| Item 7.01 | Regulation FD Disclosure. |
QuickLogic Corporation (the “Company”) today announced updates to its previously issued financial guidance for its revenue in the second quarter of 2019. This update is due to the timing of certain orders of products from long-term customers that may be received in early third quarter of 2019 rather than in the second quarter of 2019. Depending on which, if any, of these orders are delayed to the third quarter of 2019, the Company believes there may be a negative impact tonon-GAAP gross margin in the second quarter of 2019. The Company believes that this update will not have an impact on the Company’s guidance for cash usage for the second quarter 2019, nor does the Company believe that they will have an impact on the Company’s prior outlook with respect to full year 2019 revenues andnon-GAAP gross margins. The Company’s forecasts were originally provided on May 8, 2019 during the Company’s conference call to discuss its results for the three months ended March 31, 2019. The Company’s original forecast was that revenue for the second quarter of 2019 would be approximately $3.8 million, plus or minus 10%. The Company now forecasts that its revenue for the second quarter of 2019 will be between $2.0 million and $2.4 million. The Company also now forecasts that its net cash balance will be between $4.0 million and $4.5 million with a $15.0 million line of credit available as of June 30, 2019.
The delay in orders is solely due to delayed qualification timing and timing of orders from military/aerospace/defenseend-customers for its legacy products, and it is possible that some of these orders may still ship prior to the end of the current quarter. Management believes that the recent acquisition of SensiML and its eFPGA licensing platform will allow it to diversify its revenue to consist of a mixture of SaaS, subscription, software, licensing, and hardware revenue, thereby producing a more predictable overall revenue stream that will offset revenue fluctuations in any one area.
The information contained in this Item 7.01 of this Current Report on Form8-K is being furnished and shall not be deemed to be “filed” for the purposes of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in any such filings.
Forward Looking Statements
This Current Report on Form8-K contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: delays in the market acceptance of the Company’s new products; the ability to convert design opportunities into customer revenue; the Company’s ability to replace revenue fromend-of-life products; the level and timing of customer design activity; the market acceptance of the Company’s customers’ products; the risk that new orders may not result in future revenue; the Company’s ability to introduce and produce new products based on advanced wafer technology on a timely basis; the Company’s ability to adequately market the low power, competitive pricing and shorttime-to-market of its new products; intense competition, including the introduction of new products by competitors; the Company’s ability to hire and retain qualified personnel; the Company’s ability to capitalize on synergies with its newly acquired subsidiary SensiML Corporation; changes in product demand or supply; capacity constraints; general economic conditions; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; and changes in tax rates and exposure to additional tax liabilities. These and other potential factors and uncertainties that could cause actual results to differ from the results predicted are described in more detail in the Company’s public reports filed with the Securities and Exchange Commission (the “SEC”), including the risks discussed in the “Risk Factors” section in the Company’s Annual Reports on Form10-K, Quarterly Reports on Form10-Q and in the Company’s prior press releases, which are available on the Company’s Investor Relations website at http://ir.quicklogic.com/and on the SEC website at www.sec.gov. In addition, any forward-looking statements contained herein are based on assumptions that the Company believes to be reasonable as of the date hereof. The Company undertakes no obligation to update these statements as a result of new information or future events.
