QuickLogic Reports Record Fourth Quarter Net Income and Full Year 2023 Non-GAAP Profitability
Highlights
- Record GAAP net income of
$2.0 million $2.6 million - Revenue growth of
31% for fiscal 2023 over fiscal 2022 - Since launching our IP business model in 2020, total revenue has grown
146% , and when coupling the significant increase in gross profit with the modest decrease in operating expenses, non-GAAP operating leverage increased by251% - Announces new IP contract targeting 12nm fabrication node
- Sales funnel, which includes a diverse range of new IP customers and end markets, grew to a record
$168 million - Line of credit increased to
$20 million
"I am very proud of the record profitability and the
Fiscal Fourth Quarter 2023 Financial Results
Total revenue for the fourth quarter of fiscal 2023 was
New product revenue was approximately
Mature product revenue was
Fourth quarter 2023 GAAP gross margin was
Fourth quarter 2023 non-GAAP gross margin was
Fourth quarter 2023 GAAP operating expenses were
Fourth quarter 2023 non-GAAP operating expenses were
Fourth quarter 2023 GAAP net income was
Fourth quarter 2023 non-GAAP net income was
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, February 27, 2024, to discuss its current financial results. The conference call will be webcast on QuickLogic's IR Site Events Page at https://ir.quicklogic.com/ir-calendar. To join the live conference, you may dial (877) 407-0792 and international participants should dial (201) 689-8263 by 2:20 p.m. Pacific Time. No Passcode is needed to join the conference call. A recording of the call will be available approximately one hour after completion. To access the recording, please call (844) 512-2921 and reference the passcode 13744470.
The call recording, which can be accessed by phone, will be archived through March 5, 2024, and the webcast will be available for 12 months on the Company's website.
About QuickLogic
QuickLogic is a fabless semiconductor company that develops innovative embedded FPGA (eFPGA) IP, discrete FPGAs, and FPGA SoCs for a variety of industrial, aerospace and defense, edge and endpoint AI, consumer, and computing applications. Our wholly owned subsidiary, SensiML Corporation, completes the end-to-end solution portfolio with AI / ML software that accelerates AI at the edge/endpoint. For more information, visit www.quicklogic.com/.
QuickLogic uses its website (www.quicklogic.com/), the company blog (https://www.quicklogic.com/blog/), corporate Twitter account (@QuickLogic_Corp), Facebook page (https://www.facebook.com/QuickLogic), and LinkedIn page (https://www.linkedin.com/company/13512/) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and QuickLogic may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the Company's website and its social media accounts in addition to following the Company's press releases, SEC filings, public conference calls, and webcasts.
Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with United States Generally Accepted Accounting Principles, or
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 the Company's 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
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, expectations regarding our future business, and actual results may differ due to a variety of factors including: 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 by competitors; our ability to hire and retain qualified personnel; our ability to capitalize on synergies with our subsidiary SensiML Corporation; changes in product demand or supply; general economic conditions; political events, international trade disputes, natural disasters and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products; and changes in tax rates and exposure to additional tax liabilities. These and other potential factors and uncertainties that could cause actual results to differ materially from the results contemplated or implied are described in more detail in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the risks discussed in the "Risk Factors" section in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases, which are available on the Company's Investor Relations website at http://ir.quicklogic.com/, and on the SEC website at www.sec.gov/. In addition, please note that the date of this press release is February 27, 2024, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We are not obliged to update these statements due to latest information or future events.
QuickLogic and logo are registered trademarks of QuickLogic. All other trademarks are the property of their respective holders and should be treated as such.
CODE: QUIK-E
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December | January 1, | October 1, | December | January 1, | ||||||||||||||||
Revenue | $ | 7,479 | $ | 4,084 | $ | 6,665 | $ | 21,198 | $ | 16,180 | ||||||||||
Cost of revenue | 1,713 | 1,965 | 1,537 | $ | 6,711 | 7,378 | ||||||||||||||
Gross profit | 5,766 | 2,119 | 5,128 | $ | 14,487 | 8,802 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 1,381 | 1,460 | 1,933 | $ | 6,448 | 5,001 | ||||||||||||||
Selling, general and administrative | 2,269 | 1,583 | 1,915 | $ | 7,969 | 7,601 | ||||||||||||||
Total operating expense | 3,650 | 3,043 | 3,848 | $ | 14,417 | 12,602 | ||||||||||||||
Operating income (loss) | 2,116 | (924) | 1,280 | $ | 70 | (3,800) | ||||||||||||||
Interest expense | (59) | (50) | (48) | $ | (215) | (148) | ||||||||||||||
Interest and other (expense) income, net | (17) | (179) | (36) | $ | (116) | (221) | ||||||||||||||
Income (loss) before income taxes | 2,040 | (1,153) | 1,196 | $ | (261) | (4,169) | ||||||||||||||
Provision for (benefit from) income taxes | (2) | 79 | 4 | $ | 2 | 98 | ||||||||||||||
Net income (loss) | $ | 2,042 | $ | (1,232) | $ | 1,192 | $ | (263) | $ | (4,267) | ||||||||||
Net income (loss) per share: | ||||||||||||||||||||
Basic EPS | $ | 0.15 | $ | (0.09) | $ | 0.09 | $ | (0.02) | $ | (0.34) | ||||||||||
Diluted EPS | $ | 0.14 | $ | (0.09) | $ | 0.08 | $ | (0.02) | $ | (0.34) | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 13,989 | 13,151 | 13,859 | 13,453 | 12,588 | |||||||||||||||
Diluted | 14,349 | 13,151 | 14,131 | 13,453 | 12,588 | |||||||||||||||
Note: Net income (loss) equals to comprehensive income (loss) for all periods presented. | ||||||||||||||||||||
QUICKLOGIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) | ||||||||
December 31, | January 1, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ | 24,606 | $ | 19,201 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 1,625 | 2,689 | ||||||
Contract assets | 3,609 | 1,987 | ||||||
Note receivable | 1,200 | — | ||||||
Inventories | 2,029 | 2,493 | ||||||
Prepaid expenses and other current assets | 1,561 | 1,570 | ||||||
Total current assets | 34,630 | 27,940 | ||||||
Property and equipment, net | 9,079 | 1,398 | ||||||
Capitalized internal-use software, net | 1,938 | 1,514 | ||||||
Right of use assets, net | 981 | 464 | ||||||
Intangible assets, net | 537 | 645 | ||||||
Non-marketable equity investment | 300 | 300 | ||||||
Goodwill | 185 | 185 | ||||||
Other assets | 142 | 140 | ||||||
TOTAL ASSETS | $ | 47,792 | $ | 32,586 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Revolving line of credit | $ | 20,000 | $ | 15,000 | ||||
Trade payables | 4,657 | 2,391 | ||||||
Accrued liabilities | 2,673 | 1,509 | ||||||
Deferred revenue | 1,052 | 272 | ||||||
Note payable, current | 946 | 448 | ||||||
Lease liabilities, current | 302 | 402 | ||||||
Total current liabilities | 29,630 | 20,022 | ||||||
Long-term liabilities: | ||||||||
Note payable, non-current | 461 | 439 | ||||||
Lease liabilities, non-current | 681 | 105 | ||||||
Other long-term liabilities | 125 | 125 | ||||||
Total liabilities | 30,897 | 20,691 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 14 | 13 | ||||||
Additional paid-in capital | 322,436 | 317,174 | ||||||
Accumulated deficit | (305,555) | (305,292) | ||||||
Total stockholders' equity | 16,895 | 11,895 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 47,792 | $ | 32,586 | ||||
QUICKLOGIC CORPORATION SUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES (in thousands, except per share amounts and percentages) (Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December | January 1, | October 1, | December | January 1, | ||||||||||||||||
US GAAP income (loss) from operations | $ | 2,116 | $ | (924) | $ | 1,280 | $ | 70 | $ | (3,800) | ||||||||||
Adjustment for stock-based compensation within: | ||||||||||||||||||||
Cost of revenue | 89 | 55 | 73 | 328 | 272 | |||||||||||||||
Research and development | 82 | 327 | 171 | 595 | 652 | |||||||||||||||
Selling, general and administrative | 434 | 306 | 372 | 1,599 | 1,111 | |||||||||||||||
Non-GAAP income (loss) from operations | $ | 2,721 | $ | (236) | $ | 1,896 | $ | 2,592 | $ | (1,765) | ||||||||||
US GAAP net income (loss) | $ | 2,042 | $ | (1,232) | $ | 1,192 | $ | (263) | $ | (4,267) | ||||||||||
Adjustment for stock-based compensation within: | ||||||||||||||||||||
Cost of revenue | 89 | 55 | 73 | 328 | 272 | |||||||||||||||
Research and development | 82 | 327 | 171 | 595 | 652 | |||||||||||||||
Selling, general and administrative | 434 | 306 | 372 | 1,599 | 1,111 | |||||||||||||||
Non-GAAP net income (loss) | $ | 2,647 | $ | (544) | $ | 1,808 | $ | 2,259 | $ | (2,232) | ||||||||||
US GAAP net income (loss) per share, basic | $ | 0.15 | $ | (0.09) | $ | 0.09 | $ | (0.02) | $ | (0.34) | ||||||||||
Adjustment for stock-based compensation | 0.04 | 0.05 | 0.04 | 0.19 | 0.16 | |||||||||||||||
Non-GAAP net income (loss) per share, basic | $ | 0.19 | $ | (0.04) | $ | 0.13 | $ | 0.17 | $ | (0.18) | ||||||||||
US GAAP net income (loss) per share, diluted | $ | 0.14 | $ | (0.09) | $ | 0.08 | $ | (0.02) | $ | (0.34) | ||||||||||
Adjustment for stock-based compensation | 0.04 | 0.05 | 0.05 | 0.19 | 0.16 | |||||||||||||||
Non-GAAP net income (loss) per share, diluted | $ | 0.18 | $ | (0.04) | $ | 0.13 | $ | 0.17 | $ | (0.18) | ||||||||||
US GAAP gross margin percentage | 77.1 | % | 51.9 | % | 76.9 | % | 68.3 | % | 54.4 | % | ||||||||||
Adjustment for stock-based compensation included | 1.2 | % | 1.3 | % | 1.1 | % | 1.6 | % | 1.7 | % | ||||||||||
Non-GAAP gross margin percentage | 78.3 | % | 53.2 | % | 78.0 | % | 69.9 | % | 56.1 | % | ||||||||||
QUICKLOGIC CORPORATION SUPPLEMENTAL DATA (Unaudited) | ||||||||||||||||||||
Percentage of Revenue | Change in Revenue | |||||||||||||||||||
Q4 2023 | Q4 2022 | Q3 2023 | Q4 2023 to | Q4 2023 to | ||||||||||||||||
COMPOSITION OF REVENUE | ||||||||||||||||||||
Revenue by product: (1) | ||||||||||||||||||||
New products | 91 | % | 70 | % | 91 | % | 140 | % | 12 | % | ||||||||||
Mature products | 9 | % | 30 | % | 9 | % | (48) | % | 15 | % | ||||||||||
Revenue by geography: | ||||||||||||||||||||
6 | % | 11 | % | 6 | % | (4) | % | 15 | % | |||||||||||
92 | % | 74 | % | 91 | % | 130 | % | 14 | % | |||||||||||
2 | % | 15 | % | 3 | % | (76) | % | (39) | % | |||||||||||
_____________________
(1) | New products include all products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP intellectual property, professional services, and QuickAI and SensiML AI software as a service (SaaS) revenue. Mature products include all products produced on semiconductor processes larger than 180 nanometer and includes related royalty revenue. |
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SOURCE QuickLogic Corporation
