UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 2, 2011
QuickLogic Corporation
(Exact name of registrant as specified in its charter)
Delaware | 000-22671 | 77-0188504 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1277 Orleans Drive, Sunnyvale, CA | 94089-1138 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (408) 990-4000
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 Financial Information
Item 2.02 Results of Operation and Financial Condition.
On August 2, 2011, QuickLogic Corporation (QuickLogic) issued a press release regarding QuickLogics financial results for the fiscal 2011 second quarter ended July 3, 2011. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liability of that Section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Section 9 Financial Statements and Exhibits
Item 9.01(d) Exhibits.
The following exhibit is furnished as a part of this report:
99.1 | Press release of QuickLogic Corporation announcing financial results for the fiscal 2011 second quarter ended July 3, 2011. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 2, 2011 | QuickLogic Corporation | |
/s/ Ralph S. Marimon | ||
Ralph S. Marimon Vice President of Finance and Chief Financial Officer |
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EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press release of QuickLogic Corporation announcing financial results for the fiscal 2011 second quarter ended July 3, 2011. |
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Exhibit 99.1
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Contacts: |
Ralph S. Marimon Vice President of Finance Chief Financial Officer (408) 990-4000 rsmarimon@quicklogic.com |
Andrea Vedanayagam (408) 656-4494 ir@quicklogic.com |
QuickLogic Announces Fiscal 2011 Second Quarter Results
SUNNYVALE, Calif. August 2, 2011 QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced the financial results for its fiscal second quarter ended July 3, 2011.
Total revenue for the second quarter of 2011 was $5.7 million, up 3% sequentially and down 11% compared to the second quarter of 2010. During the second quarter, new product revenue stayed flat at $1.2 million sequentially and accounted for 21% of total revenue. During the second quarter, mature product revenue increased to $4.5 million from $4.3 million in the first quarter of 2011, accounting for 79% of total revenue in the second quarter of 2011.
Under generally accepted accounting principles (GAAP), the net loss for the second quarter of 2011 was $2.1 million, or $0.05 per share, compared with a net loss of $0.9 million, or $0.02 per share, in the first quarter of 2011 and a net loss of $0.2 million, or $0.01 per share, in the second quarter of 2010. Non-GAAP net loss for the second quarter of 2011 was $1.6 million, or $0.04 per share, compared with a non-GAAP net loss of $0.4 million, or $0.01 per share, in the first quarter of 2011 and a non-GAAP net income of $0.4 million, or $0.01 per diluted share, in the second quarter of 2010.
As announced last week, Pantechs Vega 5 Tablet-Phone incorporating a VEE/DPO enabled CSSP began production in Q2, said Andy Pease, QuickLogics President and CEO. This represents the achievement of a significant milestone in our strategy and demonstrates that we are developing meaningful traction for CSSP based designs in our strategic market segments.
1
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, August 2, 2011, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogics website at www.quicklogic.com. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 83426213. The call recording will be archived until Friday, August 5, 2011 and the webcast will be available for 12 months.
About QuickLogic
QuickLogic Corporation (NASDAQ: QUIK) is the inventor and 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, the gain on sale of the Companys investment in TowerJazz Semiconductor Ltd. and the effect of the write-off of long-lived assets and equipment, the tax effect on other comprehensive income 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 Companys industry.
Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Companys 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 Companys 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.
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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 revenue generating potential of 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 Companys 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 Companys public reports filed with the Securities and Exchange Commission, including the risks discussed in the Risk Factors section in the Companys Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Companys prior press releases.
ArcticLink, pASIC, PolarPro, and QuickLogic are registered trademarks and Eclipse, QuickPCI, QuickRAM 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 | Six Months Ended | |||||||||||||||||||
July 3, 2011 | July 4, 2010 | April 3, 2011 | July 3, 2011 | July 4, 2010 | ||||||||||||||||
Revenue |
$ | 5,737 | $ | 6,479 | $ | 5,547 | $ | 11,284 | $ | 11,908 | ||||||||||
Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment |
1,908 | 2,553 | 1,821 | 3,729 | 4,596 | |||||||||||||||
Inventory write-down and related charges |
58 | | 118 | 176 | 73 | |||||||||||||||
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Gross profit |
3,771 | 3,926 | 3,608 | 7,379 | 7,239 | |||||||||||||||
Operating expenses: |
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Research and development |
3,312 | 1,533 | 1,803 | 5,115 | 3,593 | |||||||||||||||
Selling, general and administrative |
2,543 | 2,518 | 2,607 | 5,150 | 4,853 | |||||||||||||||
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Income (loss) from operations |
(2,084 | ) | (125 | ) | (802 | ) | (2,886 | ) | (1,207 | ) | ||||||||||
Gain on sale of TowerJazz Semiconductor Ltd. shares |
| | 993 | |||||||||||||||||
Interest expense |
(18 | ) | (27 | ) | (8 | ) | (26 | ) | (45 | ) | ||||||||||
Interest income and other (expense), net |
(13 | ) | (50 | ) | (4 | ) | (17 | ) | (71 | ) | ||||||||||
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Income (loss) before income taxes |
(2,115 | ) | (202 | ) | (814 | ) | (2,929 | ) | (330 | ) | ||||||||||
Provision for (benefit from) income taxes |
(55 | ) | 13 | 64 | 9 | 28 | ||||||||||||||
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Net income (loss) |
$ | (2,060 | ) | $ | (215 | ) | $ | (878 | ) | $ | (2,938 | ) | $ | (358 | ) | |||||
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Net income (loss) per share: |
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Basic |
$ | (0.05 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | (0.01 | ) | |||||
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Diluted |
$ | (0.05 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | (0.01 | ) | |||||
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Weighted average shares: |
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Basic |
38,376 | 35,383 | 36,495 | 38,224 | 35,244 | |||||||||||||||
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Diluted |
38,376 | 35,383 | 36,495 | 38,224 | 35,244 | |||||||||||||||
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QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 3, 2011 | July 4, 2010 | April 3, 2011 | July 3, 2011 | July 4, 2010 | ||||||||||||||||
GAAP loss from operations |
$ | (2,084 | ) | $ | (125 | ) | $ | (802 | ) | $ | (2,886 | ) | $ | (1,207 | ) | |||||
Adjustment for stock-based compensation within: |
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Cost of revenue |
35 | 39 | 35 | 70 | 86 | |||||||||||||||
Research and development |
119 | 180 | 121 | 240 | 355 | |||||||||||||||
Selling, general and administrative |
282 | 414 | 287 | 569 | 844 | |||||||||||||||
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Non-GAAP loss from operations |
$ | (1,648 | ) | $ | 508 | $ | (359 | ) | $ | (2,007 | ) | $ | 78 | |||||||
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GAAP net loss |
$ | (2,060 | ) | $ | (215 | ) | $ | (878 | ) | $ | (2,938 | ) | $ | (358 | ) | |||||
Adjustment for stock-based compensation within: |
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Cost of revenue |
35 | 39 | 35 | 70 | 86 | |||||||||||||||
Research and development |
119 | 180 | 121 | 240 | 355 | |||||||||||||||
Selling, general and administrative |
282 | 414 | 287 | 569 | 844 | |||||||||||||||
Adjustment for gain on sale of |
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TowerJazz Semiconductor Ltd. shares |
| | | | (993 | ) | ||||||||||||||
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Non-GAAP net loss |
$ | (1,624 | ) | $ | 418 | $ | (435 | ) | $ | (2,059 | ) | $ | (66 | ) | ||||||
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GAAP net loss per share |
$ | (0.05 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | (0.01 | ) | |||||
Adjustment for stock-based compensation |
0.01 | 0.02 | 0.01 | 0.02 | 0.04 | |||||||||||||||
Adjustment for gain on sale of |
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TowerJazz Semiconductor Ltd. shares |
| | | | (0.03 | ) | ||||||||||||||
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Non-GAAP net loss per share |
$ | (0.04 | ) | $ | 0.01 | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.00 | ) | ||||||
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GAAP gross margin percentage |
65.7 | % | 60.6 | % | 65.0 | % | 65.4 | % | 60.8 | % | ||||||||||
Adjustment for stock-based compensation |
0.6 | 0.6 | 0.6 | 0.6 | 0.7 | |||||||||||||||
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Non-GAAP gross margin percentage |
66.3 | % | 61.2 | % | 65.6 | % | 66.0 | % | 61.5 | % | ||||||||||
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* | 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)
July 3, 2011 | January 2, 2011 (1) | |||||||
ASSETS | ||||||||
Current assets: |
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Cash and cash equivalents |
$ | 21,439 | $ | 21,956 | ||||
Short-term investment in TowerJazz Semiconductor Ltd. |
767 | 909 | ||||||
Accounts receivable, net |
3,124 | 4,143 | ||||||
Inventories |
4,051 | 3,344 | ||||||
Other current assets |
723 | 772 | ||||||
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Total current assets |
30,104 | 31,124 | ||||||
Property and equipment, net |
2,174 | 2,312 | ||||||
Other assets |
178 | 192 | ||||||
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TOTAL ASSETS |
$ | 32,456 | $ | 33,628 | ||||
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LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Current liabilities: |
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Trade payables |
$ | 2,127 | $ | 2,152 | ||||
Accrued liabilities |
1,087 | 1,303 | ||||||
Deferred royalty revenue |
196 | 328 | ||||||
Current portion of capital lease obligations |
207 | 408 | ||||||
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Total current liabilities |
3,617 | 4,191 | ||||||
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Long-term liabilities: |
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Other long-term liabilities |
87 | 124 | ||||||
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Total liabilities |
3,704 | 4,315 | ||||||
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Stockholders equity: |
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Common stock, at par value |
38 | 38 | ||||||
Additional paid-in capital |
188,823 | 186,304 | ||||||
Accumulated other comprehensive income |
474 | 616 | ||||||
Accumulated deficit |
(160,583 | ) | (157,645 | ) | ||||
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Total stockholders equity |
28,752 | 29,313 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 32,456 | $ | 33,628 | ||||
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(1) | Derived from the January 2, 2011 audited balance sheet included in the 2010 Annual Report on Form 10-K of QuickLogic Corporation. |
6
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of Revenue | Change in Revenue | |||||||||||||||||||
Q2 2011 | Q1 2011 | Q2 2010 | Q1 2011 to Q2 2011 |
Q2 2010 to Q2 2011 |
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COMPOSITION OF REVENUE |
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Revenue by product (1): |
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New products |
21 | % | 22 | % | 35 | % | -2 | % | -48 | % | ||||||||||
Mature products |
79 | % | 78 | % | 65 | % | 5 | % | 9 | % | ||||||||||
Revenue by geography: |
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North America |
34 | % | 51 | % | 33 | % | -31 | % | -8 | % | ||||||||||
Europe |
23 | % | 13 | % | 13 | % | 87 | % | 58 | % | ||||||||||
Rest of world |
31 | % | 25 | % | 43 | % | 28 | % | -35 | % | ||||||||||
Japan |
11 | % | 10 | % | 11 | % | 7 | % | -15 | % |
(1) | New products represent products introduced since 2005, and include ArcticLink, PolarPro, PolarPro II, Eclipse II and QuickPCI II products. Mature products include Eclipse, pASIC 1, pASIC 2, pASIC 3, QuickDSP, QuickFC, QuickMIPS, QuickPCI, QuickRAM and V3 products, as well as royalty revenue, programming hardware and software. |
7
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