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8-K - FORM 8-K - QUICKLOGIC Corpd481749d8k.htm

Exhibit 99.1

 

LOGO    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 Fourth Quarter and Fiscal 2012 Results

SUNNYVALE, Calif. – February 6, 2013 – QuickLogic Corporation (NASDAQ: QUIK), the leader in low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fourth quarter and fiscal year ended December 30, 2012.

Total revenue for the fourth quarter of 2012 was $3.1 million, down 16% sequentially and down 29% from the fourth quarter of 2011. During the fourth quarter, new product revenue of $1.0 million was down 35% sequentially and down 41% from the fourth quarter of 2011.

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2012 was $2.6 million or $0.06 per share, compared with a net loss of $2.8 million, or $0.06 per share, in the third quarter of 2012, and a net loss of $3.1 million, or $0.08 per share, in the fourth quarter of 2011. Non-GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $0.04 per share, compared with a non-GAAP net loss of $2.2 million, or $0.05 per share, in the third quarter of 2012, and a non-GAAP net loss of $2.7 million, or $0.07 per share, in the fourth quarter of 2011.

Total revenue for 2012 was down 29% at $14.9 million, compared with revenue of $21.0 million in 2011. GAAP net loss for 2012 was $12.3 million, or $0.29 per share, compared with a net loss of $7.6 million, or $0.21 per share, in 2011. Non-GAAP net loss for 2012 was $10.3 million, or $0.25 per share, compared with a non-GAAP net loss of $5.8 million, or $0.16 per share, in 2011.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Standard Time today, February 6, 2013, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic’s website at www.quicklogic.com. To join the live conference, please dial (877) 377-7094 by 2:20 p.m. Pacific Standard Time today. A recording of the call will be

 

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available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 90137354. The call recording will be archived until Tuesday, February 12, 2013 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 write-down of the Company’s investment in TowerJazz Semiconductor Ltd., the effect of the write-off of long-lived assets and 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 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 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 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 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.

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Note to Editors: Financial Tables Follow

 

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QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Year Ended  
     December 30,
2012
    January 1,
2012
    September 30,
2012
    December 30,
2012
    January 1,
2012
 

Revenue

   $ 3,086      $ 4,346      $ 3,657      $ 14,944      $ 20,969   

Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment

     1,546        2,181        1,916        7,431        7,807   

Inventory write-down and related charges

     19        148        —           447        710   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     1,521        2,017        1,741        7,066        12,452   

Operating expenses:

          

Research and development

     1,624        2,450        1,865        8,743        9,836   

Selling, general and administrative

     2,377        2,548        2,658        10,481        9,965   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (2,480     (2,981     (2,782     (12,158     (7,349

Interest expense

     (12     (5     (12     (61     (36

Interest income and other (expense), net

     (32     (93     18        (77     (159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (2,524     (3,079     (2,776     (12,296     (7,544

Provision for (benefit from) income taxes

     35        31        22        18        50   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (2,559   $ (3,110   $ (2,798   $ (12,314   $ (7,594
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

          

Basic

   $ (0.06   $ (0.08   $ (0.06   $ (0.29   $ (0.21
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.06   $ (0.08   $ (0.06   $ (0.29   $ (0.21
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares:

          

Basic

     44,400        38,482        44,122        41,831        36,792   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     44,400        38,482        44,122        41,831        36,792   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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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     Years Ended  
     December 30,
2012
    January 1,
2012
    September 30,
2012
    December 30,
2012
    January 1,
2012
 

GAAP loss from operations

   $ (2,480   $ (2,981   $ (2,782   $ (12,158   $ (7,349

Adjustment for stock-based compensation within:

          

Cost of revenue

     39        27        69        179        131   

Research and development

     116        104        147        455        458   

Selling, general and administrative

     429        254        385        1,369        1,087   

Adjustment for the write-off of equipment within:

          

Selling, general and administrative

     —         —         25        25        102   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP loss from operations

   $ (1,896   $ (2,596   $ (2,156   $ (10,130   $ (5,571
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net loss

   $ (2,559   $ (3,110   $ (2,798   $ (12,314   $ (7,594

Adjustment for stock-based compensation within:

          

Cost of revenue

     39        27        69        179        131   

Research and development

     116        104        147        455        458   

Selling, general and administrative

     429        254        385        1,369        1,087   

Adjustment for the write-off of equipment within:

          

Selling, general and administrative

     —         —         25        25        102   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (1,975   $ (2,725   $ (2,172   $ (10,286   $ (5,816
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net loss per share

   $ (0.06   $ (0.08   $ (0.06   $ (0.29   $ (0.21

Adjustment for stock-based compensation

     0.02        0.01        0.01        0.04        0.05   

Adjustment for write-off of equipment

     —          —          *        *        *   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss per share

   $ (0.04   $ (0.07   $ (0.05   $ (0.25   $ (0.16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP gross margin percentage

     49.3     46.4     47.6     47.3     59.4

Adjustment for stock-based compensation

     1.3     0.6     2.5     1.3     0.6

Adjustment for write-off of equipment

     —          —          *        *        *   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross margin percentage

     50.6     47.0     50.1     48.6     60.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

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QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     December 30,
2012
    January 1,
2012
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 22,578      $ 20,203   

Short-term investment in TowerJazz Semiconductor Ltd.

     345        406   

Accounts receivable, net

     1,242        1,585   

Inventories

     3,028        3,764   

Other current assets

     986        613   
  

 

 

   

 

 

 

Total current assets

     28,179        26,571   

Property and equipment, net

     2,659        2,181   

Other assets

     186        211   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 31,024      $ 28,963   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Trade payables

   $ 1,965      $ 2,464   

Accrued liabilities

     1,214        1,118   

Deferred royalty revenue

     —          8   

Current portion of debt and capital lease obligations

     160        141   
  

 

 

   

 

 

 

Total current liabilities

     3,339        3,731   
  

 

 

   

 

 

 

Long-term liabilities:

    

Capital lease obligations, less current portion

     266        146   

Other long-term liabilities

     141        148   
  

 

 

   

 

 

 

Total liabilities

     3,746        4,025   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock, at par value

     45        39   

Additional paid-in capital

     204,797        190,025   

Accumulated other comprehensive income

     (11     113   

Accumulated deficit

     (177,553     (165,239
  

 

 

   

 

 

 

Total stockholders’ equity

     27,278        24,938   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 31,024      $ 28,963   
  

 

 

   

 

 

 

 

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QUICKLOGIC CORPORATION

SUPPLEMENTAL DATA

(Unaudited)

 

     Percentage of Revenue     Change in Revenue  
     Q4 2012     Q3 2012     Fiscal
2012
    Fiscal
2011
    Q3 2012
to
Q4 2012
    2011 to 2012  

COMPOSITION OF REVENUE

            

Revenue by product (1):

            

New products

     33     43     40     25     (35 )%      11

Mature products

     67     57     60     75     (1 )%      (42 )% 

Revenue by geography:

            

United States

     41     36     34     39     (4 )%      (39 )% 

Japan

     21     23     22     13     (22 )%      21

Europe

     20     20     16     20     (16 )%      (42 )% 

Malaysia

     11     11     11     9     (15 )%      (4 )% 

Rest of North America

     4     2     2     2     64     0

China

     3     7     12     14     (63 )%      (43 )% 

Rest of Asia Pacific

     0     1     3     3     (71 )%      (43 )% 

 

(1) New products represent products introduced since 2005, and include ArcticLink, ArcticLink II, ArcticLink III, Eclipse II, PolarPro, PolarPro II, and QuickPCI II products. Mature products include Eclipse, pASIC1, pASIC2, pASIC3, QuickDSP, QuickFC, QuickMIPS, QuickPCI, QuickRAM and V3 products, as well as royalty revenue, programming hardware and software.

 

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