Highlights
- Continued new product revenue growth year over year
- Increased sales funnel to $125 million
- Growth in eFPGA-related business and sequential improvements in gross margins driven by eFPGA revenue and cost management position the Company for expected 2023 non-GAAP operating profit
"We continued to make progress this quarter towards reaching our goal of positive non-GAAP operating income," commented Brian Faith, CEO of QuickLogic. "Conversion of opportunities in our sales funnel, now at $125 million, should start to accelerate in the third and fourth quarters, providing upside to our sales growth estimate of 30%. This continued growth would put us on track to report positive non-GAAP operating income in both the third and fourth quarters and for the full year."
Fiscal First Quarter 2023 Financial Results
Total revenue for the first quarter of fiscal 2023 was $4.1 million, an increase of 1.2% compared with the fourth quarter of 2022, and an increase of 0.9% compared with the first quarter of 2022.
New product revenue was approximately $3.1 million in the first quarter of 2023, an increase of $0.2 million, or 7.5%, compared with the fourth quarter of 2022, and a decrease of $0.4 million, or 11.4%, compared with the first quarter of 2022. Increased eFPGA revenue year over year was offset by decreased display, smart connectivity, and sensor product revenues.
Mature product revenue was $1.1 million in the first quarter of 2023, a decrease of $0.2 million, or 13.2%, compared with the fourth quarter of 2022. Mature product revenue in the first quarter of 2023, increased 66.9% compared to the first quarter of 2022.
First quarter 2023 GAAP gross margin was 57.8% compared with 51.9% in the fourth quarter of 2022, and 60.1% in the first quarter of 2022.
First quarter 2023 non-GAAP gross margin was 59.7% compared with 53.2% in the fourth quarter of 2022, and 61.5% in the first quarter of 2022.
First quarter 2023 GAAP operating expenses were $3.5 million compared with $3.0 million in the fourth quarter of 2022, and $3.5 million in the first quarter of 2022.
First quarter 2023 non-GAAP operating expenses were $2.9 million compared with $2.4 million in the fourth quarter of 2022, and $3.1 million in the first quarter of 2022.
First quarter 2023 GAAP net loss was $1.2 million, or $0.09 per share, compared with a net loss of $1.2 million, or $0.09 per share, in the fourth quarter of 2022, and a net loss of $1.2 million, or $0.10 per share, in the first quarter of 2022.
First quarter 2023 non-GAAP net loss was $0.5 million, or $0.04 per share, compared with a net loss of $0.5 million, or $0.04 per share, in the fourth quarter of 2022, and a net loss of $0.8 million, or $ 0.06 per share, in the first quarter of 2022.
Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, May 16, 2023, 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 (412) 317-6671 and reference the passcode 13738596.
The call recording, which can be accessed by phone, will be archived through May 23, 2023, and the webcast will be available for 12 months on the Company's website.
About QuickLogic
QuickLogic is a fabless semiconductor company that develops low power, multi-core semiconductor platforms and Intellectual Property (IP) for Artificial Intelligence (AI), voice and sensor processing. The solutions include an embedded FPGA IP (eFPGA) for hardware acceleration and pre-processing, and heterogeneous multi-core SoCs that integrate eFPGA with other processors and peripherals. The Analytics Toolkit from the Company's wholly owned subsidiary, SensiML Corporation, completes the end-to-end solution with accurate sensor algorithms using AI technology. The full range of platforms, software tools and eFPGA IP enables the practical and efficient adoption of AI, voice, and sensor processing across the multitude of mobile, wearable, hearable, consumer, industrial, edge and endpoint IoT (Internet of Things) applications. For more information, visit www.quicklogic.com and https://www.quicklogic.com/blog/.
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 (Securities and Exchange Commission) filings, public conference calls, and webcasts.
Non-GAAP Financial Measures
QuickLogic reports financial information in accordance with United States Generally Accepted Accounting Principles, or U.S. 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 certain charges related to stock-based compensation, in calculating non-GAAP (i) loss from operations, (ii) net loss, (iii) net 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 like how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.
