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 29, 2015

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 April 29, 2015, the registrant had outstanding 56,210,138 shares of common stock, par value $0.001.

QUICKLOGIC CORPORATION

FORM 10-Q

March 29, 2015

		Page
Part I - Financial Information		3
Item 1.	Financial Statements (condensed unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Loss	5
	Consolidated Statements of Cash Flows	6
	Notes to Condensed Unaudited Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
Part II - Other Information		31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 4.	Mine Safety Disclosures	31
Item 6.	Exhibits	32
Signatures		33

2

PART I. Financial Information

Item 1. Financial Statements

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amount)

	March 29, 2015			December 28, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	28,215		$	30,050
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods	1,684			1,552
Inventories	3,349			4,952
Other current assets	1,050			1,146
Total current assets	34,298			37,700
Property and equipment, net	2,974			3,217
Other assets	227			222
TOTAL ASSETS	$	37,499		$	41,139
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables	$	1,763		$	2,506
Accrued liabilities	1,710			1,574
Deferred revenue	114			—
Current portion of capital lease obligations	232			225
Total current liabilities	3,819			4,305
Long-term liabilities:
Revolving line of credit	1,000			1,000
Capital lease obligations, less current portion	137			191
Other long-term liabilities	160			76
Total liabilities	5,116			5,572
Commitments and contingencies (see Note 12)
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; 56,200 and 56,182 shares issued and outstanding, respectively	56			56
Additional paid-in capital	238,873			238,419
Accumulated deficit	(206,546		)	(202,908		)
Total stockholders' equity	32,383			35,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	37,499		$	41,139

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

3

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended
	March 29, 2015			March 30, 2014
Revenue	$	6,159		$	11,164
Cost of revenue	3,280			7,106
Gross profit	2,879			4,058
Operating expenses:
Research and development	3,477			2,641
Selling, general and administrative	2,960			3,465
Total operating expenses	6,437			6,106
Loss from operations	(3,558		)	(2,048		)
Interest expense	(14		)	(16		)
Interest income and other expense, net	(26		)	(26		)
Loss before income taxes	(3,598		)	(2,090		)
Provision for income taxes	40			20
Net loss	$	(3,638	)	$	(2,110	)
Net loss per share:
Basic	$	(0.06	)	$	(0.04	)
Diluted	$	(0.06	)	$	(0.04	)
Weighted average shares:
Basic	56,190			54,433
Diluted	56,190			54,433

See accompanying Notes to Condensed Unaudited Consolidated Financial Statements.

4

QUICKLOGIC CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

	Three Months Ended
	March 29, 2015			March 30, 2014
Net loss	$	(3,638	)	$	(2,110	)
Total other comprehensive income, net of tax	—			—
Total comprehensive loss	$	(3,638	)	$	(2,110	)

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 29, 2015			March 30, 2014
Cash flows from operating activities:
Net loss	$	(3,638	)	$	(2,110	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	365			362
Stock-based compensation	497			732
Write-down of inventories	17			64
Gains on disposal of equipment	—			(2		)
Changes in operating assets and liabilities:
Accounts receivable	(132		)	(66		)
Inventories	1,586			(1,152		)
Other assets	153			343
Trade payables	(876		)	(1,172		)
Accrued liabilities and deferred revenue	253			162
Other long-term liabilities	84			(6		)
Net cash used in operating activities	(1,691		)	(2,845		)
Cash flows from investing activities:
Capital expenditures for property and equipment	(51		)	(12		)
Proceeds from sale of fixed assets	—			2
Net cash used in investing activities	(51		)	(10		)
Cash flows from financing activities:
Payment of debt and capital lease obligations	(47		)	—
Stock issued under share-based compensation, net	(46		)	2,561
Net cash (used in) provided by financing activities	(93		)	2,561
Net (decrease) in cash and cash equivalents	(1,835		)	(294		)
Cash and cash equivalents at beginning of period	30,050			37,406
Cash and cash equivalents at end of period	$	28,215		$	37,112
Supplemental schedule of non-cash investing and financing activities :
Capital lease obligation to finance capital expenditures	$	369		$	309
Purchase of equipment included in accounts payable	$	71		$	79

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 ("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 United States generally accepted accounting principles, or U.S. 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 interim condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 28, 2014. Operating results for the three months ended March 29, 2015 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 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's first fiscal quarters for 2015 and for 2014 ended on Sunday, March 29, 2015 and March 30, 2014, respectively.

Liquidity

The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of March 29, 2015, the Company's principal sources of liquidity consisted of cash and cash equivalents of $28.2 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank which expires on June 27, 2016. This line of credit provides for committed loan advances of up to $6.0 million, subject to increase at the Company's election up to $10.0 million. 

The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months.

Over the longer term, the Company believes that its existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to sell additional shares to capital markets will be sufficient to satisfy its operations and capital expenditures.

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 its 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 its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer and finished goods 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 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.

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 expense, net in the condensed unaudited consolidated statements of operations.

Uses of Estimates

The preparation of these consolidated financial statements in conformity with U.S. 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 11 for information regarding concentrations associated with accounts receivable.

For the three months ended March 29, 2015, the Company generated 39% of its total revenue from shipments to Samsung Electronics Co., Ltd. ("Samsung"). See Note 11 for information regarding concentrations associated with customers and distributors.

8

QUICKLOGIC CORPORATION

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

Note 2 — Significant Accounting Policies

During the three months ended March 29, 2015, 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 28, 2014. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 28, 2014, filed with the Securities Exchange Commission, or SEC, on March 5, 2015.

New Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02), which is intended to improve the targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB accounting standards codification and improves the current U.S. GAAP by: placing more emphasis on risk of loss when determining a controlling financial interest; reducing the frequency of the application of related party guidance when determining a controlling financial interest in a variable interest entity, or VIE and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. This ASU 2015-02 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements andfootnote disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). This ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, requires that an entity separately classify, present and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show such item separately in the income statement, net of tax, after income from continuing operations. The entity is also required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU 2015-01 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the adopted guidance is applied from the beginning of the annual year in which such guidance is adopted. The Company is currently evaluating the impact of ASU 2015-01 on its consolidated financial statements andfootnote disclosures.

Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 filed with the SEC on March 5, 2015.

Note 3 — Net Loss Per Share

Basic loss per share is computed by dividing net 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 loss per share for the three months ended March 29, 2015 and March 30, 2014: (i) 7.1 million and 6.9 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 shares of common stock. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods.

9

QUICKLOGIC CORPORATION

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

Note 4 — Balance Sheet Components

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Inventories:
Raw Material	$	—		$	—
Work-in-process	1,298			1,191
Finished goods	2,051			3,761
	$	3,349		$	4,952
Other current assets:
Prepaid expenses	$	946		$	1,042
Other	104			104
	$	1,050		$	1,146
Property and equipment:
Equipment	$	14,032		$	14,047
Software	2,852			3,332
Furniture and fixtures	711			710
Leasehold improvements	708			595
	18,303			18,684
Accumulated depreciation and amortization	(15,329		)	(15,467		)
	$	2,974		$	3,217
Accrued liabilities:
Employee related accruals	$	1,602		$	1,356
Other	108			218
	$	1,710		$	1,574

10

QUICKLOGIC CORPORATION

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

Note 5 — Obligations

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Debt and capital lease obligations:
Revolving line of credit	$	1,000		$	1,000
Capital leases	369			416
	1,369			1,416
Current portion of debt and capital lease obligations	(232		)	(225		)
Long term portion of debt and capital lease obligations	$	1,137		$	1,191

Revolving Line of Credit

The Company has entered into the Third Loan Agreement. The terms of the Third Loan Agreement include a $6.0 million revolving line of credit available through June 27, 2016. 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. During the first quarter of 2015, the Company had $1.0 million of revolving debt outstanding with an interest rate of 3.06%.

Silicon Valley 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 Third Loan Agreement. Under the terms of the Third Loan Agreement, the Company must maintain a minimum tangible net worth of at least $15 million, an adjusted quick ratio of 2-to-1 and a minimum unrestricted cash or cash equivalents balance of at least $8 million. The Third Loan 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, cash balances with subsidiaries and the payment of dividends. The Company was in compliance with the financial covenants of the Third Loan Agreement as of the end of the current reporting period.

Capital Leases

In July 2014, the Company leased design software under a 41 month capital lease at an imputed interest rate of 3.15% per annum. Terms of the agreement require the Company to make payments of principal and interest of $42,000 in August 2014, $16,000 in December 2014, $58,000 in January 2016 and $58,000 in January 2017. The total payments for the lease will be $174,000. As of March 29, 2015, $112,000 was outstanding under this capital lease, of which $55,000 was classified as a current liability.

In May 2014, the Company leased design software under a three-year capital lease at an imputed interest rate of 4.80% per annum. Terms of the agreement require the Company to make annual payments of approximately $84,000 through April 2016, for a total of $252,000. As of March 29, 2015, $157,000 was outstanding under the capital lease, of which $77,000 was classified as a current liability.

In December 2013, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.34% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $34,000 through September 2015, for a total of $273,000. As of March 29, 2015, $100,000 was outstanding under the capital lease, all of which was classified as a current liability.

Note 6 — 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 and it considers assumptions that market participants would use when pricing the asset or liability.

11

QUICKLOGIC CORPORATION

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

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 assumptions 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 29, 2015 and December 28, 2014, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 29, 2015								As of December 28, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—
Total assets	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 29, 2015 and December 28, 2014.

Note 7 - 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 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 and Warrants

On July 31, 2013, the Company filed a shelf registration statement on Form S-3 under which the Company may, from time to time, sell securities in one or more offerings up to a total dollar amount of $40.0 million. The Company's shelf registration statement was declared effective on August 30, 2013 and expires in August 2016.

In November 2013, the Company issued an aggregate of 8,740,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $2.90 per share. The Company received net proceeds from the offering of approximately $23.1 million, net of underwriter's commission and other offering expenses of $2.2 million.

As of March 29, 2015, 4.2 million warrants were outstanding. Approximately1.9 million warrants with a strike price of $2.15 were issued in conjunction with a November 2009 financing. These warrants expire in May 2015, and because the registration statement is no longer effective, they can only be exercised on a cashless basis. Approximately 2.3 million warrants with a strike price of $2.98 were issued in conjunction with a June 2012 financing. These warrants expire in June 2017 and can be exercised on a cash or cashless basis until August 2016. After this date, the registration statement will no longer be effective and the warrants can only be exercised on a cashless basis

12

QUICKLOGIC CORPORATION

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

Note 8 — Employee Stock Plans

1999 Stock Plan

The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and non-qualified 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 2009 Plan. As of March 29, 2015, approximately 7.0 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 9 — Stock-Based Compensation

The Company's equity incentive program 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 cash settlement of stock appreciation rights, or SARs. 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 three months ended March 29, 2015 and March 30, 2014 was as follows (in thousands):

	Three Months Ended
	March 29, 2015		March 30, 2014
Cost of revenue	$	39	$	42
Research and development	191		353
Selling, general and administrative	267		337
Total costs and expenses	$	497	$	732

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

13

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 amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore 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 29, 2015		March 30, 2014
Expected term (years)	4.78		6.98
Risk-free interest rate	1.40	%	2.22	%
Expected volatility	52.11	%	53.11	%
Expected dividend yield	—		—

The weighted average estimated fair value for options granted during the first quarters of 2015 and 2014 was $0.90 and $2.92 per option, respectively. As of March 29, 2015 and March 30, 2014, the fair value of unvested stock options, net of expected forfeitures, was approximately $2.9 million and $2.4 million, respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.40 years.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2009 Plan during the first three months of 2015:

	Shares Available for Grant
	(in thousands)
Balance at December 28, 2014	1,139
Options granted	(80	)
Options forfeited or expired	6
RSUs granted	(71	)
PRSUs granted	(10	)
PRSUs forfeited or expired	12
Balance at March 29, 2015	996

14

QUICKLOGIC CORPORATION

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

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 2015:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 28, 2014	5,682		$	2.67
Granted	80		2.00
Forfeited or expired	(6	)	2.96
Exercised	(1	)	2.35
Balance outstanding at March 29, 2015	5,755		$	2.66	5.28	$	800
Exercisable at March 29, 2015	4,682		$	2.57	4.53	$	800
Vested and expected to vest at March 29, 2015	5,545		$	2.64	5.15	$	800

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $1.93 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 2015 and 2014 was $1,000 and $2.8 million, respectively. Total cash received from employees as a result of employee stock option exercises during the first three months of 2015 and 2014 was approximately $3,000 and $3.0 million 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 $248,000 for the first three months ended March 29, 2015.

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 RSU as it vests. The Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $155,000 and $15,000, respectively, for the first quarter of 2015. As of March 29, 2015, there was $1.5 million in unrecognized compensation expense related to RSUs and PRSUs.

15

QUICKLOGIC CORPORATION

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

A summary of activity for the Company's RSUs and PRSUs for the three months ended March 29, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 29, 2015 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 28, 2014	650		$	3.47
Granted	81		2.21
Vested	(29	)	2.24
Forfeited	(12	)	—
Nonvested at March 29, 2015	690		$	3.38

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 during the first quarters of 2015 and 2014 was $0.92 and $0.85 per right, respectively.

As of March 29, 2015, 877,000 shares remained available for issuance under the 2009 ESPP. For the first quarter of 2015, the Company recorded stock-based compensation expense related to the 2009 ESPP of $79,000.

The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 29, 2015		March 30, 2014
Expected term (months)	5.96		5.97
Risk-free interest rate	0.08	%	0.09	%
Volatility	49.57	%	39.62	%
Dividend yield	—		—

As of March 29, 2015, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $40,000 and is expected to be recognized over a weighted average period of approximately 1.5 months.

Note 10 — Income Taxes

In the first quarters of 2015 and 2014, the Company recorded net income tax expenses of $40,000 and $20,000, respectively. The income tax expense for the first quarters of 2015 and 2014 relates to income taxes from the Company's foreign operations which are cost-plus entities.

Based on the available objective evidence, management believes it is more likely than not that the Company's 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 $52,000 and $51,000 of unrecognized tax benefits at March 29, 2015 and December 28, 2014, respectively, which will result in a change in the Company's effective tax rate if recognized in future years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the three month period ended March 29, 2015, the Company accrued $1,000 of interest and penalties. As of March 29, 2015, the Company had approximately $26,000 of accrued interest and penalties related to uncertain tax positions.

16

QUICKLOGIC CORPORATION

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

Included in the balance of unrecognized tax benefits at March 29, 2015 is $17,000 related to tax positions, interest, and penalties for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months.

The Company is subject to U.S. federal income tax as well as income taxes in many U.S. states and foreign jurisdictions in which the Company operates. As of December 28, 2014, fiscal years 2010 onward remain open to examination by the U.S. taxing authorities and fiscal years 2006 onward remain open to examination in Canada. The U.S. federal and U.S. state taxing authorities may choose to audit tax returns for tax years beyond the statute of limitation period due to significant tax attribute carryforwards from prior years, making adjustments only to carryforward attributes.

Note 11 — 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 29, 2015		March 30, 2014
Revenue by product line (1):
New products	$	4,144	$	8,916
Mature products	2,015		2,248
Total revenue	$	6,159	$	11,164

_________________

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

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Revenue by geography:
Asia Pacific (1)	$	3,808	$	9,328
North America (2)	1,842		1,100
Europe	509		736
Total revenue	$	6,159	$	11,164

___________

⁽¹⁾     Asia Pacific includes revenue from South Korea of $2.4 million or 39% of total revenue and $7.8 million or 70% of total revenue for the quarters ended March 29, 2015 and March 30, 2014, respectively.

⁽²⁾     North America includes revenue from the United States of $1.8 million or 29% of total revenue and $1.1 million or 10% for the quarters ended March 29, 2015 and March 30, 2014, respectively.

17

QUICKLOGIC CORPORATION

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

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Distributor "A"	29	%	*
Customer "B"	16	%	*
Customer "G"	39	%	70	%

* 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 29, 2015		December 28, 2014
Distributor "A"	50	%	34	%
Customer "G"	23	%	28	%

As of March 29, 2015, less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States.

Note 12 — Commitments and Contingencies

The Company's manufacturing suppliers require us 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 29, 2015 and December 28, 2014, the Company had $491,000 and $552,000, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory.

The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of March 29, 2015, total outstanding purchase obligations were $1.5 million, of which $1.2 million were due within the next twelve months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the first quarters of 2015 and 2014 was approximately $239,000 and $231,000, respectively.

As of March 29, 2015, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

	Operating Leases
	(in thousands)
Fiscal Years
2015 (Remaining 9 months)	$	705
2016	846
2017	781
2018	800
	$	3,132

Note 13 — Litigation

From time to time, the Company may become 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

18

QUICKLOGIC CORPORATION

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

any such third party assertions will be resolved: (i) without costly litigation; (ii) in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or (iii) without requiring royalty or other payments which may adversely impact gross profit.

Note 14 — Subsequent Events

On April 23, 2015, the stockholders approved an amendment to the 2009 Stock Plan to reserve an additional 2,500,000 shares of common stock for issuance under the 2009 Stock Plan. On the same day the stockholders approved an amendment to the 2009 Employee Stock Purchase Plan to reserve an additional 1,000,000 shares of common stock for issuance under the 2009 Employee Stock Purchase Plan. 

19

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

Forward-Looking Statements

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, contain “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 condensed audited consolidated financial statements and notes thereto for the fiscal year ended December 28, 2014, found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on March 5, 2015. 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; enable always-on and contextually aware sensor applications; extend battery life; and improve the customer's visual experience with their mobile, consumer and enterprise products. Our targeted mobile market segment includes Smartphones, Tablets, Wearables, and Mobile Enterprise. Our solutions typically fall into one of three product categories: Display & Visual Enhancement; Smart Connectivity; and Ultra-Low Power Sensor Hubs. We are a fabless semiconductor company that designs Customer Specific Standard Products, or CSSPs, which are complete, customer-specific solutions that include one or more of the following: a combination of silicon solution platforms; Proven System Blocks, or PSBs; customer-specific logic; SenseMe^TM algorithm library; software drivers; and firmware. Our main platform families, ArcticLink^® and PolarPro^®, are standard silicon platforms. Recent examples of PSBs that have been developed and that are available to customers include driving one or more Light Emitting Diodes, or LEDs, Barcode transmission via InfraRed (IR) LED, and TV remote control via LED. 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 Bill of material 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 that wish 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, deploy sensor-enabled applications, 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.

We work with mobile processor manufacturers and sensor suppliers in the development of reference designs. Through the use of reference designs that incorporate our CSSPs, we believe mobile processor manufacturers can expand the served

20

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

available market for their processors. In the event that a CSSP development with a processor manufacturer or a set of sensor vendors is applicable to a set of common OEMs or ODMs, we can amortize our research and development investment over that set of OEMs/ODMs. We call this type of solution a Catalog CSSP. 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 depend 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, algorithms, firmware, and new 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 2015, we generated total revenue of $6.2 million which represents an increase of 8% from the prior quarter and a decrease of 45% over the first quarter of 2014. Our new product revenue increased to $4.1 million, up 13% sequentially and down 54% year over year. The sequential increase in our new product revenue was primarily due to unforecasted shipments of our first generation new products. A year over year decrease of 54% was primarily due to reduced shipment of our ArcticLink III display solution platform to Samsung for certain Android tablets. We anticipate new product revenue generated from our Display & Visual Enhancement product category will continue to fluctuate depending on the demand in the Android tablet market.

For the first quarter of 2015, revenue generated from Samsung accounted for 58% of our new product revenue and 39% of our total revenue compared to 77% and 49%, respectively, for the fourth quarter of 2014. During the first quarter of 2015, new products were shipped into the Tablet, Smartphone and Mobile Enterprise markets. Our mature product revenue was $2.0 million, down 1% sequentially and down 10% year over year. We devote substantially all of our development, sales and marketing efforts to our new solution platforms, PSBs and CSSPs. Overall, we reported a net loss of $3.6 million for the first quarter of 2015 compared to a net loss of $2.1 million for the first quarter of 2014.

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 estimation of 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 28, 2014, filed with the SEC on March 5, 2015.

21

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

Results of Operations

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Revenue	100	%	100	%
Cost of revenue	53	%	64	%
Gross profit	47	%	36	%
Operating expenses:
Research and development	57	%	24	%
Selling, general and administrative	48	%	31	%
Loss from operations	(58	)%	(19	)%
Interest expense	—	%	—	%
Interest income and other expense, net	—	%	—	%
Loss before income taxes	(58	)%	(19	)%
Provision for income taxes	1	%	—	%
Net loss	(59	)%	(19	)%

_____________        

Insignificant percentages are rounded to zero percentage (-%)for disclosure.

22

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

Three Months Ended March 29, 2015 and March 30, 2014

Revenue

The table below sets forth the changes in revenue for the three months ended March 29, 2015, as compared to the three months ended March 30, 2014 (in thousands, except percentage data):

	Three Months Ended
	March 29, 2015				March 30, 2014				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
Revenue by product line (1):
New products	$	4,144	67	%	$	8,916	80	%	$	(4,772	)	(54	)%
Mature products	2,015		33	%	2,248		20	%	(233		)	(10	)%
Total revenue	$	6,159	100	%	$	11,164	100	%	$	(5,005	)	(45	)%

_________________

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

The $4.8 million decrease in new product revenue was primarily due to decreased shipments of our ArcticLink III display bridge solution platform to Samsung for certain Android tablets. Revenue from Samsung in the first quarter of 2015 was $2.4 million compared to $7.8 million for the first quarter of 2014. Shrinkage of the tablet market continues to impact the Company's revenue from Samsung. Revenue generated from Samsung accounted for 58% of the new product revenue and 39% of total revenue in the first quarter of 2015. The decrease in mature product revenue is primarily due to decreased orders from our customers in the aerospace, test and instrumentation sectors and royalty income.

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. Due to the concentration of our new product revenue in Samsung, combined with the cyclical nature of the mobile market, we have experienced significant fluctuation in new product revenue. 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. In the current quarter, the impact of price reductions on the revenue was insignificant. In addition, these large companies provide longer-term purchase forecasts which are not binding and may not result in revenue.

Gross Profit

The table below sets forth the changes in gross profit for the three months ended March 29, 2015 as compared to the three months ended March 30, 2014 (in thousands, except percentage data):

	Three Months Ended
	March 29, 2015				March 30, 2014				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
Revenue	$	6,159	100	%	$	11,164	100	%	$	(5,005	)	(45	)%
Cost of revenue	3,280		53	%	7,106		64	%	(3,826		)	(54	)%
Gross Profit	$	2,879	47	%	$	4,058	36	%	$	(1,179	)	(29	)%

The $1.2 million decrease in gross profit in the first quarter of 2015 as compared to the first quarter of 2014 was primarily due to the overall decrease in revenue from our new and matured products, particularly ArcticLink III revenue from Samsung. The sale of previously reserved inventory was $63,000 and $119,000 in the first quarters of 2015 and 2014, respectively. The increase in gross margin percentage in the first quarter of 2015 as compared to the first quarter of 2014 was primarily driven by the mix of customers and products shipped during the first quarter of 2015. In the first quarter of 2015,

23

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

revenue from first generation new products contributed higher gross margins. Cost of revenue from these products remained flat in the first quarter of 2015 compared to the first quarter of 2014.

Our semiconductor products have historically had long product life cycles and obsolescence has not been a significant factor in the valuation of inventories. However, as we continue to pursue opportunities in the mobile market and develop new CSSPs and products, our product life cycle will be shorter and the risk of obsolescence will increase. 

We regularly review the cost of inventories and purchase commitments 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. In general, our standard manufacturing lead times are longer than the binding forecasts we receive from customers. The revenue fluctuations we have experienced with Samsung have increased the risk of inventory obsolescence of our ArcticLink III display solution platform family.

Operating Expenses

The table below sets forth the changes in operating expenses for the three months ended March 29, 2015, as compared to the three months ended March 30, 2014 (in thousands, except percentage data):

	Three Months Ended
	March 29, 2015				March 30, 2014				Change
	Amount		% of Total Revenues		Amount		% of Total Revenues		Amount			Percentage
R&D expense	$	3,477	57	%	$	2,641	24	%	$	836		32	%
SG&A expense	2,960		48	%	3,465		31	%	(505		)	(15	)%
Total operating expenses	$	6,437	105	%	$	6,106	55	%	$	331		5	%

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 $836,000 increase in R&D expenses in the first quarter of 2015, as compared to the first quarter of 2014, was primarily attributable to a $478,000 increase in compensation expenses due to increased headcount and a $646,000 increase in third-party chip design costs, partially offset by a decrease in stock-based compensation expenses of $290,000. We expect that our R&D expenses will continue to increase due to planned engineering hires.

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 $505,000 decrease in SG&A expenses in the first quarter of 2015, as compared to the first quarter of 2014, was primarily due to lower stock-based compensation expenses of $510,000.

Interest Expense and Interest Income and Other Expense, Net

The table below sets forth the changes in interest expense and interest income and other expense, net, for the three months ended March 29, 2015 as compared to the three months ended March 30, 2014 (in thousands, except percentage data):

	Three Months Ended						Change
	March 29, 2015			March 30, 2014			Amount		Percentage
Interest expense	$	(14	)	$	(16	)	$	2	(13	)%
Interest income and other expense, net	(26		)	(26		)	—		—	%
	$	(40	)	$	(42	)	$	2	(5	)%

24

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

The decrease in interest expense was primarily due to slightly lower interest on our revolving line of credit.

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 the income tax provision (benefit) for the three months ended March 29, 2015 as compared to the three months ended March 30, 2014 (in thousands, except percentage data):

	Three Months Ended				Change
	March 29, 2015		March 30, 2014		Amount		Percentage
Provision for income taxes	$	40	$	20	$	20	100	%

The income tax provisions for the first quarter of 2015 and first quarter of 2014 were primarily from our foreign operations, which are cost-plus entities.

As of March 29, 2015, 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 U.S. tax provision. We will continue to assess the realizability of deferred tax assets in future periods.

25

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, a revolving line of credit and cash flows from operations. As of March 29, 2015, our principal sources of liquidity consisted of our cash and cash equivalents of $28.2 million and available credit under our $5.0 million revolving line of credit with Silicon Valley Bank, which expires on June 27, 2016. Borrowing under the Company's line of credit is subject to the Company maintaining a tangible net worth of at least $15.0 million, an unrestricted cash or cash equivalent balance of at least $8.0 million and a quick ratio of 2-to-1. Upon each advance, the Company can elect one of two interest rates: (i) the prime rate plus the prime rate margin, or (ii) the LIBOR plus the LIBOR rate margin. We were in compliance with all loan covenants as of the end of the first quarter of 2015. As of March 29, 2015, the Company had $1.0 million of revolving debt outstanding with an interest rate of 3.06%.

Most of our cash and cash equivalents were invested in money market funds with investment bankers rated AAAm/Aaa. Our interest-bearing debt consisted of $369,000 outstanding under capital leases and $1.0 million outstanding under our revolving debt (see Note 5 of the Condensed Unaudited Consolidated Financial Statements).

Cash balances held at our foreign subsidiaries were approximately $939,000 and $868,000 at March 29, 2015 and December 28, 2014, 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.      

In summary, our cash flows were as follows (in thousands):

	Three Months Ended
	March 29, 2015			March 30, 2014
Net cash (used in) operating activities	$	(1,691	)	$	(2,845	)
Net cash (used in) investing activities	(51		)	(10		)
Net cash (used in) provided by financing activities	(93		)	2,561

Net cash from operating activities

Net cash used for operating activities was $1.7 million in the first three months of 2015. The cash used for operating activities was a result of the net loss of $3.6 million, partially offset by cash provided by changes in operating assets and liabilities of $1.1 million and $879,000 of net non-cash charges. Non-cash charges consisted primarily of stock-based compensation of $497,000, depreciation and amortization of $365,000, and a write-down of inventory of $17,000. The cash from changes in operating assets and liabilities was mostly due to a decrease in inventories of $1.6 million as a result of sales of existing new product inventory and an increase in accrued liabilities and deferred revenue of $253,000, partially offset by a reduction in accounts payable of $876,000 due to the timing of payments. 

 Net cash used for operating activities was $2.8 million in the first three months of 2014. The cash used for operating activities resulted primarily from the net loss of $2.1 million and cash used for operating assets and liabilities of $1.9 million offset by $1.2 million of non-cash charges. These non-cash charges consisted primarily of stock-based compensation of$732,000, depreciation and amortization of $362,000, and a write-down of inventory of $64,000. The cash used for operating assets and liabilities was mostly due to an increase in inventories in anticipation of future revenues and a reduction in accounts payable due to timing of payments.

Net cash from investing activities

Net cash used for investing activities in the first three months of 2015 was $51,000, which was primarily from cash 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 $1.3 million during the remainder of fiscal year 2015.

26

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

Net cash used for investing activities in the first three months of 2014 was $10,000, which was primarily from cash used to acquire equipment and software used for the production and development of new products.

Net cash from financing activities

Net cash used for financing activities was $93,000 in the first three months of 2015, primarily related to the issuance of common shares to employees under our equity plans and scheduled repayments of lease obligations.

Net cash provided by financing activities was $2.6 million for the first three months of 2014, primarily derived from proceeds related to the issuance of common shares to employees under our equity plans.

We require substantial cash to fund our business and currently use cash to fund capital expenditures and operating losses. Based on past performance and current expectations, we believe that our existing cash and cash equivalents, together with available financial resources from the revolving line of credit facility, will be sufficient to fund our operations and capital expenditures, and provide adequate working capital for 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. In order to satisfy our longer term liquidity requirements, we may be required to raise additional equity or debt financing at commercially acceptable terms.

Contractual Obligations and Commercial Commitments

The following table summarizes our contractual obligations and commercial commitments as of March 29, 2015 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	$	3,131	$	935	$	1,597	$	599
Wafer purchases (1)	491		491		—		—
Other purchase commitments	1,476		1,204		272		—
Total contractual cash obligations	5,098		2,630		1,869		599
Other commercial commitments (2):
Revolving line of credit	1,000		—		1,000		—
Capital lease obligations (3)	369		232		137		—
Total commercial commitments	1,369		232		1,137		—
Total contractual obligations and commercial commitments (4)	$	6,467	$	2,862	$	3,006	$	599

_________________

⁽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 forecast wafer volume. Wafer and finished goods purchase commitments of $491,000 include firm purchase commitments as of March 29, 2015. 

⁽²⁾  Other commercial commitments are included as liabilities on our balance sheet as of March 29, 2015.

⁽³⁾  For a detailed explanation, see Note 5 of the Condensed Unaudited Consolidated Financial Statements. 

⁽⁴⁾  Does not include unrecognized tax benefits of $52,000 as of March 29, 2015. See Note 10 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

27

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

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. Our future success also depends on the financial viability of our independent subcontractors. These subcontract manufacturers produce products for other companies and we must place orders up to several months 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, and our ability to respond to changes in demand is limited by the ability of our suppliers to provide products with the quantity, quality, cost and timeliness that we require. The decision not to provide these services to us or the 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 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 expected effects on results of operations and financial condition.

28

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 2015 would have had 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 16% and 21% of total operating expenses for the first three months of 2015 and 2014, respectively. A currency exchange rate fluctuation of 10% would have caused our operating expenses to change by approximately $101,000 in the first three months of 2015.

29

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on management's evaluation as of March 29, 2015, 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 errors and frauds. 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.

30

Part II. Other Information

Item 1. Legal Proceedings

See Note 13 of the Condensed Unaudited Consolidated Financial Statements for a description of legal proceedings.

Item 1A. Risk Factors

Our 2014 Annual Report on Form 10-K for the year ended December 28, 2014, filed with the SEC on March 5, 2015, 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. Any information presented below updates and supplements, and should be read in conjunction with the risk factors and information disclosed in that Form 10-K and in conjunction with any subsequent updates disclosed in our quarterly filings on Form 10-Q.

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.

31

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

32

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 5, 2015	Ralph S. Marimon
		Vice President, Finance and Chief Financial Officer (as Principal Accounting and Financial Officer and on behalf of theRegistrant)

33

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

34

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 5, 2015
		/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 5, 2015
		/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 29, 2015, 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 5, 2015
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 29, 2015, 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 5, 2015
Name:	Ralph S. Marimon
Title:	Vice President, Finance and Chief Financial Officer

XML

Stock-Based Compensation (Schedule of Stock Based Compensation Award Activity) (Details)	3 Months Ended
	Mar. 29, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward]
Options granted (in shares)	(80,000)
Options forfeited or expired (in shares)	6,000
RSUs granted (in shares)	(81,000)
PRSUs forfeited or expired (in shares)	12,000
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 (in shares)	1,139,000
Options granted (in shares)	(80,000)
Options forfeited or expired (in shares)	6,000
RSUs granted (in shares)	(71,000)
Balance at end of period (in shares)	996,000
2009 Stock Plan [Member] | Preferred Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward]
RSUs granted (in shares)	(10,000)
PRSUs forfeited or expired (in shares)	12,000

XML

Commitments and Contingencies (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014	Dec. 28, 2014
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Total rent expense, net of sublease income	$ 239,000	$ 231,000
Wafer purchase commitment [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Outstanding commitment for purchases	491,000		552,000
Other goods and services [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase obligation	1,500,000
Purchase obligations due in twelve months	$ 1,200,000

XML

Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Customer Concentration) (Details)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014	Dec. 28, 2014
Distributor A [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	29.00%
Percentage of accounts receivable from major customer	50.00%		34.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	16.00%
Customer G [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	39.00%	70.00%
Percentage of accounts receivable from major customer	23.00%		28.00%

XML

Obligations (Narrative) (Details) (USD $)	1 Months Ended			3 Months Ended
	Jul. 31, 2014	May 31, 2014	Dec. 29, 2013	Mar. 29, 2015	Dec. 28, 2014	Jun. 30, 2014
Debt and Capital Lease Obligations [Line Items]
Revolving line of credit				$ 1,000,000	$ 1,000,000
Capital lease obligations				369,000	416,000
Current portion of capital lease obligations				232,000	225,000
Capital Lease Obligation, Leased July 2014 [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, term	41 months
Capital lease, implied interest rate	3.15%
Capital lease, periodic payment	174,000
Capital lease obligations				112,000
Current portion of capital lease obligations				55,000
July Lease Payment One [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, periodic payment	42,000
July Lease Payment Two [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, periodic payment	16,000
July Lease Payment Three [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, periodic payment	58,000
July Lease Payment Four [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, periodic payment	58,000
Capital Lease Obligation, Leased May 2014 [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, term		3 years
Capital lease, implied interest rate		4.80%
Capital lease, periodic payment		84,000
Capital lease obligations		252,000		157,000
Current portion of capital lease obligations				77,000
Capital Lease Obligation, Leased December 2013 [Member] | Software [Member]
Debt and Capital Lease Obligations [Line Items]
Capital lease, term			2 years
Capital lease, implied interest rate			4.34%
Capital lease, periodic payment			34,000
Capital lease obligations			273,000	100,000
Revolving Credit Facility [Member] | Silicon Valley Bank [Member]
Debt and Capital Lease Obligations [Line Items]
Maximum borrowing capacity						6,000,000
Revolving line of credit				1,000,000
Interest rate				3.06%
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

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 29, 2015

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 three months ended March 29, 2015 and March 30, 2014 was as follows (in thousands):

	Three Months Ended
	March 29, 2015		March 30, 2014
Cost of revenue	$	39	$	42
Research and development	191		353
Selling, general and administrative	267		337
Total costs and expenses	$	497	$	732

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 29, 2015		March 30, 2014
Expected term (years)	4.78		6.98
Risk-free interest rate	1.40	%	2.22	%
Expected volatility	52.11	%	53.11	%
Expected dividend yield	—		—

Schedule of Share-based Compensation, Activity

The following table summarizes the activity in the shares available for grant under the 2009 Plan during the first three months of 2015:

	Shares Available for Grant
	(in thousands)
Balance at December 28, 2014	1,139
Options granted	(80	)
Options forfeited or expired	6
RSUs granted	(71	)
PRSUs granted	(10	)
PRSUs forfeited or expired	12
Balance at March 29, 2015	996

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 2015:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 28, 2014	5,682		$	2.67
Granted	80		2.00
Forfeited or expired	(6	)	2.96
Exercised	(1	)	2.35
Balance outstanding at March 29, 2015	5,755		$	2.66	5.28	$	800
Exercisable at March 29, 2015	4,682		$	2.57	4.53	$	800
Vested and expected to vest at March 29, 2015	5,545		$	2.64	5.15	$	800

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

A summary of activity for the Company's RSUs and PRSUs for the three months ended March 29, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 29, 2015 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 28, 2014	650		$	3.47
Granted	81		2.21
Vested	(29	)	2.24
Forfeited	(12	)	—
Nonvested at March 29, 2015	690		$	3.38

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

The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 29, 2015		March 30, 2014
Expected term (months)	5.96		5.97
Risk-free interest rate	0.08	%	0.09	%
Volatility	49.57	%	39.62	%
Dividend yield	—		—

XML

Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014	Dec. 28, 2014	Nov. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award vesting period	4 years
Weighted average estimated fair value, options (in dollars per share)	$ 0.90	$ 2.92
Fair value of unvested stock options	$ 2,900,000	$ 2,400,000
Closing stock price (in dollars per share)	$ 1.93			$ 2.90
The total intrinsic value of options exercised	1,000	2,800,000
Total cash received from employees as a result of employee stock option exercises	3,000	3,000,000
Stock-based compensation	497,000	732,000
Unrecognized stock-based compensation expense	40,000
Weighted average estimated fair value (in dollars per share)	$ 3.38		$ 3.47
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Weighted average recognition period of unrecognized stock-based compensation expense	2 years 4 months 24 days
Stock-based compensation	248,000
Restricted Stock Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	155,000
Performance Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	15,000
Unrecognized stock-based compensation expense	1,500,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average recognition period of unrecognized stock-based compensation expense	1 month 15 days
Weighted average estimated fair value (in dollars per share)	$ 0.92	$ 0.85
Shares available for issuance (in shares)	877,000
Compensation expense related to ESPP	$ 79,000

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Stock-Based Compensation (Schedule of Allocation of Recognized Period Cost) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	$ 497	$ 732
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	39	42
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	191	353
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total costs and expenses	$ 267	$ 337

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Commitments and Contingencies (Schedule of Future Minimum Lease Payments for Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2015
Future minimum lease commitments under operating leases:
2015 (Remaining 9 months)	$ 705
2016	846
2017	781
2018	800
Total	$ 3,132

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Net Loss Per Share

3 Months Ended

Mar. 29, 2015

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

Basic loss per share is computed by dividing net 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 loss per share for the three months ended March 29, 2015 and March 30, 2014: (i) 7.1 million and 6.9 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 shares of common stock. 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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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014	Dec. 28, 2014
Income Tax Disclosure [Abstract]
Tax (benefit) provision from income taxes	$ 40	$ 20
Unrecognized tax benefits	52		51
Penalties and interest expense	1
Accrued interest and penalties related to uncertain tax positions	26
Unrecognized tax benefits expiring from lapse of applicable statute of limitation in next twelve months	$ 17

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Net Loss Per Share (Details)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	7,100,000	6,900,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants available to purchase (in shares)	4,205,000

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The Company and Basis of Presentation (Details) (USD $)	3 Months Ended
	Mar. 29, 2015	Dec. 28, 2014	Mar. 30, 2014	Dec. 29, 2013	Jun. 30, 2014
Liquidity [Line Items]
Cash and cash equivalents	28,215,000	$ 30,050,000	$ 37,112,000	$ 37,406,000
Revolving Credit Facility [Member] | Silicon Valley Bank [Member]
Liquidity [Line Items]
Line of credit facility, additional borrowing capacity	5,000,000
Maximum borrowing capacity					6,000,000
Additional borrowing capacity					$ 10,000,000.0
Samsung [Member]
Liquidity [Line Items]
Percentage of revenue from major customer	39.00%

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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. 29, 2015 segment		Mar. 30, 2014 segment
Revenue from External Customer [Line Items]
Number of reportable segments	1		1
Total revenue	$ 6,159	[1]	$ 11,164	[1]
New Products [Member]
Revenue from External Customer [Line Items]
Total revenue	4,144	[1]	8,916	[1]
Mature Products [Member]
Revenue from External Customer [Line Items]
Total revenue	$ 2,015	[1]	$ 2,248	[1]

[1] For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers.

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Balance Sheet Components (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2015	Dec. 28, 2014
Inventories:
Raw Material	$ 0	$ 0
Work-in-process	1,298	1,191
Finished goods	2,051	3,761
Inventories	3,349	4,952
Other current assets:
Prepaid expenses	946	1,042
Other	104	104
Other current assets	1,050	1,146
Accrued liabilities:
Employee related accruals	1,602	1,356
Other	108	218
Accrued liabilities	$ 1,710	$ 1,574

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Balance Sheet Components (Property and Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2015	Dec. 28, 2014
Property and equipment:
Property and equipment, gross	$ 18,303	$ 18,684
Accumulated depreciation and amortization	(15,329)	(15,467)
Property and equipment, net	2,974	3,217
Equipment [Member]
Property and equipment:
Property and equipment, gross	14,032	14,047
Software [Member]
Property and equipment:
Property and equipment, gross	2,852	3,332
Furniture and Fixtures [Member]
Property and equipment:
Property and equipment, gross	711	710
Leasehold Improvements [Member]
Property and equipment:
Property and equipment, gross	$ 708	$ 595

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Significant Accounting Policies

3 Months Ended

Mar. 29, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

During the three months ended March 29, 2015, 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 28, 2014. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 28, 2014, filed with the Securities Exchange Commission, or SEC, on March 5, 2015.

New Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02), which is intended to improve the targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB accounting standards codification and improves the current U.S. GAAP by: placing more emphasis on risk of loss when determining a controlling financial interest; reducing the frequency of the application of related party guidance when determining a controlling financial interest in a variable interest entity, or VIE and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. This ASU 2015-02 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements andfootnote disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). This ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, requires that an entity separately classify, present and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show such item separately in the income statement, net of tax, after income from continuing operations. The entity is also required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU 2015-01 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the adopted guidance is applied from the beginning of the annual year in which such guidance is adopted. The Company is currently evaluating the impact of ASU 2015-01 on its consolidated financial statements andfootnote disclosures.

Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 filed with the SEC on March 5, 2015.

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Obligations (Schedule of Obligations) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2015	Dec. 28, 2014
Debt and capital lease obligations:
Revolving line of credit	$ 1,000	$ 1,000
Capital leases	369	416
Debt and capital lease obligations	1,369	1,416
Current portion of debt and capital lease obligations	(232)	(225)
Long term portion of debt and capital lease obligations	$ 1,137	$ 1,191

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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. 29, 2015
Number Of Shares
Balance outstanding at beginning of period, in shares	5,682
Granted, in shares	80
Forfeited or expired, in shares	(6)
Exercised, in shares	(1)
Balance outstanding at end of period, in shares	5,755
Exercisable, in shares	4,682
Vested and expected to vest, in shares	5,545
Weighted Average Exercise Price
Balance outstanding at beginning of period, in dollars per share	$ 2.67
Granted, in dollars per share	$ 2.00
Forfeited or expired, in dollars per share	$ 2.96
Exercised, in dollars per share	$ 2.35
Balance outstanding at end of period, in dollars per share	$ 2.66
Exercisable, in dollars per share	$ 2.57
Vested and expected to vest, in dollars per share	$ 2.64
Weighted Average Remaining Term
Balance outstanding	5 years 3 months 11 days
Exercisable	4 years 6 months 11 days
Vested and expected to vest	5 years 1 month 24 days
Aggregate Intrinsic Value
Balance outstanding	$ 800
Exercisable	800
Vested and expected to vest	$ 800

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Condensed Unaudited Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 29, 2015	Dec. 28, 2014
Current assets:
Cash and cash equivalents	$ 28,215	$ 30,050
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods	1,684	1,552
Inventories	3,349	4,952
Other current assets	1,050	1,146
Total current assets	34,298	37,700
Property and equipment, net	2,974	3,217
Other assets	227	222
TOTAL ASSETS	37,499	41,139
Current liabilities:
Trade payables	1,763	2,506
Accrued liabilities	1,710	1,574
Deferred revenue	114	0
Current portion of capital lease obligations	232	225
Total current liabilities	3,819	4,305
Long-term liabilities:
Revolving line of credit	1,000	1,000
Capital lease obligations, less current portion	137	191
Other long-term liabilities	160	76
Total liabilities	5,116	5,572
Commitments and contingencies (see Note 12)
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; 56,200 and 56,182 shares issued and outstanding, respectively	56	56
Additional paid-in capital	238,873	238,419
Accumulated deficit	(206,546)	(202,908)
Total stockholders' equity	32,383	35,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 37,499	$ 41,139

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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. 29, 2015		Mar. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 6,159	[1]	$ 11,164	[1]
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,808	[2]	9,328	[2]
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,842	[3]	1,100	[3]
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	509		736
Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,400		7,800
Revenue percentage	39.00%		70.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,800		$ 1,100
Revenue percentage	29.00%		10.00%

[1] For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers.

[2] Asia Pacific includes revenue from South Korea of $2.4 million or 39% of total revenue and $7.8 million or 70% of total revenue for the quarters ended March 29, 2015 and March 30, 2014, respectively.

[3] North America includes revenue from the United States of $1.8 million or 29% of total revenue and $1.1 million or 10% for the quarters ended March 29, 2015 and March 30, 2014, respectively.

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Condensed Unaudited Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Cash flows from operating activities:
Net loss	$ (3,638)	$ (2,110)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	365	362
Stock-based compensation	497	732
Write-down of inventories	17	64
Gains on disposal of equipment	0	(2)
Changes in operating assets and liabilities:
Accounts receivable	(132)	(66)
Inventories	1,586	(1,152)
Other assets	153	343
Trade payables	(876)	(1,172)
Accrued liabilities and deferred revenue	253	162
Other long-term liabilities	84	(6)
Net cash used in operating activities	(1,691)	(2,845)
Cash flows from investing activities:
Capital expenditures for property and equipment	(51)	(12)
Proceeds from sale of fixed assets	0	2
Net cash used in investing activities	(51)	(10)
Cash flows from financing activities:
Payment of debt and capital lease obligations	(47)	0
Stock issued under share-based compensation, net	(46)	2,561
Net cash (used in) provided by financing activities	(93)	2,561
Net (decrease) in cash and cash equivalents	(1,835)	(294)
Cash and cash equivalents at beginning of period	30,050	37,406
Cash and cash equivalents at end of period	28,215	37,112
Supplemental schedule of non-cash investing and financing activities :
Capital lease obligation to finance capital expenditures	369	309
Purchase of equipment included in accounts payable	$ 71	$ 79

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Stockholders' Equity (Details) (USD $)	1 Months Ended
	Nov. 30, 2013	Mar. 29, 2015	Dec. 28, 2014	Jul. 31, 2013
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
Maximum offering				$ 40,000,000.0
Shares issued in aggregate (in shares)	8,740,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Closing stock price (in dollars per share)	$ 2.90	$ 1.93
Proceeds from offering	23,100,000
Stock issuance cost	$ 2,200,000
Warrants outstanding (in warrants)		4,200,000
November 2009 Financing [Member]
Class of Stock [Line Items]
Warrants outstanding (in warrants)		1,900,000
Exercise price of warrants (in dollars per unit)		$ 2.15
June 2012 Financing [Member]
Class of Stock [Line Items]
Warrants outstanding (in warrants)		2,300,000
Exercise price of warrants (in dollars per unit)		$ 2.98

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Balance Sheet Components (Tables)

3 Months Ended

Mar. 29, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Balance Sheet Disclosures

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Inventories:
Raw Material	$	—		$	—
Work-in-process	1,298			1,191
Finished goods	2,051			3,761
	$	3,349		$	4,952
Other current assets:
Prepaid expenses	$	946		$	1,042
Other	104			104
	$	1,050		$	1,146
Property and equipment:
Equipment	$	14,032		$	14,047
Software	2,852			3,332
Furniture and fixtures	711			710
Leasehold improvements	708			595
	18,303			18,684
Accumulated depreciation and amortization	(15,329		)	(15,467		)
	$	2,974		$	3,217
Accrued liabilities:
Employee related accruals	$	1,602		$	1,356
Other	108			218
	$	1,710		$	1,574

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Employee Stock Plans (Details)	3 Months Ended	0 Months Ended
	Mar. 29, 2015	Apr. 28, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award vesting period	4 years
Initial Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of options vested	25.00%
1999 Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award, term	10 years
1999 Stock Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	0
1999 Stock Plan [Member] | Initial Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award vesting period	1 year
1999 Stock Plan [Member] | Periodic Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of options vested	2.08%
Equity award vesting period	1 month
2009 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares reserved for issuance (in shares)		1,500,000
Shares reserved for issuance (in shares)	7,036,000
2009 Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award, term	10 years
Number of previously cancelled, forfeited or repurchased shares available for reissuance (in shares)	7,500,000
2009 Stock Plan [Member] | Initial Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity award vesting period	1 year
2009 Stock Plan [Member] | Periodic Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of options vested	2.08%
Equity award vesting period	1 month
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares)	2,300,000
Maximum percent of employees total compensation allowed for purchase of shares	20.00%
Maximum number of shares per employee per period (in shares)	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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Fair Value Measurements (Tables)

3 Months Ended

Mar. 29, 2015

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 29, 2015 and December 28, 2014, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 29, 2015								As of December 28, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—
Total assets	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 29, 2015 and December 28, 2014.

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The Company and Basis of Presentation

3 Months Ended

Mar. 29, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Basis of Presentation

The Company and Basis of Presentation

QuickLogic Corporation ("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 United States generally accepted accounting principles, or U.S. 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 interim condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 28, 2014. Operating results for the three months ended March 29, 2015 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 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's first fiscal quarters for 2015 and for 2014 ended on Sunday, March 29, 2015 and March 30, 2014, respectively.

Liquidity

The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of March 29, 2015, the Company's principal sources of liquidity consisted of cash and cash equivalents of $28.2 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank which expires on June 27, 2016. This line of credit provides for committed loan advances of up to $6.0 million, subject to increase at the Company's election up to $10.0 million. 

The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months.

Over the longer term, the Company believes that its existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to sell additional shares to capital markets will be sufficient to satisfy its operations and capital expenditures.

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 its 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 its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer and finished goods 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 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.

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 expense, net in the condensed unaudited consolidated statements of operations.

Uses of Estimates

The preparation of these consolidated financial statements in conformity with U.S. 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 11 for information regarding concentrations associated with accounts receivable.

For the three months ended March 29, 2015, the Company generated 39% of its total revenue from shipments to Samsung Electronics Co., Ltd. ("Samsung"). See Note 11 for information regarding concentrations associated with customers and distributors.

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Condensed Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 29, 2015	Dec. 28, 2014
Current Assets:
Allowance for doubtful accounts	$ 0	$ 0
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 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 (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	56,200,000	56,182,000
Common stock, shares outstanding	56,200,000	56,182,000

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Information Concerning Product Lines, Geographic Information and Revenue Concentration

3 Months Ended

Mar. 29, 2015

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 29, 2015		March 30, 2014
Revenue by product line (1):
New products	$	4,144	$	8,916
Mature products	2,015		2,248
Total revenue	$	6,159	$	11,164

_________________

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

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Revenue by geography:
Asia Pacific (1)	$	3,808	$	9,328
North America (2)	1,842		1,100
Europe	509		736
Total revenue	$	6,159	$	11,164

___________

⁽¹⁾     Asia Pacific includes revenue from South Korea of $2.4 million or 39% of total revenue and $7.8 million or 70% of total revenue for the quarters ended March 29, 2015 and March 30, 2014, respectively.

⁽²⁾     North America includes revenue from the United States of $1.8 million or 29% of total revenue and $1.1 million or 10% for the quarters ended March 29, 2015 and March 30, 2014, respectively.

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Distributor "A"	29	%	*
Customer "B"	16	%	*
Customer "G"	39	%	70	%

* 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 29, 2015		December 28, 2014
Distributor "A"	50	%	34	%
Customer "G"	23	%	28	%

As of March 29, 2015, 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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Document and Entity Information	3 Months Ended
	Mar. 29, 2015	Apr. 29, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	QUICKLOGIC CORPORATION
Entity Central Index Key	0000882508
Current Fiscal Year End Date	--01-03
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 29, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		56,210,138

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Commitments and Contingencies

3 Months Ended

Mar. 29, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company's manufacturing suppliers require us 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 29, 2015 and December 28, 2014, the Company had $491,000 and $552,000, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory.

The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of March 29, 2015, total outstanding purchase obligations were $1.5 million, of which $1.2 million were due within the next twelve months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the first quarters of 2015 and 2014 was approximately $239,000 and $231,000, respectively.

As of March 29, 2015, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

	Operating Leases
	(in thousands)
Fiscal Years
2015 (Remaining 9 months)	$	705
2016	846
2017	781
2018	800
	$	3,132

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Condensed Unaudited Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 29, 2015		Mar. 30, 2014
Income Statement [Abstract]
Revenue	$ 6,159	[1]	$ 11,164	[1]
Cost of revenue	3,280		7,106
Gross profit	2,879		4,058
Operating expenses:
Research and development	3,477		2,641
Selling, general and administrative	2,960		3,465
Total operating expenses	6,437		6,106
Loss from operations	(3,558)		(2,048)
Interest expense	(14)		(16)
Interest income and other expense, net	(26)		(26)
Loss before income taxes	(3,598)		(2,090)
Provision for income taxes	40		20
Net loss	$ (3,638)		$ (2,110)
Net loss per share:
Basic (in dollars per share)	$ (0.06)		$ (0.04)
Diluted (in dollars per share)	$ (0.06)		$ (0.04)
Weighted average shares:
Basic (in shares)	56,190		54,433
Diluted (in shares)	56,190		54,433

[1] For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers.

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Fair Value Measurements

3 Months Ended

Mar. 29, 2015

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 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 assumptions 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 29, 2015 and December 28, 2014, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):

	As of March 29, 2015								As of December 28, 2014
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—
Total assets	$	26,253	$	—	$	26,253	$	—	$	29,425	$	874	$	28,551	$	—

_________________

⁽¹⁾Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 29, 2015 and December 28, 2014.

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Obligations

3 Months Ended

Mar. 29, 2015

Debt Disclosure [Abstract]

Obligations

Obligations

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Debt and capital lease obligations:
Revolving line of credit	$	1,000		$	1,000
Capital leases	369			416
	1,369			1,416
Current portion of debt and capital lease obligations	(232		)	(225		)
Long term portion of debt and capital lease obligations	$	1,137		$	1,191

Revolving Line of Credit

The Company has entered into the Third Loan Agreement. The terms of the Third Loan Agreement include a $6.0 million revolving line of credit available through June 27, 2016. 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. During the first quarter of 2015, the Company had $1.0 million of revolving debt outstanding with an interest rate of 3.06%.

Silicon Valley 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 Third Loan Agreement. Under the terms of the Third Loan Agreement, the Company must maintain a minimum tangible net worth of at least $15 million, an adjusted quick ratio of 2-to-1 and a minimum unrestricted cash or cash equivalents balance of at least $8 million. The Third Loan 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, cash balances with subsidiaries and the payment of dividends. The Company was in compliance with the financial covenants of the Third Loan Agreement as of the end of the current reporting period.

Capital Leases

In July 2014, the Company leased design software under a 41 month capital lease at an imputed interest rate of 3.15% per annum. Terms of the agreement require the Company to make payments of principal and interest of $42,000 in August 2014, $16,000 in December 2014, $58,000 in January 2016 and $58,000 in January 2017. The total payments for the lease will be $174,000. As of March 29, 2015, $112,000 was outstanding under this capital lease, of which $55,000 was classified as a current liability.

In May 2014, the Company leased design software under a three-year capital lease at an imputed interest rate of 4.80% per annum. Terms of the agreement require the Company to make annual payments of approximately $84,000 through April 2016, for a total of $252,000. As of March 29, 2015, $157,000 was outstanding under the capital lease, of which $77,000 was classified as a current liability.

In December 2013, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.34% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $34,000 through September 2015, for a total of $273,000. As of March 29, 2015, $100,000 was outstanding under the capital lease, all of which was classified as a current liability.

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Obligations (Tables)

3 Months Ended

Mar. 29, 2015

Debt Disclosure [Abstract]

Schedule of Obligations

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Debt and capital lease obligations:
Revolving line of credit	$	1,000		$	1,000
Capital leases	369			416
	1,369			1,416
Current portion of debt and capital lease obligations	(232		)	(225		)
Long term portion of debt and capital lease obligations	$	1,137		$	1,191

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Litigation

3 Months Ended

Mar. 29, 2015

Commitments and Contingencies Disclosure [Abstract]

Litigation

Litigation

From time to time, the Company may become 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 any such third party assertions will be resolved: (i) without costly litigation; (ii) in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or (iii) without requiring royalty or other payments which may adversely impact gross profit.

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Stock-Based Compensation

3 Months Ended

Mar. 29, 2015

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

Stock-Based Compensation

Stock-Based Compensation

The Company's equity incentive program 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 cash settlement of stock appreciation rights, or SARs. 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 three months ended March 29, 2015 and March 30, 2014 was as follows (in thousands):

	Three Months Ended
	March 29, 2015		March 30, 2014
Cost of revenue	$	39	$	42
Research and development	191		353
Selling, general and administrative	267		337
Total costs and expenses	$	497	$	732

 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 amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore 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 29, 2015		March 30, 2014
Expected term (years)	4.78		6.98
Risk-free interest rate	1.40	%	2.22	%
Expected volatility	52.11	%	53.11	%
Expected dividend yield	—		—

The weighted average estimated fair value for options granted during the first quarters of 2015 and 2014 was $0.90 and $2.92 per option, respectively. As of March 29, 2015 and March 30, 2014, the fair value of unvested stock options, net of expected forfeitures, was approximately $2.9 million and $2.4 million, respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.40 years.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2009 Plan during the first three months of 2015:

	Shares Available for Grant
	(in thousands)
Balance at December 28, 2014	1,139
Options granted	(80	)
Options forfeited or expired	6
RSUs granted	(71	)
PRSUs granted	(10	)
PRSUs forfeited or expired	12
Balance at March 29, 2015	996

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 2015:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Term	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance outstanding at December 28, 2014	5,682		$	2.67
Granted	80		2.00
Forfeited or expired	(6	)	2.96
Exercised	(1	)	2.35
Balance outstanding at March 29, 2015	5,755		$	2.66	5.28	$	800
Exercisable at March 29, 2015	4,682		$	2.57	4.53	$	800
Vested and expected to vest at March 29, 2015	5,545		$	2.64	5.15	$	800

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $1.93 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 2015 and 2014 was $1,000 and $2.8 million, respectively. Total cash received from employees as a result of employee stock option exercises during the first three months of 2015 and 2014 was approximately $3,000 and $3.0 million 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 $248,000 for the first three months ended March 29, 2015.

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 RSU as it vests. The Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $155,000 and $15,000, respectively, for the first quarter of 2015. As of March 29, 2015, there was $1.5 million in unrecognized compensation expense related to RSUs and PRSUs.

A summary of activity for the Company's RSUs and PRSUs for the three months ended March 29, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 29, 2015 is as follows:

	RSUs & PRSUs Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested at December 28, 2014	650		$	3.47
Granted	81		2.21
Vested	(29	)	2.24
Forfeited	(12	)	—
Nonvested at March 29, 2015	690		$	3.38

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 during the first quarters of 2015 and 2014 was $0.92 and $0.85 per right, respectively.

As of March 29, 2015, 877,000 shares remained available for issuance under the 2009 ESPP. For the first quarter of 2015, the Company recorded stock-based compensation expense related to the 2009 ESPP of $79,000.

The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:

	Three Months Ended
	March 29, 2015		March 30, 2014
Expected term (months)	5.96		5.97
Risk-free interest rate	0.08	%	0.09	%
Volatility	49.57	%	39.62	%
Dividend yield	—		—

As of March 29, 2015, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $40,000 and is expected to be recognized over a weighted average period of approximately 1.5 months.

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Stockholders' Equity

3 Months Ended

Mar. 29, 2015

Equity [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 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 and Warrants

On July 31, 2013, the Company filed a shelf registration statement on Form S-3 under which the Company may, from time to time, sell securities in one or more offerings up to a total dollar amount of $40.0 million. The Company's shelf registration statement was declared effective on August 30, 2013 and expires in August 2016.

In November 2013, the Company issued an aggregate of 8,740,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $2.90 per share. The Company received net proceeds from the offering of approximately $23.1 million, net of underwriter's commission and other offering expenses of $2.2 million.

As of March 29, 2015, 4.2 million warrants were outstanding. Approximately1.9 million warrants with a strike price of $2.15 were issued in conjunction with a November 2009 financing. These warrants expire in May 2015, and because the registration statement is no longer effective, they can only be exercised on a cashless basis. Approximately 2.3 million warrants with a strike price of $2.98 were issued in conjunction with a June 2012 financing. These warrants expire in June 2017 and can be exercised on a cash or cashless basis until August 2016. After this date, the registration statement will no longer be effective and the warrants can only be exercised on a cashless basis

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Employee Stock Plans

3 Months Ended

Mar. 29, 2015

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

Employee Stock Plans

Employee Stock Plans

1999 Stock Plan

The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and non-qualified 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 2009 Plan. As of March 29, 2015, approximately 7.0 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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Income Taxes

3 Months Ended

Mar. 29, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In the first quarters of 2015 and 2014, the Company recorded net income tax expenses of $40,000 and $20,000, respectively. The income tax expense for the first quarters of 2015 and 2014 relates to income taxes from the Company's foreign operations which are cost-plus entities.

Based on the available objective evidence, management believes it is more likely than not that the Company's 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 $52,000 and $51,000 of unrecognized tax benefits at March 29, 2015 and December 28, 2014, respectively, which will result in a change in the Company's effective tax rate if recognized in future years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the three month period ended March 29, 2015, the Company accrued $1,000 of interest and penalties. As of March 29, 2015, the Company had approximately $26,000 of accrued interest and penalties related to uncertain tax positions.

Included in the balance of unrecognized tax benefits at March 29, 2015 is $17,000 related to tax positions, interest, and penalties for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months.

The Company is subject to U.S. federal income tax as well as income taxes in many U.S. states and foreign jurisdictions in which the Company operates. As of December 28, 2014, fiscal years 2010 onward remain open to examination by the U.S. taxing authorities and fiscal years 2006 onward remain open to examination in Canada. The U.S. federal and U.S. state taxing authorities may choose to audit tax returns for tax years beyond the statute of limitation period due to significant tax attribute carryforwards from prior years, making adjustments only to carryforward attributes.

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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. 29, 2015		Dec. 28, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 26,253		$ 29,425
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0		874
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	26,253		28,551
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0		0
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	26,253	[1]	29,425	[1]
Money Market Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	[1]	874	[1]
Money Market Funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	26,253	[1]	28,551	[1]
Money Market Funds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	[1]	$ 0	[1]

[1] Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of March 29, 2015 and December 28, 2014.

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The Company and Basis of Presentation (Policies)

3 Months Ended

Mar. 29, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fiscal Period

QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's first fiscal quarters for 2015 and for 2014 ended on Sunday, March 29, 2015 and March 30, 2014, respectively.

Liquidity

Liquidity

The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of March 29, 2015, the Company's principal sources of liquidity consisted of cash and cash equivalents of $28.2 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank which expires on June 27, 2016. This line of credit provides for committed loan advances of up to $6.0 million, subject to increase at the Company's election up to $10.0 million. 

The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months.

Over the longer term, the Company believes that its existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to sell additional shares to capital markets will be sufficient to satisfy its operations and capital expenditures.

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 its 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 its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer and finished goods 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 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.

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 expense, net in the condensed unaudited consolidated statements of operations.

Use of Estimates

Uses of Estimates

The preparation of these consolidated financial statements in conformity with U.S. 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 11 for information regarding concentrations associated with accounts receivable.

New Accounting Pronouncements

New Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02), which is intended to improve the targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB accounting standards codification and improves the current U.S. GAAP by: placing more emphasis on risk of loss when determining a controlling financial interest; reducing the frequency of the application of related party guidance when determining a controlling financial interest in a variable interest entity, or VIE and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. This ASU 2015-02 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements andfootnote disclosures.

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). This ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, requires that an entity separately classify, present and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show such item separately in the income statement, net of tax, after income from continuing operations. The entity is also required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU 2015-01 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the adopted guidance is applied from the beginning of the annual year in which such guidance is adopted. The Company is currently evaluating the impact of ASU 2015-01 on its consolidated financial statements andfootnote disclosures.

Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 filed with the SEC on March 5, 2015.

Earnings Per Share

Basic loss per share is computed by dividing net 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 amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore 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 (Tables)

3 Months Ended

Mar. 29, 2015

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 29, 2015		March 30, 2014
Revenue by product line (1):
New products	$	4,144	$	8,916
Mature products	2,015		2,248
Total revenue	$	6,159	$	11,164

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

Schedule of Revenue by Geographical Areas

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

	Three Months Ended
	March 29, 2015		March 30, 2014
Revenue by geography:
Asia Pacific (1)	$	3,808	$	9,328
North America (2)	1,842		1,100
Europe	509		736
Total revenue	$	6,159	$	11,164

___________

⁽¹⁾     Asia Pacific includes revenue from South Korea of $2.4 million or 39% of total revenue and $7.8 million or 70% of total revenue for the quarters ended March 29, 2015 and March 30, 2014, respectively.

⁽²⁾     North America includes revenue from the United States of $1.8 million or 29% of total revenue and $1.1 million or 10% for the quarters ended March 29, 2015 and March 30, 2014, respectively.

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 29, 2015		March 30, 2014
Distributor "A"	29	%	*
Customer "B"	16	%	*
Customer "G"	39	%	70	%

* 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 29, 2015		December 28, 2014
Distributor "A"	50	%	34	%
Customer "G"	23	%	28	%

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Subsequent Events (Details)	0 Months Ended
	Apr. 28, 2011	Apr. 23, 2015
2009 Stock Plan [Member]
Subsequent Event [Line Items]
Additional shares reserved for issuance (in shares)	1,500,000
2009 Stock Plan [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Additional shares reserved for issuance (in shares)		2,500,000
Employee Stock Purchase Plan [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Additional shares reserved for issuance (in shares)		1,000,000

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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. 29, 2015
Number of Shares
Nonvested at beginning of period, in shares	650
Granted, in shares	81
Vested, in shares	(29)
Forfeited, in shares	(12)
Nonvested at end of period, in shares	690
Weighted Average Grant Date Fair Value
Nonvested at beginning of period, in dollars per share	$ 3.47
Granted, in dollars per share	$ 2.21
Vested, in dollars per share	$ 2.24
Forfeited, in dollars per share	$ 0.00
Nonvested at end of period, in dollars per share	$ 3.38

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Condensed Unaudited Consolidated Statements of Comprehensive Loss (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,638)	$ (2,110)
Total other comprehensive income, net of tax	0	0
Total comprehensive loss	$ (3,638)	$ (2,110)

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Balance Sheet Components

3 Months Ended

Mar. 29, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

	As of
	March 29, 2015			December 28, 2014
	(in thousands)
Inventories:
Raw Material	$	—		$	—
Work-in-process	1,298			1,191
Finished goods	2,051			3,761
	$	3,349		$	4,952
Other current assets:
Prepaid expenses	$	946		$	1,042
Other	104			104
	$	1,050		$	1,146
Property and equipment:
Equipment	$	14,032		$	14,047
Software	2,852			3,332
Furniture and fixtures	711			710
Leasehold improvements	708			595
	18,303			18,684
Accumulated depreciation and amortization	(15,329		)	(15,467		)
	$	2,974		$	3,217
Accrued liabilities:
Employee related accruals	$	1,602		$	1,356
Other	108			218
	$	1,710		$	1,574

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 29, 2015

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease commitments

As of March 29, 2015, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:

	Operating Leases
	(in thousands)
Fiscal Years
2015 (Remaining 9 months)	$	705
2016	846
2017	781
2018	800
	$	3,132

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Stock-Based Compensation (Schedule of Valuation Assumptions) (Details)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	4 years 9 months 11 days	6 years 11 months 23 days
Risk-free interest rate	1.40%	2.22%
Expected volatility	52.11%	53.11%
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 16 days	5 years 11 months 19 days
Risk-free interest rate	0.08%	0.09%
Expected volatility	49.57%	39.62%
Expected dividend yield	0.00%	0.00%

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Subsequent Events (Notes)

3 Months Ended

Mar. 29, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 23, 2015, the stockholders approved an amendment to the 2009 Stock Plan to reserve an additional 2,500,000 shares of common stock for issuance under the 2009 Stock Plan. On the same day the stockholders approved an amendment to the 2009 Employee Stock Purchase Plan to reserve an additional 1,000,000 shares of common stock for issuance under the 2009 Employee Stock Purchase Plan.