Contacts: | Carl M. Mills |
| Ann McMichael |
For Immediate Release
QUICKLOGIC CORPORATION ANNOUNCES FIRST
QUARTER FISCAL 2003 FINANCIAL RESULTS
REVENUE INCREASES 12%
SUNNYVALE, Calif.—April 23, 2003 —QuickLogic Corporation, (Nasdaq: QUIK), the pioneer of Embedded Standard Products (ESPs), today announced its financial results for the first quarter ended March 31, 2003.
Net revenue for the first quarter of 2003 was $9.4 million, up 26% from net revenue of $7.5 million in the first quarter of 2002, and up 12% sequentially compared to the fourth quarter of 2002. ESP products contributed 42% of revenue in the first quarter of 2003. Net losses for the first quarter were $1.6 million, or $0.07 per share, compared to a net loss of $3.7 million, or $0.16 per share, in the first quarter of 2002, and compared to a net loss of $18.4 million, or $0.78 per share, in the fourth quarter of 2002.
“Orders from our customers increased significantly in the fourth quarter and again in Q1. We returned to double-digit revenue growth in the first quarter,” said Tom Hart, chairman, president and CEO. “We also reduced our net loss and had a positive operating cash flow during the quarter. From many perspectives — demand for our products, quarterly revenue, net income and cash flow from operations — we had our best results since early in 2001.”
Conference Call
Our conference call is being webcast by CCBN and can be accessed via QuickLogic’s website at www.quicklogic.com. For access to the conference call, please call 800-314-7867 by 2:20 p.m. Pacific Time on April 23rd. A recording of the call will be available starting two hours after the completion of the call. To access the recording, please call 888-203-1112. You will need to reference the passcode: 341545 for the live and recorded call. Both the webcast and the call recording will be archived until May 7th, 2003.
About QuickLogic
QuickLogic Corporation (Nasdaq:QUIK) began developing the Embedded Standard Product (ESP) architecture in 1998, an innovation that delivers the guaranteed performance and lower cost of standard semiconductor products and the flexibility and time-to-market benefits of programmable logic. QuickLogic’s ViaLink metal-to-metal interconnect technology offers high performance and is the foundation of the company’s ESP families as well as our core FPGA products. Founded in 1988, the company is located at 1277 Orleans Drive, Sunnyvale, CA 94089-1138. For more information on the company and its products, please call QuickLogic at 408-990-4000 or visit the QuickLogic web site at www.quicklogic.com.
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements relating to our earnings outlook and the market promise for embedded standard products. Actual results could differ materially from such forward-looking statements. Factors that could cause actual results to differ materially include delays in the acceptance of the company’s ESPs, level of customer design activity, intense competition including the introduction of new products by competitors, ability to hire and retain qualified personnel and the ability to introduce new products based on advanced wafer technology. These factors and others are described in more detail in the Company’s public reports filed with the Securities and Exchange Commission, including the risks discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in the Company’s prior press releases.
QuickLogic, the QuickLogic logo, and ViaLink are registered trademarks and QuickDSP, QuickPCI, QuickRAM, QuickSD, and QuickFC are registered trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.
Note to Editors: Financial Tables Follow
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QUICKLOGIC CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
|
| Three months ended |
| |||||||
|
| Mar 31, |
| Mar 31, |
| Dec 31, |
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|
| 2003 |
| 2002 |
| 2002 |
| |||
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|
|
| |||
Revenue |
| $ | 9,401 |
| $ | 7,481 |
| $ | 8,425 |
|
Cost of revenue |
| 4,537 |
| 4,367 |
| 4,381 |
| |||
Gross profit |
| 4,864 |
| 3,114 |
| 4,044 |
| |||
Operating expenses: |
|
|
|
|
|
|
| |||
Research and development |
| 2,328 |
| 3,277 |
| 2,480 |
| |||
Selling, general and administrative |
| 4,135 |
| 3,633 |
| 3,822 |
| |||
Goodwill impairment |
| — |
| — |
| 11,428 |
| |||
Restructuring costs |
| — |
| — |
| 783 |
| |||
Total operating expenses |
| 6,463 |
| 6,910 |
| 18,513 |
| |||
Income (loss) from operations |
| (1,599 | ) | (3,796 | ) | (14,469 | ) | |||
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| |||
Write-down of marketable securities |
| — |
| — |
| (3,816 | ) | |||
Interest and other income, net |
| (35 | ) | 91 |
| (129 | ) | |||
Income (loss) before taxes |
| (1,634 | ) | (3,705 | ) | (18,414 | ) | |||
Provision for income tax |
| — |
| — |
| — |
| |||
Net income (loss) |
| $ | (1,634 | ) | $ | (3,705 | ) | $ | (18,414 | ) |
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Net income (loss) per share: |
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Basic |
| $ | (0.07 | ) | $ | (0.16 | ) | $ | (0.78 | ) |
Diluted |
| $ | (0.07 | ) | $ | (0.16 | ) | $ | (0.78 | ) |
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Shares used in per share calculations: |
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| |||
Basic |
| 23,746 |
| 23,175 |
| 23,565 |
| |||
Diluted |
| 23,746 |
| 23,175 |
| 23,565 |
|
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QUICKLOGIC CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per value amount)
|
| (Unaudited) |
| (Audited) |
| ||
|
| Mar 31, |
| Dec 31, |
| ||
|
| 2003 |
| 2002 |
| ||
ASSETS |
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Current assets: |
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|
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| ||
Cash and cash equivalents |
| $ | 13,838 |
| $ | 13,001 |
|
Cash and cash equivalents, restricted |
| 8,788 |
| 9,002 |
| ||
Accounts receivable, net |
| 4,660 |
| 4,900 |
| ||
Inventory |
| 7,221 |
| 7,876 |
| ||
Other current assets |
| 1,951 |
| 2,281 |
| ||
Total current assets |
| 36,458 |
| 37,060 |
| ||
Property and equipment, net |
| 11,094 |
| 11,967 |
| ||
Other assets |
| 11,995 |
| 13,104 |
| ||
Total assets |
| $ | 59,547 |
| $ | 62,131 |
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| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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| ||
Trade payables |
| $ | 3,560 |
| $ | 3,013 |
|
Accrued liabilities |
| 1,807 |
| 1,840 |
| ||
Deferred income on shipments to distributors |
| 1,248 |
| 1,242 |
| ||
Current portion of long-term obligations |
| 9,185 |
| 9,650 |
| ||
Total current liabilities |
| 15,800 |
| 15,745 |
| ||
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|
|
|
|
| ||
Long-term obligations |
| 836 |
| 1,455 |
| ||
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|
|
|
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| ||
Stockholders’ equity: |
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|
|
|
| ||
Common stock at par |
| 24 |
| 24 |
| ||
Additional paid-in-capital |
| 151,198 |
| 151,198 |
| ||
Deferred compensation |
| (83 | ) | (145 | ) | ||
Accumulated other comprehensive loss |
| (448 | ) | — |
| ||
Accumulated deficit |
| (107,780 | ) | (106,146 | ) | ||
Total stockholders’ equity |
| 42,911 |
| 44,931 |
| ||
Total liabilities and stockholders’ equity |
| $ | 59,547 |
| $ | 62,131 |
|
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Composition of Revenue:
|
| Q1 |
| Q4 |
| Q-Q |
| Q1 |
| Y-Y |
|
|
| 2003 |
| 2002 |
| Change |
| 2002 |
| Change |
|
Revenue by product(1): |
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Mature products |
| 36% |
| 33% |
| 24% |
| 42% |
| 9% |
|
New products |
| 64% |
| 67% |
| 6% |
| 58% |
| 37% |
|
Embedded standard products |
| 42% |
| 46% |
| 2% |
| 35% |
| 50% |
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|
| Q1 |
| Q4 |
| Q-Q |
| Q1 |
| Y-Y |
|
|
| 2003 |
| 2002 |
| Change |
| 2002 |
| Change |
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Revenue by geography: |
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North America |
| 52% |
| 48% |
| 20% |
| 56% |
| 16% |
|
Europe |
| 16% |
| 19% |
| -9% |
| 22% |
| -9% |
|
Japan |
| 12% |
| 11% |
| 22% |
| 11% |
| 30% |
|
Rest of World |
| 20% |
| 22% |
| 6% |
| 11% |
| 138% |
|
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|
| Q1 |
| Q4 |
| Q-Q |
| Q1 |
| Y-Y |
|
|
| 2003 |
| 2002 |
| Change |
| 2002 |
| Change |
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Revenue by End-customer Segment: |
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Computing |
| 27% |
| 28% |
| 6% |
| 16% |
| 110% |
|
Instrumentation and test |
| 32% |
| 29% |
| 23% |
| 34% |
| 19% |
|
Datacom and telecom |
| 22% |
| 24% |
| 4% |
| 31% |
| -11% |
|
Graphics and imaging |
| 6% |
| 9% |
| -19% |
| 11% |
| -25% |
|
Military and aerospace systems |
| 13% |
| 10% |
| 37% |
| 8% |
| 99% |
|
(1) Mature products include our pASIC1 and pASIC2 product families. New products include our pASIC3 and Eclipse FPGA product families together with our ESP product families. Our embedded standard products include the QuickRAMÔ, QuickPCI, QuickMIPSÔ and V3 product families.
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