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QuickLogic Corporation Reports 2024 Financial Results

QuickLogic Corporation (NASDAQ: QUIK), an innovator in embedded FPGA technology, has recently disclosed its financial results for the fourth quarter and the entire fiscal year ending December 29, 2024. This announcement reflects the company's ongoing commitment to the development of advanced FPGA solutions and its operational strategy moving forward.

Recent Highlights

In the past few months, QuickLogic has achieved notable milestones:

• - The company secured a $1.1 million contract for eFPGA Hard IP from a new defense industry customer, showcasing their expanding market reach.
• - QuickLogic announced the fourth tranche of $6.6 million for their ongoing Strategic Radiation Hardened FPGA Technology US Government contract, a testament to their governance trust and technological expertise.
• - A significant milestone is on the horizon as QuickLogic aims to complete the first eFPGA Hard IP core optimized for Intel 18A during the first quarter of 2025.
• - In a move to enhance its technical offerings, QuickLogic integrated the Synopsys Synplify® synthesis tool into the upgraded Aurora 2.9 Pro FPGA User Tools.
• - The sales team was bolstered with the appointment of Andy Jaros, formerly of FlexLogix, as VP of IP Sales, indicating a strategic push towards expanding market penetration.
• - New distribution agreements signed with firms in Turkiye and the UAE will further broaden QuickLogic's global reach and customers.
• - A strategic initiative regarding SensiML was also announced, reinforcing the company's focus on AI-driven solutions.

Financial Performance Analysis

Fiscal Fourth Quarter of 2024

QuickLogic reported revenue of $5.7 million for Q4 2024, marking a drop of 23.7% year-over-year compared to Q4 2023 but reflecting a significant 33.5% increase from Q3 2024's figures. This discrepancy is largely attributed to the timing of award notifications for several substantial eFPGA IP contracts.

Despite the quarterly revenue decline, the company’s new product revenue was approximately $4.7 million, down by $2.2 million compared to Q4 2023 but showing an increase of $1.1 million or 31.7% from Q3 2024. The mature product revenue saw an increase to $1.0 million, compared to $0.7 million in both the preceding year and quarter.

The GAAP gross margin for the fourth quarter of 2024 was recorded at 59.8%, a decrease from 77.1% in the same quarter the previous year. Non-GAAP gross margins were slightly better, at 62.0%, down from 78.3% year-over-year. Operating expenses totaled $3.6 million, showing a minor decrease from Q4 2023's $3.7 million and a significant reduction from Q3 2024's $4.2 million.

The GAAP net loss reported for Q4 2024 was $0.3 million, equivalent to a loss of $0.02 per share. This loss contrasts starkly with the net income of $2.0 million, or $0.15 per share, from the previous year. In terms of non-GAAP figures, the income stood at $0.6 million or $0.04 per share, which is a marked decrease from $2.6 million in Q4 2023.

Outlook for 2025

Brian Faith, the CEO of QuickLogic, expressed a positive outlook moving into 2025, citing an increasing number of opportunities arising from competitor exits from the market. The company is uniquely positioned, being the first provider of eFPGA Hard IP optimized for Intel's 18A process technology. Faith indicated expectations for a return to revenue growth and strides towards achieving non-GAAP profitability and positive cash flow throughout the year.

Upcoming Events

QuickLogic is scheduled to conduct a conference call to discuss these results in more detail on February 25, 2025, at 2:30 p.m. PT. This call will be accessible on the company's Investor Relations website, where participants can dial in to gain further insights into their strategy and future plans.

Conclusion

Overall, QuickLogic's performance in 2024, while facing challenges, reflects resilience and adaptability in a fast-evolving technology landscape. With incoming contracts, a stronger sales team, and innovative product offerings, the company is geared up for potential growth as it seeks to capitalize on the emerging opportunities in the semiconductor market.