Recent Highlights
- As previously announced, on August 8, 2022, the Company signed a $6.9 million government contract for Strategic Radiation Hardened FPGA Technology. The Company's deliverables will be due over the course of twelve months. In addition, subject to completion of such deliverables and at the option of the customer, the total contract value has the potential to increase an additional $72 million over the span of four years.
- Raised approximately $3.2 million with strategic investment by institutional investors.
Fiscal 2022 Third Quarter Financial Results
Total revenue for the third quarter of fiscal 2022 was $3.5 million, a decrease of 23.8% compared with the second quarter of 2022, and a decrease of 10.3% compared with the third quarter of 2021.
New product revenue was approximately $2.3 million in the third quarter of 2022, a decrease of $0.9 million, or 28.1%, compared with the second quarter of 2022, and a decrease of $0.5 million, or 18.3%, compared with the third quarter of 2021. The decrease in new product revenue from the same period a year ago was primarily due to a reduction in smart connectivity and sensor product revenues offset by higher eFPGA IP license and professional services revenue. Additionally, signing the aforementioned $6.9 million government contract later in the quarter delayed some of the revenue to subsequent quarters.
Mature product revenue was $1.2 million in the third quarter of 2022, a decrease of 14.4% compared with the second quarter of 2022, and an increase of 9.7% compared with the third quarter of 2021.
Third quarter 2022 GAAP gross margin was 48.5% compared with 56.0% in the second quarter of 2022, and 70.8% in the third quarter of 2021.
Third quarter 2022 non-GAAP gross margin was 49.8% compared with 58.6% in the second quarter of 2022, and 72.8% in the third quarter of 2021.
Third quarter 2022 GAAP operating expenses were $2.9 million, compared with $3.2 million the second quarter of 2022, and $4.0 million in the third quarter of 2021.
Third quarter 2022 non-GAAP operating expenses were $2.5 million, compared with $2.8 million in the second quarter of 2022, and $3.2 million in the third quarter of 2021.
Third quarter 2022 GAAP net loss was $1.3 million, or $0.11 per share, compared with a net loss of $0.5 million, or $0.04 per share, in the second quarter of 2022, and a net loss of $1.3 million, or $0.11 per share, in the third quarter of 2021.
Third quarter 2022 non-GAAP net loss was $0.9 million, or $0.07 per share, compared with a net loss of $47 thousand, or $0.00 per share, in the second quarter of 2022, and a net loss of $0.4 million, or $0.03 per share, in the third quarter of 2021.
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Conference Call
QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, November 15, 2022, 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 starting approximately one hour after completion. To access the recording, please call (412) 317-6671 and reference the passcode 13733707.
The call recording, which can be accessed by phone, will be archived through November 22, 2022, 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 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 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, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income 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 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 the Company's 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 U.S. GAAP. A reconciliation of U.S. 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 U.S. GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable U.S. GAAP financial measures.
