Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- QuickLogic Corp (QUIK, Financial) reported a 41% increase in revenue from Q2 2023 to $4.1 million.
- The company secured the third tranche of the Strategic Radiation Hardened FPGA contract, valued at $5.26 million.
- QuickLogic Corp (QUIK) joined the Intel Foundry's Accelerator IP and US Military, Aerospace, and Government Alliances, marking a significant milestone.
- The company received the BAE Systems Partner 2 Win Supplier of the Year award in the category of FAST Labs Technology Innovation Partner of The Year.
- SensiML, a subsidiary of QuickLogic Corp (QUIK), announced its own Open-Source strategy and is on track to report all-time record revenue in 2024.
Negative Points
- QuickLogic Corp (QUIK) lowered its full-year growth projection to 15% due to scheduling pushouts.
- Revenue in Q2 was down 31% compared to Q1 and was at the lower end of guidance.
- Non-GAAP gross margin in Q2 was 53.1%, below the outlook and down from 70.3% in Q1.
- Higher-than-anticipated cash usage during Q2 impacted the company's cash balance.
- The company reported a non-GAAP net loss of $0.7 million, or $0.05 per share, for Q2.
Q & A Highlights
Q: So you have about $3 million of revenue being pushed into next year because of pushouts not under your control at certain customers. Is that what you're telling us?
A: That is correct. (Brian Faith, President, Chief Executive Officer, Director)
Q: Are you going to be the first eFPGA company to offer Hard eFPGA IP on the Intel 18A node?
A: That is our target, and yes, I believe we will be. (Brian Faith, President, Chief Executive Officer, Director)
Q: What percentage of the $189 million sales funnel is potential Storefront deals?
A: More than half of the total funnel is related to Storefront deals. The actual Storefront revenue is significantly higher and falls outside the two-year window. (Brian Faith, President, Chief Executive Officer, Director)
Q: You talked about $40 million in terms of Chiplet potential deals. Is that entire number reflected in the $189 million?
A: No, it's not. Some of these proposals are three-year development projects, and the third year is outside of the $189 million funnel. (Brian Faith, President, Chief Executive Officer, Director)
Q: How will the Strategic Rad Hard deal change after the third tranche?
A: The $72 million over four years is just for the development of the chip. After that, our goal is to become the Storefront supplier of the resulting device to the defense industrial base. (Brian Faith, President, Chief Executive Officer, Director)
Q: Can you provide more details on the pushouts for the year?
A: The connectivity pushouts are primarily from industrial and aerospace and defense markets. For IP deals, some are delayed due to customers' funding and resource shifts. (Brian Faith, President, Chief Executive Officer, Director)
Q: How many opportunities are contributing to the inflection in Chiplets and Storefront?
A: About 25% of our IP-based opportunities are now asking for both IP and device development, including Storefront responsibility. (Brian Faith, President, Chief Executive Officer, Director)
Q: How should we think about the cadence for different OpEx items for the year?
A: OpEx is expected to remain flat quarter after quarter, even with potential new hires. (Elias Nader, Chief Financial Officer, Senior Vice President - Finance)
Q: What impact will the CTG partnership have on your sales funnel?
A: CTG will help accelerate qualified opportunities to the funnel by doing pre-qualification work and maintaining sourcing through the lifecycle of designs. (Brian Faith, President, Chief Executive Officer, Director)
Q: How many IP contracts do you aim to win this year?
A: The goal is still 10 for the year. We are in the process of closing deals that will help us reach this target. (Brian Faith, President, Chief Executive Officer, Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
