Exhibit 99.1
| | Contacts: | | Carl M. Mills QuickLogic Corporation Chief Financial Officer (408) 990-4000 cmills@quicklogic.com | | Ann McMichael QuickLogic Corporation IR Manager (416) 497-8884 amcmichael@quicklogic.com |
For Immediate Release
QUICKLOGIC ANNOUNCES FIRST QUARTER RESULTS — REVENUE INCREASES 10% YEAR-ON-YEAR
SUNNYVALE, Calif.—April 21, 2004 —QuickLogic Corporation (Nasdaq: QUIK), the inventor and pioneer of Embedded Standard Products (ESPs), today announced its financial results for the first quarter ended March 31, 2004.
Net revenue for the first quarter of 2004 was $10.4 million, up 10% from net revenue of $9.4 million in the first quarter of 2003 and down 4% sequentially from net revenue of $10.8 million in the fourth quarter of 2003. Advanced ESP products and ESP products were 20% and 29% of net revenue, respectively, in the first quarter of 2004. The net loss for the first quarter of 2004 was $1.4 million, or $0.06 per share, compared to a net loss of $1.6 million, or $0.07 per share, in the first quarter of 2003, and compared to a net loss of $2.4 million, or $0.10 per share, in the fourth quarter of 2003.
“While our revenue increased 10% year-on-year, our sequential revenue declined since orders from a few large customers did not materialize in the quarter. We are, however, pleased with gross margin of 56% in the first quarter,” said Tom Hart, Chairman, President and CEO. “We also released four new products in our Eclipse II family — the QL8350, QL8250, QL8050 and QL8025 — to production in the first quarter of 2004. Our Eclipse II products are the lowest power, most secure FPGAs available in the market today, and these products are being well received by our current and new customers. Customer designs using the QuickMIPS family of products are also progressing well. These developments should provide us with good momentum as the year progresses.”
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 1-800-901-5226 or 1-617-786-4513 (international) by 2:20 p.m. Pacific Time on April 21, 2004. You will need to reference the pass code: 76664861. 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 1-617-801-6888 (international). You will need to reference the pass code: 49199232. Both the webcast and the call recording will be archived until May 6th, 2004.
About QuickLogic
QuickLogic Corporation (Nasdaq:QUIK) invented and pioneered the Embedded Standard Product 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 ViaLink® 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 made by our CEO relating to our new products and the market acceptance of our products. Actual results could differ materially from any such forward-looking statements. Factors that could cause actual results to differ materially include our ability to introduce new products based on advanced wafer technology on a timely basis, delays in the acceptance of the company’s ESPs or new products, level of customer design activity, intense competition including the introduction of new products by competitors, our ability to hire and retain qualified personnel, unforeseen changes in product demand or supply, and 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 in the Company’s prior press releases.
ViaLink, pASIC, QuickPCI, QuickRAM, QuickWorks, DeskFAB and the QuickLogic name and logo are registered trademarks and Eclipse, QuickMIPS, QuickTools, QuickSD, QuickFC, WebASIC, and WebESP are 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
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| | Three Months Ended | |
| | March 31,
2004 | | December 31,
2003 | | March 31,
2003 | |
| | | | | | | |
Revenue | | $ | 10,368 | | $ | 10,794 | | $ | 9,401 | |
Cost of revenue | | 4,555 | | 6,028 | | 4,537 | |
Gross profit | | 5,813 | | 4,766 | | 4,864 | |
| | | | | | | |
Operating expenses: | | | | | | | |
Research and development | | 3,248 | | 3,040 | | 2,328 | |
Selling, general and administrative | | 3,909 | | 4,021 | | 4,135 | |
Total operating expenses | | 7,157 | | 7,061 | | 6,463 | |
| | | | | | | |
Loss from operations | | (1,344 | ) | (2,295 | ) | (1,599 | ) |
| | | | | | | |
Interest expense | | (68 | ) | (29 | ) | (61 | ) |
Interest income and other, net | | 44 | | (28 | ) | 26 | |
| | | | | | | |
Net loss | | $ | (1,368 | ) | $ | (2,352 | ) | $ | (1,634 | ) |
| | | | | | | |
Net loss per share: | | | | | | | |
Basic and diluted | | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.07 | ) |
| | | | | | | |
Shares used in per share calculation: | | | | | | | |
Basic and diluted | | 24,846 | | 24,601 | | 23,745 | |
QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| | March 31,
2004 | | December 31,
2003 (1) | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 25,071 | | $ | 26,443 | |
Short term investment in Tower Semiconductor Ltd. | | 6,244 | | — | |
Accounts receivable, net | | 4,427 | | 3,924 | |
Inventory | | 6,008 | | 5,255 | |
Other current assets | | 1,522 | | 1,727 | |
| | | | | |
Total current assets | | 43,272 | | 37,349 | |
| | | | | |
Property and equipment, net | | 9,592 | | 9,070 | |
Investment in Tower Semiconductor Ltd. | | 3,141 | | 5,697 | |
Other assets | | 6,211 | | 6,247 | |
| | | | | |
TOTAL ASSETS | | $ | 62,216 | | $ | 58,363 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Trade payables | | $ | 3,624 | | $ | 3,555 | |
Accrued liabilities | | 1,979 | | 1,940 | |
Deferred income on shipments to distributors | | 1,739 | | 1,305 | |
Current portion of long-term obligations | | 5,625 | | 4,972 | |
| | | | | |
Total current liabilities | | 12,967 | | 11,772 | |
| | | | | |
Long-term obligations | | 2,955 | | 2,723 | |
| | | | | |
Total liabilities | | 15,922 | | 14,495 | |
| | | | | |
Stockholders’ equity: | | | | | |
Common stock at par | | 25 | | 25 | |
Additional paid-in capital | | 153,688 | | 153,582 | |
Accumulated other comprehensive income | | 4,814 | | 1,126 | |
Accumulated deficit | | (112,233 | ) | (110,865 | ) |
| | | | | |
Total stockholders’ equity | | 46,294 | | 43,868 | |
| | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 62,216 | | $ | 58,363 | |
(1) Derived from the December 31, 2003 audited balance sheet included in the 2003 Annual Report on Form 10-K of QuickLogic Corporation.
QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
| | Percent of Total Revenue | | Change in Revenue | |
| | Q1
2004 | | Q4
2003 | | Q1
2003 | | Q4 2003 to
Q1 2004 | | Q1 2003 to
Q1 2004 | |
COMPOSITION OF REVENUE: | | | | | | | | | | | |
| | | | | | | | | | | |
Revenue by product (1): | | | | | | | | | | | |
Mature products | | 51 | % | 49 | % | 53 | % | 0 | % | 5 | % |
Embedded standard products | | 29 | % | 38 | % | 42 | % | (27 | )% | (24 | )% |
Advanced embedded standard products | | 20 | % | 13 | % | 5 | % | 49 | % | 375 | % |
| | | | | | | | | | | |
Revenue by geography: | | | | | | | | | | | |
North America | | 55 | % | 55 | % | 52 | % | (5 | )% | 16 | % |
Japan | | 24 | % | 17 | % | 12 | % | 35 | % | 123 | % |
Europe | | 17 | % | 15 | % | 16 | % | 8 | % | 21 | % |
Rest of world | | 4 | % | 13 | % | 20 | % | (67 | )% | (77 | )% |
| | | | | | | | | | | |
Revenue by end-customer segment: | | | | | | | | | | | |
Computing | | 7 | % | 18 | % | 27 | % | (63 | )% | (71 | )% |
Instrumentation and test | | 49 | % | 38 | % | 32 | % | 21 | % | 68 | % |
Datacom and telecom | | 25 | % | 26 | % | 22 | % | (5 | )% | 27 | % |
Graphics and imaging | | 7 | % | 8 | % | 6 | % | (12 | )% | 21 | % |
Military and aerospace systems | | 12 | % | 10 | % | 13 | % | 16 | % | 1 | % |
(1) Mature products include pASIC1 pASIC2 and pASIC3 product families. Embedded standard products include the QuickRAM, QuickPCI, QuickDSP and V3 product families. Advanced embedded standard products include our Eclipse, Eclipse II and QuickMIPS product families, certain QuickPCI devices as well as programming hardware and software.
