QuickLogic Reports Fourth Quarter and Fiscal Year 2016 Results
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QuickLogic Reports Fourth Quarter and Fiscal Year 2016 Results

SUNNYVALE, CA -- (Marketwired) -- Feb 15, 2017 -- QuickLogic Corporation (NASDAQ: QUIK), an innovator and developer of ultra-low power programmable sensor processing solutions, announced its financial results for the fourth quarter and fiscal year ended January 1, 2017.

Recent Accomplishments

"During the fourth quarter of 2016, we made significant progress on our strategic initiatives for our sensor processing solutions and launched our new ArcticPro™ eFGPA IP licensing," stated Brian Faith, QuickLogic's president and CEO. "Given this progress and the momentum we have already developed this year, I believe we are on track to realize our goal of greater than 50% year-over-year revenue growth in 2017."

Fourth Quarter Fiscal Year 2016 Financial Results
Total revenue was $2.9 million, increasing 5% compared to the third quarter of 2016, reflecting the continuing shipments of our display bridge solutions, and decreasing 19% compared to the fourth quarter of 2015, reflecting the expected decrease of mature and connectivity product revenue. New product revenue was $1.6 million, up 19% compared to the third quarter of 2016 and down 23% compared to the fourth quarter of 2015. Mature product revenue was $1.3 million, decreasing 8% compared to the third quarter of 2016 and 13% compared to the fourth quarter of 2015. New product revenue accounted for 54% of the total revenue, compared to 48% in the third quarter of 2016 and 57% in the fourth quarter of 2015.

Gross margins were 32.3%, compared to 31.7% in the third quarter of 2016 and 35.3% in the fourth quarter of 2015, primarily due to product mix. Operating expenses decreased to $4.7 million, compared to $5.5 million in the third quarter of 2016 and $6.0 million in the fourth quarter of 2015. The reduction reflects cost savings from strategic realignment efforts. Net loss was $3.9 million, or $0.05 per share, compared to $4.6 million, or $0.07 per share, in the third quarter of 2016 and $4.8 million, or $0.09 per share, in the fourth quarter of 2015. Non-GAAP net loss was $3.7 million, compared to $4.1 million in the third quarter of 2016 and $4.3 million in the fourth quarter of 2015. (See below for an explanation of non-GAAP financial measures).

Conference Call
QuickLogic Corporation (NASDAQ: QUIK) will hold a conference call at 2:30 p.m. Pacific Standard Time/ 5:30 p.m. Eastern Standard Time today, February 15, 2017, to discuss its current financial results. The conference call will be webcasted and can be accessed via the Company's website at http://ir.quicklogic.com/events.cfm. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Standard Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 50904830. The call recording will be archived until Wednesday, February 22, 2017 and the webcast will be available for 12 months on the Company's website.

About QuickLogic
QuickLogic Corporation (NASDAQ: QUIK) enables OEMs to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable and IoT devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable SoC semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. The company's embedded FPGA initiative also enables SoC designers to easily implement post production changes, and increase revenue by providing hardware programmability to their end customers. For more information about QuickLogic, please visit www.quicklogic.com.

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 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 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.

Forward Looking Statements
This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: 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 and other potential factors and uncertainties that could cause actual results to differ from the results predicted are described in more detail in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the risks discussed in the "Risk Factors" section in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases, which are available on the Company's Investor Relations website at http://ir.quicklogic.com/ and on the SEC website at www.sec.gov. In addition, please note that the date of this press release is February 15, 2017, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

QuickLogic and the QuickLogic logo are registered trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.

-Tables Follow -

                                                                            
                           QUICKLOGIC CORPORATION                           
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS              
                  (In thousands, except per share amounts)                  
                                 (Unaudited)                                
                                                                            
                                Three Months Ended           Year Ended     
                           ----------------------------  ------------------ 
                            January   January   October   January   January 
                            1, 2017   3, 2016   2, 2016   1, 2017   3, 2016 
                           --------  --------  --------  --------  -------- 
Revenue                    $  2,945  $  3,630  $  2,809  $ 11,421  $ 18,956 
Cost of revenue               1,995     2,349     1,918     7,648    11,411 
                           --------  --------  --------  --------  -------- 
Gross profit                    950     1,281       891     3,773     7,545 
Operating expenses:                                                         
  Research and development    2,380     3,490     2,755    12,265    14,144 
  Selling, general and                                                      
   administrative             2,322     2,461     2,704    10,310    10,619 
  Restructuring cost             --        49        --        --       295 
                           --------  --------  --------  --------  -------- 
Total operating expense       4,702     6,000     5,459    22,575    25,058 
                           --------  --------  --------  --------  -------- 
Loss from operations         (3,752)   (4,719)   (4,568)  (18,802)  (17,513)
Interest expense                (66)      (18)      (37)     (175)      (82)
Interest income and other                                                   
 (expense), net                 (43)       (9)      (41)     (106)     (107)
                           --------  --------  --------  --------  -------- 
Loss before income taxes     (3,861)   (4,746)   (4,646)  (19,083)  (17,702)
Provision for (benefit                                                      
 from) income taxes              (3)      100       (23)       65       146 
                           --------  --------  --------  --------  -------- 
Net loss                   $ (3,858) $ (4,846) $ (4,623) $(19,148) $(17,848)
                           ========  ========  ========  ========  ======== 
Net loss per share:                                                         
  Basic                    $  (0.05) $  (0.09) $  (0.07) $  (0.29) $  (0.32)
                           ========  ========  ========  ========  ======== 
  Diluted                  $  (0.05) $  (0.09) $  (0.07) $  (0.29) $  (0.32)
                           ========  ========  ========  ========  ======== 
Weighted average shares:                                                    
  Basic                      67,941    56,729    67,781    65,377    56,472 
                           ========  ========  ========  ========  ======== 
  Diluted                    67,941    56,729    67,781    65,377    56,472 
                           ========  ========  ========  ========  ======== 
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                                    January 1,   January 3, 
                                                       2017       2016 (1)  
                                                   -----------  ----------- 
                      ASSETS                                                
Current assets:                                                             
  Cash and cash equivalents                        $    14,870  $    19,136 
  Accounts receivable, net                                 839        1,601 
  Inventories                                            2,017        2,878 
  Other current assets                                   1,123        1,312 
                                                   -----------  ----------- 
  Total current assets                                  18,849       24,927 
Property and equipment, net                              2,765        3,315 
Other assets                                               230          219 
                                                   -----------  ----------- 
TOTAL ASSETS                                       $    21,844  $    28,461 
                                                   ===========  =========== 
        LIABILITIES AND STOCKHOLDERS' EQUITY                                
Current liabilities:                                                        
  Revolving line of credit                         $     6,000  $        -- 
  Trade payables                                         2,018        4,032 
  Accrued liabilities                                    1,580        1,482 
  Current portion of capital lease obligations             209          281 
                                                   -----------  ----------- 
    Total current liabilities                            9,807        5,795 
Long-term liabilities:                                                      
  Revolving line of credit                                  --        2,000 
  Capital lease obligations, less current portion           --          208 
  Other long-term liabilities                               49          133 
                                                   -----------  ----------- 
    Total liabilities                                    9,856        8,136 
                                                   -----------  ----------- 
Stockholders' equity:                                                       
  Common stock, at par value                                68           57 
  Additional paid-in capital                           251,824      241,024 
  Accumulated deficit                                 (239,904)    (220,756)
                                                   -----------  ----------- 
    Total stockholders' equity                          11,988       20,325 
                                                   -----------  ----------- 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $    21,844  $    28,461 
                                                   ===========  =========== 
                                                                            
(1) Derived from the January 3, 2016 audited balance sheet included in the  
    2015 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 and percentages)         
                                (Unaudited)                                
                                                                           
                                 Three Months Ended         Year Ended     
                             -------------------------  ------------------ 
                             January  January  October   January   January 
                             1, 2017  3, 2016  2, 2016   1, 2017   3, 2016 
                             -------  -------  -------  --------  -------- 
GAAP loss from operations    $(3,752) $(4,719) $(4,568) $(18,802) $(17,513)
  Adjustment for stock-based                                               
   compensation within:                                                    
      Cost of revenue             13       14       34       132       109 
      Research and                                                         
       development                55      213      137       658       826 
      Selling, general and                                                 
       administrative             57      306      286       793     1,065 
  Adjustment for the write-                                                
   off of equipment within:                                                
      Cost of revenue             17       --       33        50         8 
      Research and                                                         
       development                --       --        1       313        -- 
      Selling, general and                                                 
       administrative             --       --        5         5        -- 
  Adjustment for                                                           
   restructuring costs            --       49       --        --       295 
                             -------  -------  -------  --------  -------- 
Non-GAAP loss from                                                         
 operations                  $(3,610) $(4,137) $(4,072) $(16,851) $(15,210)
                             =======  =======  =======  ========  ======== 
GAAP net loss                $(3,858) $(4,846) $(4,623) $(19,148) $(17,848)
  Adjustment for stock-based                                               
   compensation within:                                                    
      Cost of revenue             13       14       34       132       109 
      Research and                                                         
       development                55      213      137       658       826 
      Selling, general and                                                 
       administrative             57      306      286       793     1,065 
  Adjustment for the write-                                                
   off of equipment within:                                                
      Cost of revenue             17       --       33        50         8 
      Research and                                                         
       development                --       --        1       313        -- 
      Selling, general and                                                 
       administrative             --       --        5         5        -- 
  Adjustment for                                                           
   restructuring costs            --       49       --        --       295 
  Adjustment for tax effect                                                
   on other comprehensive                                                  
   income                         --       --       --        --        -- 
                             -------  -------  -------  --------  -------- 
Non-GAAP net loss            $(3,716) $(4,264) $(4,127) $(17,197) $(15,545)
                             =======  =======  =======  ========  ======== 
GAAP net loss per share      $ (0.05) $ (0.09) $ (0.07) $  (0.29) $  (0.32)
  Adjustment for stock-based                                               
   compensation                    *     0.01     0.01      0.03      0.04 
  Adjustment for the write-                                                
   off of equipment                *        *        *         *         * 
  Adjustment for                                                           
   restructuring costs            --        *       --        --         * 
                             -------  -------  -------  --------  -------- 
Non-GAAP net loss per share  $ (0.05) $ (0.08) $ (0.06) $  (0.26) $  (0.28)
                             =======  =======  =======  ========  ======== 
GAAP gross margin percentage    32.3%    35.3%    31.7%     33.0%     39.8%
  Adjustment for stock-based                                               
   compensation                  0.4%     0.4%     1.2%      1.2%      0.6%
  Adjustment for the write-                                                
   off of equipment              0.6%      --%     1.2%      0.4%        * 
  Adjustment for                                                           
   restructuring costs            --%       *       --%       --%        * 
                             =======  =======  =======  ========  ======== 
Non-GAAP gross margin                                                      
 percentage                     33.3%    35.7%    34.1%     34.6%     40.4%
                             =======  =======  =======  ========  ======== 
                                                                           
  * Figures were not considered for reconciliation due to the insignificant 
                                   amount.                                  
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                                                              Change in     
                        Percentage of Revenue                  Revenue      
                      ----------------------------------  ----------------  
                                                          Q3 2016    2015   
                                         Fiscal   Fiscal     to       to    
                      Q4 2016  Q3 2016    2016     2015   Q4 2016    2016   
                      -------  -------  -------  -------  -------   ------  
COMPOSITION OF                                                              
 REVENUE                                                                    
Revenue by product:                                                         
 (1)                                                                        
  New products             54%      48%      49%      63%      19%     (53)%
  Mature products          46%      52%      51%      37%      (8)%    (16)%
Revenue by geography:                                                       
  Asia Pacific             64%      62%      63%      67%      10%     (44)%
  North America            26%      24%      25%      23%      12%     (35)%
  Europe                   10%      14%      12%      10%     (30)%    (25)%
                                                                            
(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.         
                                                                            

Company Contact
Sue Cheung
VP, Finance and Chief Accounting Officer
(408) 990-4076

Email Contact

IR Contact
Cathy Mattison/Kirsten Chapman
(415) 433-3777

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