Core Insights - QuickLogic Corporation has been selected by a Defense Industrial Base company for its eFPGA IP targeting GlobalFoundries' 12LP, a 12nm low-power process, with delivery scheduled for Q2 2025 [1][2] Company Overview - QuickLogic is a fabless semiconductor company that specializes in eFPGA Hard IP, discrete FPGAs, and endpoint AI solutions, focusing on delivering customizable, low-power solutions across various markets including industrial, aerospace, consumer, and computing [3] Industry Position - QuickLogic has established a strong reputation over more than three decades as a trusted supplier of SWaP-C-optimized programmable logic to the Defense Industrial Base, emphasizing its capability to provide rapid, design-specific solutions that mitigate program risk [2]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $5.7 million, down 24% from Q4 2023 but up 34% compared to Q3 2024 [38] - Non-GAAP gross margin in Q4 was 62%, compared to 78.3% in Q4 2023 and 60% in Q3 2024 [39] - Non-GAAP net income was $0.6 million, or $0.04 per diluted share, down from $2.6 million, or $0.18 per diluted share, in Q4 2023 [40] Business Line Data and Key Metrics Changes - New product revenue in Q4 was $4.7 million, down 32% from Q4 2023 but up 32% compared to Q3 2024 [38] - Mature product revenue was $1.0 million, up from $0.7 million in both Q4 2023 and Q3 2024 [38] Market Data and Key Metrics Changes - The company anticipates significant IP contract awards that will leverage investments made in 2024, particularly in the defense industrial base [51][54] - The company is the only supplier of eFPGA Hard IP optimized for Intel 18A, which is expected to drive future growth [54] Company Strategy and Development Direction - The company plans to diversify its end markets beyond the defense industrial base, targeting industrial, communications, and consumer sectors [58][90] - The company expects to expand its eFPGA Hard IP offerings to 9 or possibly 10 unique fabrication process technologies during 2025 [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a significant rebound in revenue and profitability beginning in Q2 2025, driven by new contract awards [10][45] - The company expects to be cash flow positive in Q2 and for the full year 2025 [51] Other Important Information - The company is exploring options for SensiML, including a potential sale, with a conclusion expected before the next earnings call [36] - The company has appointed a new VP of IP Sales, Andy Jaros, to leverage relationships with former FlexLogix customers [19][84] Q&A Session Summary Question: What are the expectations for Q2 revenue? - Management expects Q2 revenue to exceed $6 million, driven by new IP contracts [66] Question: How is the funnel for new opportunities developing? - The funnel has grown, primarily from new eFPGA opportunities, but specific quantitative metrics were not provided [71][72] Question: What is the outlook for Intel 18A opportunities? - Management believes there is strong demand for Intel 18A, particularly from the U.S. government and defense sectors, regardless of Intel's corporate structure [78][80] Question: What is the timeline for converting FlexLogix customers? - Management anticipates a shorter conversion period due to the new VP of IP Sales leveraging existing relationships [84] Question: How is the company diversifying its end markets? - The company is seeing growth in non-defense sectors, including industrial and consumer markets, and expects to close contracts in these areas [90]

QuickLogic Corporation (NASDAQ:QUIK) Q4 2024 Earnings Conference Call February 25, 2025 5:30 PM ET Company Participants Alison Ziegler - Investor Relations, Darrow Associates Brian Faith - President & Chief Executive Officer Elias Nader - Senior Vice President & Chief Financial Officer Conference Call Participants Richard Shannon - Craig-Hallum Capital Martin Yang - Oppenheimer & Company Operator Ladies and gentlemen, good afternoon. At this time, I would like to welcome everyone to QuickLogic Corporation's ...

Group 1: Earnings Performance - QuickLogic reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.18 per share a year ago [1] - The earnings surprise for this quarter was 33.33%, while the previous quarter saw a surprise of -20% with an actual loss of $0.06 per share against an expected loss of $0.05 [2] - Over the last four quarters, QuickLogic has surpassed consensus EPS estimates two times [2] Group 2: Revenue Analysis - The company posted revenues of $5.71 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.48%, and down from $7.48 million year-over-year [3] - QuickLogic has only topped consensus revenue estimates once over the last four quarters [3] Group 3: Stock Performance and Outlook - QuickLogic shares have declined approximately 38.7% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [4] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [7] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $6.4 million, and for the current fiscal year, it is $0.21 on revenues of $27.3 million [8] Group 4: Industry Context - The Electronics - Semiconductors industry, to which QuickLogic belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Revenue Performance - Total revenue for Q4 2024 was $5.7 million, a decrease of 23.7% compared to Q4 2023, but an increase of 33.5% compared to Q3 2024[4] - New product revenue in Q4 2024 was approximately $4.7 million, down $2.2 million or 31.8% year-over-year, but up $1.1 million or 31.7% sequentially[5] - Mature product revenue was $1.0 million in Q4 2024, compared to $0.7 million in both Q4 2023 and Q3 2024[6] - Revenue from new products constituted 82% of total revenue in Q4 2024, down from 91% in Q4 2023, indicating a decline of 32% year-over-year[29] - Mature products revenue increased to 18% of total revenue in Q4 2024, up from 9% in Q4 2023, marking a growth of 61%[29] - Revenue from Asia Pacific increased to 9% in Q4 2024, up from 6% in Q4 2023, reflecting a growth of 28%[29] - North America revenue decreased to 86% in Q4 2024, down from 92% in Q4 2023, a decline of 29%[29] Profitability and Margins - Q4 2024 GAAP gross margin was 59.8%, down from 77.1% in Q4 2023 and up from 55.8% in Q3 2024[6] - Q4 2024 non-GAAP net income was $0.6 million, or $0.04 per share, compared to $2.6 million, or $0.19 per share, in Q4 2023[9] - Non-GAAP net income for Q4 2024 was $563 thousand, compared to $2,647 thousand in Q4 2023, reflecting a decrease of 78.7%[27] - US GAAP net income for Q4 2024 was a loss of $305 thousand, compared to a profit of $2,042 thousand in Q4 2023[27] - Gross margin percentage under US GAAP for Q4 2024 was 59.8%, down from 77.1% in Q4 2023[27] Financial Position - Total assets increased to $51,933 million as of December 29, 2024, up from $47,792 million as of December 31, 2023, representing an increase of 4.5%[25] - Current liabilities decreased to $25,397 million, down from $29,630 million, a reduction of 14.3%[25] - Total stockholders' equity rose to $24,887 million as of December 29, 2024, compared to $16,895 million as of December 31, 2023, an increase of 47.1%[25] Strategic Developments - Awarded a $1.1 million eFPGA Hard IP contract with a new defense industrial base customer[10] - Announced a $6.6 million fourth tranche of the Strategic Radiation Hardened FPGA Technology US Government contract[10] - The company is on track to complete the first eFPGA Hard IP core optimized for Intel 18A during Q1 2025[10] - Signed a distribution agreement with Magenta to expand the distribution network to Turkiye and UAE[10] Future Outlook - The company expects to achieve non-GAAP profitability and positive cash flow for the full year 2025[3]

Core Insights - QuickLogic Corporation reported its financial results for the fiscal fourth quarter and fiscal year ending December 29, 2024, highlighting a strategic focus on revenue growth and profitability in 2025 [1][3]. Financial Performance - Total revenue for Q4 2024 was $5.7 million, a decrease of 23.7% year-over-year but an increase of 33.5% compared to Q3 2024 [4]. - New product revenue was approximately $4.7 million, down by $2.2 million or 31.8% year-over-year, but up by $1.1 million or 31.7% from Q3 2024 [5]. - Mature product revenue reached $1.0 million, compared to $0.7 million in both Q4 2023 and Q3 2024 [6]. - GAAP gross margin for Q4 2024 was 59.8%, down from 77.1% in Q4 2023 and up from 55.8% in Q3 2024 [6]. - Non-GAAP gross margin for Q4 2024 was 62.0%, compared to 78.3% in Q4 2023 and 60.0% in Q3 2024 [6]. Operating Expenses and Net Income - GAAP operating expenses for Q4 2024 were $3.6 million, slightly down from $3.7 million in Q4 2023 and $4.2 million in Q3 2024 [7]. - Non-GAAP operating expenses were $2.9 million, down from $3.1 million in Q4 2023 and $3.3 million in Q3 2024 [7]. - GAAP net loss for Q4 2024 was ($0.3 million), or ($0.02) per share, compared to net income of $2.0 million, or $0.15 per share, in Q4 2023 [8]. - Non-GAAP net income for Q4 2024 was $0.6 million, or $0.04 per share, compared to net income of $2.6 million, or $0.19 per share, in Q4 2023 [9]. Strategic Developments - The company is executing a Strategic Radiation Hardened FPGA contract with the US government and has seen opportunities arise following a competitor's exit from the market [3]. - QuickLogic is the first and currently the only company to offer eFPGA Hard IP for Intel 18A, positioning itself for revenue growth in 2025 [3]. - Recent contracts include a $1.1 million eFPGA Hard IP contract with a new defense customer and a $6.6 million tranche of the Strategic Radiation Hardened FPGA Technology contract [11]. Revenue Composition - In Q4 2024, new products accounted for 82% of revenue, down from 91% in Q4 2023, while mature products accounted for 18%, up from 9% [26]. - Geographically, North America represented 86% of revenue, down from 92% in Q4 2023, while Europe saw a significant increase of 90% year-over-year [26].

Core Viewpoint - Brokerage recommendations, particularly for QuickLogic (QUIK), show a strong average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy, based on three recommendations from brokerage firms [2] Group 1: Brokerage Recommendations - QuickLogic has an ABR of 1.00, with all three recommendations classified as Strong Buy, representing 100% of the total recommendations [2] - Despite the positive ABR, reliance solely on brokerage recommendations for investment decisions may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [4][5] Group 2: Zacks Rank vs. ABR - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [7][10] - The Zacks Rank is distinct from ABR, as ABR is based solely on brokerage recommendations, while Zacks Rank utilizes a quantitative model reflecting earnings estimates [8] - The Zacks Rank is more timely in predicting future stock prices due to constant revisions by brokerage analysts, unlike the potentially outdated ABR [11] Group 3: QuickLogic's Earnings Estimates - The Zacks Consensus Estimate for QuickLogic remains unchanged at $0.03 for the current year, indicating steady analyst views on the company's earnings prospects [12] - The unchanged consensus estimate has led to a Zacks Rank of 3 (Hold) for QuickLogic, suggesting caution despite the Buy-equivalent ABR [13]

Announces Participation in Upcoming Investor ConferencesSAN JOSE, Calif., Feb. 11, 2025 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK), a developer of embedded FPGA (eFPGA) IP and ruggedized FPGAs and Endpoint AI solutions, today announced that it has scheduled a conference call to discuss its fourth quarter fiscal 2024 financial results on Tuesday, February 25, 2025.Date: Tuesday, February 25, 2025Time: 5:30 p.m. ET/2:30 p.m. PTDial-in: Toll Free: 1-877-407-0792; International: 1-201-689-8263Passcod ...

SAN JOSE, Calif., Feb. 10, 2025 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK), a leading provider of embedded FPGA (eFPGA) Hard IP, and ruggedized FPGAs, today announced the integration of the Synopsys Synplify® synthesis tool into its FPGA User Tools. This integration enhances QuickLogic's design environment by accelerating FPGA-based design cycles, improving PPA and enabling engineers to work in a familiar design environment. With Synplify's well-established synthesis capabilities now accessible w ...

SAN JOSE, Calif., Feb. 10, 2025 /PRNewswire/ -- QuickLogic Corporation (NASDAQ: QUIK), a developer of embedded FPGA (eFPGA) Hard IP and ruggedized FPGAs, today announced the release of Aurora the 2.9 software tool. This latest version of the company's popular eFPGA design tool introduces a suite of enhanced capabilities, empowering engineers with improved performance and ease of use for the embedded BRAM and DSP blocks.Key enhancements in Aurora 2.9 include: BlockRAM and DSP IP Configurator: Enables seamles ...