On August 13, 2024, QuickLogic Corp (QUIK, Financial) released its 8-K filing detailing the financial results for the fiscal second quarter ending June 30, 2024. QuickLogic Corp provides programmable silicon and software platforms to enable its customers to develop custom hardware products in a fast time-to-market and cost-effective way. QuickLogic is a fabless semiconductor company with a product range that includes embedded FPGA (eFPGA) intellectual property (IP), low power, multi-core semiconductor system-on-chips (SoCs), discrete FPGAs, and AI software.
Performance Overview
QuickLogic Corp reported total revenue of $4.1 million for Q2 2024, reflecting a 41.3% increase compared to the same quarter last year but a 31.3% decrease from the previous quarter. This revenue figure fell short of the analyst estimate of $4.50 million. The company posted a GAAP net loss of $1.6 million, or $0.11 per share, which is an improvement from the $2.3 million loss, or $0.17 per share, in Q2 2023 but a decline from the net income of $0.1 million, or $0.01 per share, in Q1 2024. The non-GAAP net loss was $0.7 million, or $0.05 per share, aligning with analyst estimates.
Key Financial Metrics
QuickLogic's GAAP gross margin for Q2 2024 was 51.0%, up from 41.2% in Q2 2023 but down from 66.3% in Q1 2024. The non-GAAP gross margin was 53.1%, compared to 44.2% in Q2 2023 and 70.3% in Q1 2024. Operating expenses on a GAAP basis were $3.6 million, slightly higher than $3.4 million in Q2 2023 but lower than $3.8 million in Q1 2024. Non-GAAP operating expenses remained flat at $2.9 million compared to Q2 2023 but increased from $2.5 million in Q1 2024.
Revenue Breakdown
| Revenue | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Total Revenue | $4.1 million | $2.9 million | $6.0 million |
| New Product Revenue | $3.1 million | $2.3 million | $4.9 million |
| Mature Product Revenue | $1.1 million | $0.7 million | $1.1 million |
Company Achievements and Strategic Initiatives
QuickLogic Corp has made significant strides in its strategic initiatives. The company was awarded a $5.26 million third tranche of the Strategic Radiation Hardened FPGA Technology US Government Contract and joined the Intel Foundry Accelerator IP and USMAG Alliance Programs. Additionally, QuickLogic received a BAE Systems 'Partner 2 Win' Supplier of the Year award and expanded its sales funnel to $189 million. New distribution agreements with Spur Microwave Inc. and Astute Electronics were also announced to strengthen its presence in India and expand its global reach.
“QuickLogic's inclusion in Intel Foundry Accelerator IP and USMAG Alliances marked a significant milestone in the Company's strategic growth plan, and we believe this will position QuickLogic as a leading source for eFPGA Hard IP available for Intel 18A technology,” said Brian Faith, CEO of QuickLogic.
Financial Position
As of June 30, 2024, QuickLogic Corp reported total assets of $47.5 million, slightly down from $47.8 million as of December 31, 2023. The company's cash, cash equivalents, and restricted cash stood at $23.3 million, compared to $24.6 million at the end of 2023. Total liabilities were $25.6 million, down from $30.9 million at the end of 2023, while stockholders' equity increased to $21.8 million from $16.9 million.
Analysis
QuickLogic Corp's Q2 2024 results show a mixed performance. While the company achieved significant year-over-year revenue growth, it faced a sequential decline, missing analyst revenue estimates. The improvement in gross margin year-over-year is a positive sign, but the sequential decline indicates potential challenges in maintaining profitability. The company's strategic initiatives and partnerships, particularly with Intel, are promising and could drive future growth. However, the sequential decline in new product revenue and the overall net loss highlight the need for sustained revenue growth and cost management.
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Explore the complete 8-K earnings release (here) from QuickLogic Corp for further details.
