SUNNYVALE, CA--(Marketwire - May 1, 2012) - QuickLogic Corporation (NASDAQ: QUIK), the lowest power Customer Specific Standard Products (CSSPs) leader, today announced the financial results for its fiscal first quarter ended April 1, 2012.

Total revenue for the first quarter of 2012 was $4.1 million, down 5% from the fourth quarter of 2011 and down 26% from the first quarter of 2011. During the first quarter, new product revenue decreased to $1.6 million from $1.7 million in the fourth quarter of 2011. New product revenue accounted for 40% of the total revenue in the first quarter. During the first quarter, mature product revenue decreased 6% to $2.5 million from $2.7 million in the fourth quarter of 2011, accounting for 60% of the total revenue in the first quarter.

Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2012 was $3.7 million, or $0.10 per share, compared with a net loss of $3.1 million, or $0.08 per share, in the fourth quarter of 2011 and a net loss of $0.9 million, or $0.02 per share, in the first quarter of 2011. Non-GAAP net loss for the first quarter of 2012 was $3.3 million, or $0.09 per share, compared with a non-GAAP net loss of $2.7 million, or $0.07 per share, in the fourth quarter of 2011 and a non-GAAP net loss of $0.4 million, or $0.01 per share, in the first quarter of 2011. 

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, May 1, 2012, 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) 392-9881 by 2:20 p.m. Pacific Daylight Time today. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (855) 859-2056 and reference the passcode: 70748323. The call recording will be archived until Tuesday, May 8, 2012, 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.

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.

   
QUICKLOGIC CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
   
    Three Months Ended  
    April 1, 2012     April 3, 2011     January 1, 2012  
                         
Revenue   $ 4,130     $ 5,547     $ 4,346  
Cost of revenue, excluding inventory write-down and related charges and long-lived asset impairment     2,042       1,821       2,181  
Inventory write-down and related charges     329       118       148  
Gross profit     1,759       3,608       2,017  
Operating expenses:                        
  Research and development     2,802       1,803       2,450  
  Selling, general and administrative     2,697       2,607       2,548  
Income (loss) from operations     (3,740 )     (802 )     (2,981 )
Interest expense     (13 )     (8 )     (5 )
Interest income and other (expense), net     (13 )     (4 )     (93 )
Income (loss) before income taxes     (3,766 )     (814 )     (3,079 )
Provision for (benefit from) income taxes     (45 )     64       31  
Net income (loss)   $ (3,721 )   $ (878 )   $ (3,110 )
                         
Net income (loss) per share:                        
  Basic   $ (0.10 )   $ (0.02 )   $ (0.08 )
  Diluted   $ (0.10 )   $ (0.02 )   $ (0.08 )
                         
Weighted average shares:                        
  Basic     38,495       36,495       38,482  
  Diluted     38,495       36,495       38,482  
                         
                         
                         
                         
QUICKLOGIC CORPORATION  
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES  
(In thousands, except per share amounts)  
   
    Three Months Ended  
    April 1, 2012     April 3, 2011     January 1, 2012  
GAAP income (loss) from operations   $ (3,740 )   $ (802 )   $ (2,981 )
  Adjustment for stock-based compensation within:                        
    Cost of revenue     32       35       27  
    Research and development     93       121       104  
    Selling, general and administrative     259       287       254  
Non-GAAP income (loss) from operations   $ (3,356 )   $ (359 )   $ (2,596 )
                         
GAAP net income (loss)   $ (3,721 )   $ (878 )   $ (3,110 )
  Adjustment for stock-based compensation within:                        
    Cost of revenue     32       35       27  
    Research and development     93       121       104  
    Selling, general and administrative     259       287       254  
Non-GAAP net income (loss)   $ (3,337 )   $ (435 )   $ (2,725 )
                         
GAAP net income (loss) per share   $ (0.10 )   $ (0.02 )   $ (0.08 )
  Adjustment for stock-based compensation     0.01       0.01       0.01  
Non-GAAP net income (loss) per share   $ (0.09 )   $ (0.01 )   $ (0.07 )
                         
GAAP gross margin percentage     42.6 %     65.0 %     46.4 %
  Adjustment for stock-based compensation     0.8       0.6       0.6  
Non-GAAP gross margin percentage     43.4 %     65.6 %     47.0 %
                         
                         
                         
                         
QUICKLOGIC CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
   
    April 1, 2012     January 1, 2012 (1)  
ASSETS            
                 
Current assets:                
  Cash and cash equivalents   $ 17,223     $ 20,203  
  Short-term investment in TowerJazz Semiconductor Ltd.     567       406  
  Accounts receivable, net     1,660       1,585  
  Inventories     3,117       3,764  
  Other current assets     1,049       613  
    Total current assets     23,616       26,571  
Property and equipment, net     2,812       2,181  
Other assets     231       211  
TOTAL ASSETS   $ 26,659     $ 28,963  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY            
                 
Current liabilities:                
  Trade payables   $ 2,411     $ 2,464  
  Accrued liabilities     1,417       1,118  
  Deferred royalty revenue     -       8  
  Current portion of capital lease obligations     411       141  
    Total current liabilities     4,239       3,731  
                 
Long-term liabilities:                
  Capital lease obligations, less current portion     506       146  
  Other long-term liabilities     139       148  
    Total liabilities     4,884       4,025  
                 
Stockholders' equity:                
  Common stock, at par value     39       39  
  Additional paid-in capital     190,485       190,025  
  Accumulated other comprehensive income     211       113  
  Accumulated deficit     (168,960 )     (165,239 )
    Total stockholders' equity     21,775       24,938  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 26,659     $ 28,963  
                 
(1)   Derived from the January 1, 2012 audited balance sheet included in the 2011 Annual Report on Form 10-K of QuickLogic Corporation.
     
     
     
     
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
 
    Percentage of Revenue   Change in Revenue
                     
    Q1 2012   Q1 2011   Q4 2011   Q1 2011 to Q1 2012   Q4 2011 to Q1 2012
COMPOSITION OF REVENUE                    
                     
Revenue by product (1):                    
  New products   40%   22%   39%   34%   (3)%
  Mature products   60%   78%   61%   (42)%   (6)%
                     
Revenue by geography:                    
  United States   32%   50%   43%   (53)%   (30)%
  Japan   21%   10%   22%   53%   (8)%
  Malaysia   15%   9%   6%   27%   120%
  China   12%   14%   13%   (34)%   (8)%
  Europe   12%   13%   9%   (33)%   23%
  Rest of Asia Pacific   6%   3%   5%   49%   4%
  Rest of North America   2%   1%   2%   26%   55%
                     
(1)   New products represent products introduced since 2005, and include ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®, PolarPro II, and QuickPCI® II. Mature products include Eclipse, EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI, QuickRAM®, and V3, as well as royalty revenue, programming hardware and software.
     
     
     
     

Contacts:

Ralph S. Marimon
Vice President of Finance
Chief Financial Officer
(408) 990-4000
Email Contact

Andrea Vedanayagam
(408) 656-4494
Email Contact