Total revenue for the fourth quarter of 2015 was $3.6 million, representing a decrease of 13% compared to $4.2 million in the third quarter of 2015. New product revenue for the fourth quarter of 2015 was $2.1 million, a decrease of 28% compared to $2.9 million in the third quarter of 2015. Total revenue for the fiscal year 2015 was down 32% at $19.0 million, compared with total revenue of $28.0 million in 2014. In 2015, new product revenue was down 38% at $12.0 million, compared with new product revenue of $19.3 million in 2014.
"We have been transitioning from a low power programmable logic company to a Sensor Processing Solution company," said Andy Pease, QuickLogic's CEO and President. "The progress we have made with the new EOS S3 platform has been strong, and the traction with large OEM customers is very encouraging. Today's conference call will include some significant updates towards realizing our strategic goals."
Non-GAAP net loss for the fourth quarter of 2015 was $4.3 million, or $0.08 per share, compared with a non-GAAP net loss of $4.5 million, or $0.08 per share, in the third quarter of 2015 and a non-GAAP net loss of $3.7 million, or $0.06 per share, in the fourth quarter of 2014. Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the fourth quarter of 2015 was $4.8 million, or $0.09 per share, compared with a net loss of $5.1 million, or $0.09 per share, in the third quarter of 2015 and a net loss of $4.1 million, or $0.07 per share, in the fourth quarter of 2014.
Non-GAAP net loss for 2015 was $15.5 million, or $0.28 per share, compared with a non-GAAP net loss of $10.8 million, or $0.19 per share, in 2014. GAAP net loss for 2015 was $17.8 million, or $0.32 per share, compared with a net loss of $13.1 million, or $0.23 per share, in 2014.
Pursuant to the restructuring plan implemented in the second quarter, the Company recorded additional restructuring charges of $49,000 during the fourth quarter of 2015. For the fiscal year 2015, the Company recorded total restructuring charges of $295,000, consisting primarily of severance related costs and Canada subsidiary closing costs.
Conference Call
QuickLogic (
About QuickLogic
QuickLogic Corporation is the leading provider of ultra-low power, customizable Sensor Hub, Display, and Connectivity semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs. Called Customer Specific Standard Products (CSSPs), these programmable 'silicon plus software' solutions enable our customers to bring hardware-differentiated products to market quickly and cost effectively. 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 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.
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements. 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.
QuickLogic is a registered trademark and the QuickLogic logo and EOS are trademarks of QuickLogic Corporation.
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
---------------------------------- ----------------------
January 3, December September January 3, December
2016 28, 2014 27, 2015 2016 28, 2014
---------- ---------- ---------- ---------- ----------
Revenue $ 3,630 $ 5,721 $ 4,194 $ 18,956 $ 27,845
Cost of revenue,
excluding
inventory write-
down 2,134 3,487 2,951 11,182 16,678
Inventory write-
down 215 22 1 229 118
---------- ---------- ---------- ---------- ----------
Gross profit 1,281 2,212 1,242 7,545 11,049
Operating
expenses:
Research and
development 3,490 3,432 3,684 14,144 12,186
Selling, general
and
administrative 2,461 2,771 2,508 10,619 11,663
Restructuring
cost 49 -- 77 295 --
---------- ---------- ---------- ---------- ----------
Total operating
expense 6,000 6,203 6,269 25,058 23,849
---------- ---------- ---------- ---------- ----------
Loss from
operations (4,719) (3,991) (5,027) (17,513) (12,800)
Interest expense (18) (18) (35) (82) (85)
Interest income
and other
(expense), net (9) (47) (39) (107) (126)
---------- ---------- ---------- ---------- ----------
Loss before
income taxes (4,746) (4,056) (5,101) (17,702) (13,011)
Provision for
(benefit from)
income taxes 100 86 (15) 146 68
---------- ---------- ---------- ---------- ----------
Net loss $ (4,846) $ (4,142) $ (5,086) $ (17,848) $ (13,079)
========== ========== ========== ========== ==========
Net loss per
share:
Basic $ (0.09) $ (0.07) $ (0.09) $ (0.32) $ (0.23)
========== ========== ========== ========== ==========
Diluted $ (0.09) $ (0.07) $ (0.09) $ (0.32) $ (0.23)
========== ========== ========== ========== ==========
Weighted average
shares:
Basic 56,729 55,982 56,588 56,472 55,401
========== ========== ========== ========== ==========
Diluted 56,729 55,982 56,588 56,472 55,401
========== ========== ========== ========== ==========
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 3, December 28,
2016 2014 (1)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 19,136 $ 30,050
Accounts receivable, net 1,601 1,552
Inventories 2,878 4,952
Other current assets 1,312 1,146
------------ ------------
Total current assets 24,927 37,700
Property and equipment, net 3,315 3,217
Other assets 219 222
------------ ------------
TOTAL ASSETS $ 28,461 $ 41,139
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables $ 4,032 $ 2,506
Accrued liabilities 1,456 1,574
Deferred Revenue 26 --
Current portion of capital lease obligations 281 225
------------ ------------
Total current liabilities 5,795 4,305
Long-term liabilities:
Revolving line of credit 2,000 1,000
Capital lease obligations, less current portion 208 191
Other long-term liabilities 133 76
------------ ------------
Total liabilities 8,136 5,572
------------ ------------
Stockholders' equity:
Common stock, at par value 57 56
Additional paid-in capital 241,024 238,419
Accumulated deficit (220,756) (202,908)
------------ ------------
Total stockholders' equity 20,325 35,567
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,461 $ 41,139
============ ============
________________________
(1) Derived from the December 28, 2014 audited balance sheet included in
the 2014 Annual Report on Form 10-K of QuickLogic Corporation.
QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
--------------------------------- ---------------------
January 3, December September January 3, December
2016 28, 2014 27, 2015 2016 28, 2014
---------- --------- ---------- ---------- ---------
GAAP loss from
operations $ (4,719) $ (3,991) $ (5,027) $ (17,513) $ (12,800)
Adjustment for
stock-based
compensation
within:
Cost of revenue 14 27 29 109 137
Research and
development 213 174 210 826 924
Selling, general
and
administrative 306 291 240 1,065 1,181
Adjustment for the
write-off of
equipment within:
Cost of revenue -- -- 8 8 --
Selling, general
and
administrative -- -- -- -- 5
Adjustment for
restructuring
costs 49 -- 77 295 --
---------- --------- ---------- ---------- ---------
Non-GAAP loss from
operations $ (4,137) $ (3,499) $ (4,463) $ (15,210) $ (10,553)
========== ========= ========== ========== =========
GAAP net loss $ (4,846) $ (4,142) $ (5,086) $ (17,848) $ (13,079)
Adjustment for
stock-based
compensation
within:
Cost of revenue 14 27 29 109 137
Research and
development 213 174 210 826 924
Selling, general
and
administrative 306 291 240 1,065 1,181
Adjustment for the
write-off of
equipment within:
Cost of revenue -- -- 8 8 --
Selling, general
and
administrative -- -- -- -- 5
Adjustment for
restructuring
costs 49 -- 77 295 --
---------- --------- ---------- ---------- ---------
Non-GAAP net loss $ (4,264) $ (3,650) $ (4,522) $ (15,545) $ (10,832)
========== ========= ========== ========== =========
GAAP net loss per
share $ (0.09) $ (0.07) $ (0.09) $ (0.32) $ (0.23)
Adjustment for
stock-based
compensation 0.01 0.01 0.01 0.04 0.04
Adjustment for the
write-off of
equipment -- -- * * --
Adjustment for
restructuring
costs * -- * * --
---------- --------- ---------- ---------- ---------
Non-GAAP net loss
per share $ (0.08) $ (0.06) $ (0.08) $ (0.28) $ (0.19)
========== ========= ========== ========== =========
GAAP gross margin
percentage 35.3% 38.7% 29.6% 39.8% 39.7%
Adjustment for
stock-based
compensation 0.4% 0.4% 0.7% 0.6% 0.5%
Adjustment for the
write-off
equipment --% --% 0.2% * --%
========== ========= ========== ========== =========
Non-GAAP gross
margin percentage 35.7% 39.1% 30.5% 40.4% 40.2%
========== ========= ========== ========== =========
* Figures were not considered for reconciliation due to the insignificant amount.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
Percentage of Revenue Change in Revenue
--------------------------------------- -------------------
Q3 2015
Fiscal Fiscal to 2014 to
Q4 2015 Q3 2015 2015 2014 Q4 2015 2015
--------- --------- --------- --------- --------- ---------
COMPOSITION OF
REVENUE
Revenue by
product: (1)
New products 57% 68% 63% 69% (28)% (38)%
Mature products 43% 32% 37% 31% 17% (19)%
Revenue by
geography:
Asia Pacific 64% 73% 67% 72% (24)% (37)%
Europe 13% 11% 10% 12% 5% (45)%
North America 23% 16% 23% 16% 20% 3%
_____________________
(1) New products include all products manufactured on 180 nanometer or
smaller semiconductor processes. Mature products include all products
produced on semiconductor processes larger than 180 nanometers.
Contacts: Andrew J. Pease President and Chief Executive Officer (408) 990-4000 Email Contact Andrea Vedanayagam (408) 656-4494 Email Contact