue was $7.2 million, compared with $6.9 million in fiscal year 2018.
Fiscal year 2019 GAAP gross margin was 57.3%, compared with 50.2% in fiscal year 2018. Non-GAAP gross margin for fiscal year 2019 was 58.0%, compared with 51.2% in fiscal year 2018.
GAAP operating expenses for fiscal year 2019 were $21.3 million, compared with $19.9 million in fiscal year 2018. The increase was primarily due to the SensiML acquisition that was completed in January 2019. Non-GAAP operating expenses of $18.2 million for fiscal year 2019 were flat with fiscal year 2018.
GAAP net loss for fiscal year 2019 was $15.4 million, or $2.02 per share. This compares with $13.8 million, or $2.16 per share in fiscal year 2018. Non-GAAP net loss was $12.3 million, or $1.60 per share, for fiscal year 2019. This compares with $11.9 million, or $1.87 per share, for fiscal year 2018.
Conference Call
QuickLogic will hold a conference call to discuss its financial results and outlook at 2:30 p.m. Pacific Standard Time / 5:30 p.m. Eastern Standard Time today, February 12, 2020. The conference call will be webcast at QuickLogic's IR Site Events Page. To join the live conference, you may dial 1-888-394-8218 and international participants should dial 1-323-794-2588. A recording of the call will be available starting approximately one hour after completion of the call. To access the recording, please call (412) 317-6671 and reference the passcode 5294729. The call recording will be archived until Wednesday, February 19, 2020, and the webcast will be available for 12 months on the Company's website at https://ir.quicklogic.com/ir-calendar.
About QuickLogic
QuickLogic is a fabless semiconductor company that develops low power, multi-core semiconductor platforms and Intellectual Property (IP) for Artificial Intelligence (AI), voice and sensor processing. The solutions include an embedded FPGA IP (eFPGA) for hardware acceleration and pre-processing, and heterogeneous multi-core SoCs that integrate eFPGA with other processors and peripherals. The Analytics Toolkit from the company's wholly-owned subsidiary, SensiML Corporation, completes the end-to-end solution with accurate sensor algorithms using AI technology. The full range of platforms, software tools and eFPGA IP enables the practical and efficient adoption of AI, voice and sensor processing across the multitude of mobile, wearable, hearable, consumer, industrial, edge and endpoint IoT applications. For more information, visit www.quicklogic.com and https://www.quicklogic.com/blog/.
QuickLogic uses its website (www.quicklogic.com), the company blog (https://www.quicklogic.com/blog/), corporate Twitter account (@QuickLogic_Corp), Facebook page (https://www.facebook.com/QuickLogic), and LinkedIn page (https://www.linkedin.com/company/13512/) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and QuickLogic may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the Company's website and its social media accounts in addition to following the Company's press releases, SEC filings, public conference calls, and webcasts.
Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with United States Generally Accepted Accounting Principles, or U.S. 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 the Company's 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 U.S. GAAP. A reconciliation of U.S. 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 U.S. GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable U.S. GAAP financial measures.
Forward Looking Statements
This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: 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; our ability to capitalize on synergies with our newly acquired subsidiary SensiML Corporation; changes in product demand or supply; capacity constraints; general economic conditions; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products; and changes in tax rates and exposure to additional tax liabilities. These and other potential factors and uncertainties that could cause actual results to differ from the results predicted are described in more detail in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the risks discussed in the "Risk Factors" section in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases, which are available on the Company's Investor Relations website at http://ir.quicklogic.com/ and on the SEC website at www.sec.gov. In addition, please note that the date of this press release is February 12, 2020, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
ArcticLink, QuickLogic and the QuickLogic logo are registered trademarks and EOS and ArcticPro are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.
CODE: QUIK-E
- Tables Follow -
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Year Ended
December December 30, September 29, December
29, 29, December 30,
2019 2018 2019 2019 2018
Revenue $
2,871 $
3,233 $
2,158 $
10,310 $
12,629
Cost of revenue 1,008 1,561 1,117 4,405 6,295
Gross profit 1,863 1,672 1,041 5,905 6,334
Operating expenses:
Research and development 2,754 2,422 3,139 12,350 9,948
Selling, general and administrative 2,037 2,302 2,095 8,918 9,982
Total operating expense 4,791 4,724 5,234 21,268 19,930
Loss from operations (2,928) (3,052) (4,193) (15,363) (13,596)
Interest expense (80) (31) (63) (350) (108)
Interest and other income, net 36 51 55 189 77
Loss before income taxes (2,972) (3,032) (4,201) (15,524) (13,627)
Provision (benefit from) for income
taxes 91 33 70 (80) 152
Net loss $
(3,063) $
(3,065) $
(4,271) $
(15,444) $
(13,779)
Net loss per share:
Basic and diluted (1) $
(0.37) $
(0.45) $
(0.51) $
(2.02) $
(2.16)
Weighted average shares:
Basic and diluted (1) 8,328 6,807 8,313 7,663 6,365
(1) Net loss per share,
basic and diluted share
numbers are adjusted to
reflect 1-for-14 reverse
stock split effected on
December 24, 2019.
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
December
29,
2019 December 30, 2018 (1)
ASSETS
Current assets:
Cash and cash equivalents $
21,448 $
26,363
Restricted cash 100 100
Accounts receivable, net 1,991 2,209
Inventories 3,260 3,836
Other current assets 1,565 1,775
Total current assets 28,364 34,283
Property and equipment, net 830 1,449
Internal Use Software, net 333
Right of use assets 2,370
Intangible assets, net 1,008
Goodwill 185
Other assets 314 354
TOTAL ASSETS $
33,404 $
36,086
LIABILITIES AND STOCKHOLDERS
'
EQUITY
Current liabilities:
Revolving line of credit $
15,000 $
15,000
Trade payables 1,003 1,488
Accrued liabilities 1,133 1,903
Deferred Revenue 158
Current portion of lease obligations 704 316
Total current liabilities 17,998 18,707
Long-term liabilities:
Lease obligations, less current portion 1,583 108
Other long-term liabilities 16
Total liabilities 19,581 18,831
Stockholders' equity:
Common stock, par value (2) 8 7
Additional paid-in capital (2) 297,073 285,062
Accumulated deficit (283,258) (267,814)
Total stockholders' equity 13,823 17,255
TOTAL LIABILITIES AND STOCKHOLDERS
'
EQUITY $
33,404 $
36,086
(1) Derived from the
December 30, 2018
audited balance
sheet included in
the 2018 Annual
Report on Form
10-K of
QuickLogic
Corporation.
(2) Common stock, par
value and
additional paid-
in capital
amounts are
adjusted to
reflect 1-for-
14 reverse stock
split effected on
December 24,
2019.
QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts and percentages)
(Unaudited)
Three
Months
Ended
Year Ended
December December 30, September 29, December
29, 29, December 30,
2019 2018 2019 2019 2018
US GAAP loss from operations $
(2,928) $
(3,052) $
(4,193) $
(15,363) $
(13,596)
Adjustment for stock-based compensation
within:
Cost of revenue 19 30 15 78 129
Research and development 534 150 521 2,242 760
Selling, general and administrative 101 294 212 824 1,012
Adjustment for the write-off of equipment:
Selling, general and administrative 2 4 5
Non-GAAP loss from operations $
(2,272) $
(2,578) $
(3,445) $
(12,215) $
(11,690)
US GAAP net loss $
(3,063) $
(3,065) $
(4,271) $
(15,444) $
(13,779)
Adjustment for stock-based compensation
within:
Cost of revenue 19 30 15 78 129
Research and development 534 150 521 2,242 760
Selling, general and administrative 101 294 212 824 1,012
Adjustment for the write-off of equipment:
Selling, general and administrative 2 4 5
Non-GAAP net loss $
(2,407) $
(2,591) $
(3,523) $
(12,296) $
(11,873)
US GAAP net loss per share
(1) $
(0.37) $
(0.45) $
(0.51) $
(2.02) $
(2.16)
Adjustment for stock-based compensation 0.08 0.07 0.09 0.42 0.29
Non-GAAP net loss per share $
(0.29) $
(0.38) $
(0.42) $
(1.60) $
(1.87)
US GAAP gross margin percentage 64.9 51.7 48.2 57.3 50.2
% % % % %
Adjustment for stock-based compensation 0.7 0.9 0.7 0.7 1.0
% % % % %
Non-GAAP gross margin percentage 65.6 52.6 48.9 58.0 51.2
% % % % %
(1) Net loss
per share is
adjusted to
reflect 1-
for-14
reverse stock
split effected
on December
24, 2019.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of Revenue Change in Revenue
Q4 Q3
2019 2019 Fiscal 2019 Fiscal 2018 Q3 2019 to 2018 to
Q4 2019 2019
COMPOSITION OF REVENUE
Revenue by product: (1)
New products 25 47 30 45 (30) (46)
% % %
% % %
Mature products 75 53
% % % %
% % 70 55 89 4
Revenue by geography:
Asia Pacific 19 25 30 39 5 (38)
% % %
% % %
North America 37 70 47 51 (31) (25)
% % %
% % %
Europe 44 5
% % % %
% % 23 10 1028 92
(1) New products include all
products manufactured on 180
nanometer or smaller
semiconductor processes,
eFPGA IP license, QuickAI,
and SensiML AI software as a
service (SaaS) revenues.
Mature products include all
products produced on
semiconductor processes
larger than 180 nanometer.
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SOURCE QuickLogic Corporation
