EX-99.1 2 a07-27419_1ex99d1.htm EX-99.1

 

Exhibit 99.1

Contacts:

 

Carl M. Mills
Chief Financial Officer

(408) 990-4000
cmills@quicklogic.com

 

Andrea Vedanayagam
Director, Corporate Communications
(408) 990-4000
andrea@quicklogic.com

 

 

QuickLogic Announces Fiscal 2007 Third Quarter Results — New Product Revenue Ramps Sequentially at Top Tier Customers

 

SUNNYVALE, Calif. — October 24, 2007 — QuickLogic Corporation (NASDAQ: QUIK), the lowest power programmable solutions leader, today announced the financial results for its fiscal third quarter ended September 30, 2007.

Revenue for the third quarter of 2007 was $9.0 million, up seven percent from $8.4 million in the second quarter of 2007 and up five percent from $8.6 million in the third quarter of 2006. New product revenue increased by $1.0 million sequentially; this growth was partially offset by a decline in end-of-life product revenue. Higher end-of-life and mature product revenue was a major contributor to the year-on-year increase in revenue. New products — ArcticLink™, PolarPro™, Eclipse™ II and QuickPCI® II — contributed 18 percent of revenue in the third quarter of 2007, seven percent in the second quarter of 2007 and 25 percent of revenue in the third quarter of 2006.

Under generally accepted accounting principles (GAAP), the net loss for the third quarter of 2007 was $1.5 million, or $0.05 per share, compared with a net loss of $2.1 million, or $0.07 per share, in the second quarter of 2007 and a net loss of $3.0 million, or $0.10 per share, in the third quarter of 2006.  Non-GAAP net loss for the third quarter of 2007 was $1.0 million, or $0.04 per share, compared with a non-GAAP net loss of $1.7 million, or $0.06 per share, in the second quarter of 2007 and a non-GAAP net loss of $2.6 million, or $0.09 per share, in the third quarter of 2006.

QuickLogic reports certain financial measures, including net loss, in accordance with GAAP and also on a non-GAAP basis. Non-GAAP results, where applicable, exclude stock-based compensation recorded in accordance with Statement of Financial Accounting Standards (SFAS) No. 123(R), “Share-based Payment” and the write-off of long-lived assets. For a full reconciliation of GAAP net loss to non-GAAP net loss, please refer to the schedule on page 5 of this press release.

-more-

 


 

 

 “We are pleased with our significant increase in revenue compared with the second quarter,” said E. Thomas Hart, chairman, president and CEO. “We are getting good design traction for our Customer Specific Standard Products (CSSPs) with top customers in our target markets.  The trend for these customers is to design platforms that enable them to generate multiple products.  The inherent flexibility of CSSPs serves well to “future-proof” these platforms, extending their life over several product generations. This allows our customers to bring new products to market more quickly and cost effectively with lower risk.”

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, October 24, 2007, to discuss the third quarter financial results. The conference call is being webcast and can be accessed via QuickLogic’s website at www.quicklogic.com/investors. To participate, please call (888) 684-1265 by 2:20 p.m. Pacific Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (719) 457-0820 and reference the pass code: 5642724. The call recording will be archived until November 1, 2007 and the webcast will be available for 12 months.

 

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the leading provider of the lowest power programmable solutions for the portable electronics, industrial, communications and military markets. Our new products — ArcticLink, PolarPro, Eclipse II and QuickPCI — are being used to implement bridge and control solutions in embedded systems requiring Wi-Fi, DVB-H and IDE or CE-ATA based disk drives. QuickLogic’s proprietary ViaLink® technology offers significant benefits for programmable logic, including the lowest power, instant on capability and bulletproof intellectual property security. The Company is located at 1277 Orleans Drive, Sunnyvale, CA 94089-1138. Website www.quicklogic.com

 

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation and the effect of the write-off of long-lived assets in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. For a full reconciliation of these GAAP measures to non-GAAP measures, please refer to the schedule on page 5 of this press release. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to

 

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provide consistency and comparability with similar companies in the Company’s industry. Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company’s core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company’s future periods, and serve as the basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash compensation paid to employees and executive officers.

 

Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

 

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 design activity of our new products and the revenue generating potential of such new products, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from any such forward-looking statements. Factors that could cause actual results to differ materially include delays in the market acceptance of the Company’s new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers’ products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; 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.

 

The QuickLogic name and logo, QuickPCI and ViaLink are registered trademarks of and ArcticLink, Eclipse and PolarPro 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 amounts)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,
2007

 

October 1,
2006

 

July 1,
2007

 

September 30,
2007

 

October 1,
2006

 

Revenue

 

$

9,025

 

$

8,598

 

$

8,405

 

$

23,672

 

$

27,180

 

Cost of revenue, excluding inventory write-down and related charges

 

4,005

 

4,157

 

3,216

 

10,157

 

11,668

 

Inventory write-down and related charges

 

309

 

1,214

 

759

 

3,533

 

1,684

 

Gross profit

 

4,711

 

3,227

 

4,430

 

9,982

 

13,828

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

2,342

 

2,429

 

2,339

 

6,968

 

7,186

 

Selling, general and administrative

 

3,953

 

3,994

 

4,387

 

12,933

 

13,205

 

Total operating expenses

 

6,295

 

6,423

 

6,726

 

19,901

 

20,391

 

Loss from operations

 

(1,584

)

(3,196

)

(2,296

)

(9,919

)

(6,563

)

Interest expense

 

(69

)

(65

)

(72

)

(226

)

(235

)

Interest income and other, net

 

189

 

333

 

317

 

752

 

966

 

Loss before income taxes

 

(1,464

)

(2,928

)

(2,051

)

(9,393

)

(5,832

)

Provision for income taxes

 

29

 

23

 

27

 

71

 

46

 

Net loss

 

$

(1,493

)

$

(2,951

)

$

(2,078

)

$

(9,464

)

$

(5,878

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

$

(0.10

)

$

(0.07

)

$

(0.33

)

$

(0.21

)

Diluted

 

$

(0.05

)

$

(0.10

)

$

(0.07

)

$

(0.33

)

$

(0.21

)

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

29,116

 

28,678

 

28,966

 

28,966

 

28,420

 

Diluted

 

29,116

 

28,678

 

28,966

 

28,966

 

28,420

 

 

 

4


 

QUICKLOGIC CORPORATION

SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,
2007

 

October 1,
2006

 

July 1,
2007

 

September 30,
2007

 

October 1,
2006

 

GAAP loss from operations

 

$

(1,584

)

$

(3,196

)

$

(2,296

)

$

(9,919

)

$

(6,563

)

Adjustment for the write-off of long-lived assets within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

5

 

33

 

—

 

5

 

33

 

Selling, general and administrative

 

2

 

1

 

—

 

2

 

1

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

67

 

36

 

54

 

176

 

138

 

Research and development

 

94

 

57

 

94

 

273

 

321

 

Selling, general and administrative

 

291

 

197

 

280

 

812

 

686

 

Non-GAAP loss from operations

 

$

(1,125

)

$

(2,872

)

$

(1,868

)

$

(8,651

)

$

(5,384

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(1,493

)

$

(2,951

)

$

(2,078

)

$

(9,464

)

$

(5,878

)

Adjustment for the write-off of long-lived assets within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

5

 

33

 

—

 

5

 

33

 

Selling, general and administrative

 

2

 

1

 

—

 

2

 

1

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

67

 

36

 

54

 

176

 

138

 

Research and development

 

94

 

57

 

94

 

273

 

321

 

Selling, general and administrative

 

291

 

197

 

280

 

812

 

686

 

Non-GAAP net loss

 

$

(1,034

)

$

(2,627

)

$

(1,650

)

$

(8,196

)

$

(4,699

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.05

)

$

(0.10

)

$

(0.07

)

$

(0.33

)

$

(0.21

)

Adjustment for the write-off of long-lived assets and stock-based compensation

 

0.01

 

0.01

 

0.01

 

0.05

 

0.04

 

Non-GAAP net loss per share

 

$

(0.04

)

$

(0.09

)

$

(0.06

)

$

(0.28

)

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP weighted average shares

 

29,116

 

28,678

 

28,966

 

28,966

 

28,420

 

Adjustment for the write-off of long-lived assets and stock-based compensation

 

—

 

—

 

—

 

—

 

—

 

Non-GAAP weighted average shares

 

29,116

 

28,678

 

28,966

 

28,966

 

28,420

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin percentage

 

52.2

%

37.5

%

52.7

%

42.2

%

50.9

%

Adjustment for the write-off of long-lived assets and stock-based compensation

 

0.8

%

0.8

%

0.6

%

0.7

%

0.6

%

Non-GAAP gross margin percentage

 

53.0

%

38.3

%

53.3

%

42.9

%

51.5

%

 

5


 

QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

September 30,
2007

 

December 31,
2006(1)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

20,846

 

$

24,621

 

Short-term investment in Tower Semiconductor Ltd.

 

1,601

 

1,530

 

Accounts receivable, net

 

2,583

 

2,839

 

Inventory

 

4,838

 

9,064

 

Other current assets

 

1,395

 

1,894

 

Total current assets

 

31,263

 

39,948

 

Property and equipment, net

 

4,786

 

5,480

 

Investment in Tower Semiconductor Ltd.

 

806

 

769

 

Other assets

 

3,142

 

4,038

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

39,997

 

$

50,235

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Trade payables

 

$

3,002

 

$

4,383

 

Accrued liabilities

 

2,644

 

2,462

 

Deferred income on shipments to distributors

 

1,159

 

1,152

 

Deferred royalty revenue

 

548

 

960

 

Current portion of debt and capital lease obligations

 

1,544

 

2,292

 

Total current liabilities

 

8,897

 

11,249

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

Debt and capital lease obligations, less current portion

 

912

 

1,618

 

Total liabilities

 

9,809

 

12,867

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, at par value

 

29

 

29

 

Additional paid-in capital

 

166,314

 

164,138

 

Accumulated other comprehensive income

 

834

 

726

 

Accumulated deficit

 

(136,989

)

(127,525

)

Total stockholders’ equity

 

30,188

 

37,368

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

39,997

 

$

50,235

 

 

  _________________________

(1)   Derived from the December 31, 2006 audited balance sheet included in the 2006 Annual Report on Form 10-K of QuickLogic Corporation.

 

6


 

QUICKLOGIC CORPORATION

SUPPLEMENTAL DATA

(Unaudited)

 

 

 

Percentage of Revenue

 

Change in Revenue

 

 

 

Q3

 

Q3

 

Q2

 

Q3 2006 to

 

Q2 2007 to

 

 

 

2007

 

2006

 

2007

 

Q3 2007

 

Q3 2007

 

COMPOSITION OF REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by product (1):

 

 

 

 

 

 

 

 

 

 

 

New products

 

18

%

25

%

7

%

(24

)%

165

%

Mature products

 

50

%

50

%

52

%

6

%

4

%

End-of-life products

 

32

%

25

%

41

%

32

%

(16

)%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography:

 

 

 

 

 

 

 

 

 

 

 

North America

 

50

%

45

%

60

%

16

%

(11

)%

Europe

 

22

%

40

%

20

%

(43

)%

15

%

Japan

 

9

%

7

%

9

%

36

%

6

%

Rest of world

 

19

%

8

%

11

%

151

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by end-customer segment:

 

 

 

 

 

 

 

 

 

 

 

Instrumentation and test

 

47

%

38

%

32

%

29

%

59

%

Military and aerospace systems

 

15

%

10

%

19

%

68

%

(16

)%

Datacom and telecom

 

14

%

37

%

26

%

(59

)%

(40

)%

Graphics and imaging

 

19

%

12

%

20

%

63

%

3

%

Computing

 

5

%

3

%

3

%

58

%

57

%

_________________________

(1)          The Company changed the definition of its product families this quarter. New products include ArcticLink, PolarPro, Eclipse II and QuickPCI II products. Mature products include QuickRAM, pASIC 3, Eclipse, QuickDSP and QuickFC products, as well as royalty revenue, programming hardware and software. End-of-life products include pASIC 1, pASIC 2, V3, QuickPCI and QuickMIPS products.

 

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