This press release contains forward-looking statements made by our CEO 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.
|
QUICKLOGIC CORPORATION |
||||||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 28, 2009 | June 29, 2008 | March 29, 2009 | June 28, 2009 | June 29, 2008 | ||||||||||||||||||||
| Revenue | $ | 2,911 | $ | 8,743 | $ | 4,552 | $ | 7,463 | $ | 19,766 | ||||||||||||||
| Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment | ||||||||||||||||||||||||
| 1,531 | 3,810 | 1,641 | 3,172 | 8,112 | ||||||||||||||||||||
| Inventory write-down and related charges | 58 | 172 | 178 | 236 | 1,128 | |||||||||||||||||||
| Long-lived asset impairment | - | 1,545 | - | - | 1,545 | |||||||||||||||||||
| Gross profit | 1,322 | 3,216 | 2,733 | 4,055 | 8,981 | |||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Research and development | 1,877 | 2,610 | 1,612 | 3,489 | 5,431 | |||||||||||||||||||
| Selling, general and administrative | 2,709 | 3,970 | 2,643 | 5,352 | 8,290 | |||||||||||||||||||
| Long-lived asset impairment | - | 468 | - | - | 468 | |||||||||||||||||||
| Restructuring costs | - | 452 | - | - | 452 | |||||||||||||||||||
| Loss from operations | (3,264 | ) | (4,284 | ) | (1,522 | ) | (4,786 | ) | (5,660 | ) | ||||||||||||||
| Write-down of investment in Tower Semiconductor Ltd. | (417 | ) | - | (417 | ) | |||||||||||||||||||
| Interest expense | (23 | ) | (72 | ) | (24 | ) | (47 | ) | (143 | ) | ||||||||||||||
| Interest income and other, net | 45 | 30 | (46 | ) | (1 | ) | 134 | |||||||||||||||||
| Loss before income taxes | (3,242 | ) | (4,743 | ) | (1,592 | ) | (4,834 | ) | (6,086 | ) | ||||||||||||||
| Provision for (benefit from) income taxes | (15 | ) | - | 4 | (11 | ) | 34 | |||||||||||||||||
| Net loss | $ | (3,227 | ) | $ | (4,743 | ) | $ | (1,596 | ) | $ | (4,823 | ) | $ | (6,120 | ) | |||||||||
| Net loss per share: | ||||||||||||||||||||||||
| Basic | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.21 | ) | |||||||||
| Diluted | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.21 | ) | |||||||||
| Weighted average shares: | ||||||||||||||||||||||||
| Basic | 30,081 | 29,589 | 29,909 | 29,994 | 29,498 | |||||||||||||||||||
| Diluted | 30,081 | 29,589 | 29,909 | 29,994 | 29,498 | |||||||||||||||||||
|
QUICKLOGIC CORPORATION |
||||||||||||||||||||||||||
|
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 28, 2009 | June 29, 2008 | March 29, 2009 | June 28, 2009 | June 29, 2008 | ||||||||||||||||||||||
| GAAP loss from operations | $ | (3,264 | ) | $ | (4,284 | ) | $ | (1,522 | ) | $ | (4,786 | ) | $ | (5,660 | ) | |||||||||||
| Adjustment for stock-based compensation within: | ||||||||||||||||||||||||||
| Cost of revenue | 71 | 106 | 51 | 122 | 171 | |||||||||||||||||||||
| Research and development | 138 | 196 | 88 | 226 | 354 | |||||||||||||||||||||
| Selling, general and administrative | 358 | 615 | 245 | 603 | 1,057 | |||||||||||||||||||||
| Adjustment for long-lived asset impairment within: | ||||||||||||||||||||||||||
| Cost of revenue | - | 1,545 | - | - | 1,545 | |||||||||||||||||||||
| Operating expenses | - | 468 | - | - | 468 | |||||||||||||||||||||
| Adjustment for the write-off of equipment within: | ||||||||||||||||||||||||||
| Selling, general and administrative | - | 15 | - | - | 15 | |||||||||||||||||||||
| Adjustment for restructuring costs | - | 452 | - | - | 452 | |||||||||||||||||||||
| Non-GAAP loss from operations | $ | (2,697 | ) | $ | (887 | ) | $ | (1,138 | ) | $ | (3,835 | ) | $ | (1,598 | ) | |||||||||||
| GAAP net loss | $ | (3,227 | ) | $ | (4,743 | ) | $ | (1,596 | ) | $ | (4,823 | ) | $ | (6,120 | ) | |||||||||||
| Adjustment for stock-based compensation within: | ||||||||||||||||||||||||||
| Cost of revenue | 71 | 106 | 51 | 122 | 171 | |||||||||||||||||||||
| Research and development | 138 | 196 | 88 | 226 | 354 | |||||||||||||||||||||
| Selling, general and administrative | 358 | 615 | 245 | 603 | 1,057 | |||||||||||||||||||||
| Adjustment for long-lived asset impairment within: | ||||||||||||||||||||||||||
| Cost of revenue | - | 1,545 | - | - | 1,545 | |||||||||||||||||||||
| Operating expenses | - | 468 | - | - | 468 | |||||||||||||||||||||
| Adjustment for the write-off of equipment within: | ||||||||||||||||||||||||||
| Selling, general and administrative | - | 15 | - | - | 15 | |||||||||||||||||||||
| Other expense | - | - | 13 | 13 | - | |||||||||||||||||||||
| Adjustment for restructuring costs | - | 452 | - | - | 452 | |||||||||||||||||||||
| Adjustment for write-down of investment in Tower Semiconductor Ltd. | ||||||||||||||||||||||||||
| - | 417 | - | - | 417 | ||||||||||||||||||||||
| Non-GAAP net loss | $ | (2,660 | ) | $ | (929 | ) | $ | (1,199 | ) | $ | (3,859 | ) | $ | (1,641 | ) | |||||||||||
| GAAP net loss per share | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.21 | ) | |||||||||||
| Adjustment for stock-based compensation | 0.02 | 0.03 | 0.01 | 0.03 | 0.05 | |||||||||||||||||||||
| Adjustment for long-lived asset impairment | - | 0.07 | - | - | 0.07 | |||||||||||||||||||||
| Adjustment for write-off of equipment | - | * | * | * | * | |||||||||||||||||||||
| Adjustment for restructuring costs | - | 0.02 | - | - | 0.02 | |||||||||||||||||||||
| Adjustment for write-down of investment in Tower Semiconductor Ltd. | ||||||||||||||||||||||||||
| - | 0.01 | - | - | 0.01 | ||||||||||||||||||||||
| Non-GAAP net loss per share | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.13 | ) | $ | (0.06 | ) | |||||||||||
| GAAP gross margin percentage | 45.4 |
% |
36.8 | % | 60.0 | % | 54.3 | % | 45.4 | % | ||||||||||||||||
| Adjustment for stock-based compensation | 2.5 | 1.2 | 1.2 | 1.7 | 0.9 | |||||||||||||||||||||
| Adjustment for write-off of long-lived asset | - | 17.7 | - | - | 7.8 | |||||||||||||||||||||
| Non-GAAP gross margin percentage | 47.9 | % | 55.7 | % | 61.2 | % | 56.0 | % | 54.1 | % | ||||||||||||||||
|
* Figures were not considered in the reconciliation of Non-GAAP net loss per share due to the insignificant amount. |
||||||||||||||||||||||||||
|
QUICKLOGIC CORPORATION |
|||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||
|
(In thousands) |
|||||||||||
|
(Unaudited) |
|||||||||||
| June 28, 2009 |
December 28, 2008 (1) |
||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 16,450 | $ | 19,376 | |||||||
| Short-term investment in Tower Semiconductor Ltd. | 286 | 116 | |||||||||
| Accounts receivable, net | 1,468 | 1,746 | |||||||||
| Inventories | 2,042 | 1,900 | |||||||||
| Other current assets | 721 | 833 | |||||||||
| Total current assets | 20,967 | 23,971 | |||||||||
| Property and equipment, net | 3,465 | 3,493 | |||||||||
| Investment in Tower Semiconductor Ltd. | 144 | 59 | |||||||||
| Other assets | 676 | 903 | |||||||||
| TOTAL ASSETS | $ | 25,252 | $ | 28,426 | |||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||
| Current liabilities: | |||||||||||
| Revolving line of credit | $ | 2,000 | $ | 2,000 | |||||||
| Trade payables | 2,224 | 1,992 | |||||||||
| Accrued liabilities | 1,532 | 1,537 | |||||||||
| Deferred income on shipments to distributors | 11 | 282 | |||||||||
| Deferred royalty revenue | 48 | - | |||||||||
| Current portion of debt and capital lease obligations | 612 | 753 | |||||||||
| Total current liabilities | 6,427 | 6,564 | |||||||||
| Long-term liabilities: | |||||||||||
| Debt and capital lease obligations, less current portion | 390 | - | |||||||||
| Total liabilities | 6,817 | 6,564 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock, at par value | 30 | 30 | |||||||||
| Additional paid-in capital | 170,987 | 169,846 | |||||||||
| Accumulated other comprehensive income | 255 | - | |||||||||
| Accumulated deficit | (152,837 | ) | (148,014 | ) | |||||||
| Total stockholders’ equity | 18,435 | 21,862 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 25,252 | $ | 28,426 | |||||||
|
(1) Derived from the December 28, 2008 audited balance sheet included in the 2008 Annual Report on Form 10-K of QuickLogic Corporation. |
|||||||||||
|
QUICKLOGIC CORPORATION SUPPLEMENTAL DATA (Unaudited) |
|||||||||||||||||
| Percentage of Revenue | Change in Revenue | ||||||||||||||||
| Q2 2009 | Q2 2008 | Q1 2009 | Q2 2008 to Q2 2009 | Q1 2009 to Q2 2009 | |||||||||||||
| COMPOSITION OF REVENUE | |||||||||||||||||
|
Revenue by product (1) : |
|||||||||||||||||
| New products | 28 | % | 29 | % | 15 | % | (68 | )% | 24 | % | |||||||
| Mature products | 65 | % | 53 | % | 79 | % | (59 | )% | (48 | )% | |||||||
| End-of-life products | 7 | % | 18 | % | 6 | % | (86 | )% | (25 | )% | |||||||
| Revenue by geography: | |||||||||||||||||
| North America | 47 | % | 38 | % | 53 | % | (59 | )% | (44 | )% | |||||||
| Europe | 19 | % | 15 | % | 22 | % | (59 | )% | (43 | )% | |||||||
| Rest of world | 19 | % | 39 | % | 17 | % | (84 | )% | (29 | )% | |||||||
| Japan | 15 | % | 8 | % | 8 | % | (34 | )% | 23 | % | |||||||
|
(1) |
New products include ArcticLink, PolarPro II, PolarPro, Eclipse II and QuickPCI II products. Mature products include QuickRAM, pASIC® 3, Eclipse, QuickDSP and QuickFC products, as well as royalty revenue, programming hardware and software. End-of-life products include pASIC 1, pASIC 2, V3, QuickPCI and QuickMIPS products. |
||||||||||||||||
