QuickLogic Reports Third Quarter Fiscal 2023 Results Including Record Non-GAAP Net Income

SAN JOSE, Calif., Nov. 14, 2023 -- QuickLogic Corporation (NASDAQ: QUIK) ("QuickLogic" or the "Company"), a developer of embedded FPGA (eFPGA) IP, ruggedized FPGAs and Endpoint AI solutions, today announced its financial results for the fiscal third quarter ended October 1, 2023.

Recent Highlights

• Reports GAAP net income of $1.2 million and record non-GAAP net income of $1.8 million
• Significant contribution from the $15 million second phase of the large government contract for the Strategic Radiation Hardened FPGA Technology contributed to 93% year over year increase in third quarter revenue
• Sales funnel grew to a record $162 million
• Accelerated conversions from funnel opportunities contributed to new bookings during the third quarter
• Served available market expanded with growing opportunities on additional cores (first 12nm eFPGA IP core was completed this quarter) and nodes and collaborations for chiplet designs driven by the strength of our technology and Australis IP generator
• Top tier microcontroller company has launched a private label version of SensiML AI/ML solutions across its broad product line with initial revenues expected in the fourth quarter

"With phase two of the large eFPGA contract contributing to revenues and new bookings generated from our growing sales funnel, we reaffirm full year revenue growth of 30% as well as full year non-GAAP profitability for 2023," said Brian Faith, CEO of QuickLogic.

Fiscal Third Quarter 2023 Financial Results

Total revenue for the third quarter of fiscal 2023 was $6.7 million, an increase of 128.2% compared with the second quarter of 2023, and an increase of 92.7% compared with the third quarter of 2022.

New product revenue was approximately $6.1 million in the third quarter of 2023, an increase of $3.9 million, or 173%, compared with the second quarter of 2023, and an increase of $3.8 million, or 171%, compared with the third quarter of 2022. The increase in new product revenue from the same period a year ago was primarily due to higher eFPGA IP license and professional services revenue due to the start of the next phase of the large eFPGA contract partially offset by a reduction in smart connectivity and sensor product revenues.

Mature product revenue was $0.6 million in the third quarter of 2023, a decrease of $0.1 million, or 17.3%, compared with the second quarter of 2023. Mature product revenue in the third quarter of 2023 decreased 52.9% compared to the third quarter of 2022.

Third quarter 2023 GAAP gross margin was 76.9% compared with 41.2% in the second quarter of 2023, and 48.5% in the third quarter of 2022.

Third quarter 2023 non-GAAP gross margin was 78.0% compared with 44.2% in the second quarter of 2023, and 49.8% in the third quarter of 2022.

Third quarter 2023 GAAP operating expenses were $3.8 million compared with $3.4 million in the second quarter of 2023, and $2.9 million in the third quarter of 2022.

Third quarter 2023 non-GAAP operating expenses were $3.3 million compared with $2.9 million in the second quarter of 2023, and $2.5 million in the third quarter of 2022.

Third quarter 2023 GAAP net income was $1.2 million, or $0.09 per basic share, or $0.08 per diluted share, compared with a net loss of $2.3 million, or $0.17 per basic and diluted share, in the second quarter of 2023, and a net loss of $1.3 million, or $0.11 per basic and diluted share, in the third quarter of 2022.

Third quarter 2023 non-GAAP net income was $1.8 million, or $0.13 per basic and diluted share, compared with a net loss of $1.7 million, or $0.12 per basic and diluted share, in the second quarter of 2023, and a net loss of $0.9 million, or $0.07 per basic and diluted share, in the third 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, November 14, 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 13742145.

The call recording, which can be accessed by phone, will be archived through November 21, 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 innovative embedded FPGA (eFPGA) IP, discrete FPGAs, and FPGA SoCs for a variety of industrial, aerospace and defense, edge and endpoint AI, consumer, and computing applications. Our wholly owned subsidiary, SensiML Corporation, completes the end-to-end solution portfolio with AI / ML software that accelerates AI at the edge/endpoint. For more information, visit www.quicklogic.com.