10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 FORM 10-Q

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2013

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From  To 

COMMISSION FILE NUMBER: 000-22671

QUICKLOGIC CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	77-0188504
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1277 ORLEANS DRIVE SUNNYVALE, CA 94089

(Address of principal executive offices, including Zip Code)

(408) 990-4000

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.    Yes  [x]    No  [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  [x ]    No  [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[ ]	Accelerated Filer	[x]
Non-accelerated filer	[ ] (Do not check if a smaller reporting company)	Smaller Reporting Company	[ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act).     Yes  [ ]    No  [x]

As of May 3, 2013, the registrant had outstanding 44,533,145 shares of common stock, par value $0.001.

QUICKLOGIC CORPORATION

FORM 10-Q

March 31, 2013

		Page
Part I - Financial Information		3
Item 1.	Financial Statements	3
	Condensed Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2013	3
	Condensed Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2013	4
	Condensed Unaudited Consolidated Balance Sheets as of March 31, 2013 and December 30, 2012	5
	Condensed Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2013	6
	Notes to Condensed Unaudited Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	29
Part II - Other Information		30
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 4.	Mine Safety Disclosures	30
Item 6.	Exhibits	31
Signatures		32

2

PART I. Financial Information

Item 1. Financial Statements

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended
	March 31, 2013			April 1, 2012
Revenue	$	3,017		$	4,130
Cost of revenue	1,986			2,371
Gross profit	1,031			1,759
Operating expenses:
Research and development	2,008			2,802
Selling, general and administrative	2,530			2,697
Restructuring costs	7			—
Income (loss) from operations	(3,514		)	(3,740		)
Interest expense	(9		)	(13		)
Interest income and other, net	(4		)	(13		)
Income (loss) before income taxes	(3,527		)	(3,766		)
Provision for (benefit from) income taxes	57			(45		)
Net income (loss)	$	(3,584	)	$	(3,721	)
Net Income (loss) per share:
Basic	$	(0.08	)	$	(0.10	)
Diluted	$	(0.08	)	$	(0.10	)
Weighted average shares:
Basic	44,517			38,495
Diluted	44,517			38,495

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

3

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended
	March 31, 2013			April 1, 2012
Net income (loss)	$	(3,584	)	$	(3,721	)
Other comprehensive gain (loss), net of tax:
Unrealized gain (loss) on available-for-sale investments	(43		)	98
Total comprehensive income (loss)	$	(3,627	)	$	(3,623	)

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

4

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amount)

	March 31, 2013			December 30, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	19,659		$	22,578
Short-term investment in TowerJazz Semiconductor Ltd.	303			345
Accounts receivable, net of allowances for doubtful accounts of $51 and $20, respectively	1,392			1,242
Inventories	2,525			3,028
Other current assets	846			986
Total current assets	24,725			28,179
Property and equipment, net	2,404			2,659
Other assets	207			186
TOTAL ASSETS	$	27,336		$	31,024
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables	$	1,393		$	1,965
Accrued liabilities	1,289			1,214
Current portion of capital lease obligations	239			160
Total current liabilities	2,921			3,339
Long-term liabilities:
Capital lease obligations, less current portion	135			266
Other long-term liabilities	167			141
Total liabilities	3,223			3,746
Commitments and contingencies (see Note 15)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding	—			—
Common stock, $0.001 par value; 100,000 shares authorized; 44,533 and 44,506 shares issued and outstanding, respectively	45			45
Additional paid-in capital	205,259			204,797
Accumulated other comprehensive income (loss)	(54		)	(11		)
Accumulated deficit	(181,137		)	(177,553		)
Total stockholders' equity	24,113			27,278
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	27,336		$	31,024

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

5

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended
	March 31, 2013			April 1, 2012
Cash flows from operating activities:
Net income (loss)	$	(3,584	)	$	(3,721	)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	317			290
Stock-based compensation	452			384
Write-down of inventories	343			329
Tax effect on other comprehensive income	—			(63		)
Bad Debt	31			10
Changes in operating assets and liabilities:
Accounts receivable	(181		)	(85		)
Inventories	160			318
Other assets	102			(195		)
Trade payables	(572		)	(420		)
Accrued liabilities	77			336
Deferred royalty revenue	—			(8		)
Other long-term liabilities	26			(9		)
Net cash provided by (used for) operating activities	(2,829		)	(2,834		)
Cash flows from investing activities:
Capital expenditures for property and equipment	(62		)	(69		)
Net cash provided by (used for) investing activities	(62		)	(69		)
Cash flows from financing activities:
Payment of debt and capital lease obligations	(35		)	(116		)
Net proceeds from issuance of common stock	7			39
Net cash provided by (used for) financing activities	(28		)	(77		)
Net increase (decrease) in cash and cash equivalents	(2,919		)	(2,980		)
Cash and cash equivalents at beginning of period	22,578			20,203
Cash and cash equivalents at end of period	$	19,659		$	17,223
Supplemental schedule of non-cash investing and financing activities :
Capital lease obligation to finance capital expenditures	$	374		$	917
Purchase of equipment included in accounts payable	$	—		$	765

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

6

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — The Company and Basis of Presentation

QuickLogic Corporation, referenced herein as QuickLogic or the Company, was founded in 1988 and reincorporated in Delaware in 1999. The Company develops and markets low power programmable solutions that enable customers to add differentiated features and capabilities to their mobile, consumer and industrial products. The Company is a fabless semiconductor company that designs, markets and supports Customer Specific Standard Products, or CSSPs, Field Programmable Gate Arrays, or FPGAs, application solutions, associated design software and programming hardware.

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with generally accepted accounting principles, or GAAP, and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 30, 2012. Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the full year.

QuickLogic's fiscal year ends on the Sunday closest to December 31. QuickLogic's first fiscal quarter for 2013 and 2012 ended Sunday, March 31, 2013 and April 1, 2012, respectively.

Liquidity

We have financed our operations and capital investments through sales of common stock, private equity investments, capital and operating leases, bank lines of credit and cash flows from operations. As of March 31, 2013, our principal sources of liquidity consisted of our cash and cash equivalents of $19.7 million, $6.0 million in available credit under our revolving line of credit with Silicon Valley Bank, which expires June 28, 2013, and our investment in TowerJazz Semiconductor Ltd., or TowerJazz, with a fair value of approximately $303,000.

The Company anticipates that its existing cash resources will fund operations, finance purchases of capital equipment and provide adequate working capital for at least the next twelve months. The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including CSSPs based on our ArcticLink™ and PolarPro^® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of our customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of shares of TowerJazz and equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company.

Principles of Consolidation

The consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The functional currency of the Company and its subsidiaries is the United States dollar.

7

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Foreign Currency

The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other, net in the statement of operations.

Uses of Estimates

The preparation of these consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities.

Concentration of Risk

The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 13 for information regarding concentrations associated with accounts receivable. The Company's investment in TowerJazz is subject to equity risk. See Note 4 for the information regarding the Company's investment in TowerJazz Semiconductor, Ltd.

Note 2 — Significant Accounting Policies

During the first quarter of 2013, there were no changes in the Company's significant accounting policies from its disclosure in the Annual Report on Form 10-K for the year ended December 30, 2012. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the Securities Exchange Commission, or SEC, on March 8, 2013.

New Accounting Pronouncements

In February 2013, the FASB issued guidance on disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income (“AOCI”). This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. The new guidance is effective for the Company beginning December 15, 2012. The Company adopted this guidance in its interim period ended March 31, 2013 (see Note 11). The adoption of this guidance did not impact the Company's financial statements, as the guidance is related to disclosure only, and the Company did not have reclassifications out of accumulated other comprehensive income.

In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Company will adopt the new guidance in its interim period ended March 30, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Note 3 — Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of

8

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

stock options and warrants.

The following shares were not included in the calculation of diluted net income (loss) per share for the first quarter of 2013 and 2012: (i) 7.5 million and 7.7 million of common shares associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan, respectively, and (ii) warrants to purchase up to 4.2 million and 1.9 million shares of common stock, respectively. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods.

Note 4 — Investment in TowerJazz Semiconductor Ltd.

As of March 31, 2013, the Company held 42,970 available-for-sale TowerJazz ordinary shares with a net unrealized loss of $54,000 recorded in accumulated other comprehensive income, or AOCI, on the balance sheet which includes tax benefits and the difference between the cost of $1.95 per share and carrying value of $7.04 per share, their fair value on the last trading day of the reporting period. The fair value of TowerJazz marketable securities as of March 31, 2013 was determined based on “Level 1” inputs as described in Note 7.

Note 5 — Balance Sheet Components

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Inventories:
Raw materials	$	28		$	32
Work-in-process	2,165			2,599
Finished goods	332			397
	$	2,525		$	3,028
Other current assets:
Prepaid expenses	$	815		$	954
Other	31			32
	$	846		$	986
Property and equipment:
Equipment	$	12,864		$	12,803
Software	5,682			5,682
Furniture and fixtures	746			746
Leasehold improvements	658			658
	19,950			19,889
Accumulated depreciation and amortization	(17,546		)	(17,230		)
	$	2,404		$	2,659
Accrued liabilities:
Employee related accruals	$	1,075		$	1,035
Other	214			179
	$	1,289		$	1,214

9

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Note 6 — Obligations

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Capital lease obligations:
Capital leases	$	374		$	426
	374			426
Current portion of capital lease obligations	(239		)	(160		)
Long term portion of capital lease obligations	$	135		$	266

Revolving Line of Credit

In June 2012, the Company entered into the Eighth Amendment to Second Amended and Restated Loan and Security Agreement ("Agreement") with Silicon Valley Bank. The terms of the Agreement include a $6.0 million revolving line of credit available through June 28, 2013, as long as the Company is in compliance with the loan covenants. Upon each advance, the Company can elect a fixed interest rate, which is the prime rate plus the prime rate margin, or a fixed rate which is LIBOR plus the LIBOR rate margin, as the case may be. During the first quarter of 2013, the Company had no borrowings against the line of credit.

The bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the Agreement. Under the terms of the Agreement, except as noted above, the Company must maintain a minimum tangible net worth of at least $15 million, adjusted quick ratio of 2-to-1 and a minimum unrestricted cash or cash equivalents balance of at least $8 million. The Agreement also has certain restrictions including, among others, restrictions on the incurrence of other indebtedness, the maintenance of depository accounts, the disposition of assets, mergers, acquisitions, investments, the granting of liens and the payment of dividends. The Company was in compliance with the financial covenants of the Agreement as of the end of the current reporting period.

Capital Leases

In February 2012, the Company leased design software tools under a three-year capital lease at an imputed interest rate of 4.3% per annum. Terms of the agreement required the Company to make two payments of principal and interest of $9,000 in March 2012 and $18,000 in December 2012, for a total of $27,000. As of March 31, 2013, there was no liability balance outstanding under the capital lease.

In January 2012, the Company leased design software tools under a three-year capital lease at an imputed interest rate of 4.24% per annum. Terms of the agreement require the Company to make semi-annual payments of principal and interest of approximately $82,500 through July 2014, for a total of $495,000 over the three year period. As of March 31, 2013, $264,000 was outstanding under the capital lease, of which $129,000 was classified as a current liability.

In December 2011, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.24% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $38,000 through November 2013, for a total of $300,000. As of March 31, 2013, $110,000 was outstanding under the capital lease, all of which was classified as a current liability.

Note 7 — Fair Value Measurements

Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

The accounting guidance for fair value measurement also specifies a hierarchy of valuation techniques based upon

10

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the company's own assumption of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels:

• Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.

• Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of March 31, 2013 and December 30, 2012, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 31, 2013								As of December 30, 2012
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	18,709	$	18,709	$	—	$	—	$	21,907	21,907		$	—	$	—
Investment in TowerJazz Semiconductor Ltd. (2)	303		303		—		—		345		345		—		—
Total assets	$	19,012	$	19,012	$	—	$	—	$	22,252	$	22,252	$	—	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 31, 2013 and December 30, 2012.

⁽²⁾  The Company expects to sell TowerJazz marketable securities at the fair market value at such time as it deems appropriate.

Note 8 - Stockholders' Equity

Common and Preferred Stock

The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued shares of undesignated preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock.

Issuance of Common Stock

In June 2012, the Company issued an aggregate of 5,122,000 shares of common stock and warrants to purchase up to an aggregate of 2,304,900 shares of common stock in a confidentially marketed underwritten offering. The common stock and warrants were issued in units (the “Units”), with each Unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.45 of a share of common stock, at a price of $2.50 per Unit. The Company received total net proceeds from the offering of $11.9 million, net of underwriting discounts and other offering expenses of $929,000.

The warrants are exercisable any time for a period of 60 months from the date of issuance on June 6, 2012, and are exercisable at a price of $2.98 per share. The Company allocated the proceeds between the common stock and the warrants based on the relative fair value of each on the date of issuance. The estimated grant date fair value was $0.97 per warrant and was calculated based on the following assumptions used in the Black-Scholes model: expected term of 5 years, risk-free interest rate of 0.89%, expected volatility of 62.18% and expected dividend of zero.

11

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Note 9 — Employee Stock Plans

1999 Stock Plan

The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and nonqualified options, restricted stock units and restricted stock. Equity awards granted under the 1999 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. In March 2009, the Board adopted the 2009 Stock Plan which was approved by the Company's stockholders on April 22, 2009. Effective April 22, 2009, no further stock options may be granted under the 1999 Plan.

2009 Stock Plan

The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in March 2011 and approved by the Company's stockholders on April 28, 2011 to, among other things, reserve an additional 1.5 million shares of common stock for issuance under the Plan. As of March 31, 2013, approximately 6.9 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 7.5 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards.

Employee Stock Purchase Plan

The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. The Company has reserved 2.3 million shares for issuance under the 2009 ESPP. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period.

Note 10 — Stock-Based Compensation

The equity incentive program in the Company is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and stock bonus units. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years.

The stock-based compensation expense included in the Company's consolidated financial statements for the first quarter of 2013 and 2012 was as follows (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Cost of revenue	$	30	$	32
Research and development	166		93
Selling, general and administrative	256		259
Total costs and expenses	$	452	$	384

 No stock-based compensation was capitalized during any period presented above.

12

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Valuation Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period.

In addition to the assumptions used in the Black-Scholes pricing model, the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards.

The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (years)	4.91		5.01
Risk-free interest rate	0.82	%	0.89	%
Expected volatility	65.22	%	62.18	%
Expected dividend yield	—		—

The weighted average estimated fair value for options granted during the first quarter of 2013 and 2012 were $1.27 and $1.37 per option, respectively. As of March 31, 2013, the fair value of unvested stock options, net of expected forfeitures, was approximately $1.9 million. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.46 years.

Stock-Based Compensation Award Activity

The following table summarizes the shares available for grant under the 2009 Plan as of March 31, 2013:

	Shares Available for Grant
	(in thousands)
Balance at December 30, 2012	2,920
Authorized	—
Options granted	(16	)
Options forfeited or expired	37
RSUs granted	(2	)
PRSUs forfeited or expired	5
Balance at March 31, 2013	2,944

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009

13

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Plan, and the related weighted average exercise price, for the first three months of 2013:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 30, 2012	6,960		$	2.55
Granted	16		2.36
Forfeited or expired	(37	)	2.81
Exercised	(18	)	1.42
Balance outstanding at March 31, 2013	6,921		$	2.55	6.13	$	2,188
Exercisable at March 31, 2013	5,204		$	2.53	5.33	$	1,990
Vested and expected to vest at March 31, 2013	6,601		$	2.55	6.00	$	2,145

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $2.46 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date.

The total intrinsic value of options exercised during the first three months of 2013 and 2012 was $14,000 and $30,000, respectively. Total cash received from employees as a result of employee stock option exercises during the first three months of 2013 and 2012 was approximately $25,000 and $38,000, respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $331,000 for the first quarter of 2013.

Restricted Stock Units and Performance-based Restricted Stock Units

The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each restricted stock unit as it vests. The Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of restricted stock units. The stock-based compensation related to RSUs and PRSUs was $4,000 and $60,000, respectively, for the first quarter of 2013. As of March 31, 2013, there were no unrecognized compensation expense related to RSUs and PRSUs.

A summary of activity for our RSUs and PRSUs for the three months ended March 31, 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 31, 2013 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 30, 2012	40		$	2.30
Granted	2		2.16
Vested	(17	)	2.33
Forfeited	(5	)	—
Nonvested at March 31, 2013	20		$	2.84

Employee Stock Purchase Plan

The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP plan during the first quarter of 2013 and 2012 was $0.55 and $0.89 per right, respectively.

14

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

As of March 31, 2013, 2.3 million shares remained available for issuance under the 2009 ESPP. For the first quarter of 2013, the Company recorded compensation expense related to the ESPP of $57,000.

The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (months)	5.97		5.96
Risk-free interest rate	0.14	%	0.05	%
Volatility	50.28	%	65.67	%
Dividend yield	—		—

As of March 31, 2013, the unrecognized stock-based compensation expense relating to the Company's ESPP was $57,000 and is expected to be recognized over a weighted average period of approximately 1.5 months.

Note 11 — Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated balances of other comprehensive income (Loss) for the three months ended March 31, 2013:

	Change in unrealized gains on available for sale securities
	(in thousands)
Accumulated other comprehensive income (loss), net of tax, as of December 30, 2012	$	(11	)
Other comprehensive income (loss) before reclassifications	(43		)
Amounts reclassified from accumulated other comprehensive income (loss)	0
Net change in other comprehensive income (loss)	(43		)
Accumulated other comprehensive income (loss), net of tax, as of March 31, 2013	$	(54	)

There was no reclassification from accumulated other comprehensive income in the first quarter of 2013.

Note 12 — Income Taxes

In the first quarter of 2013 and 2012, the Company recorded a net income tax provision of $57,000 and a net income tax benefit of $45,000, respectively. The income tax provision for the first quarter of 2013 was primarily from our foreign operations which are cost-plus entities. The income tax benefit for the first quarter of 2012 was primarily due to an intraperiod tax allocation which resulted from the unrealized gains on an investment in TowerJazz, offset by the income tax provision from our foreign operations. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, with the exception of its foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods.

The Company had approximately $79,000 and $79,000 of unrecognized tax benefits at March 31, 2013 and December 30, 2012, respectively. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2013, the Company had approximately $35,000 of accrued interest and penalties related to uncertain tax positions.

The Company is no longer subject to U.S. federal, state and non-U.S. income tax audits by taxing authorities for fiscal years through 1997.

15

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Note 13 — Information Concerning Product Lines, Geographic Information and Revenue Concentration

The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment.

The following is a breakdown of revenue by product line (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by product line (1):
New products	$	941	$	1,639
Mature products	2,076		2,491
Total revenue	$	3,017	$	4,130

_________________

⁽¹⁾For all periods presented: New products represent products introduced since 2005, and include ArcticLink^®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro^®, PolarPro II, and QuickPCI^® II. Mature products include Eclipse, EclipsePlus, pASIC^® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM^®, and V3, as well as royalty revenue, programming hardware and software.

The following is a breakdown of revenue by shipment destination (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by geography:
United States	$	941	$	1,310
Japan	602		880
China	131		512
Europe	450		482
Malaysia	685		608
Rest of Asia Pacific	31		231
Rest of North America	177		107
Total revenue	$	3,017	$	4,130

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended
	March 31, 2013		April 1, 2012
Distributor “A”	40	%	32	%
Distributor “C”	18	%	18	%
Distributor “D”	*		16	%
Customer “B”	24	%	20	%
Customer “F”	11	%	*

* Represents less than 10% of revenue for the period presented.

16

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	March 31, 2013		December 30, 2012
Distributor “A”	39	%	35	%
Distributor “B”	18	%	14	%
Distributor “C”	12	%	*
Customer "B"	10	%	*

_________________

* Represents less than 10% of accounts receivable as of the date presented.

As of March 31, 2013, less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States.

Note 14 — Restructuring Charges

In an effort to consolidate and streamline its engineering organization, the Company implemented a restructuring plan on March 28, 2013. The associated restructuring charges for employee severance benefits will be pro-rated over a three month period. Accordingly, the Company recorded an initial $7,000 restructuring liabilities in the first quarter of 2013. The restructuring liabilities were included in the "Accrual Liabilities" line item in its consolidated balance sheets, and the activities affecting the liabilities for the first quarter of 2013 are summarized as follows:

	Restructuring Liabilities
	(in thousands)
Balance at December 30, 2012	$	—
Accruals	7
Payments	—
Balance at March 31, 2013	$	7

Note 15 — Commitments and Contingencies

Certain wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of March 31, 2013 and December 30, 2012, the Company had $3.5 million and $621,000, respectively, of outstanding commitments for the purchase of wafer inventory.

The Company has purchase obligations with certain suppliers for the purchase of goods and services entered into in the ordinary course of business. As of March 31, 2013, total outstanding purchase obligations were $799,000, which are primarily due within the next 12 months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2015. In addition, the Company rents development facilities in Canada and India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the first quarters of 2013 and 2012 was approximately $233,000 and $125,000, respectively.

As of March 31, 2013, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

17

QUICKLOGIC CORPORATION

NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

	Operating Leases
	(in thousands)
Fiscal Years
2013	$	690
2014	891
2015 and thereafter	949
	$	2,530

Note 16 — Litigation

From time to time, the Company is involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. Absolute assurance cannot be given that third party assertions will be resolved without costly litigation, or in a manner that is not adverse to the Company's financial position, results of operations or cash flows, or without requiring royalty or other payments in the future which may adversely impact gross profit.

18

Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as information contained in “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend that these forward-looking statements be subject to the safe harbor created by those provisions. Forward-looking statements are generally written in the future tense and/or are preceded by words such as “will,” “may,” “should,” “forecast,” “could,” “expect,” “suggest,” “believe,” “anticipate,” “intend,” “plan,” or other similar words. Forward-looking statements include statements regarding our strategies as well as (1) our revenue levels, including the commercial success of our Customer Specific Standard Products, or CSSPs, and new products, (2) the conversion of our design opportunities into revenue, (3) our liquidity, (4) our research and development efforts, (5) our gross profit and factors that affect gross profit, (6) our level of operating expenses, (7) our partners and suppliers and (8) industry trends. The following discussion should be read in conjunction with the attached condensed unaudited consolidated financial statements and notes thereto, and with our audited consolidated financial statements and notes thereto for the fiscal year ended December 30, 2012, found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on March 8, 2013. Although we believe that the assumptions underlying the forward-looking statements contained in this Quarterly Report are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements will be accurate. The risks, uncertainties and assumptions referred to above that could cause our results to differ materially from the results expressed or implied by such forward-looking statements include, but are not limited to, those discussed under the heading “Risk Factors” in Part II, Item 1A hereto and the risks, uncertainties and assumptions discussed from time to time in our other public filings and public announcements. All forward-looking statements included in this document are based on information available to us as of the date hereof. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. Furthermore, past performance in operations and share price is not necessarily indicative of future performance. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We develop and market low power customizable semiconductor solutions that enable customers to add new differentiated features to, extend battery life in and improve their visual experience with their mobile, consumer and enterprise products. Our targeted mobile market segment includes Tablets, Smartphones, Mobile Enterprise, Pico Projectors, Broadband Access Data cards, and Secure Access Data cards. Our solutions typically fall into one of three product categories: Display & Visual Enhancement, Smart Connectivity, and Security. We are a fabless semiconductor company designing Customer Specific Standard Products, or CSSPs, which are complete, customer-specific solutions that include a combination of silicon solution platforms; Proven System Blocks, or PSBs; customer-specific logic; software drivers; and firmware. Our main platform families, ArcticLink and PolarPro, are standard silicon products. PSBs that have been developed and that are available to customers include our Visual Enhancement Engine, or VEE, Display Power Optimizer, or DPO, and Background Color Compensator (BCC) technologies; Camera Interface, or CAMIF; SDHD/eMMC Host Controllers; USB 2.0 On-The-Go with PHY; MIPI Host/Device with DPHY, LVDS, MDDI Client with PHY; High Speed UARTs; Pulse Width Modulators; SPI and I2C hosts, display-specific functions such as RGB-split and Frame Recyclers; and Data Performance Manager, or DPM, for accelerated sideloading times. The variety of PSBs offered by us allows system designers to combine multiple discrete chips onto a single CSSP, simplifying design and board layout, lowering BOM cost, and accelerating time-to-market. The programmable logic of the platforms is used for adding differentiated features and provides flexibility to address hardware-based product requirements quickly.

Utilizing a focused customer engagement model, we market CSSPs to Original Equipment Manufacturers, or OEMs, and Original Design Manufacturers, or ODMs, that offer differentiated mobile products, and to processor vendors wishing to expand their served available market through the deployment of reference designs to their customers. Our solutions enable OEMs and ODMs to add new features, extend battery life, and improve the visual experience of their handheld mobile devices. In addition to working directly with our customers, we partner with other companies with expertise in certain technologies to develop additional intellectual property, reference platforms and system software to provide application solutions. When we bring solutions to market with a partner company, we typically launch the solution as a Catalog CSSP. This enables us to sell the product as a 'catalog' device to any customer. In this manner, we are able to broaden the served available market for our CSSP solutions and leverage our R&D across multiple end customers.

19

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

We also work with mobile processor manufacturers in the development of reference designs or “Catalog” CSSPs. Through reference designs that incorporate our CSSPs, we believe mobile processor manufacturers can expand the served available market for their processors. Furthermore, should a CSSP development for a processor manufacturer be applicable to a set of common OEMs or ODMs, we can amortize our R&D investment over that set of OEMs/ODMs. We call this type of solution a Catalog CSSP. The first such Catalog CSSP was developed in conjunction with Texas Instruments, and introduced to the market during the second half of 2012. We are placing a greater emphasis on developing and marketing Catalog CSSPs in the future.

In order to grow our revenue from its current level, we are dependent upon increased revenue from our new products including existing new product platforms and platforms currently in development. We expect our business growth to be driven by CSSPs and our CSSP revenue growth needs to be strong enough to enable us to sustain profitability while we continue to invest in the development, sales and marketing of our new solution platforms, PSBs and CSSPs. The gross margin associated with our CSSPs is generally lower than the gross margin of our FPGA products, due primarily to the price sensitive nature of the higher volume mobile consumer opportunities that we are pursuing with CSSPs.

During the first quarter of 2013, we generated total revenue of $3.0 million which represents a 2% sequential decrease and a 27% decrease from the first quarter of 2012. Our new product revenue was $941,000 which represents a 6% sequential decrease and a 43% decrease year over year. Our mature product revenue was flat sequentially at $2.1 million and had a 17% decrease year over year. We shipped our new products into the Tablet, Smartphone and the Mobile Enterprise market. Since we introduced CSSPs to the market in early 2007, we have devoted substantially all of our development, sales, and marketing efforts on our new solution platforms, PSBs and CSSPs. We expect our revenue from mature products to continue to decline over time. Overall, we reported a net loss of $3.6 million for the first quarter of 2013.

Critical Accounting Estimates

The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our consolidated financial statements. The SEC has defined critical accounting policies as those that are most important to the portrayal of our financial condition and results of operations and require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our critical policies include revenue recognition, valuation of inventories including identification of excess quantities and product obsolescence, valuation of investments, valuation of long-lived assets, measurement of stock-based compensation and estimating accrued liabilities. We believe that we apply judgments and estimates in a consistent manner and that this consistent application results in consolidated financial statements and accompanying notes that fairly represent all periods presented. However, any factual errors or errors in these judgments and estimates may have a material impact on our financial statements. For a discussion of critical accounting policies and estimates, please see Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the SEC on March 8, 2012.

Results of Operations

The following table sets forth the percentage of revenue for certain items in our statements of operations for the periods indicated:

20

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue	100.0	%	100.0	%
Cost of revenue	65.8	%	57.4	%
Gross profit	34.2	%	42.6	%
Operating expenses:
Research and development	66.6	%	67.8	%
Selling, general and administrative	83.9	%	65.3	%
Restructuring costs	*		—	%
Income (loss) from operations	(116.3	)%	(90.5	)%
Interest expense	(0.3	)%	(0.3	)%
Interest income and other, net	(0.1	)%	(0.3	)%
Income (loss) before income taxes	(116.7	)%	(91.1	)%
Provision for (benefit from) income taxes	1.9	%	(1.1	)%
Net Income (loss)	(118.6	)%	(90.0	)%

* Figure was not considered in the calculation due to the insignificant amount.

21

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

Three Months Ended March 31, 2013 and April 1, 2012

Revenue

The table below sets forth the changes in revenue for the three months ended March 31, 2013, as compared to the three months ended April 1, 2012 (in thousands, except percentage data):

	Three Months Ended
	March 31, 2013				April 1, 2012				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
Revenue by product line (1):
New products	$	941	31	%	$	1,639	40	%	$	(698	)	(43	)%
Mature products	2,076		69	%	2,491		60	%	(415		)	(17	)%
Total revenue	$	3,017	100	%	$	4,130	100	%	$	(1,113	)	(27	)%

_________________

⁽¹⁾For all periods presented: New products represent products introduced since 2005, and include ArcticLink^®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro^®, PolarPro II, and QuickPCI II. Mature products include Eclipse, EclipsePlus, pASIC^® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM, and V3, as well as royalty revenue, programming hardware and software.

The decrease in new product revenue was primarily due to a decline in shipments to broadband data card and pico projector market segment customers. The decrease in mature product revenue is due primarily to reduced orders from our customers in the aerospace, test and instrumentation sectors.

In order to grow our revenue, we are dependent upon increased revenue from our new products, especially revenue from CSSPs designed using our ArcticLink, ArcticLink II, ArcticLink III, PolarPro and PolarPro II solution platforms and the development of additional new products and CSSPs.

We continue to seek to expand our revenue through the pursuit of high volume sales opportunities in our target market segments and the sale of CSSPs incorporating our PSBs. Our industry is characterized by intense price competition and by lower margins as order volumes increase. While winning large volume sales opportunities will increase our revenue, due to the pricing negotiation leverage of large companies, these opportunities may decrease our gross profit as a percentage of revenue.

Gross Profit

The table below sets forth the changes in gross profit for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012 (in thousands, except percentage data):

	Three Months Ended
	March 31, 2013				April 1, 2012				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
Revenue	$	3,017	100	%	$	4,130	100	%	$	(1,113	)	(27	)%
Cost of revenue	1,986		66	%	2,371		57	%	(385		)	(16	)%
Gross Profit	$	1,031	34	%	$	1,759	43	%	$	(728	)	(41	)%

The $728,000 decrease in gross profit in the first quarter of 2013 as compared to the first quarter of 2012 was mainly due to lower revenue from our new and mature products and higher unabsorbed overhead. The inventory reserve was $343,000 and $329,000 in the first quarters of 2013 and 2012, respectively. In addition, the decrease in gross profit was partially offset by the sale of previously reserved inventories of $215,000 and $98,000 in the first quarters of 2013 and 2012, respectively.

Our semiconductor products have historically had long product life cycles and obsolescence has not been a significant

22

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

factor in the valuation of inventories. However, as we pursue opportunities in the mobile market and continue to develop new CSSPs and products, we believe our product life cycle will be shorter and increase the potential for obsolescence. We also regularly review the cost of inventories against estimated market value and record a lower of cost or market reserve for inventories that have a cost in excess of estimated market value. This could have a material impact on our gross margin and inventory balances based on additional write-downs to net realizable value or a benefit from inventories previously written down.

Operating Expenses

The table below sets forth the changes in operating expenses for the three months ended March 31, 2013, as compared to the three months ended April 1, 2012 (in thousands, except percentage data):

	Three Months Ended
	March 31, 2013				April 1, 2012				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
R&D expense	$	2,008	67	%	$	2,802	68	%	$	(794	)	(28	)%
SG&A expense	2,530		84	%	2,697		65	%	(167		)	(6	)%
Restructuring costs	7		—	%	—		—	%	7			—	%
Total operating expenses	$	4,545	151	%	$	5,499	133	%	$	(954	)	(17	)%

Research and Development

Our research and development, or R&D, expenses consist primarily of personnel, overhead and other costs associated with engineering process improvements, programmable logic design, CSSP design and software development. The $794,000 decrease in R&D expenses in the first quarter of 2013 as compared to the first quarter of 2012 was attributable primarily to a $878,000 decrease in third party chip design costs and a $240,000 decrease in equipment and supplies. These expenses were partially offset by a $263,000 increase in compensation expenses due to an increase in headcount; a $30,000 increase in stock-based compensation expenses; a $12,000 increase in travel and entertainment expenses; a $8,000 increase in occupancy costs; and a $7,000 increase in depreciation expenses.

Selling, General and Administrative Expense

Our selling, general and administrative, or SG&A, expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources and general management. The $167,000 decrease in SG&A expenses in the first quarter of 2013 as compared to the first quarter of 2012 was primarily due to a $129,000 decrease in stock-based compensation expenses; a $127,000 decrease in outside services primarily as a result of decreases in sales commissions; and a $37,000 decrease in travel and entertainment. These expenses were partially offset by a $72,000 increase in equipment and supplies; and a $42,000 increase in compensation expenses.

Restructuring Costs

On March 28, 2013, we implemented a restructuring plan to consolidate and streamline our engineering organization. The associated restructuring charges will be pro-rated over a three month period. Accordingly, we recorded an initial $7,000 restructuring charge for employee severance benefits in the first quarter of 2013.

Interest Expense and Interest Income and Other, net

The table below sets forth the changes in interest expense and interest income and other, net, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012 (in thousands, except percentage data):

23

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

	Three Months Ended						Change
	March 31, 2013			April 1, 2012			Amount		Percentage
Interest expense	$	(9	)	$	(13	)	$	4	(31	)%
Interest income and other, net	(4		)	(13		)	9		(69	)%
	$	(13	)	$	(26	)	$	13	(50	)%

The decrease in interest expense was due primarily to the decrease in our average debt obligation to $400,000 in the first quarter of 2013 from $602,000 in the first quarter of 2012. The change in interest income and other, net, was due primarily to foreign exchange fluctuations in the first quarter of 2013 as compared to the first quarter of 2012.

We conduct a portion of our research and development activities in Canada and India and we have sales and marketing activities in various countries outside of the United States. Most of these international expenses are incurred in local currency. Foreign currency transaction gains and losses are included in interest and other income (expense), net, as they occur. We do not use derivative financial instruments to hedge our exposure to fluctuations in foreign currency and, therefore, our results of operations are, and will continue to be, susceptible to fluctuations in foreign exchange gains or losses.

Provision for (Benefit from) Income Taxes

The table below sets forth the changes in provision for income taxes for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012 (in thousands, except percentage data):

	Three Months Ended					Change
	March 31, 2013		April 1, 2012			Amount		Percentage
Provision for (benefit from) income taxes	$	57	$	(45	)	$	102	(227	)%

The provision for income taxes for the first quarters of 2013 and benefit from income taxes for the first quarter of 2012 were primarily from our foreign operations which are cost-plus entities, and due to an intraperiod tax allocation which resulted from the unrealized gain on our investment in TowerJazz offset by tax provision from our foreign operations, respectively.

As of the end of the first quarter of 2013, our ability to utilize our income tax loss carryforwards in future periods is uncertain and, accordingly, we recorded a full valuation allowance against the related US tax provision. We will continue to assess the realizability of deferred tax assets in future periods.

24

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

Liquidity and Capital Resources

We have financed our operating losses and capital investments through sales of common stock, private equity investments, capital and operating leases, and cash flows from operations. As of March 31, 2013, our principal sources of liquidity consisted of our cash and cash equivalents of $19.7 million, available credit under our revolving line of credit with Silicon Valley Bank of $6.0 million, and our investment in TowerJazz with a market value of approximately $303,000. The borrowing under the Company's line of credit is subject to maintaining a tangible net worth of at least $15.0 million, unrestricted cash or cash equivalent balance of at least $8.0 million and a quick ratio of 2-to-1. The term of the revolving debt facility expires in June 2013. Upon each advance, the Company can elect a fixed interest rate, which is the prime rate plus the prime rate margin, or a fixed rate which is the LIBOR plus the LIBOR rate margin. We were in compliance with all loan covenants as of the end of the current reporting period. As of March 31, 2013, there were no borrowings against the line of credit.

Most of our cash and cash equivalents were invested in a US Treasury money market fund rated AAAm/Aaa. Our interest-bearing debt consisted of $374,000 outstanding under capital leases (see Note 6 of the Condensed Unaudited Consolidated Financial Statements). As of March 31, 2013, the 42,970 shares of our investment in TowerJazz had a market value of approximately $303,000.

Cash balances held at our foreign subsidiaries were approximately $675,000 and $461,000 at March 31, 2013 and December 30, 2012, respectively. Earnings from our foreign subsidiaries are currently deemed to be indefinitely reinvested. We do not expect such reinvestment to affect our liquidity and capital resources, and we continually evaluate our liquidity needs and ability to meet global cash requirements as a part of our overall capital deployment strategy. Factors which affect our global capital deployment strategy include anticipated cash flows, the ability to repatriate cash in a tax efficient manner, funding requirements for operations and investment activities, acquisitions and divestitures, and capital market conditions.  

Net cash from operating activities

Net cash used for operating activities was $2.8 million in the first three months of 2013. The cash used for operating activities resulted from changes in working capital offset by a net loss of $3.6 million which included $1.1 million of net non-cash charges. These non-cash charges consisted primarily of stock-based compensation of $452,000, depreciation and amortization of $317,000, and a write-down of inventory of $343,000. In addition, changes in working capital provided cash of $388,000 in the first three months of 2013.

Net cash used for operating activities was $2.8 million in the first three months of 2012. The cash used for operating activities was primarily derived from (1) a net loss of $3.7 million; (2) $1.0 million of net non-cash charges; and (3) net changes in working capital, which provided cash of $63,000 in the first three months of 2012. The non-cash charges consisted primarily of stock-based compensation of $384,000, depreciation and amortization of $290,000, and a write-down of inventory of $329,000. The net changes in working capital included an increase in other assets of $195,000; an increase in accrued liabilities of $336,000; and an increase in accounts receivable of $85,000. This was offset by a decrease in trade payables of $420,000 and a decrease in inventories of $318,000.

Net cash from investing activities

Net cash used by investing activities for the first three months of 2013 was $62,000, which was primarily used to acquire equipment and software used for the production and development of new products. Capital expenditures, which are largely driven by the development of new products and manufacturing levels, are projected to be approximately $1.4 million during the remainder of fiscal year 2013.

Net cash used by investing activities for the first three months of 2012 was $69,000, resulting primarily from purchases of capital expenditures to acquire manufacturing equipment.

Net cash from financing activities

Net cash used by financing activities was $28,000 for the first three months of 2013, derived from $35,000 of scheduled payments under the terms of our capital lease obligations, offset by $7,000 in proceeds related to the issuance of common shares to employees under our equity plans.

25

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

Net cash used by financing activities was $77,000 for the first three months of 2012, resulting from $39,000 in proceeds related to the issuance of common shares to employees under our equity plans, partially offset by $116,000 of scheduled payments under the terms of our capital lease obligations.

We require substantial cash to fund our business. However, we believe that our existing cash resources will be sufficient to fund operations and capital expenditures, and provide adequate working capital for at least the next twelve months. After the next twelve months, our cash requirements will depend on many factors including our level of revenue and gross profit, the market acceptance of our existing and new products, the levels at which we maintain inventories and accounts receivable, costs of securing access to adequate manufacturing capacity, new product development efforts, capital expenditures and the level of our operating expenses.

Contractual Obligations and Commercial Commitments

The following table summarizes our contractual obligations and commercial commitments as of March 31, 2013 and the effect such obligations and commitments are expected to have on our liquidity and cash flows in future fiscal periods (in thousands):

	Payments Due by Period
	Total		Less than 1 Year		1-3 Years		More than 3 Years
Contractual obligations:
Operating leases	$	2,531	$	919	$	1,580	$	32
Wafer purchases (1)	3,521		3,521		—		—
Other purchase commitments	799		799		—		—
Total contractual cash obligations	6,851		5,239		1,580		32
Other commercial commitments (2):
Revolving line of credit	—		—		—		—
Capital lease obligations (3)	374		239		135		—
Total commercial commitments	374		239		135		—
Total contractual obligations and commercial commitments (4)	$	7,225	$	5,478	$	1,715	$	32

_________________

⁽¹⁾ Certain of our wafer manufacturers require us to forecast wafer starts several months in advance. We are committed to take delivery of and pay for a portion of forecasted wafer volume. Wafer purchase commitments of $3.5 million include firm purchase commitments as of March 31, 2013.

⁽²⁾  Other commercial commitments are included as liabilities on our balance sheets as of March 31, 2013.

⁽³⁾  For detailed explanation, see Note 6 of the Condensed Unaudited Consolidated Financial Statements.

⁽⁴⁾  Does not include unrecognized tax benefits of $79,000 as of March 31, 2013. See Note 12 of the Condensed Unaudited Consolidated Financial Statements.

Concentration of Suppliers

We depend on a limited number of contract manufacturers, subcontractors and suppliers for wafer fabrication, assembly, programming and testing of our devices, and for the supply of programming equipment. These services are typically provided by one supplier for each of our devices. We generally purchase these single or limited source services through standard purchase orders. Because we rely on independent subcontractors to perform these services, we cannot directly control product delivery schedules, costs or quality levels. These subcontract manufacturers produce products for other companies and we must place orders in advance of expected delivery. As a result, we have only a limited ability to react to fluctuations in demand for our products, which could cause us to have an excess or a shortage of inventories of a particular product. Our ability to respond to changes in demand is limited by our supplier's ability to provide products with the quantity, quality, cost and timeliness that we require. A supplier's decision not to provide these services to us or its inability to supply these services to us, such as in the case of a natural or financial disaster, would have a significant impact on our business. Increased demand from other companies

26

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — (Continued)

could result in these subcontract manufacturers allocating available capacity to customers that are larger or have long-term supply contracts in place and we may be unable to obtain adequate foundry and other capacity at acceptable prices, or we may experience delays or interruption in supply. Additionally, volatility of economic, market, social and political conditions in countries where these suppliers operate may be unpredictable and could result in a reduction in product revenue or increase our cost of revenue and could adversely affect our business, financial condition and results of operations.

Off-Balance Sheet Arrangements

We do not maintain any off-balance sheet partnerships, arrangements or other relationships with unconsolidated entities or others, often referred to as structured finance or special purpose entities, which are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Recently Issued Accounting Pronouncements

See Note 2 of the Condensed Unaudited Consolidated Financial Statements for a description of recent accounting pronouncements, including the respective dates of adoption and effects on results of operations and financial condition.

27

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio and variable rate debt. We do not use derivative financial instruments to manage our interest rate risk. We are adverse to principal loss and ensure the safety and preservation of invested funds by limiting default, market risk and reinvestment risk. Our investment portfolio is generally comprised of investments that meet high credit quality standards and have active secondary and resale markets. Since these securities are subject to interest rate risk, they could decline in value if interest rates fluctuate or if the liquidity of the investment portfolio were to change. Due to the short duration and conservative nature of our investment portfolio, we do not anticipate any material loss with respect to our investment portfolio. A 10% move in interest rates as of the end of the first quarter of 2013 would have an immaterial effect on our financial position, results of operations and cash flows.

Foreign Currency Exchange Rate Risk

All of our sales and costs of manufacturing are transacted in U.S. dollars. We conduct a portion of our research and development activities in Canada and India and have sales and marketing offices in several locations outside of the United States. We use the U.S. dollar as our functional currency. Most of the costs incurred at these international locations are in local currency. If these local currencies strengthen against the U.S. dollar, our payroll and other local expenses will be higher than we currently anticipate. Since our sales are transacted in U.S. dollars, this negative impact on expenses would not be offset by any positive effect on revenue. Operating expenses denominated in foreign currencies were approximately 20% and 15% of total operating expenses for the first three months of 2013 and 2012, respectively. A currency exchange rate fluctuation of 10% would have caused our operating expenses to change by approximately $89,000 in the first three months of 2013.

Equity Price Risk

Our exposure to equity price risk for changes in market value relates primarily to our investment in TowerJazz. TowerJazz's ordinary shares trade on the Nasdaq Global Market under the symbol “TSEM.” Since these securities are publicly traded on the open market, they are subject to market fluctuations. Temporary market fluctuations are reflected by increasing or decreasing the present value of the related securities and recording “accumulated other comprehensive income (loss)” in the equity section of the balance sheet. An “other than temporary” decline in market value is reflected by decreasing the carrying value of the related securities and recording a charge to operating expenses in the income statement. A determination that a decline in market value is “other than temporary” includes factors such as the then current market value and the period of time that the market value had been below the carrying value. In the first three months of 2013 and 2012, we marked to market and recorded an unrealized loss of $54,000 and unrealized gain of $211,000, respectively, based on the quoted market price of the stock on the last day of the reporting period. As a result, the carrying value of the TowerJazz ordinary shares was $7.04 per share as of the end of the first quarter of 2013.

There have been no changes since the end of the last fiscal year, in the risk exposures described above or the management of such exposures and there are no expected changes going forward.

28

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on management's evaluation as of March 31, 2013, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) were effective at the reasonable assurance level to ensure that the information required to be disclosed by us in this Quarterly Report on Form 10-Q was (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and regulations and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

29

Part II. Other Information

Item 1. Legal Proceedings

See Note 16 of the Condensed Unaudited Consolidated Financial Statements for a description of legal proceedings.

Item 1A. Risk Factors

Our 2012 Annual Report on Form 10-K for the year ended December 30, 2012 includes a detailed discussion of our risk factors at Part I, Item 1A, Risk Factors, which discussion is hereby incorporated by reference into this Part II, Item 1A.

The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks not currently known to us or that we currently deem to be immaterial may also adversely affect our business and results from operations.

Item 4. Mine Safety Disclosures

Not applicable.

30

Item 6. Exhibits

a.     Exhibits

The following Exhibits are filed with this report:

Exhibit Number	Description
31.1	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	CEO and CFO Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

31

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		QUICKLOGIC CORPORATION
		/s/ Ralph S. Marimon
Date:	May 8, 2013	Ralph S. Marimon
		Vice President, Finance and Chief Financial Officer (as Principal Accounting and Financial Officer and on behalf of theRegistrant)

32

EXHIBIT INDEX

Exhibit Number	Description
31.1	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	CEO and CFO Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

33

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Andrew J. Pease, certify that:

1. I have reviewed this quarterly report on Form 10-Q of QuickLogic Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 8, 2013
		/s/ Andrew J. Pease
		Andrew J. Pease
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Ralph S. Marimon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of QuickLogic Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 8, 2013
		/s/ Ralph S. Marimon
		Ralph S. Marimon
		Vice President, Finance and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrew J. Pease, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of QuickLogic Corporation on Form 10-Q for the quarter ended March 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of QuickLogic Corporation.

By:	/s/ Andrew J. Pease
Date:	May 8, 2013
Name:	Andrew J. Pease
Title:	President and Chief Executive Officer

I, Ralph S. Marimon, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of QuickLogic Corporation on Form 10-Q for the quarter ended March 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of QuickLogic Corporation.

By:	/s/ Ralph S. Marimon
Date:	May 8, 2013
Name:	Ralph S. Marimon
Title:	Vice President, Finance and Chief Financial Officer

XML

Fair Value Measurements (Schedule of Fair Value Assets Measured on Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 30, 2012
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 18,709	[1]	$ 21,907	[1]
Investment in TowerJazz Semiconductor Ltd.	303	[2]	345	[2]
Total assets	19,012		22,252
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	18,709	[1]	21,907
Investment in TowerJazz Semiconductor Ltd.	303	[2]	345
Total assets	19,012		22,252
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	[1]	0	[1]
Investment in TowerJazz Semiconductor Ltd.	0	[2]	0	[2]
Total assets	0		0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	[1]	0	[1]
Investment in TowerJazz Semiconductor Ltd.	0	[2]	0	[2]
Total assets	$ 0		$ 0

[1] Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 31, 2013 and December 30, 2012.

[2] The Company expects to sell TowerJazz marketable securities at the fair market value at such time as it deems appropriate.

XML

Commitments and Contingencies (Schedule of Future Minimum Lease Payments for Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Future minimum lease commitments under operating leases:
2013	$ 690
2014	891
2015 and Thereafter	949
Total	$ 2,530

XML

Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2013	Dec. 30, 2012	Mar. 31, 2013 Available-for-sale Securities [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Beginning Balance	$ (54)	$ (11)	$ (11)
Other comprehensive income before reclassifications			(43)
Amounts reclassified from accumulated other comprehensive income			0
Net decrease in other comprehensive income			(43)
Ending Balance	$ (54)	$ (11)	$ (54)

XML

Commitments and Contingencies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013 Wafer purchase commitment [Member]	Dec. 30, 2012 Wafer purchase commitment [Member]	Mar. 31, 2013 Other goods and services [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Outstanding commitment for purchases			$ 3,500	$ 621	$ 799
Total rent expense, net of sublease income	$ 233	$ 125

XML

Stock-Based Compensation (Schedule of Restricted Stock and Restricted Stock Units Activity) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Number of Shares
Nonvested at beginning of period, in shares	40
Granted, in shares	2
Vested, in shares	(17)
Forfeited, in shares	(5)
Nonvested at end of period, in shares	20
Weighted Average Grant Date Fair Value
Nonvested at beginning of period, in dollars per share	$ 2.30
Granted, in dollars per share	$ 2.16
Vested, in dollars per share	$ 2.33
Forfeited, in dollars per share	$ 0.00
Nonvested at end of period, in dollars per share	$ 2.84

XML

Net Income (Loss) Per Share (Details) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	7.5	7.7
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	4.2	1.9

XML

Obligations (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Schedule of Obligations

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Capital lease obligations:
Capital leases	$	374		$	426
	374			426
Current portion of capital lease obligations	(239		)	(160		)
Long term portion of capital lease obligations	$	135		$	266

XML

Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Revenue by Product Line) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 segment		Apr. 01, 2012 segment
Revenue from External Customer [Line Items]
Number of reportable segments	1		1
Total revenue	$ 3,017	[1]	$ 4,130	[1]
New Products [Member]
Revenue from External Customer [Line Items]
Total revenue	941	[1]	1,639	[1]
Mature Products [Member]
Revenue from External Customer [Line Items]
Total revenue	$ 2,076	[1]	$ 2,491	[1]

[1] For all periods presented: New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®, PolarPro II, and QuickPCI® II. Mature products include Eclipse, EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM®, and V3, as well as royalty revenue, programming hardware and software.

XML

Stock-Based Compensation (Schedule of Allocation of Recognized Period Cost) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	$ 452	$ 384
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	30	32
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	166	93
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	$ 256	$ 259

XML

Obligations (Schedule of Obligations) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Capital lease obligations:
Capital leases	$ 374	$ 426
Debt and capital lease obligations	374	426
Current portion of capital lease obligations	(239)	(160)
Long term portion of capital lease obligations	$ 135	$ 266

XML

Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Customer Concentration) (Details)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 30, 2012
Distributor A [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	40.00%	32.00%
Percentage of accounts receivable from major customer	39.00%		35.00%
Distributor B [Member]
Revenue, Major Customer [Line Items]
Percentage of accounts receivable from major customer	18.00%		14.00%
Distributor C [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	18.00%	18.00%
Percentage of accounts receivable from major customer	12.00%
Distributor D [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer		16.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	24.00%	20.00%
Percentage of accounts receivable from major customer	10.00%
Customer F [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	11.00%

XML

Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average estimated fair value, options	$ 1.27	$ 1.37
Fair value of unvested stock options	$ 1,900,000
Closing stock price	$ 2.46
The total intrinsic value of options exercised	14,000	30,000
Total cash received from employees as a result of employee stock option exercises	25,000	38,000
Stock-based compensation	452,000	384,000
Weighted average estimated fair value	$ 2.84		$ 2.30
Compensation expense related to ESPP	57,000
Unrecognized stock-based compensation expense	57,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	331,000
Weighted average recognition period of unrecognized stock-based compensation expense	2 years 5 months 16 days
Restricted Stock Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	4,000
Performance Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 60,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average estimated fair value	$ 0.55	$ 0.89
Shares available for issuance	2,300,000
Weighted average recognition period of unrecognized stock-based compensation expense	1 month 15 days

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Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants.

The following shares were not included in the calculation of diluted net income (loss) per share for the first quarter of 2013 and 2012: (i) 7.5 million and 7.7 million of common shares associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan, respectively, and (ii) warrants to purchase up to 4.2 million and 1.9 million shares of common stock, respectively. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods.

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Stock-Based Compensation (Schedule of Valuation Assumptions) (Details)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	4 years 10 months 28 days	5 years 0 months 4 days
Risk-free interest rate	0.82%	0.89%
Expected volatility	65.22%	62.18%
Expected dividend yield	0.00%	0.00%
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 11 months 19 days	5 years 11 months 16 days
Risk-free interest rate	0.14%	0.05%
Expected volatility	50.28%	65.67%
Expected dividend yield	0.00%	0.00%

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Information Concerning Product Lines, Geographic Information and Revenue Concentration (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Schedule of Revenue by Product Line

The following is a breakdown of revenue by product line (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by product line (1):
New products	$	941	$	1,639
Mature products	2,076		2,491
Total revenue	$	3,017	$	4,130

_________________

⁽¹⁾For all periods presented: New products represent products introduced since 2005, and include ArcticLink^®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro^®, PolarPro II, and QuickPCI^® II. Mature products include Eclipse, EclipsePlus, pASIC^® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM^®, and V3, as well as royalty revenue, programming hardware and software.

Schedule of Revenue by Geographical Areas

The following is a breakdown of revenue by shipment destination (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by geography:
United States	$	941	$	1,310
Japan	602		880
China	131		512
Europe	450		482
Malaysia	685		608
Rest of Asia Pacific	31		231
Rest of North America	177		107
Total revenue	$	3,017	$	4,130

Schedule of Customer Concentration

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended
	March 31, 2013		April 1, 2012
Distributor “A”	40	%	32	%
Distributor “C”	18	%	18	%
Distributor “D”	*		16	%
Customer “B”	24	%	20	%
Customer “F”	11	%	*

* Represents less than 10% of revenue for the period presented.

Schedule Of Customers Accounting for More than 10% of Accounts Receivable

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	March 31, 2013		December 30, 2012
Distributor “A”	39	%	35	%
Distributor “B”	18	%	14	%
Distributor “C”	12	%	*
Customer "B"	10	%	*

_________________

* Represents less than 10% of accounts receivable as of the date presented.

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Summary of changes in accumulated balances of other comprehensive income

The following table summarizes the changes in accumulated balances of other comprehensive income (Loss) for the three months ended March 31, 2013:

	Change in unrealized gains on available for sale securities
	(in thousands)
Accumulated other comprehensive income (loss), net of tax, as of December 30, 2012	$	(11	)
Other comprehensive income (loss) before reclassifications	(43		)
Amounts reclassified from accumulated other comprehensive income (loss)	0
Net change in other comprehensive income (loss)	(43		)
Accumulated other comprehensive income (loss), net of tax, as of March 31, 2013	$	(54	)

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Stock-Based Compensation (Schedule of Stock Based Compensation Award Activity) (Details)	3 Months Ended	1 Months Ended	3 Months Ended
	Mar. 31, 2013	Apr. 28, 2011 2009 Stock Plan [Member]	Mar. 31, 2013 2009 Stock Plan [Member] Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward]
Balance at beginning of period			2,920,000
Authorized		1,500,000	0
Options granted	(16,000)		(16,000)
Options forfeited or expired	37,000		37,000
RSUs granted	(2,000)		(2,000)
PRSUs forfeited or expired	5,000		5,000
Balance at end of period			2,944,000

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Restructuring Charges (Tables)

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring liabilities

The restructuring liabilities were included in the "Accrual Liabilities" line item in its consolidated balance sheets, and the activities affecting the liabilities for the first quarter of 2013 are summarized as follows:

	Restructuring Liabilities
	(in thousands)
Balance at December 30, 2012	$	—
Accruals	7
Payments	—
Balance at March 31, 2013	$	7

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease commitments

As of March 31, 2013, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

	Operating Leases
	(in thousands)
Fiscal Years
2013	$	690
2014	891
2015 and thereafter	949
	$	2,530

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

During the first quarter of 2013, there were no changes in the Company's significant accounting policies from its disclosure in the Annual Report on Form 10-K for the year ended December 30, 2012. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the Securities Exchange Commission, or SEC, on March 8, 2013.

New Accounting Pronouncements

In February 2013, the FASB issued guidance on disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income (“AOCI”). This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. The new guidance is effective for the Company beginning December 15, 2012. The Company adopted this guidance in its interim period ended March 31, 2013 (see Note 11). The adoption of this guidance did not impact the Company's financial statements, as the guidance is related to disclosure only, and the Company did not have reclassifications out of accumulated other comprehensive income.

In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Company will adopt the new guidance in its interim period ended March 30, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

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The Company and Basis of Presentation (Details) (USD $)	Mar. 31, 2013	Dec. 30, 2012	Apr. 01, 2012	Jan. 01, 2012
Liquidity [Line Items]
Cash and cash equivalents	$ 19,659,000	$ 22,578,000	$ 17,223,000	$ 20,203,000
TowerJazz [Member]
Liquidity [Line Items]
Investment in TowerJazz Semiconductor Ltd.	303,000
Revolving Credit Facility [Member] | Silicon Valley Bank [Member]
Liquidity [Line Items]
Line of credit facility, maximum borrowing capacity	$ 6,000,000

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Stockholders' Equity (Details) (USD $)	1 Months Ended			3 Months Ended
	Jun. 30, 2012	Mar. 31, 2013	Dec. 30, 2012	Mar. 31, 2013 Warrant [Member]	Jun. 30, 2013 Warrant [Member]	Mar. 31, 2013 Warrant [Member]
Class of Stock [Line Items]
Common stock, shares authorized		100,000,000	100,000,000
Preferred stock, shares authorized		10,000,000	10,000,000
Shares issued in aggregate	5,122,000
Common stock and warrant		2,304,900
Unit share of common stock (in shares)					1
Warrants (in shares)					0.45
Price (in dollars per unit)					2.50
Proceeds from offering	$ 11,900,000
Payments of Issuance costs	$ 929,000
Exercise price of warrants (in dollars per share)						2.98
Fair value grant date (in dollars per unit)				0.97
Risk free interest rate				0.89%
Expected volatility rate				62.18%
Expected term				5 years
Exercise period of warrants				60 months

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Restructuring Charges (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Restructuring Reserve [Roll Forward]
Beginning balance	$ 0
Payments	7
Payments	0
Ending balance	$ 7

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Apr. 01, 2012
Revenue	$ 3,017	[1]	$ 4,130	[1]
Cost of revenue	1,986		2,371
Gross profit	1,031		1,759
Operating expenses:
Research and development	2,008		2,802
Selling, general and administrative	2,530		2,697
Restructuring costs	7		0
Income (loss) from operations	(3,514)		(3,740)
Interest expense	(9)		(13)
Interest income and other, net	(4)		(13)
Income (loss) before income taxes	(3,527)		(3,766)
Provision for (benefit from) income taxes	57		(45)
Net income (loss)	$ (3,584)		$ (3,721)
Net Income (loss) per share:
Basic (in dollars per share)	$ (0.08)		$ (0.10)
Diluted (in dollars per share)	$ (0.08)		$ (0.10)
Weighted average shares:
Basic (in shares)	44,517		38,495
Diluted (in shares)	44,517		38,495

[1] For all periods presented: New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®, PolarPro II, and QuickPCI® II. Mature products include Eclipse, EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM®, and V3, as well as royalty revenue, programming hardware and software.

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Stock-Based Compensation (Schedule of Stock Options Activity) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Number Of Shares
Balance outstanding at beginning of period, in shares	6,960
Granted, in shares	16
Forfeited or expired, in shares	(37)
Exercised, in shares	(18)
Balance outstanding at end of period, in shares	6,921
Exercisable, in shares	5,204
Vested and expected to vest, in shares	6,601
Weighted Average Exercise Price
Balance outstanding at beginning of period, in dollars per share	$ 2.55
Granted, in dollars per share	$ 2.36
Forfeited or expired, in dollars per share	$ 2.81
Exercised, in dollars per share	$ 1.42
Balance outstanding at end of period, in dollars per share	$ 2.55
Exercisable, in dollars per share	$ 2.53
Vested and expected to vest, in dollars per share	$ 2.55
Weighted Average Remaining Term
Balance outstanding	6 years 1 month 17 days
Exercisable	5 years 0 months 22 days
Vested and expected to vest	6 years
Aggregate Intrinsic Value
Balance outstanding	$ 2,188
Exercisable	1,990
Vested and expected to vest	$ 2,145

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Cash flows from operating activities:
Net income (loss)	$ (3,584)	$ (3,721)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	317	290
Stock-based compensation	452	384
Write-down of inventories	343	329
Tax effect on other comprehensive income	0	(63)
Bad Debt	31	10
Changes in operating assets and liabilities:
Accounts receivable	(181)	(85)
Inventories	160	318
Other assets	102	(195)
Trade payables	(572)	(420)
Accrued liabilities	77	336
Deferred royalty revenue	0	(8)
Other long-term liabilities	26	(9)
Net cash provided by (used for) operating activities	(2,829)	(2,834)
Cash flows from investing activities:
Capital expenditures for property and equipment	(62)	(69)
Net cash provided by (used for) investing activities	(62)	(69)
Cash flows from financing activities:
Payment of debt and capital lease obligations	(35)	(116)
Net proceeds from issuance of common stock	7	39
Net increase (decrease) in cash and cash equivalents	(28)	(77)
Net increase (decrease) in cash and cash equivalents	(2,919)	(2,980)
Cash and cash equivalents at beginning of period	22,578	20,203
Cash and cash equivalents at end of period	19,659	17,223
Supplemental schedule of non-cash investing and financing activities :
Capital lease obligation to finance capital expenditures	374	917
Purchase of equipment included in accounts payable	$ 0	$ 765

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Balance Sheet Components (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Inventories:
Raw materials	$ 28	$ 32
Work-in-process	2,165	2,599
Finished goods	332	397
Inventories	2,525	3,028
Other current assets:
Prepaid expenses	815	954
Other	31	32
Other current assets	846	986
Accrued liabilities:
Employee related accruals	1,075	1,035
Other	214	179
Accrued liabilities	$ 1,289	$ 1,214

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Litigation

3 Months Ended

Mar. 31, 2013

Litigation [Abstract]

Litigation

Litigation

From time to time, the Company is involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. Absolute assurance cannot be given that third party assertions will be resolved without costly litigation, or in a manner that is not adverse to the Company's financial position, results of operations or cash flows, or without requiring royalty or other payments in the future which may adversely impact gross profit.

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Balance Sheet Components Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Property and equipment:
Property and equipment, gross	$ 19,950	$ 19,889
Accumulated depreciation and amortization	(17,546)	(17,230)
Property and equipment, net	2,404	2,659
Equipment [Member]
Property and equipment:
Property and equipment, gross	12,864	12,803
Software [Member]
Property and equipment:
Property and equipment, gross	5,682	5,682
Furniture and Fixtures [Member]
Property and equipment:
Property and equipment, gross	746	746
Leasehold Improvements [Member]
Property and equipment:
Property and equipment, gross	$ 658	$ 658

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Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Balance Sheet Disclosures

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Inventories:
Raw materials	$	28		$	32
Work-in-process	2,165			2,599
Finished goods	332			397
	$	2,525		$	3,028
Other current assets:
Prepaid expenses	$	815		$	954
Other	31			32
	$	846		$	986
Property and equipment:
Equipment	$	12,864		$	12,803
Software	5,682			5,682
Furniture and fixtures	746			746
Leasehold improvements	658			658
	19,950			19,889
Accumulated depreciation and amortization	(17,546		)	(17,230		)
	$	2,404		$	2,659
Accrued liabilities:
Employee related accruals	$	1,075		$	1,035
Other	214			179
	$	1,289		$	1,214

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The Company and Basis of Presentation

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Basis of Presentation

The Company and Basis of Presentation

QuickLogic Corporation, referenced herein as QuickLogic or the Company, was founded in 1988 and reincorporated in Delaware in 1999. The Company develops and markets low power programmable solutions that enable customers to add differentiated features and capabilities to their mobile, consumer and industrial products. The Company is a fabless semiconductor company that designs, markets and supports Customer Specific Standard Products, or CSSPs, Field Programmable Gate Arrays, or FPGAs, application solutions, associated design software and programming hardware.

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with generally accepted accounting principles, or GAAP, and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 30, 2012. Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the full year.

QuickLogic's fiscal year ends on the Sunday closest to December 31. QuickLogic's first fiscal quarter for 2013 and 2012 ended Sunday, March 31, 2013 and April 1, 2012, respectively.

Liquidity

We have financed our operations and capital investments through sales of common stock, private equity investments, capital and operating leases, bank lines of credit and cash flows from operations. As of March 31, 2013, our principal sources of liquidity consisted of our cash and cash equivalents of $19.7 million, $6.0 million in available credit under our revolving line of credit with Silicon Valley Bank, which expires June 28, 2013, and our investment in TowerJazz Semiconductor Ltd., or TowerJazz, with a fair value of approximately $303,000.

The Company anticipates that its existing cash resources will fund operations, finance purchases of capital equipment and provide adequate working capital for at least the next twelve months. The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including CSSPs based on our ArcticLink™ and PolarPro^® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of our customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of shares of TowerJazz and equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company.

Principles of Consolidation

The consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The functional currency of the Company and its subsidiaries is the United States dollar.

Foreign Currency

The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other, net in the statement of operations.

Uses of Estimates

The preparation of these consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities.

Concentration of Risk

The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 13 for information regarding concentrations associated with accounts receivable. The Company's investment in TowerJazz is subject to equity risk. See Note 4 for the information regarding the Company's investment in TowerJazz Semiconductor, Ltd.

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Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Net income (loss)	$ (3,584)	$ (3,721)
Other comprehensive gain (loss), net of tax:
Unrealized gain (loss) on available-for-sale investments	(43)	98
Total comprehensive income (loss)	$ (3,627)	$ (3,623)

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated balances of other comprehensive income (Loss) for the three months ended March 31, 2013:

	Change in unrealized gains on available for sale securities
	(in thousands)
Accumulated other comprehensive income (loss), net of tax, as of December 30, 2012	$	(11	)
Other comprehensive income (loss) before reclassifications	(43		)
Amounts reclassified from accumulated other comprehensive income (loss)	0
Net change in other comprehensive income (loss)	(43		)
Accumulated other comprehensive income (loss), net of tax, as of March 31, 2013	$	(54	)

There was no reclassification from accumulated other comprehensive income in the first quarter of 2013.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 03, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	QUICKLOGIC CORPORATION
Entity Central Index Key	0000882508
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		44,533,145

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In the first quarter of 2013 and 2012, the Company recorded a net income tax provision of $57,000 and a net income tax benefit of $45,000, respectively. The income tax provision for the first quarter of 2013 was primarily from our foreign operations which are cost-plus entities. The income tax benefit for the first quarter of 2012 was primarily due to an intraperiod tax allocation which resulted from the unrealized gains on an investment in TowerJazz, offset by the income tax provision from our foreign operations. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, with the exception of its foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods.

The Company had approximately $79,000 and $79,000 of unrecognized tax benefits at March 31, 2013 and December 30, 2012, respectively. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2013, the Company had approximately $35,000 of accrued interest and penalties related to uncertain tax positions.

The Company is no longer subject to U.S. federal, state and non-U.S. income tax audits by taxing authorities for fiscal years through 1997.

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Current assets:
Cash and cash equivalents	$ 19,659	$ 22,578
Short-term investment in TowerJazz Semiconductor Ltd.	303	345
Accounts receivable, net of allowances for doubtful accounts of $51 and $20, respectively	1,392	1,242
Inventories	2,525	3,028
Other current assets	846	986
Total current assets	24,725	28,179
Property and equipment, net	2,404	2,659
Other assets	207	186
TOTAL ASSETS	27,336	31,024
Current liabilities:
Trade payables	1,393	1,965
Accrued liabilities	1,289	1,214
Current portion of capital lease obligations	239	160
Total current liabilities	2,921	3,339
Long-term liabilities:
Capital lease obligations, less current portion	135	266
Other long-term liabilities	167	141
Total liabilities	3,223	3,746
Commitments and contingencies (see Note 15)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 100,000 shares authorized; 44,533 and 44,506 shares issued and outstanding, respectively	45	45
Additional paid-in capital	205,259	204,797
Accumulated other comprehensive income (loss)	(54)	(11)
Accumulated deficit	(181,137)	(177,553)
Total stockholders' equity	24,113	27,278
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 27,336	$ 31,024

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Obligations

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Obligations

Obligations

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Capital lease obligations:
Capital leases	$	374		$	426
	374			426
Current portion of capital lease obligations	(239		)	(160		)
Long term portion of capital lease obligations	$	135		$	266

Revolving Line of Credit

In June 2012, the Company entered into the Eighth Amendment to Second Amended and Restated Loan and Security Agreement ("Agreement") with Silicon Valley Bank. The terms of the Agreement include a $6.0 million revolving line of credit available through June 28, 2013, as long as the Company is in compliance with the loan covenants. Upon each advance, the Company can elect a fixed interest rate, which is the prime rate plus the prime rate margin, or a fixed rate which is LIBOR plus the LIBOR rate margin, as the case may be. During the first quarter of 2013, the Company had no borrowings against the line of credit.

The bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the Agreement. Under the terms of the Agreement, except as noted above, the Company must maintain a minimum tangible net worth of at least $15 million, adjusted quick ratio of 2-to-1 and a minimum unrestricted cash or cash equivalents balance of at least $8 million. The Agreement also has certain restrictions including, among others, restrictions on the incurrence of other indebtedness, the maintenance of depository accounts, the disposition of assets, mergers, acquisitions, investments, the granting of liens and the payment of dividends. The Company was in compliance with the financial covenants of the Agreement as of the end of the current reporting period.

Capital Leases

In February 2012, the Company leased design software tools under a three-year capital lease at an imputed interest rate of 4.3% per annum. Terms of the agreement required the Company to make two payments of principal and interest of $9,000 in March 2012 and $18,000 in December 2012, for a total of $27,000. As of March 31, 2013, there was no liability balance outstanding under the capital lease.

In January 2012, the Company leased design software tools under a three-year capital lease at an imputed interest rate of 4.24% per annum. Terms of the agreement require the Company to make semi-annual payments of principal and interest of approximately $82,500 through July 2014, for a total of $495,000 over the three year period. As of March 31, 2013, $264,000 was outstanding under the capital lease, of which $129,000 was classified as a current liability.

In December 2011, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.24% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $38,000 through November 2013, for a total of $300,000. As of March 31, 2013, $110,000 was outstanding under the capital lease, all of which was classified as a current liability.

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Balance Sheet Components

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

	As of
	March 31, 2013			December 30, 2012
	(in thousands)
Inventories:
Raw materials	$	28		$	32
Work-in-process	2,165			2,599
Finished goods	332			397
	$	2,525		$	3,028
Other current assets:
Prepaid expenses	$	815		$	954
Other	31			32
	$	846		$	986
Property and equipment:
Equipment	$	12,864		$	12,803
Software	5,682			5,682
Furniture and fixtures	746			746
Leasehold improvements	658			658
	19,950			19,889
Accumulated depreciation and amortization	(17,546		)	(17,230		)
	$	2,404		$	2,659
Accrued liabilities:
Employee related accruals	$	1,075		$	1,035
Other	214			179
	$	1,289		$	1,214

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The Company and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fiscal Period

QuickLogic's fiscal year ends on the Sunday closest to December 31. QuickLogic's first fiscal quarter for 2013 and 2012 ended Sunday, March 31, 2013 and April 1, 2012, respectively.

Liquidity

Liquidity

We have financed our operations and capital investments through sales of common stock, private equity investments, capital and operating leases, bank lines of credit and cash flows from operations. As of March 31, 2013, our principal sources of liquidity consisted of our cash and cash equivalents of $19.7 million, $6.0 million in available credit under our revolving line of credit with Silicon Valley Bank, which expires June 28, 2013, and our investment in TowerJazz Semiconductor Ltd., or TowerJazz, with a fair value of approximately $303,000.

The Company anticipates that its existing cash resources will fund operations, finance purchases of capital equipment and provide adequate working capital for at least the next twelve months. The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including CSSPs based on our ArcticLink™ and PolarPro^® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of our customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of shares of TowerJazz and equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The functional currency of the Company and its subsidiaries is the United States dollar.

Foreign Currency

Foreign Currency

The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other, net in the statement of operations.

Use of Estimates

Uses of Estimates

The preparation of these consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities.

Concentration Risk

Concentration of Risk

The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 13 for information regarding concentrations associated with accounts receivable. The Company's investment in TowerJazz is subject to equity risk. See Note 4 for the information regarding the Company's investment in TowerJazz Semiconductor, Ltd.

New Accounting Pronouncements

New Accounting Pronouncements

In February 2013, the FASB issued guidance on disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income (“AOCI”). This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. The new guidance is effective for the Company beginning December 15, 2012. The Company adopted this guidance in its interim period ended March 31, 2013 (see Note 11). The adoption of this guidance did not impact the Company's financial statements, as the guidance is related to disclosure only, and the Company did not have reclassifications out of accumulated other comprehensive income.

In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Company will adopt the new guidance in its interim period ended March 30, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Earnings Per Share

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants.

Valuation assumptions

Valuation Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period.

In addition to the assumptions used in the Black-Scholes pricing model, the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards.

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Information Concerning Product Lines, Geographic Information and Revenue Concentration

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Information Concerning Product Lines, Geographic Information and Revenue Concentration

Information Concerning Product Lines, Geographic Information and Revenue Concentration

The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment.

The following is a breakdown of revenue by product line (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by product line (1):
New products	$	941	$	1,639
Mature products	2,076		2,491
Total revenue	$	3,017	$	4,130

_________________

⁽¹⁾For all periods presented: New products represent products introduced since 2005, and include ArcticLink^®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro^®, PolarPro II, and QuickPCI^® II. Mature products include Eclipse, EclipsePlus, pASIC^® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM^®, and V3, as well as royalty revenue, programming hardware and software.

The following is a breakdown of revenue by shipment destination (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenue by geography:
United States	$	941	$	1,310
Japan	602		880
China	131		512
Europe	450		482
Malaysia	685		608
Rest of Asia Pacific	31		231
Rest of North America	177		107
Total revenue	$	3,017	$	4,130

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended
	March 31, 2013		April 1, 2012
Distributor “A”	40	%	32	%
Distributor “C”	18	%	18	%
Distributor “D”	*		16	%
Customer “B”	24	%	20	%
Customer “F”	11	%	*

* Represents less than 10% of revenue for the period presented.

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	March 31, 2013		December 30, 2012
Distributor “A”	39	%	35	%
Distributor “B”	18	%	14	%
Distributor “C”	12	%	*
Customer "B"	10	%	*

_________________

* Represents less than 10% of accounts receivable as of the date presented.

As of March 31, 2013, less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States.

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Employee Stock Plans

3 Months Ended

Mar. 31, 2013

Employee Stock Plans [Abstract]

Employee Stock Plans

Employee Stock Plans

1999 Stock Plan

The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and nonqualified options, restricted stock units and restricted stock. Equity awards granted under the 1999 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. In March 2009, the Board adopted the 2009 Stock Plan which was approved by the Company's stockholders on April 22, 2009. Effective April 22, 2009, no further stock options may be granted under the 1999 Plan.

2009 Stock Plan

The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in March 2011 and approved by the Company's stockholders on April 28, 2011 to, among other things, reserve an additional 1.5 million shares of common stock for issuance under the Plan. As of March 31, 2013, approximately 6.9 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 7.5 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards.

Employee Stock Purchase Plan

The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. The Company has reserved 2.3 million shares for issuance under the 2009 ESPP. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

The accounting guidance for fair value measurement also specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the company's own assumption of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels:

• Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.

• Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of March 31, 2013 and December 30, 2012, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 31, 2013								As of December 30, 2012
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	18,709	$	18,709	$	—	$	—	$	21,907	21,907		$	—	$	—
Investment in TowerJazz Semiconductor Ltd. (2)	303		303		—		—		345		345		—		—
Total assets	$	19,012	$	19,012	$	—	$	—	$	22,252	$	22,252	$	—	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 31, 2013 and December 30, 2012.

⁽²⁾  The Company expects to sell TowerJazz marketable securities at the fair market value at such time as it deems appropriate.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Stockholders' Equity

Common and Preferred Stock

The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued shares of undesignated preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock.

Issuance of Common Stock

In June 2012, the Company issued an aggregate of 5,122,000 shares of common stock and warrants to purchase up to an aggregate of 2,304,900 shares of common stock in a confidentially marketed underwritten offering. The common stock and warrants were issued in units (the “Units”), with each Unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.45 of a share of common stock, at a price of $2.50 per Unit. The Company received total net proceeds from the offering of $11.9 million, net of underwriting discounts and other offering expenses of $929,000.

The warrants are exercisable any time for a period of 60 months from the date of issuance on June 6, 2012, and are exercisable at a price of $2.98 per share. The Company allocated the proceeds between the common stock and the warrants based on the relative fair value of each on the date of issuance. The estimated grant date fair value was $0.97 per warrant and was calculated based on the following assumptions used in the Black-Scholes model: expected term of 5 years, risk-free interest rate of 0.89%, expected volatility of 62.18% and expected dividend of zero.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The equity incentive program in the Company is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and stock bonus units. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years.

The stock-based compensation expense included in the Company's consolidated financial statements for the first quarter of 2013 and 2012 was as follows (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Cost of revenue	$	30	$	32
Research and development	166		93
Selling, general and administrative	256		259
Total costs and expenses	$	452	$	384

 No stock-based compensation was capitalized during any period presented above.

Valuation Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period.

In addition to the assumptions used in the Black-Scholes pricing model, the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards.

The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (years)	4.91		5.01
Risk-free interest rate	0.82	%	0.89	%
Expected volatility	65.22	%	62.18	%
Expected dividend yield	—		—

The weighted average estimated fair value for options granted during the first quarter of 2013 and 2012 were $1.27 and $1.37 per option, respectively. As of March 31, 2013, the fair value of unvested stock options, net of expected forfeitures, was approximately $1.9 million. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.46 years.

Stock-Based Compensation Award Activity

The following table summarizes the shares available for grant under the 2009 Plan as of March 31, 2013:

	Shares Available for Grant
	(in thousands)
Balance at December 30, 2012	2,920
Authorized	—
Options granted	(16	)
Options forfeited or expired	37
RSUs granted	(2	)
PRSUs forfeited or expired	5
Balance at March 31, 2013	2,944

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first three months of 2013:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 30, 2012	6,960		$	2.55
Granted	16		2.36
Forfeited or expired	(37	)	2.81
Exercised	(18	)	1.42
Balance outstanding at March 31, 2013	6,921		$	2.55	6.13	$	2,188
Exercisable at March 31, 2013	5,204		$	2.53	5.33	$	1,990
Vested and expected to vest at March 31, 2013	6,601		$	2.55	6.00	$	2,145

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $2.46 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date.

The total intrinsic value of options exercised during the first three months of 2013 and 2012 was $14,000 and $30,000, respectively. Total cash received from employees as a result of employee stock option exercises during the first three months of 2013 and 2012 was approximately $25,000 and $38,000, respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $331,000 for the first quarter of 2013.

Restricted Stock Units and Performance-based Restricted Stock Units

The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each restricted stock unit as it vests. The Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of restricted stock units. The stock-based compensation related to RSUs and PRSUs was $4,000 and $60,000, respectively, for the first quarter of 2013. As of March 31, 2013, there were no unrecognized compensation expense related to RSUs and PRSUs.

A summary of activity for our RSUs and PRSUs for the three months ended March 31, 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 31, 2013 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 30, 2012	40		$	2.30
Granted	2		2.16
Vested	(17	)	2.33
Forfeited	(5	)	—
Nonvested at March 31, 2013	20		$	2.84

Employee Stock Purchase Plan

The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP plan during the first quarter of 2013 and 2012 was $0.55 and $0.89 per right, respectively.

As of March 31, 2013, 2.3 million shares remained available for issuance under the 2009 ESPP. For the first quarter of 2013, the Company recorded compensation expense related to the ESPP of $57,000.

The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (months)	5.97		5.96
Risk-free interest rate	0.14	%	0.05	%
Volatility	50.28	%	65.67	%
Dividend yield	—		—

As of March 31, 2013, the unrecognized stock-based compensation expense relating to the Company's ESPP was $57,000 and is expected to be recognized over a weighted average period of approximately 1.5 months.

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Investment in TowerJazz Semiconductor Ltd. (Details) (TowerJazz [Member], USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013
TowerJazz [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of shares held	42,970
Net unrealized gain on available-for-sale securities	$ (54)
Available-for-sale securities, cost per share (in dollars per share)	$ 1.95
Available-for-sale securities, carrying value per share (in dollars per share)	$ 7.04

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Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Revenue by Geographical Area) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Apr. 01, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 3,017	[1]	$ 4,130	[1]
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	941		1,310
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	602		880
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	131		512
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	450		482
Malaysia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	685		608
Rest of Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	31		231
Rest of North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 177		$ 107

[1] For all periods presented: New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®, PolarPro II, and QuickPCI® II. Mature products include Eclipse, EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM®, and V3, as well as royalty revenue, programming hardware and software.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Certain wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of March 31, 2013 and December 30, 2012, the Company had $3.5 million and $621,000, respectively, of outstanding commitments for the purchase of wafer inventory.

The Company has purchase obligations with certain suppliers for the purchase of goods and services entered into in the ordinary course of business. As of March 31, 2013, total outstanding purchase obligations were $799,000, which are primarily due within the next 12 months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2015. In addition, the Company rents development facilities in Canada and India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the first quarters of 2013 and 2012 was approximately $233,000 and $125,000, respectively.

As of March 31, 2013, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

	Operating Leases
	(in thousands)
Fiscal Years
2013	$	690
2014	891
2015 and thereafter	949
	$	2,530

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of March 31, 2013 and December 30, 2012, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 31, 2013								As of December 30, 2012
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	18,709	$	18,709	$	—	$	—	$	21,907	21,907		$	—	$	—
Investment in TowerJazz Semiconductor Ltd. (2)	303		303		—		—		345		345		—		—
Total assets	$	19,012	$	19,012	$	—	$	—	$	22,252	$	22,252	$	—	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 31, 2013 and December 30, 2012.

⁽²⁾  The Company expects to sell TowerJazz marketable securities at the fair market value at such time as it deems appropriate.

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 30, 2012
Income Tax Disclosure [Abstract]
Tax provision from income taxes	$ 57	$ (45)
Unrecognized tax benefits	79		79
Accrued interest and penalties related to uncertain tax positions	$ 35

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Employee Stock Plans (Details)	3 Months Ended		3 Months Ended		1 Months Ended		3 Months Ended
	Mar. 31, 2013 1999 Stock Plan [Member] Maximum [Member]	Mar. 31, 2013 1999 Stock Plan [Member] Stock Options [Member]	Mar. 31, 2013 1999 Stock Plan [Member] Initial Vesting [Member]	Mar. 31, 2013 1999 Stock Plan [Member] Periodic Vesting [Member]	Apr. 28, 2011 2009 Stock Plan [Member]	Mar. 31, 2013 2009 Stock Plan [Member]	Mar. 31, 2013 2009 Stock Plan [Member] Maximum [Member]	Mar. 31, 2013 2009 Stock Plan [Member] Initial Vesting [Member]	Mar. 31, 2013 2009 Stock Plan [Member] Periodic Vesting [Member]	Mar. 31, 2013 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award, term	10 years						10 years
Equity award vesting period			1 year	1 month				1 year	1 month
Percent of options vested			25.00%	2.08%				25.00%	2.08%
Shares available for grant		0
Additional shares reserved for issuance					1,500,000
Shares reserved for issuance						6,900,000				2,300,000
Number of previously cancelled, forfeited or repurchased shares available for reissuance							7,500,000
Maximum percent of employees total compensation allowed for purchase of shares										20.00%
Maximum number of shares per employee per period										20,000
Purchase price of shares as a percentage of fair market value										85.00%
Duration of offering period										6 months

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Current Assets:
Allowance for doubtful accounts	$ 51	$ 20
Stockholders' Equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,533,000	44,506,000
Common stock, shares outstanding	44,533,000	44,506,000

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Investment in TowerJazz Semiconductor Ltd.

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investment in TowerJazz Semiconductor Ltd.

Investment in TowerJazz Semiconductor Ltd.

As of March 31, 2013, the Company held 42,970 available-for-sale TowerJazz ordinary shares with a net unrealized loss of $54,000 recorded in accumulated other comprehensive income, or AOCI, on the balance sheet which includes tax benefits and the difference between the cost of $1.95 per share and carrying value of $7.04 per share, their fair value on the last trading day of the reporting period. The fair value of TowerJazz marketable securities as of March 31, 2013 was determined based on “Level 1” inputs as described in Note 7.

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The stock-based compensation expense included in the Company's consolidated financial statements for the first quarter of 2013 and 2012 was as follows (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Cost of revenue	$	30	$	32
Research and development	166		93
Selling, general and administrative	256		259
Total costs and expenses	$	452	$	384

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (years)	4.91		5.01
Risk-free interest rate	0.82	%	0.89	%
Expected volatility	65.22	%	62.18	%
Expected dividend yield	—		—

Schedule of Share-based Compensation, Activity

The following table summarizes the shares available for grant under the 2009 Plan as of March 31, 2013:

	Shares Available for Grant
	(in thousands)
Balance at December 30, 2012	2,920
Authorized	—
Options granted	(16	)
Options forfeited or expired	37
RSUs granted	(2	)
PRSUs forfeited or expired	5
Balance at March 31, 2013	2,944

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first three months of 2013:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 30, 2012	6,960		$	2.55
Granted	16		2.36
Forfeited or expired	(37	)	2.81
Exercised	(18	)	1.42
Balance outstanding at March 31, 2013	6,921		$	2.55	6.13	$	2,188
Exercisable at March 31, 2013	5,204		$	2.53	5.33	$	1,990
Vested and expected to vest at March 31, 2013	6,601		$	2.55	6.00	$	2,145

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of activity for our RSUs and PRSUs for the three months ended March 31, 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 31, 2013 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 30, 2012	40		$	2.30
Granted	2		2.16
Vested	(17	)	2.33
Forfeited	(5	)	—
Nonvested at March 31, 2013	20		$	2.84

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumption

The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 31, 2013		April 1, 2012
Expected term (months)	5.97		5.96
Risk-free interest rate	0.14	%	0.05	%
Volatility	50.28	%	65.67	%
Dividend yield	—		—

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Obligations (Narrative) (Details) (USD $)			1 Months Ended						1 Months Ended		3 Months Ended
	Mar. 31, 2013	Dec. 30, 2012	Feb. 29, 2012 Capital Lease Obligation, Leased February 2012 [Member] Software Tools [Member] payment	Feb. 29, 2012 Payment One [Member] Software Tools [Member]	Feb. 29, 2012 Payment Two [Member] Software Tools [Member]	Jan. 31, 2012 Capital Lease Obligation, Leased January 2012 [Member] Software Tools [Member]	Mar. 31, 2013 Capital Lease Obligation, Leased January 2012 [Member] Software Tools [Member]	Mar. 31, 2013 Capital Lease Obligation, Leased January 2012 [Member] Software Tools [Member] Assets Held under Capital Leases [Member]	Dec. 31, 2011 Capital Lease Obligation, Leased December 2011 [Member] Software [Member]	Mar. 31, 2013 Capital Lease Obligation, Leased December 2011 [Member] Software [Member]	Mar. 31, 2013 Revolving Credit Facility [Member] Silicon Valley Bank [Member]
Debt and Capital Lease Obligations [Line Items]
Maximum borrowing capacity											$ 6,000,000
Minimum net worth required for compliance with covenants											15,000,000
Minimum adjusted quick ratio required for compliance with covenants											2
Minimum cash balance required for compliance with covenants											8,000,000
Capital lease, term			3 years			3 years			2 years
Capital lease, implied interest rate			4.30%			4.24%			4.24%
Number of payments required under capital lease			2
Capital lease, periodic payment				9,000	18,000	82,500			38,000
Total amount of debt										300,000
Capital lease obligations	374,000	426,000	27,000			495,000				110,000
Current portion of capital lease obligations							$ 264,000	$ 129,000

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Restructuring Charges

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

In an effort to consolidate and streamline its engineering organization, the Company implemented a restructuring plan on March 28, 2013. The associated restructuring charges for employee severance benefits will be pro-rated over a three month period. Accordingly, the Company recorded an initial $7,000 restructuring liabilities in the first quarter of 2013. The restructuring liabilities were included in the "Accrual Liabilities" line item in its consolidated balance sheets, and the activities affecting the liabilities for the first quarter of 2013 are summarized as follows:

	Restructuring Liabilities
	(in thousands)
Balance at December 30, 2012	$	—
Accruals	7
Payments	—
Balance at March 31, 2013	$	7