EX-99.1 2 a09-4503_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Contacts

Ralph S. Marimon

Chief Financial Officer

 

(408) 990-4000

rsmarimon@quicklogic.com

Andrea Vedanayagam

Director, Corporate

Communications

(408) 990-4000

andrea@quicklogic.com

QuickLogic Announces Fourth Quarter and Fiscal 2008 Results —

Fourth Quarter New Product Revenue Up Sequentially

 

SUNNYVALE, Calif. — February 3, 2009 — QuickLogic Corporation (NASDAQ: QUIK), the lowest power programmable solutions leader, today announced the financial results for its fourth quarter and fiscal year ended December 28, 2008.

 

Total revenue for the fourth quarter of 2008 was $5.9 million, down 5 percent from the third quarter of 2008 and down 45 percent from the fourth quarter of 2007. The sequential decline in revenue was primarily due to anticipated declines in our legacy product revenue. New products — ArcticLink®, PolarPro® II, PolarPro , Eclipse™ II and QuickPCI® II — grew to contribute 26 percent of revenue in the fourth quarter of 2008 compared to  23 percent in the third quarter of 2008 and was 33 percent of revenue in the fourth quarter of 2007.

 

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2008 was $2.6 million, or $0.09 per share, compared with a net loss of $615,000, or $0.02 per share, in the third quarter of 2008 and a net loss of $1.7 million, or $0.06 per share, in the fourth quarter of 2007.  Non-GAAP net loss for the fourth quarter of 2008 was $1.2 million, or $0.04 per share, compared with a non-GAAP net loss of $196,000, or $0.01 per share, in the third quarter of 2008 and a non-GAAP net loss of $1.1 million, or $0.04 per share, in the fourth quarter of 2007.

 

Revenue for 2008 was $31.9 million, compared with revenue of $34.4 million in 2007. Under GAAP, the net loss for 2008 was $9.4 million, or $0.32 per share, compared with a net loss of $11.1 million, or $0.38 per share, in 2007. Non-GAAP net loss for 2008 improved to $3.0 million, or $0.10 per share, compared with a non-GAAP net loss of $9.3 million, or $0.32 per share, in 2007.

 

-- more --

 


 

 “New product revenue in our fiscal year 2008 was $8.1 million, a $1.8 million increase over new product revenue in fiscal year 2007. The sale of Customer Specific Standard Products, or CSSPs, into the portable navigation device market was the primary driver of the increase in new product sales,” said E. Thomas Hart, chairman, president and CEO. “Our low power CSSPs allow mobile device manufacturers to bring their new products to market more quickly and cost effectively with lower risk. The CSSP message — ‘Your idea, our platform, customized for you’ — resonates well in our target markets, as we continue to engage with more top tier mobile device manufacturers.”

 

Conference Call

 

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, February 3, 2009, to discuss the fourth quarter and fiscal year 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 (877) 591-4958 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: 7884431. The call recording will be archived until February 6, 2008 and the webcast will be available for 12 months.

 

About QuickLogic

 

QuickLogic Corporation (NASDAQ: QUIK) is the pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics original equipment manufacturers (OEMs) and original design manufacturers (ODMs).  These silicon plus software solutions are called Customer Specific Standard Products (CSSPs).  CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market.  For more information about QuickLogic and CSSPs, visit www.quicklogic.com. Code:  QUIK-G

 

Non-GAAP Financial Measures

 

QuickLogic reports financial information in accordance with 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, restructuring, long-lived asset impairment, the write-down of the Company’s investment in Tower Semiconductor Ltd. and the effect of the write-off of equipment in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. 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 provide consistency and comparability with similar companies in the Company’s industry.

 

2


 

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 a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity 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 with 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 the interest of the market in 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 the results described in these 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.

 

ArcticLink, pASIC, PolarPro, QuickLogic, QuickPCI, and QuickRAM are registered trademarks and Eclipse and the QuickLogic logo 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

 

Years Ended

 

 

 

December 28,
2008

 

December 30,
2007

 

September 28,
2008

 

December 28,
2008

 

December 30,
2007

 

Revenue

 

$

5,914

 

$

10,745

 

$

6,230

 

$

31,910

 

$

34,417

 

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

 

2,656

 

5,312

 

2,575

 

13,343

 

15,469

 

Inventory write-down and related charges

 

267

 

408

 

203

 

1,598

 

3,941

 

Long-lived asset impairment

 

—

 

—

 

—

 

1,545

 

—

 

Gross profit

 

2,991

 

5,025

 

3,452

 

15,424

 

15,007

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

1,400

 

2,549

 

1,354

 

8,185

 

9,517

 

Selling, general and administrative

 

3,093

 

4,230

 

2,666

 

14,049

 

17,163

 

Long-lived asset impairment

 

—

 

—

 

—

 

468

 

—

 

Restructuring costs

 

50

 

—

 

—

 

502

 

—

 

Total operating expenses

 

4,543

 

6,779

 

4,020

 

23,204

 

26,680

 

Loss from operations

 

(1,552

)

(1,754

)

(568

)

(7,780

)

(11,673

)

Write-down of investment in Tower Semiconductor Ltd

 

(981

)

—

 

—

 

(1,398

)

—

 

Interest expense

 

(23

)

(54

)

(59

)

(225

)

(280

)

Interest income and other, net

 

(94

)

142

 

(46

)

(6

)

894

 

Loss before income taxes

 

(2,650

)

(1,666

)

(673

)

(9,409

)

(11,059

)

Provision for (benefit from) income taxes

 

(30

)

4

 

(58

)

(54

)

75

 

Net loss

 

$

(2,620

)

$

(1,670

)

$

(615

)

$

(9,355

)

$

(11,134

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.09

)

$

(0.06

)

$

(0.02

)

$

(0.32

)

$

(0.38

)

Diluted

 

$

(0.09

)

$

(0.06

)

$

(0.02

)

$

(0.32

)

$

(0.38

)

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

29,844

 

29,267

 

29,772

 

29,653

 

29,041

 

Diluted

 

29,844

 

29,267

 

29,772

 

29,653

 

29,041

 

 

4


 

QUICKLOGIC CORPORATION

SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended

 

Years Ended

 

 

 

December 28,
2008

 

December 30,
2007

 

September 28,
2008

 

December 28,
2008

 

December 30,
2007

 

GAAP loss from operations

 

$

(1,552

)

$

(1,754

)

$

(568

)

$

(7,780

)

$

(11,673

)

Adjustment for the write-off of equipment within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

12

 

161

 

30

 

42

 

166

 

Selling, general and administrative

 

—

 

—

 

—

 

15

 

2

 

Adjustment for long-lived asset impairment within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

—

 

—

 

—

 

1,545

 

—

 

Selling, general and administrative

 

—

 

—

 

—

 

468

 

—

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

47

 

53

 

49

 

267

 

229

 

Research and development

 

74

 

103

 

89

 

517

 

376

 

Selling, general and administrative

 

249

 

287

 

251

 

1,557

 

1,099

 

Adjustment for restructuring costs

 

50

 

—

 

—

 

502

 

—

 

Non-GAAP loss from operations

 

$

(1,120

)

$

(1,150

)

$

(149

)

$

(2,867

)

$

(9,801

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(2,620

)

$

(1,670

)

$

(615

)

$

(9,355

)

$

(11,134

)

Adjustment for the write-off of equipment within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

12

 

161

 

30

 

42

 

166

 

Selling, general and administrative

 

—

 

—

 

—

 

15

 

2

 

Adjustment for long-lived asset impairment within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

—

 

—

 

—

 

1,545

 

—

 

Selling, general and administrative

 

—

 

—

 

—

 

468

 

—

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

47

 

53

 

49

 

267

 

229

 

Research and development

 

74

 

103

 

89

 

517

 

376

 

Selling, general and administrative

 

249

 

287

 

251

 

1,557

 

1,099

 

Adjustment for restructuring costs

 

50

 

—

 

—

 

502

 

—

 

Adjustment for write-down of investment in Tower Semiconductor Ltd.

 

981

 

—

 

—

 

1,398

 

—

 

Non-GAAP net loss

 

$

(1,207

)

$

(1,066

)

$

(196

)

$

(3,044

)

$

(9,262

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.09

)

$

(0.06

)

$

(0.02

)

$

(0.32

)

$

(0.38

)

Adjustment for stock-based compensation

 

0.01

 

0.02

 

0.01

 

0.08

 

0.06

 

Adjustment for long-lived asset impairment

 

—

 

—

 

—

 

0.07

 

—

 

Adjustment for write-off of equipment

 

*

 

*

 

*

 

*

 

*

 

Adjustment for restructuring costs

 

*

 

—

 

—

 

0.02

 

—

 

Adjustment for write-down of investment in Tower Semiconductor Ltd.

 

0.04

 

—

 

—

 

0.05

 

—

 

Non-GAAP net loss per share

 

$

(0.04

)

$

(0.04

)

$

(0.01

)

$

(0.10

)

$

(0.32

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin percentage

 

50.6

%

46.8

%

55.4

%

48.3

%

43.6

%

Adjustment for stock-based compensation

 

0.8

%

0.5

%

0.8

%

0.8

%

0.7

%

Adjustment for long-lived asset impairment

 

0.0

%

0.0

%

0.0

%

4.8

%

0.0

%

Adjustment for write-off of equipment

 

0.2

%

1.5

%

0.5

%

0.2

%

0.5

%

Non-GAAP gross margin percentage

 

51.6

%

48.8

%

56.7

%

54.1

%

44.8

%

 

* Figures were not considered in the reconciliation of Non-GAAP net loss per share due to the insignificant amount

 

5


 

QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

December 28,
2008

 

December 30,
2007(1)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

19,376

 

$

20,868

 

Short-term investment in Tower Semiconductor Ltd.

 

116

 

1,279

 

Accounts receivable, net

 

1,746

 

2,634

 

Inventory

 

1,900

 

5,770

 

Other current assets

 

833

 

1,607

 

Total current assets

 

23,971

 

32,158

 

Property and equipment, net

 

3,493

 

5,877

 

Investment in Tower Semiconductor Ltd.

 

59

 

644

 

Other assets

 

903

 

2,745

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

28,426

 

$

41,424

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Revolving line of credit

 

$

2,000

 

$

—

 

Trade payables

 

1,992

 

4,207

 

Accrued liabilities

 

1,537

 

2,228

 

Deferred income on shipments to distributors

 

282

 

516

 

Deferred royalty revenue

 

—

 

431

 

Current portion of debt and capital lease obligations

 

753

 

2,497

 

Total current liabilities

 

6,564

 

9,879

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

Debt and capital lease obligations, less current portion

 

—

 

2,527

 

Total liabilities

 

6,564

 

12,406

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, at par value

 

30

 

29

 

Additional paid-in capital

 

169,846

 

167,298

 

Accumulated other comprehensive income

 

—

 

350

 

Accumulated deficit

 

(148,014

)

(138,659

)

Total stockholders’ equity

 

21,862

 

29,018

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

28,426

 

$

41,424

 

 

 

 

 

 

 

 

(1)   Derived from the December 30, 2007 audited balance sheet included in the 2007 Annual Report on Form 10-K of QuickLogic Corporation.

 

6


 

QUICKLOGIC CORPORATION

SUPPLEMENTAL DATA

(Unaudited)

 

 

 

Percentage of Revenue

 

Change in Revenue

 

 

 

Q4

 

Q3

 

Fiscal

 

Fiscal

 

Q3 2008 to

 

2007 to

 

 

 

2008

 

2008

 

2008

 

2007

 

Q4 2008

 

2008

 

COMPOSITION OF REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by product (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

New products

 

26

%

23

%

25

%

19

%

7

%

28

%

Mature products

 

60

%

74

%

54

%

48

%

(22

)%

3

%

End-of-life products

 

14

%

3

%

21

%

33

%

327

%

(42

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

46

%

33

%

41

%

53

%

34

%

(28

)%

Europe

 

13

%

14

%

15

%

18

%

(9

)%

(23

)%

Asia Pacific

 

34

%

42

%

36

%

20

%

(24

)%

66

%

Japan

 

7

%

11

%

8

%

9

%

(44

)%

(19

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by end-customer segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

Instrumentation and test

 

30

%

53

%

52

%

43

%

(46

)%

10

%

Military and aerospace systems

 

38

%

12

%

15

%

14

%

208

%

(4

)%

Datacom and telecom

 

7

%

8

%

13

%

19

%

(14

)%

(37

)%

Graphics and imaging

 

12

%

24

%

16

%

19

%

(53

)%

(19

)%

Computing

 

13

%

3

%

4

%

5

%

273

%

(12

)%

 

(1)          New products include ArcticLink, PolarPro II, 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.

 

7