EX-99.1 3 a03-4301_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contacts:

Carl M. Mills
QuickLogic Corporation
Chief Financial Officer
(408) 990-4000
cmills@quicklogic.com

 

Ann McMichael
QuickLogic Corporation
IR Manager
(416) 497-8884
amcmichael@quicklogic.com

 

 

For Immediate Release

 

 

QUICKLOGIC ANNOUNCES THIRD QUARTER
RESULTS — REVENUE INCREASES 34%

 

 

SUNNYVALE, Calif.— October 22, 2003 — QuickLogic Corporation (Nasdaq: QUIK), the inventor and pioneer of Embedded Standard Products (ESPs), today announced its financial results for the third quarter ended September 30, 2003.

 

Net revenue for the third quarter of 2003 was $11.2 million, up 34% from net revenue of $8.3 million in the third quarter of 2002, and up 5% sequentially compared to the second quarter of 2003. ESP products were 42% of revenue for the third consecutive quarter. The net loss for the third quarter of 2003 was $709,000, or $0.03 per share, compared to a net loss of $6.0 million, or $0.26 per share, in the third quarter of 2002, and compared to a net loss of $24,000, or $0.00 per share, in the second quarter of 2003. Second quarter 2003 results included a $0.7 million gain on the sale of securities.

 

“While our revenue growth results for Q3 were certainly satisfying, we are even more pleased with our 29% year to date revenue growth,” said Tom Hart, Chairman, President and CEO. “This revenue growth has been driven by a 58% increase in Embedded Standard Product revenue over the same time period. We continue to be very enthused by the customer interest and design activity generated by our newest products – both the Embedded Standard Products and our newest FPGA family named Eclipse II.”

 

 

Conference Call

 

Our conference call is being webcast by CCBN and can be accessed via QuickLogic’s website at www.quicklogic.com. For access to the conference call, please call 1-800-901-5231 or International 1-617-786-2961 by 2:20 p.m. Pacific Time on October 22nd. You will need to reference the pass code: 55904110.  A recording of the call will be available starting one hour after the completion of the call. To access the recording, please call 1-888-286-8010 or International 1-617-801-6888. You will need to reference the pass code: 79336173. Both the webcast and the call recording will be archived until November 6, 2003.

 

About QuickLogic

 

QuickLogic Corporation (Nasdaq:QUIK) invented and pioneered the Embedded Standard Product (ESP) architecture, an innovation that delivers the guaranteed performance and lower cost of standard semiconductor products with the flexibility and time-to-market benefits of programmable logic. QuickLogic’s patented ViaLink® metal-to-metal interconnect technology is the foundation of the company’s ESP and FPGA product families. Our ViaLink-based products provide customers with the unique combination of high performance and design security at very low power. Founded in 1988, the company is located at 1277 Orleans Drive, Sunnyvale, CA 94089-1138. For more information on the company and its products, please call QuickLogic at 408-990-4000 or visit the QuickLogic web site at www.quicklogic.com.

 

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

 

This press release contains forward-looking statements relating to our earnings outlook, the market promise for embedded standard products, product lead times, and market conditions generally.  Actual results could differ materially from such forward-looking statements.  Factors that could cause actual results to differ materially include delays in the acceptance of the company’s ESPs, level of customer design activity, intense competition including the introduction of new products by competitors, ability to hire and retain qualified personnel, the ability to introduce new products based on advanced wafer technology, unforeseen changes in product demand or supply, and worsening general economic conditions.  These factors and others are described in more detail in the

 

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Company’s public reports filed with the Securities and Exchange Commission, including the risks discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in the Company’s prior press releases.

 

ViaLink, pASIC, QuickWorks, DeskFAB and the QuickLogic name and logo are registered trademarks and QuickPCI, Eclipse, QuickRAM, QuickMIPS, QuickTools, QuickSD, QuickFC, WebASIC, and WebESP are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.

 

Note to Editors: Financial Tables Follow

 

3

 

QUICKLOGIC CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,
2003

 

September 30,
2002

 

June 30,
2003

 

September 30,
2003

 

September 30,
2002

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

11,171

 

$

8,315

 

$

10,603

 

$

31,175

 

$

24,156

 

Cost of revenue

 

5,416

 

6,226

 

5,040

 

14,993

 

15,191

 

Gross profit

 

5,755

 

2,089

 

5,563

 

16,182

 

8,965

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

2,712

 

3,965

 

2,420

 

7,460

 

10,633

 

Selling, general and administrative

 

3,771

 

4,030

 

3,842

 

11,748

 

11,427

 

Total operating expenses

 

6,483

 

7,995

 

6,262

 

19,208

 

22,060

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(728

)

(5,906

)

(699

)

(3,026

)

(13,095

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(33

)

(18

)

(55

)

(149

)

(36

)

Interest income and other, net

 

29

 

(99

)

34

 

89

 

258

 

Realized gain on sale of investment in Tower Semiconductor, Ltd.

 

23

 

—

 

696

 

719

 

—

 

Loss before taxes

 

(709

)

(6,023

)

(24

)

(2,367

)

(12,873

)

Provision for income tax

 

—

 

—

 

—

 

—

 

—

 

Net loss

 

$

(709

)

$

(6,023

)

$

(24

)

$

(2,367

)

$

(12,873

)

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.03

)

$

(0.26

)

$

(0.00

)

$

(0.10

)

$

(0.55

)

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN PER SHARE CALCULATIONS:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

24,194

 

23,449

 

23,901

 

23,948

 

23,228

 

 

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QUICKLOGIC CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

September 30,
2003

 

June 30,
2003

 

December 31,
2002 (1)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,331

 

$

24,065

 

$

13,001

 

Cash and cash equivalents, restricted

 

—

 

—

 

9,002

 

Accounts receivable, net

 

2,929

 

3,555

 

4,900

 

Inventories

 

6,796

 

7,586

 

7,876

 

Other current assets

 

1,340

 

1,876

 

2,281

 

Total current assets

 

36,396

 

37,082

 

37,060

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

10,253

 

10,668

 

11,967

 

Investment in Tower Semiconductor, Ltd.

 

4,781

 

5,073

 

5,975

 

Other assets

 

6,347

 

6,431

 

7,129

 

Total assets

 

$

57,777

 

$

59,254

 

$

62,131

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

Trade payables

 

$

2,412

 

$

3,165

 

$

3,013

 

Accrued liabilities

 

2,184

 

1,863

 

1,840

 

Deferred income on shipments to distributors

 

1,109

 

1,316

 

1,242

 

Current portion of long-term obligations

 

5,910

 

6,852

 

9,650

 

Total current liabilities

 

11,615

 

13,196

 

15,745

 

 

 

 

 

 

 

 

 

Long-term obligations

 

1,596

 

1,757

 

1,455

 

Total liabilities

 

13,211

 

14,953

 

17,200

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Common stock at par

 

24

 

24

 

24

 

Additional paid-in capital

 

152,845

 

151,650

 

151,198

 

Deferred compensation

 

—

 

(26

)

(145

)

Accumulated other comprehensive income

 

210

 

457

 

—

 

Accumulated deficit

 

(108,513

)

(107,804

)

(106,146

)

Total stockholders’ equity

 

44,566

 

44,301

 

44,931

 

Total liabilities and stockholders’ equity

 

$

57,777

 

$

59,254

 

$

62,131

 

 

(1) —

Derived from the December 31, 2002 audited balance sheet included in the 2002 Annual Report on Form 10-K of

 

QuickLogic Corporation.

 

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QUICKLOGIC CORPORATION

SUPPLEMENTAL DATA

(Unaudited)

 

 

 

Percent of Total Revenue

 

Change in Revenue

 

 

 

Q3
2003

 

Q2
2003

 

Q3
2002

 

Q2 2003 to
Q3 2003

 

Q3 2002 to
Q3 2003

 

COMPOSITION OF REVENUE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by product (1):

 

 

 

 

 

 

 

 

 

 

 

Mature products

 

30

%

29

%

42

%

10

%

(2

)%

New products

 

70

%

71

%

58

%

4

%

61

%

Embedded standard products

 

42

%

42

%

35

%

4

%

59

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography:

 

 

 

 

 

 

 

 

 

 

 

North America

 

52

%

37

%

55

%

48

%

26

%

Europe

 

20

%

14

%

21

%

47

%

29

%

Japan

 

14

%

14

%

14

%

3

%

35

%

Rest of world

 

14

%

35

%

10

%

(57

)%

88

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by end-customer segment:

 

 

 

 

 

 

 

 

 

 

 

Computing

 

18

%

42

%

12

%

(56

)%

103

%

Instrumentation and test

 

34

%

28

%

36

%

28

%

26

%

Datacom and telecom

 

20

%

15

%

32

%

43

%

(15

)%

Graphics and imaging

 

10

%

4

%

9

%

160

%

53

%

Military and aerospace systems

 

18

%

11

%

11

%

79

%

119

%

 

(1) —

Mature products include our pASIC1 and pASIC2 product families.  New products include our pASIC3, Eclipse FPGA, and Embedded Standard Product (“ESP”) product families.  Our embedded standard products include the QuickRAM™, QuickPCI™, QuickFC™, QuickDSP™, QuickSD™, QuickMIPS™ and V3 product families.

 

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