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 SECOND QUARTER RESULTS –
REVENUE INCREASES 8% SEQUENTIALLY
SUNNYVALE, Calif.—July 21, 2004 —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, 2004.
Net revenue for the second quarter of 2004 was $11.2 million, up 8% sequentially from net revenue of $10.4 million in the first quarter of 2004, and up 6% from net revenue of $10.6 million in the second quarter of 2003. ESP and Advanced ESP products contributed 40% of net revenue in the second quarter of 2004. The net loss for the second quarter of 2004 was $529,000 or $0.02 per share, compared to a net loss of $1.4 million, or $0.06 per share, in the first quarter of 2004 and compared to a net loss of $24,000, or $0.00 per share, in the second quarter of 2003.
“We are very pleased to announce our second quarter financial results,” said Tom Hart, Chairman, President and CEO. “Our revenues of $11.2 million, gross margin of 60.2% and operating loss of $490,000 were better than any quarter since December 2000, and we are making good progress toward our goal of solid profitability. Design opportunities accelerated in Q2 as our new Eclipse II and QuickMIPS families of products continue to be well received by both current and new customers – especially those requiring very low power coupled with high performance and ‘bulletproof’ intellectual property security.”
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 1-800-299-9630 or 1-617-786-2904 (international) by 2:20 p.m. Pacific Time on July 21, 2004. You will need to reference the pass code: 32405201. 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: 32149893. Both the webcast and the call recording will be archived until August 4, 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.
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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; the 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
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QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| | Three Months Ended | | Six Months Ended | |
| | June 30,
2004 | | June 30,
2003 | | March 31,
2004 | | June 30,
2004 | | June 30,
2003 | |
| | | | | | | | | | | |
Revenue | | $ | 11,221 | | $ | 10,603 | | $ | 10,368 | | $ | 21,589 | | $ | 20,004 | |
Cost of revenue | | 4,465 | | 5,040 | | 4,555 | | 9,020 | | 9,577 | |
Gross profit | | 6,756 | | 5,563 | | 5,813 | | 12,569 | | 10,427 | |
| | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | |
Research and development | | 3,052 | | 2,420 | | 3,248 | | 6,300 | | 4,748 | |
Selling, general and administrative | | 4,194 | | 3,842 | | 3,909 | | 8,103 | | 7,977 | |
Total operating expenses | | 7,246 | | 6,262 | | 7,157 | | 14,403 | | 12,725 | |
| | | | | | | | | | | |
Loss from operations | | (490 | ) | (699 | ) | (1,344 | ) | (1,834 | ) | (2,298 | ) |
| | | | | | | | | | | |
Gain on sale of investment in Tower Semiconductor Ltd. | | — | | 696 | | — | | — | | 696 | |
Interest expense | | (62 | ) | (55 | ) | (68 | ) | (130 | ) | (116 | ) |
Interest income and other, net | | 23 | | 34 | | 44 | | 67 | | 60 | |
Net loss | | $ | (529 | ) | $ | (24 | ) | $ | (1,368 | ) | $ | (1,897 | ) | $ | (1,658 | ) |
| | | | | | | | | | | |
Net loss per share: | | | | | | | | | | | |
Basic and diluted | | $ | (0.02 | ) | $ | — | | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.07 | ) |
| | | | | | | | | | | |
Shares used in per share calculation: | | | | | | | | | | | |
Basic and diluted | | 25,231 | | 23,901 | | 24,846 | | 25,039 | | 23,693 | |
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QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| | June 30,
2004 | | December 31,
2003 (1) | |
ASSETS | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 26,089 | | $ | 26,443 | |
Short term investment in Tower Semiconductor Ltd. | | 5,117 | | — | |
Accounts receivable, net | | 3,900 | | 3,924 | |
Inventory | | 6,339 | | 5,255 | |
Other current assets | | 1,076 | | 1,727 | |
Total current assets | | 42,521 | | 37,349 | |
| | | | | |
Property and equipment, net | | 8,900 | | 9,070 | |
Investment in Tower Semiconductor Ltd. | | 2,574 | | 5,697 | |
Other assets | | 6,081 | | 6,247 | |
TOTAL ASSETS | | $ | 60,076 | | $ | 58,363 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
| | | | | |
Current liabilities: | | | | | |
Trade payables | | $ | 2,915 | | $ | 3,555 | |
Accrued liabilities | | 2,006 | | 1,940 | |
Deferred income on shipments to distributors | | 1,932 | | 1,305 | |
Current portion of long-term obligations | | 5,346 | | 4,972 | |
Total current liabilities | | 12,199 | | 11,772 | |
| | | | | |
Long-term obligations | | 2,556 | | 2,723 | |
Total liabilities | | 14,755 | | 14,495 | |
| | | | | |
Stockholders’ equity: | | | | | |
Common stock, at par | | 26 | | 25 | |
Additional paid-in capital | | 154,937 | | 153,582 | |
Accumulated other comprehensive income | | 3,120 | | 1,126 | |
Accumulated deficit | | (112,762 | ) | (110,865 | ) |
Total stockholders’ equity | | 45,321 | | 43,868 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 60,076 | | $ | 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.
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QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
| | Percent of Total Revenue | | Change in Revenue | |
| | Q2
2004 | | Q1
2004 | | Q2
2003 | | Q2 2004 to
Q1 2004 | | Q2 2004 to
Q2 2003 | |
COMPOSITION OF REVENUE: | | | | | | | | | | | |
| | | | | | | | | | | |
Revenue by product (1): | | | | | | | | | | | |
Mature products | | 60 | % | 51 | % | 48 | % | 28 | % | 34 | % |
Embedded standard products | | 31 | % | 29 | % | 42 | % | 15 | % | (23 | )% |
Advanced embedded standard products | | 9 | % | 20 | % | 10 | % | (52 | )% | (7 | )% |
| | | | | | | | | | | |
Revenue by geography: | | | | | | | | | | | |
North America | | 52 | % | 55 | % | 37 | % | 3 | % | 49 | % |
Japan | | 13 | % | 24 | % | 14 | % | (39 | )% | — | % |
Europe | | 22 | % | 17 | % | 14 | % | 36 | % | 60 | % |
Rest of world | | 13 | % | 4 | % | 35 | % | 220 | % | (61 | )% |
| | | | | | | | | | | |
Revenue by end-customer segment: | | | | | | | | | | | |
Computing | | 11 | % | 7 | % | 42 | % | 66 | % | (73 | )% |
Instrumentation and test | | 46 | % | 49 | % | 28 | % | 2 | % | 72 | % |
Datacom and telecom | | 21 | % | 25 | % | 15 | % | (10 | )% | 53 | % |
Graphics and imaging | | 13 | % | 7 | % | 4 | % | 103 | % | 236 | % |
Military and aerospace systems | | 9 | % | 12 | % | 11 | % | (18 | )% | (8 | )% |
(1) Mature products include pASIC1 pASIC2 and pASIC3 product families. Embedded standard products include the QuickRAM, QuickPCI, QuickDSP, QuickFC 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.
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