Exhibit 99.1
| Contacts: | Carl M. Mills |
| Ann McMichael |
For Immediate Release
QUICKLOGIC CORPORATION ANNOUNCES SECOND
QUARTER FISCAL 2003 FINANCIAL RESULTS –
REVENUE INCREASES 27%
SUNNYVALE, Calif.—July 23, 2003—QuickLogic Corporation, (Nasdaq: QUIK), the inventor and pioneer of Embedded Standard Products (ESPs), today announced its financial results for the second quarter ended June 30, 2003.
Net revenue for the second quarter of 2003 was $10.6 million, up 27% from net revenue of $8.4 million in the second quarter of 2002, and up 13% sequentially compared to the first quarter of 2003. ESP products contributed 42% of revenue in the second quarter of 2003. The net loss for the second quarter was $24,000, or $0.00 per share, compared to a net loss of $3.1 million, or $0.13 per share, in the second quarter of 2002, and compared to a net loss of $1.6 million, or $0.07 per share, in the first quarter of 2003. Second quarter 2003 results included a $0.7 million gain on the sale of securities.
“Our total year-over-year revenue growth of 27% was driven by a 57% increase in our new products, which includes a 65% growth of Embedded Standard Product revenue,” said Tom Hart, Chairman, President and CEO. “We are very encouraged by the accelerating market acceptance of both our new and Embedded Standard Products.”
Conference Call
Our conference call will begin today at 2:30 p.m. PDT, and is being webcast by CCBN. The webcast can be accessed via QuickLogic’s website at www.quicklogic.com. For access to the live conference call, please call 1-800-901-5241 or International 1-617-786-2963 by 2:20 p.m. Pacific Time on July 23rd. You will need to reference the passcode 42189295. A recording of the call will be available starting one hour after the completion of the call. To access the recording, please call 1-888-286-8010
or International 1-617-801-6888. You will need to reference the passcode 67712261. Both the webcast and the call recording will be archived until August 7th, 2003.
About QuickLogic
QuickLogic Corporation (Nasdaq:QUIK) invented and pioneered the Embedded Standard Product (ESP) architecture, an innovation that delivers the guaranteed performance and lower cost of standard semiconductor products with the flexibility and time-to-market benefits of programmable logic. QuickLogic’s patented ViaLinkâ metal-to-metal interconnect technology is the foundation of the company’s ESP and FPGA product families. Our ViaLink-based products provide customers with the unique combination of high performance and design security at very low power. 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, the market promise for embedded standard products, product lead times, and market conditions generally. 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, the ability to introduce new products based on advanced wafer technology, unforeseen changes in product demand or supply, and worsening general economic conditions. 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, ViaLink, 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.
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QUICKLOGIC CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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| Three Months Ended |
| Six Months Ended |
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| June 30, |
| June 30, |
| March 31, |
| June 30, |
| June 30, |
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Revenue |
| $ | 10,603 |
| $ | 8,360 |
| $ | 9,401 |
| $ | 20,004 |
| $ | 15,841 |
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Cost of revenue |
| 5,040 |
| 4,598 |
| 4,537 |
| 9,577 |
| 8,965 |
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Gross profit |
| 5,563 |
| 3,762 |
| 4,864 |
| 10,427 |
| 6,876 |
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Operating expenses: |
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Research and development |
| 2,420 |
| 3,391 |
| 2,328 |
| 4,748 |
| 6,668 |
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Selling, general and administrative |
| 3,842 |
| 3,764 |
| 4,135 |
| 7,977 |
| 7,397 |
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Total operating expenses |
| 6,262 |
| 7,155 |
| 6,463 |
| 12,725 |
| 14,065 |
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Loss from operations |
| (699 | ) | (3,393 | ) | (1,599 | ) | (2,298 | ) | (7,189 | ) | |||||
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Interest expense |
| (55 | ) | (8 | ) | (61 | ) | (116 | ) | (18 | ) | |||||
Interest income and other, net |
| 34 |
| 256 |
| 26 |
| 60 |
| 357 |
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Realized gain on sale of investment in Tower Semiconductor, Ltd. |
| 696 |
| — |
| — |
| 696 |
| — |
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Loss before taxes |
| (24 | ) | (3,145 | ) | (1,634 | ) | (1,658 | ) | (6,850 | ) | |||||
Provision for income tax |
| — |
| — |
| — |
| — |
| — |
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Net loss |
| $ | (24 | ) | $ | (3,145 | ) | $ | (1,634 | ) | $ | (1,658 | ) | $ | (6,850 | ) |
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NET LOSS PER SHARE: |
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Basic and diluted |
| $ | (0.00 | ) | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.30 | ) |
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SHARES USED IN PER SHARE CALCULATIONS: |
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Basic and diluted |
| 23,901 |
| 23,314 |
| 23,745 |
| 23,693 |
| 23,117 |
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QUICKLOGIC CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
|
| June 30, |
| March 31, |
| December 31, |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
| $ | 24,065 |
| $ | 13,838 |
| $ | 13,001 |
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Cash and cash equivalents, restricted |
| — |
| 8,788 |
| 9,002 |
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Accounts receivable, net |
| 3,555 |
| 4,660 |
| 4,900 |
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Inventories |
| 7,586 |
| 7,221 |
| 7,876 |
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Other current assets |
| 1,876 |
| 1,951 |
| 2,281 |
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Total current assets |
| 37,082 |
| 36,458 |
| 37,060 |
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Property and equipment, net |
| 10,668 |
| 11,094 |
| 11,967 |
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Investment in Tower Semiconductor, Ltd. |
| 5,073 |
| 5,527 |
| 5,975 |
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Other assets |
| 6,431 |
| 6,468 |
| 7,129 |
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Total assets |
| $ | 59,254 |
| $ | 59,547 |
| $ | 62,131 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Trade payables |
| $ | 3,165 |
| $ | 3,560 |
| $ | 3,013 |
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Accrued liabilities |
| 1,863 |
| 1,807 |
| 1,840 |
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Deferred income on shipments to distributors |
| 1,316 |
| 1,248 |
| 1,242 |
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Current portion of long-term obligations |
| 6,852 |
| 9,185 |
| 9,650 |
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Total current liabilities |
| 13,196 |
| 15,800 |
| 15,745 |
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Long-term obligations |
| 1,757 |
| 836 |
| 1,455 |
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Total liabilities |
| 14,953 |
| 16,636 |
| 17,200 |
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STOCKHOLDERS��� EQUITY: |
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Common stock at par |
| 24 |
| 24 |
| 24 |
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Additional paid-in capital |
| 151,650 |
| 151,198 |
| 151,198 |
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Deferred compensation |
| (26 | ) | (83 | ) | (145 | ) | |||
Accumulated other comprehensive income (loss) |
| 457 |
| (448 | ) | — |
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Accumulated deficit |
| (107,804 | ) | (107,780 | ) | (106,146 | ) | |||
Total stockholders’ equity |
| 44,301 |
| 42,911 |
| 44,931 |
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Total liabilities and stockholders’ equity |
| $ | 59,254 |
| $ | 59,547 |
| $ | 62,131 |
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(1) Derived from the December 31, 2002 audited balance sheet included in the 2002 Annual Report on Form 10-K of QuickLogic Corporation.
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QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
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| Percent of Total Revenue |
| Change in Revenue |
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| Q2 |
| Q1 |
| Q2 |
| Q1 2003 to |
| Q2 2002 to |
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COMPOSITION OF REVENUE: |
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Revenue by product (1): |
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Mature products |
| 29 | % | 36 | % | 43 | % | (10 | )% | (14 | )% |
New products |
| 71 | % | 64 | % | 57 | % | 26 | % | 57 | % |
Embedded standard products |
| 42 | % | 42 | % | 32 | % | 14 | % | 65 | % |
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Revenue by geography: |
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North America |
| 37 | % | 52 | % | 58 | % | (20 | )% | (19 | )% |
Europe |
| 14 | % | 16 | % | 20 | % | 3 | % | (6 | )% |
Japan |
| 14 | % | 12 | % | 14 | % | 35 | % | 25 | % |
Rest of world |
| 35 | % | 20 | % | 8 | % | 90 | % | 440 | % |
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Revenue by end-customer segment: |
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Computing |
| 42 | % | 27 | % | 11 | % | 81 | % | 373 | % |
Instrumentation and test |
| 28 | % | 32 | % | 45 | % | — |
| (20 | )% |
Datacom and telecom |
| 15 | % | 22 | % | 20 | % | (25 | )% | (9 | )% |
Graphics and imaging |
| 4 | % | 6 | % | 8 | % | (27 | )% | (37 | )% |
Military and aerospace systems |
| 11 | % | 13 | % | 16 | % | (9 | )% | (13 | )% |
(1) Mature products include our pASIC1 and pASIC2 product families. New products include our pASIC3, Eclipse FPGA, and Embedded Standard Product (“ESP”) product families. Our embedded standard products include the QuickRAM™, QuickPCI™, QuickFC™, QuickDSP™, QuickSD™, QuickMIPS™, and V3 product families.
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