EX-99.1 2 a04-12176_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 6% SEQUENTIALLY

 

SUNNYVALE, Calif.—October 27, 2004 —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, 2004.

 

Net revenue for the third quarter of 2004 was $11.9 million, up 6% sequentially from net revenue of $11.2 million in the second quarter of 2004, and up 7% compared to net revenue in the third quarter of 2003.  ESP and Advanced ESP products contributed 38% of net revenue in the third quarter of 2004.  The net loss for the third quarter of 2004 was $899,000 or $0.03 per share, compared to a net loss of $709,000, or $0.03 per share, in the third quarter of 2003.

 

“We are very pleased with our third quarter revenue growth, especially in comparison to industry results,” said Tom Hart, Chairman, President and CEO.  “Our revenue of $11.9 million was better than any quarter since December 2000. We have now released all devices of our new Eclipse II and QuickMIPS product families to production.  These new product families are generating many new design opportunities, that historically have been won by FPGAs, CPLDs or ASICs.  The primary benefits for our customers are very low power, shorter time-to-market and competitive pricing.”

 


 

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 1-888-396-2369 or 1-617-847-8710 (international) by 2:20 p.m. Pacific Time on October 27, 2004. You will need to reference the pass code: 29707700.  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 1-617-801-6888 (international). You will need to reference the pass code: 83060325. Both the webcast and the call recording will be archived until November 3rd, 2004.

 

About QuickLogic

 

QuickLogic Corporation (Nasdaq: QUIK) invented and has pioneered the Embedded Standard Product (ESP) architecture, with the introduction of first products in 1998.  ESPs are semiconductor devices that deliver the guaranteed performance, lower cost and lower risk of standard products, coupled with the flexibility and time-to-market benefits of programmable logic. QuickLogic’s proprietary ViaLink metal-to-metal interconnect technology offers significant benefits - including very low power at high performance levels - to our customers and is the foundation of our ESP product families, as well as our core FPGA products. Founded in 1988, the Company is located at 1277 Orleans Drive, Sunnyvale, CA 94089-1138. For more information, please visit the QuickLogic web site at www.quicklogic.com.

 

2


 

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

 

This press release contains forward-looking statements made by our CEO relating to our new products and the market acceptance of our products. Actual results could differ materially from any such forward-looking statements.  Factors that could cause actual results to differ materially include our ability to introduce and produce new products based on advanced wafer technology on a timely basis; delays in the acceptance of the Company’s ESPs or new products; our ability to convert new design opportunities into customer activity; the level of customer design activity; our ability to adequately market the low power, competitive pricing and short time-to market of our new product families; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; unforeseen changes in product demand or supply; and general economic conditions.  These factors and others are described in more detail in the 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, Quarterly Reports on Form 10-Q and in the Company’s prior press releases.

 

ViaLink, pASIC, QuickPCI, QuickRAM, QuickWorks, DeskFAB, and the QuickLogic name and logo are registered trademarks and Eclipse, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,
2004

 

September 30,
2003

 

June 30,
2004

 

September 30,
2004

 

September 30,
2003

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

11,944

 

$

11,171

 

$

11,221

 

$

33,533

 

$

31,175

 

Cost of revenue

 

6,059

 

5,416

 

4,465

 

15,079

 

14,993

 

Gross profit

 

5,885

 

5,755

 

6,756

 

18,454

 

16,182

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

3,046

 

2,712

 

3,052

 

9,346

 

7,460

 

Selling, general and administrative

 

3,729

 

3,771

 

4,194

 

11,832

 

11,748

 

Total operating expenses

 

6,775

 

6,483

 

7,246

 

21,178

 

19,208

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(890

)

(728

)

(490

)

(2,724

)

(3,026

)

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of investment in Tower   Semiconductor Ltd.

 

—

 

23

 

—

 

—

 

719

 

Interest expense

 

(69

)

(33

)

(62

)

(199

)

(149

)

Interest income and other, net

 

60

 

29

 

23

 

127

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(899

)

$

(709

)

$

(529

)

$

(2,796

)

$

(2,367

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.03

)

$

(0.03

)

$

(0.02

)

$

(0.11

)

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

25,786

 

24,194

 

25,231

 

25,300

 

23,948

 

 

4


 

QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

September 30,
2004

 

December 31,
2003 (1)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

27,022

 

$

26,443

 

Short term investment in Tower Semiconductor Ltd.

 

2,997

 

—

 

Accounts receivable, net

 

2,678

 

3,924

 

Inventory

 

6,936

 

5,255

 

Other current assets

 

1,044

 

1,727

 

 

 

 

 

 

 

Total current assets

 

40,677

 

37,349

 

 

 

 

 

 

 

Property and equipment, net

 

8,207

 

9,070

 

Investment in Tower Semiconductor Ltd.

 

1,507

 

5,697

 

Other assets

 

5,884

 

6,247

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

56,275

 

$

58,363

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Revolving line of credit

 

$

2,000

 

$

2,900

 

Trade payables

 

3,437

 

3,555

 

Accrued liabilities

 

2,904

 

1,981

 

Deferred income on shipments to distributors

 

1,868

 

1,305

 

Current portion of debt and capital lease obligations

 

2,333

 

2,031

 

 

 

 

 

 

 

Total current liabilities

 

12,542

 

11,772

 

 

 

 

 

 

 

Long-term liabilities

 

2,453

 

2,723

 

 

 

 

 

 

 

Total liabilities

 

14,995

 

14,495

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, at par

 

26

 

25

 

Additional paid-in capital

 

154,982

 

153,582

 

Accumulated other comprehensive income

 

(67

)

1,126

 

Accumulated deficit

 

(113,661

)

(110,865

)

 

 

 

 

 

 

Total stockholders’ equity

 

41,280

 

43,868

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

56,275

 

$

58,363

 

 

(1) Derived from the December 31, 2003 audited balance sheet included in the 2003 Annual Report on Form 10-K of QuickLogic Corporation.

 

5


 

QUICKLOGIC CORPORATION

SUPPLEMENTAL DATA

(Unaudited)

 

 

 

Percent of Total Revenue

 

Change in Revenue

 

 

 

Q3
2004

 

Q2
2004

 

Q3
2003

 

Q3 2004 to
Q2 2004

 

Q3 2004 to
Q3 2003

 

COMPOSITION OF REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by product (1):

 

 

 

 

 

 

 

 

 

 

 

Mature products

 

62

%

60

%

49

%

9

%

35

%

Embedded standard products

 

30

%

31

%

41

%

2

%

(23

)%

Advanced embedded standard products

 

8

%

9

%

10

%

3

%

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography:

 

 

 

 

 

 

 

 

 

 

 

North America

 

46

%

52

%

52

%

(5

)%

(5

)%

Japan

 

15

%

13

%

14

%

24

%

21

%

Europe

 

30

%

22

%

20

%

48

%

61

%

Rest of world

 

9

%

13

%

14

%

(34

)%

(40

)%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by end-customer segment:

 

 

 

 

 

 

 

 

 

 

 

Computing

 

6

%

11

%

18

%

(38

)%

(62

)%

Instrumentation and test

 

41

%

46

%

34

%

(4

)%

29

%

Datacom and telecom

 

21

%

21

%

20

%

3

%

10

%

Graphics and imaging

 

16

%

13

%

10

%

27

%

64

%

Military and aerospace systems

 

16

%

9

%

18

%

90

%

(3

)%

 

(1)          Mature products include pASIC1, pASIC2 and pASIC3 product families.  Embedded standard products include the QuickRAM, QuickPCI, QuickDSP, QuickFC, and V3 product families. Advanced embedded standard products include our Eclipse, Eclipse II and QuickMIPS product families, certain QuickPCI devices as well as programming hardware and software.

 

6