QUIK - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, good afternoon. At this time, I'd like to welcome everyone to QuickLogic Corporation's Second Quarter Fiscal Year 2022 Earnings Results Conference Call.

As a reminder, today's call is being recorded for replay purposes through August 23, 2022. I would now like to turn the conference over to Mr. Jim Fanucchi of Darrow Associates. Mr. ahead. go please Fanucchi,

Jim Fanucchi

and all operator, joining you us. thanks you, of to for Thank

are and Financial Faith, and speakers Brian Our today President Senior President Elias Vice Chief and Chief Officer. Nader, Officer; Executive

changes to of the involve stock statements acceptance may stated financial production new future pertaining of mature timing its that uncertainties, convert today. expectations expectations As differ a margin, to and operating its for our design trends ecosystem reminder, and comments customers' products; makes timing discussed of activity the from forward-looking market number dates schedule the could risks revenue, Actual limited today not and company’s gross but into of partners; future products; revenue opportunities to the shipments; results performance, profitability or and impact materially expenses, production QuickLogic and and including, relating and that QuickLogic's results cash. those statements broadening are to ability design systems; and from evaluation some new shipments; start expected

QuickLogic periodic could with discussions in detailed that and QuickLogic’s assumptions factors be assumes will as reporting no information, please today’s non-GAAP or information in update recently measures. dates statements of the those risks, differences, most new filed uncertainties more of we which refer SEC. discussed the the to For forward-looking result risk financial reports of or obligation to any speak any respective In the future call, events.

our may statements. other to and issued for non-GAAP financial You today a detailed earnings the GAAP reconciliation of refer to we release results

about account, page, page QuickLogic on business. of earnings material today’s these its that IR Such provides may corporate to deemed shortly information, under copy blog, on at table data. posted website, the information call obligations We Brian. page would made QuickLogic’s use the the information as I Regulation its now distribution comply will with web current web QuickLogic Please updated of today’s company have and conclusion non-GAAP prepared call. channels also over financial an of A like of FD. call LinkedIn remarks Facebook be IR posted and be and may to page channels uses historical to note, its the our disclosure Twitter turn after

Brian Faith

Good quarter Thank you, Jim. for and conference you afternoon, results thank everyone, call. our XXXX all joining financial fiscal second

increase in QX best continued momentum design and bottom Moreover, we XXXX. large funnel sales $XXX business our currently since wins Our an line million. achieved in as we have performance our seen approaching

market and pace has first the decades shipments This further enabled growth the to marks boosting moment quarters to a open-source company the engineering FPGA in near by a product being with and I the market. been comprehensive term all both in that we know-how accelerate entity years, of with coming watershed platform trajectory for blends profitability. robust our commercial our We to a technology and term expect as believe and recent drive the event long QuickLogic.

won by will over As be one the am today, eFPGA approximately our that will pleased to-date, have $X Company's far The and share I in due honored noted course that to XX release we largest at months. earnings million. contract related of deliverables both the start

of contract of of completion total In addition, increase the at could customer, dollars. subject value millions to such of and the tens option the deliverables to

with path, related many a this years profitable expected the last proof eFPGA design transform July additional believe strategy approaching substantially device business for develop Since will to our related come. that it higher firm $XXX customer sharing development are this have the revenue contracts contractually prohibited similar in of on into from names and starting funnel are million opportunities sustainably this for further opportunities end eFPGA developments, FPGA-based There a are million turning to we QuickLogic several recent sales potential intention We that details expanding into are now of eFPGA market with is and as or to follow multi-year once over products our win, the how $XX closed approaching time. we aggregate IP storefront an wins. to eFPGA-related growing While demonstrates the most IP device engagement being is chiplet and/or and completed. full year, QuickLogic

new because contributor to and eFPGA automated we large Australis Companies some been in has eFPGA coming sizes, to deliver Generator names and IP define Our of QuickLogic devices can opportunities. all and/or customized of this IP substantial highly very way. recognizable a pipeline including are a

foundries, matter standard fast and operating SkyWater allows Samsung, of including eFPGA a custom of and design months, to leverage customers our providing IP tremendous engineers approach our cell active a in UMC our giving time GlobalFoundries, Technologies. largest generate R&D QuickLogic world's IP semiconductor QuickLogic Our resources. spans customer TSMC, delivery breadth the to engagements The from eFPGA

their Fortune SensiML our the Now moving our is that to and growing. is we of quarter, June we saw May business. growing SensiML its best win opportunities, X-digit pipeline shared a ever. XXX the year first signed call, In having including a companies. earnings opportunities In number doubling X-digit of SensiML of

of Direct SensiML least next Driving announced expanding the will publicly of Our to earnings close deals the system an with add new SensiML current closed one the these is we call integrators engine expectation ecosystem deal three integrators. in Asia to in Insight. recently already is November. by at

looking monolithic these chiplets share taking SensiML markets been semiconductor of year, specifically and to we on new offer program. additional deals the traditional have the have more Since the Chiplets emerging chiplets We from new to our of first start revenue asked devices. steadily the more year commentary additions are the products. for six drive been digit representing in market

higher why low critical monolithic all customers size than that's the significant. announcement approach For manufacturers, is creates reduce encompassing smaller they so not yield for June special hence That chiplet have and based many eTopus a a in with helps of but yields combined provide and interconnect and is each larger using our costs, same flexibility, only of has applications enhance a mind. eFPGA chiplet power would as our the the component die We high technology provide the functionality. device performance

start by Market based CAGR representing plan expected is that decade. over is firm customer next with and approach chiplet market the move significantly exceeding to Good commensurate a current with then chiplet recently The grow templates a market eFPGA chiplet Our XXXX, research to $XX billion noted the with forward Transparency Research Industry exceed Die is Known expected to demand. XX%.

Display chiplet how product multiple across architect to of issues. of lead be a on supply customers I reused we sales we Bridge some might from the that see strong design-ins can chain remained We are under our with the benefit global evaluation customers. want and areas as touch to continued other business. quickly

customer. strong is phones near to In in visibility. new good negatively expect well into we to though, inventory term We will that primary are into customer into consumer very and being mobile have remain XXXX, our models designed impacting business, phone XXXX our term spending In months meet muted the long demand giving recent a several ship of needs. believe we us

in the phone remain half our QX macro for believe the factors will supply weak issues, demand. low second mobile with being Given chain including point business we ongoing a

and some in stabilization our balance starting year. to bookings are quarter of mature see segment, product in the this Finally, for we this

However, good currently macro without mature be slightly the from clarity will down we economy, revenue believe on XXXX.

QX. Before and for outlook turning offer a look Elias, I QX provide want into call to the to our revenue

years, have two last building the Over IP-related we and significant made our software business. progress

due the software start in more have and in agreements I During recognition these of noted milestones to to could time, IP revenue this or some transitionary lumpiness there centric delays from a timing in time that period company, dates. be our to

QX third to $X originally particular, had For mentioned quarter. previously in I expected start agreement in the earlier we million the

start However, caused to QX date we the project to push out expectations with us $X.X reduce been million. approximately coupled recently pushed environment a were sales smartphone quarter. This has revenue has in this softening revenue for later by informed

be QX We into in realized revenue of the and first expect portion of half a to XXXX. this

the million smartphone QX in Even increase basis revenue of us outlook weakness, rolling the expense a of barriers related to I on new our and pace support nicely. chance reflects growth mere and a it signing result, profitability new over contract any for I expectation of be on and the our To winning earlier, contract approximately of the gross confidence very for margin believe contract With in this QX and operating puts start large large of is revenue QX. current our are large XX% the impact mentioned which current reporting outlook, in further is or is in of line since indicative with trajectory, fiscal opportunities. early this fiscal have year the month we third with fiscal I XX%, with date a this revenue date am shift the start and very to convinced terms $X.X I our levels, not XXXX. plus we in XXXX clear, approximately good shaping in business, a to be want timing growth targets. to the profitability. decrease the continued up to As revenue blip XX quarter still is in minus in

results. Elias, over to review please a ahead. Elias now financial me Let call go the the for of turn

Elias Nader

you, Brian, afternoon, everyone. Thank and good

and was in The quarter loss model. QX to non-GAAP the million growing a $XX,XXX software translated margin since further Revenue into of gross just top $X.X goal the focused controls combined of and highest close minimal is which breakeven. of continued the strong. our second IP of performance XXXX, revenue Our line expense very strength our with favorable of was a net demonstrating

$X.X quarter our compared was per million last GAAP and and supply a million GAAP quarter for Let customers the last our of the XX% QX This quarter million million. were second and $X.X we $X.X of XXXX. OpEx lower of second than a quarter up with tooling. services. a eFPGA QX On for the basis, with volatile in decrease comes compared XX% compares of the million. Total industry due to the or approximately $XX.X million The net prior prior year loss last compared the new a XX.X% $X.X XXXX. in XXXX. with second products operating with with in in in new review to eFPGA year the of in million Non revenue, margin was quarter prior quarter investment gross net IP GAAP QX sales XX.X% certain reclassifications the and quarter for same services. the for of $X.X chain same a continued OpEx expenses sequential $X.X share last which in from The or we and discussed consistent more costs per have cents shortages pandemic or related decline. quarter quarter. IP QX to quarter. accounted compared when $X.X in of per non-recurring of in despite in This QX design expenses is second quarter-over-quarter ago. a of resulted expenses fiscal results professional Non to headwinds. quarter. to and share was share The of our loss a shares. mix $X.X XXXX. last end portion XX.X was in based from increased QX quarter loss zero compares services, million of This was quarter gross our In and improvement increase in operating $X.X QX due revenue was Improvement mainly support wins product compares in QX revenue of IP compares ago. the shift quarter were million the IP cash million quarter from accounted with of was support of with of revenue, Within more percentage million million the me QX the the now $X.X economic up was million $X.X an the $X.XX turn last at had inclusive second represented loss XX% eFPGA forecast or million. to each eFPGA expenses R&D and in the the second with XX.X% $XX.X million Non revenue three QX, the This margin of to with $X.XX million approximately year that professional last $XX,XXX product with year. $X.X in million net quarter on compared professional in Mature $X.X of $X.X GAAP specialized a quarter last approximately

from the Additionally, related cash to also to position. issues customers cash timing receipts contributed lower

October fiscal our XXXX. XXXX, for this moving end on of quarter X, which will guidance Now to

for approximately expected XX% minus gross due approximately of mainly points. $X.X or As revenue of QX on and reasons outlined. minus million million will this the he or plus percentage Revenue is $X.X discussed, non-GAAP products. to guidance Based million Brian mature is plus approximately XX% $X new for be products quarter margin the comprised to be revenue mix, of X

per outstanding. operating support based loss compensation approximately compensation and with be income $X.XX approximately and to loss new interest new shares non expenses GAAP will currently million we or taxes, $X.X term, in will QX, or XX% the because In occasional non-GAAP The expenses. we $X be million will is believe remain we approximately wins. $X.X to increases GAAP non-GAAP expense, $XXX,XXX. related our plus XX.X to minus forecast to with $X.XX programs difference non-cash low results OpEx this Our net other net million After range million our $X.X roughly on stock-based expect million be between a will share of longer

in compensation the stock-based vary during As our of the there grants. on each the be timing may based will and quarter a reminder, movement year

to Moving cash the to at in we range. design that continued we the discussed, midpoint, sheet. balance low expect million investment to Even with usage the to support new have $X mid the wins be

us S-X in company, part the of the filing year. opportunities strategic up million. shelf a $XXX to we the housekeeping to Finally, registration on statement will This to done provides past corporate to investments quickly Form as option respond be universal week, this have we similar good for the

in remarks. profitability let you. call soon that, a lean Thank the business QX. turn back structure, As Brian the me momentum for Brian with large to as our stated new to above possibly wins company overall with operating closing and are driving design we and over And as now the his

Brian Faith

third QuickLogic transformation than year stronger now is business ever. the and in Elias. you, is Thank of the its

an returns We customers eFPGA sales, have a that as lean to a growing operating of expanded larger significantly pipeline out of number generates distribution software higher products revenue potential our ecosystem and higher model fast and a to IP drive increases.

we year, recent wins, $X have multiple closed most During million the past successfully million. approximately which of dollar being the

prepared contract thank like the would cusp for including strength of for we are our open to suppliers As our revenue growth key largest investors, customers, call I'm our support. resumes to questions. stakeholders. to would more XXXX most I continued date, now completes the and in of their QX all, teams I Operator, our again profitability. QuickLogic even and like That and into sustainable confident eFPGA remarks. the of on the SensiML on

Operator

your first time, will from At Capital. session. we this Instructions] is with Desilva Suji question be you. a Our proceed conducting ROTH Please with Thank question-and-answer [Operator question.

Suji Desilva

Hi, progress Brian. here. on and Hi, the Elias, congratulations

great. Sounds

Brian Faith

you. Thank

Elias Nader

you. Thank

Suji Desilva

problem. No Yeah.

quarter, quarter, to helpful. all fourth that get rev you sounds in (ph) like you but Brian what out. pushed understanding of maybe So recognized want three the $X clarify it be just it the announced you couldn't mean understanding. on Any to part or quarters recognition mean Does wanted there does to recognize some the just the deal will the accounting, it the gets third gets sound perhaps million right the four just in split quarters? It color would of

Brian Faith

Yes.

it we I'll the $X -- as the than year take quarter particular. later this, think The that is for recognizing So starting this -- million and thought. this across later point in much deal one what starting of it

to customer across to in election the So milestones Again, it But upsize potential completion months. that. through the XX of increase notably shift with in it. our once it's it's a starts,

Suji Desilva

Brian. number there you number the as to prepared some that Great. about built that how can remarks then color of and us in quoted well? give talk And Understood. Thanks million. any thoughts you you is and the $XXX and up imply, cover Can meant you number what around

Brian Faith

can. I Yes,

after I talking the about of now are plus, deal couple value the we're million. dollar that But as of end can development, the we've lucrative prize IP we've couple now announce, been of it's it's what our quarters, for could done space $X is storefront us typically for and pure a sales the increasing $X can a it are sense the million show actually of delivered. wins eFPGA now year we something developments So a the that we these deal, I of eye transform royalties. that the so been these you how being think, for In talking of of in about time steadily if the been think characterizing pretty we last is in we've silicon last years, These you these to case the every product. start and embedded have resulting terms think million, typically the into signed from at $X time across IP when up see on us the

the the storefront $XXX talk we represents investor upfront that's is some the okay, an IP of from and the royalty think residual I important it sometimes really and be upfront think, would just at or at And of million device people these So categorization million point about here then large built that the IP end that notion. see the starting because and design one our these of end to of such we like back wins were to customers terms upfront the we encompasses and large forecast that starting into this funnel of just some $XXX that in incorporate and we're from have mentioning now maybe the with either view shipments now contracts getting contracts royalty and with sales these this end.

be in a jump end. top royalty that now with engaging just these monetizing it's in devices selling designs we're And about, line yeah, huge at Now component, contracts. up the potential. the could talking these it not we're that's

Suji Desilva

That's Okay. the like concept to bit. interesting, explore I storefront little would Brian. a

prime sell chip for But sounds almost is the a somebody that IP done, product, product to ecosystem as when just perhaps device a a plays perception defense and Is they about guy standard of selling needed you a it. the you're my own to their that, storefront, you can out adopt an a a to third-parties, give us how ecosystem a would it to like sense like develop So versus customer? standard where you wants products. gave people go for use helping them to a them it storefront somebody help example, guys what third-party with talk sales large

Brian Faith

Yeah.

for of doesn't it for supply to standard to we just XX product. a chain specific finished been don't chain necessarily First a have a could be so work they good. build the to customer do all, a be to that that supply that finished doing have customers. We've product the It device with can years, a expertise for

a we're So essence that semiconductor it capability could supply chain. for. for storefront have to the being in If custom a be run customer the don't almost the product they

other is like perhaps standard cover a thing. could whole very in invested storefront product On they that it be just don't by of to hand, want you a mentioned, but a customer, well the or funded maybe the

on storefront step or here the about a nice thing just back and being always in that so, has arrangement, business again, the been terms perhaps end devices. doing look the device of if we you device at a the our depending could heritage of And on derivative for But future. that up

just deals be we up can into IP pure concept the depending chain the pivot with infrastructure And line the clearly makes have and do processes the that. what We with and moving it so all to sense way or software either on relationships customer. supply

Suji Desilva

a facilitation, of model, chip IP plus new fairly interesting. Essentially, the something

it, I'll question. and the chiplet chiplets what earliest the markets are the seeing strongest, curious you end that. chiplets leave The interest on I’m out of in Lastly, last gate?

Brian Faith

That's characterize a I trying to question. should good out I'm figure how this.

Let's computing. performance say, high

Suji Desilva

right. I Congrats thought. what guys. That's All again. Thanks

Brian Faith

Suji. Thanks,

Elias Nader

Suji. Thanks,

Operator

is question. your from proceed Shannon with Richard [Operator Please with Instructions] Our Craig-Hallum. question next

Richard Shannon

Hey, Brian, for my and Elias. taking questions. Thanks

Brian Faith

Richard. Hey,

Richard Shannon

to contributor Suji’s don't follow-up to market. sense after. of the when sense to end next we last quickly here give can could on here. the get I'm question of very I'm us that you chiplets a be of I this going can have be revenue? ask going noticeable a do Yes, when So a on just great or year top driver whether -- a line? that's year How a how Hey,

Brian Faith

to top contributor as a be line as could it early QX. Well,

about fact, customer. we're where a think these development getting if we contracts funded from In

As is the out chiplets chiplet the that's far that the the be usually a in and go would real and funnel. That our before would what these as opportunity actual the into And timing. production with the through right year move packaging validation they world. ones typically customer itself, the as by process it revenue now looking we're later the

Richard Shannon

lot is so in understand scaled of help essentially this the last this around quarters want interesting and $X Fair involved value services I enough. unit something its it's back you of Brian, noted you've of the that ways of contracts. contract to us gets million different just increasing couple Maybe Okay. That's the, few helpful. output market? effect, customization you over jump to to variable ask once this. a of somewhat is to the very can it the increasing design why these or an a amount professional an and noted

Brian Faith

customers very of interesting to from They nice use a customer ports timely view. of I a a of point for or incorporated of about things it so is a solve approach need thing what lower that in more customer, starting uniqueness think see do you're can into our There's critical that. And the to we more also that professional can't depending port and and means services a are critical lot we a which for what starting things a we're is unique one demand the with manner, designs to that price is will new on that's for see case And do automated be there IP the us that a actually carries you're a that created you're being to cost. general, logic to instances I finally. value see the they I lot our the starting a think standard value seeing that And for have get that I that's voids market product not in unique of is as can a the drive market also And certain these product types or you're consolidation that and that team in happening, the with a sales programmable of carries eFPGA seeing available that not think void. there's like pricing value, necessarily contracts. the we think of is features. cost up fill certain of And value to and out helping some

Richard Shannon

Okay.

other I as I point As I about dynamics dynamics both around in those see other describing at vague think to front, in this translatable of customers things store just time. the as is there of you this? have these But I and or Are Are things this we grasp that could well think -- like this -- how like the a and funnel the one-off think which today? a situations? are a

Brian Faith

down in area, that of one few call on quarters a we're for And more more types large out going like repeatable business about show field funnel out the either the today conscious of we I've or wins, of been this little detail articulate there dropping like or been but funnel to come to not about why probably And in darn to not see are little right I'm products one-off something a is we now. that of the little as in breadcrumbs pretty up reasons a making because sure far see decided new of just business or effort sort bit things that this storefront models and chiplets a and talk I've are to the strategy. bit out and things There contract. be the a until new starting case

So your I off don't one short answer to it's think a question.

the I around the on think putting of really that again leverage these business lot rally that R&D a eFPGA side. it's into and initiative new we're a can we ports

Richard Shannon

Okay. line SensiML. Fair enough. me jump last on for I'll out here and One question of

direct these Is relationship of relationships? some going SensiML. improving on larger these that pipeline channel about think You about to with deals some a drive here. we how is or the kind deals talked expect that's what a of forward should you And larger of this

Brian Faith

channel definitely up SensiML is sensor that -- from it of signing very the continually large it the microcontroller is is Part we're partners. Part expansion. fact of

So recognition. they're getting a little bit more brand

the we've one of fruit and months we can closed very see one five But Where decision guys revenue really it's themselves. decision think per I to it really of sufficient project in really more And and I fan about that and numbers. deals last think SensiML now. have on we're go-to-market to quarter made been think, really focusing or on contributors like digit provide of the three so matter. biggest I focus that a we starting being is strategic to fairly business with out I to to it's only think with student a six since result. user that on that starting is was that dog high And or it AI. they sort four to as brownfield you'll but consciously a scalable decision, guys I have can hacker a digit a And was it the these public to a out we're the company the this fan start to much then and claiming work work partners people doing that low. we can and it where got these with focus fan a that of effect and we six can hardware average large that deploy and out right every more than of already model installed made That's trying to chase now cat ones see

Richard Shannon

for all me, great That's That's perfect. perspective. Okay, Thanks. Brian.

Brian Faith

Thanks Richard.

Operator

Rick with proceed Our with Please next Neaton Research. your question Rivershore is question. from Investment

Rick Neaton

you. Elias. Congratulations Hi, breakeven Thank quarter. Hi, nearly on Brian.

Brian Faith

you. Thank

Rick Neaton

the you giving XXXX. Android we've into mid-range longer into any My customer, and half into well -- that softness we're smartphone visibility concerns term this the customer particular market. in getting year a first XXXX question second order its Is lot your noticed of calendar your patterns now of for

Brian Faith

Yeah.

I meetings. customers had face face meetings fact, face any more post-pandemic. our of In than to I probably that with customer have face to periodic

new visibility volumes us We year to of or what visibility down on in for carrier, phone going the than to not know the of model. out, that's intending one getting say to I how carriers visibility just the getting they month good are designing carriers, are those but one It's these projects of more good they're are each us We're each getting multiple in level wouldn't into. that sort of firstly level near-term of a phone. do, much we the models. by month And next granularity then to use It's to of down take volume planning models, is multiple these right? projects

of there's we are then phone to again from visibility real them. a bit a out So think lot forecast. getting down at carrier. per and variables the good Starting stage time end still design per I But down to to volume

think XXXX. that So in visibility even prepared the saying for I reasonable shipping I that's remarks, have for why design I we in -- was visibility in be at least phones and would XXXX see

clearly XXXX. into economy. generation course, change point phones, forecast Of starting the see But of on macro the to and next going based through I is their that the is getting

Rick Neaton

since calls. conference up Okay. your last that firmed And is few

contributor QX lumpiness the your said largest $X.X at looking second in you I -- the to smartphone is expectations. largest customer, here, shortfall or your your in So million think

Brian Faith

start very today. release announced large number by script the is the and on contributor project number we of not The slip this the one is far earnings in one date It contributor. the and just

Rick Neaton

the new a date that of is customer. just over Okay. catch basically earned correctly? you XX no they as that contract are month QX from period. said of the I will weeks it's that a there's your in basically But anticipated X slide And of start this revenues be up that number portioned large -- understand and Did

Brian Faith

Exactly. Yeah.

slide XX date, Just slides if sort everything the as start want $X And model out, that parts it equal just of to months model you million. of it accordingly. across

Rick Neaton

earlier And about announced quarter. Okay. you Speakers] quarter [Multiple customer this the per a in approximately year providing is addition revenue this to you XXX,XXX it's of to where

Brian Faith

yeah, new this -- new a customer. Brand is new brand design, brand

Rick Neaton

Okay.

Brian Faith

This new one.

Rick Neaton

Okay.

two these revenue fairly in four for of then eFPGA least. million coming $X the big contracts of about next got you've quarters locked at out So

Brian Faith

at way it, That's to good right? look a

Rick Neaton

think leverage mentioning plot from you Australis growth? is or going conference your values the your your and leverage term next be I'd on large see as like this XX tool, calling curious months, its XX your all about about ROI the what increasing you on your on out I'm that seem importance. that deals, talk given at your Okay. into investment calls do dollar you point? And Australis in three past tool for do you your to because the where say, to to the tool keep four long that

Brian Faith

be that product, There's the But there's a things Australis change things looking I lot into think it looking compelling people to of make it into programmable integration future. in that talked we'd to to maintain to stay or you at type amenable to created I in doesn't that development. There's are that development always to ways logic with to different about right? going at competitive We've lot we've heterogeneous more a it, we're And chiplets. moat so a chiplet any Australis compelling systems like so investment unless the continue of invest continual think from far. their

to trying market. that We with and it just it's thing. to have we're to put as going make that see I continue these tool nice either. now. leverage to be because to as investment sure to a going in zero out revenue allowing much high But keep of don't continue thing So new the get and we But that not it's that's need us think to the as higher investing pace into is we especially is getting opportunities

Rick Neaton

Brian. [indiscernible]. Thank Elias. you, you, Thank Okay.

Brian Faith

Thank you.

Operator

Yang is with Martin question question. Please Oppenheimer. your next with proceed from Our

Martin Yang

afternoon. One you good for Hi, question. taking is, contract licensing my announced. question Thank the large you

With of your OpEx the later you SG&A for either timing the any expected, coming would assumptions regarding year? R&D it or than change

Elias Nader

were because supposed Mainly for buy. had we contract we accounted that to already pieces. if had get that in we anticipated the No. those We did tools already

think we're okay. I So

Martin Yang

And it. another also Got regarding OpEx. question

what aggressive the you or more marketing the most finally the adoption way? to positive about in So are most your a to adoption, with software investments have plans boost or seeing and in tractions market, thought maybe first more since adding

Elias Nader

from in being away we're marketing I think We it. don't for it. stay a way particularly aggressive That's very are we sure.

let's We it's are I investing some that say, it but give focusing the time on sure how I and corner. makes it out, turns around sense. think and it for would where believe sensible see we it

You'll see certain good announcements from it.

So better in the we make investing answer for further it answer my it we from is, my -- are investing away it and not are business long in a us. long answer winded yes, in shying is

Martin Yang

it. Got

Brian Faith

to if opportunities Like see said, sense it's some think good have into we or on definitely so. new signed then matter like for installed some we're that of partner, going partners that is, to look we're approach to these you're marketing the AI. already also to our focused step around microcontroller their in said companies of I place But in worldwide through One installed less last through thing lot immediately. going what -- I'd at back showing that we in marketing for we customer. work makes these some a you And working see marketing and general, people large it these the out discipline how that companies it's and and go just you're or quarter over big the and where of sensible. the marketing masses up really base that universities that I AI that it not XX,XXX add base we're to Elias that can an upsell to brownfield of we're to oriented

Martin Yang

Got it. That's Thank you, it me. Brian. for

Operator

the call to closing and remarks. over have end turn now the Faith Brian I’ll question-and-answer for We reached session of the

Brian Faith

forward upcoming you when all when results and great November. fiscal you thank in participating look today's your our events to want we XXXX again of with We for quarter we Have and in day. investor a continued call speaking for to in support. third many participate I year report

Operator

time. participation. your conference this This lines and may for concludes disconnect you your today's Thank you at

QuickLogic (QUIK) 16 Aug 222022 Q2 Earnings call transcript