Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, good afternoon. At this time, I’d like to welcome everyone to QuickLogic Corporation’s First Quarter Fiscal 2023 Earnings Results Conference Call.

As a reminder, today’s call is being recorded for replay purposes through May 23, 2023.

I would like now – like to now turn the conference over to Ms. Alison Ziegler of Darrow Associates. Ms. ahead. go please Ziegler,

Alison Ziegler

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

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

from trends may Actual discussed those differ results or materially today.

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

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

current provides table also IR posted page our and that non-GAAP have updated historical financial data. on We an web

the Twitter information will deemed LinkedIn as its business. call. today’s information obligations IR about after uses disclosure its channels page and web use with website, of on conclusion call be corporate account, shortly today’s page, of Facebook and of of QuickLogic earnings remarks A page information, may may note, its Such comply QuickLogic distribution copy material the Regulation company under posted to channels on be the Please prepared FD. made these QuickLogic’s blog,

to Brian. call I to now the Brian. like over would turn Go ahead,

Brian Faith

part Good today’s all first Alison. our in afternoon sharing open financial quarter I’d to call you, Thank the and joining first thank given XXXX. more results by for conference of I’m fiscal fiscal year, like progress that our about now everyone call. XXXX you expect when last than even We our today spoke this earnings XXXX during XXXX than bullish more over revenue quarter. fiscal grow XX% to by we call

revenue and prepared annual of will quarter Elias’ basis. get achieve well quarterly most During recent in in starting provide is With as details. on let’s that as high XXXX highest you operating importantly, history, remarks, my into positive third our guidance confidence opening the will hear us income that non-GAAP an we

during reported expectations was $X.X with line in quarter of new million of which call. revenue provided million. our We was QX $X.X fourth our product revenue

to continue and government, software and including results eFPGA be program continued driven connectivity our IP-based our Our shipments smart display by platform. the U.S. the products, products AI of for SensiML rad-hard our

tier customer significant product toolkit of nearing as top SensiML of broad highlights, sales integrating their company their of address semiconductor is revenue of customers’ and the private launch. SensiML-powered base large installed line private result Looking microcontroller This at products version own provides a labeling a potential is its force. to across the label some its the demand quarters a of that solution

steps the of remain the are, at Hardened positive contributor was quarter, on the course, Radiation FPGA The contract next and we revenue upon of U.S. largest U.S. to base Strategic continued successful large contract. government. based of discretion steps in Our performance the the government the for our next

the our defense of on our million of As the in development prototype capturing market not any sales customers. and and believe hundred years. FPGA based include the of a the intent industrial does to for size share We several is reminder, in this to it possible current this contract coming be device the

On grew over in largest history. for These the as development our this million, funnel end the number eFPGA are to our our eFPGA in numerous boundaries, well bespoke QuickLogic’s numerous or sales $XXX eFPGA IP-based span strength and incorporates opportunities, technologies, deals that as deals semi-custom both markets. device IP Included of IP. process

eFPGA of IP, we full designs that unique offer IP. way spectrum to solutions ranging our that continues to a be chip which all strengths One incorporate full of the from

primary recognized reminder, is licenses, storefront. we how a design device IP resources monetize ones devices R&D finally, work. typically revenue as bespoke engineering sales customer. events we and As are recognized typically multiple services, the for our a have to via delivery IP or develop do IP of the this the we The our licenses royalties, being category. our with services product within customer, sources Design to a one-time IP

they of final us. include recognizes ASP our storefront that from be have is the customer’s IP. finally, expertise percentage devices ship Royalties chain supply in our the And means simply that developing a our they or eFPGA place to are small that volume device finished device production. typically because in customer a buying the products, could for and don’t This lack be devices produce enabled the it test could

fact a of these end new are taped more customer be devices trusted for customers. will Revenue decades before, than FPGA just than we the XXXX, this In reasons this with value from many and device chips fiscal test of have the current we I during why More out reliable we IP can opportunities is be and November eFPGA to recognized our of a supply incorporates shipment an IP. one of provider. chain place had supplier the been We’ve that winning had our for that to our quarter. the ever in monetize a customer that assured

revenue believe other couple a represents of of confidentiality am any device dollars further allowed it I starting millions I design tens the in details than requirements, years. to specific of Due not share to in potential on win

XX-nanometer This targeting call, contract our on XX-nanometer a mentioned contributors government is for to As based the eFPGA our of process growth the pipeline our previous first is contract IP a node. new focused to one during QX and process this more there did additional revenue contract We in recognize expect recognize will and believe fiscal year. to continue be revenue we this node from XXXX. several throughout

Moving to chiplets.

fall design generate additional chiplet We that do opportunities, the to based interest are seeing and/or licensing customer fiscal expect category. year revenue in IP from services and would this chiplet we into some either

current business, Moving expect digestion inventory this of mobile our least to our to phone at through customer’s the quarter year. we continue

phones into XXXX. into have ship with new told However, well we that that been will being we are designed models

forecasting display segments. and our are on revenue mature we Finally, flat product bridge

While both uplift, publicized still being they will impacted continue to contribute to well factors. gross by macroeconomic margin are

to growth is design primarily IP come from XXXX wins. Fortunately, eFPGA related our fiscal forecasted

the turning Elias, of I and remainder call want the for QX fiscal Before to XXXX. to our reiterate revenue outlook

significant years. approximately a my we have made This eFPGA supports for in million led $X related pipeline, past groundwork QX in prepared minus plus to in has businesses revenue earlier our discussed diverse expectation our remarks, and XX%. IP growing or be to As software which progress and the building two over current

us discussed revenue shows confident forecast annual we the of year throughout exceed growth XX% we ramp now last remainder a current quarter. revenue Our making in our the the sequential will

XX on on third the profitability years, and starting turning basis in also our corner to best annual in this are the as We non-GAAP report track an year, to quarter of operating over well. income

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

Elias Nader

Thank Good afternoon, Brian. you, everyone.

contribution non-GAAP and the with of continue we a other likely $X.X revenues Our basis line two to will a anticipated revenue this to million additions performance Strategic believe of Hardened on profitability non-GAAP $X.X plus contract reflecting FPGA Technology. quarter million, we with in areas, each expectations large to QX net growth in the our from With our quarters was of million the $X.X for of fiscal in year. future loss Radiation on and in XXXX of get final contract for commercial full

Let for the the quarter. review of first results me to turn now the

increase said, partially by an due X.X% increase quarter the million, a the XXXX, The hardware in QX with of in eFPGA-related decrease was revenue fourth I increases compared of product and of $X.X new X.X% mainly is compared growth revenue As in quarter with sustained revenue. offset an to XXXX. of first

Within the last first last in products with were compares new million $X.X This $X.X $X.X Mature of $X.X year. down $X.X in of and compared million QX sales $X.X million QX million. XXXX million approximately X.X% quarter XX.X%. million revenue, last quarter and was our to quarter approximately revenue up product

deliverables gross was quarter and change in XX.X% gross first – within XX.X%, improvement benefited of mix quarter quarter XXXX. The in the in a in XXXX margins QX the margin compared of deliveries fourth of from eFPGA-related the XX.X% revenue. of Non-GAAP the fourth from in with

expenses OpEx lower in due reclassifications year approximately to $X.X of This cost Non-GAAP $X.X $X.X our than operating were in certain and compares operating million. was million expenses ago. quarter quarter QX The R&D the of a expenses QX to forecast goods. last XXXX million to for first of

quarter, or million share, share, $X.X net a of This $X.XX the a on $X.XX of million, in a fiscal based compares loss per last $X.X quarter Non-GAAP shares. or loss million, per was million and of loss $X.XX net net first per loss XXXX. XX.X of to share, $X.X or

was investment from the year the end. new wins million QX rates near-market support end of have existing at was approximately at discussed $XX.X design compared raised million by shareholders. offset the $X.X in cash at million, we Total with continued $XX.X The to March

QX timing each to of utilization that of In operations. from receipts three revenue. related XXXX, to for cash XX% higher net cash from had or we Additionally, more a customers considerations our accounted contributed customers

end for to XXXX, moving fiscal July will of quarter X, second guidance XXXX. on Now the our which

or comprised $X approximately of of Revenue to As to new is products approximately due QX expected million he mature for of products. outlined. revenue minus and Brian guidance million, $X be plus is XX%, the $X reasons discussed, million

points. will approximately Based margin minus gross for percentage or XX%, mix, non-GAAP on plus, this X the quarter be revenue

in goods to will to volatility We continue sold. of quarter cost mix margin due product and variances see each

expenses $X million, minus plus Our XX%. or non-GAAP will approximately operating be

based believe new currently per on $X.X loss taxes, with quarterly to below After million our be share, programs. On million approximately interest will to million, $X.XX XX.X OpEx a non-GAAP basis, shares $X.XX net roughly $X range income remain or increases XXXX, we million outstanding. of net support that and occasional expense, $X.X during loss a we will to other the forecast

The QX, expect related compensation this million. $X.X difference be non-GAAP our is will results approximately to non-cash, compensation expenses. stock-based between GAAP and we In

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

that usage cash per to new expect midpoint, Moving continue with to we the we be have quarter. Even discussed, $X design wins the investment continued to balance million to support at the below sheet.

overall and in positive and a should wins we stated sequential continued see leading our of half income. design momentum earlier, the in As structure, with back operating we revenue new, large improvement the lean to operating business, the in non-GAAP year

let Thank for call to his everyone now Brian joining us. With that, me back closing turn over you remarks. for the

Brian Faith

Thank at you, Elias. QuickLogic. exciting very a is time This

profitability. has products, are applications. driven products, markets, business of steadily QuickLogic been including Platform. its Rad new display and eFPGA We shipments Hard The AI FPGA extending technology customers, to smart our program Government, IP-based SensiML reach the continued the is transformed, our the and on and U.S. our Software cusp by of connectivity for

XXXX. to Our growing of see stakeholders, income most in like all support. leading all SensiML and QuickLogic strong continued our remaining including their our the this profitability non-GAAP each teams we of operating revenues would our in conviction again all starting and for customers, key the suppliers this of sequentially investors, for I quarter, will quarters thank to and that year, pipeline supporting is acceleration

remarks. I now for our That the prepared completes open Operator, to call like would questions.

Operator

you. Thank

question-and-answer will you. session. be now Instructions] conducting We a [Operator Thank

question Richard Our your Craig-Hallum. from with with Please question. first proceed comes Shannon

Richard Shannon

including there’s where us Want kind congratulations Elias like sound then areas Want certainty. that. to to down sense Brian, the that. where for get probably good least And here. SensiML might certainly and be confidence is increasingly of with start of get on Great. some sounds questions a new XX%, or the of follow-up guidance here that. I’ll growth that. your built on the sales do year start the have Thanks, into It from Maybe a confident you down taking more contributions here coming I’ll question a top a to top of maybe at my of

Brian Faith

to the growth SensiML growth a Yes, with out We is Richard. thanks from for airtime the give of question, revenue That tool the by the be company. products the year. come far. of of the on label and to little bit Most being in microcontroller we eFPGA in rolled said, to are version the going both for SensiML private eFPGA-related forecasting soon

I initiative falling baked into anticipated the into from the clear say, of of category. some line year. year and of half ones the between we the now is that to the second more And have the sight revenue so end product the eFPGA would again, But definitely of that

Richard Shannon

And – to node Rad at the baking and least Okay. the commentary one. last category, from are about Hard how added then and quarter degree what revenues much bit you this then in any or XX little seeing activity increased more strategic FPGA embedded the talked more of also a more confidence you nanometer within that you are

Brian Faith

on order there. reverse in go I’ll questions the

I’ll The conferences, to what more our more call, node On or activity nanometer visibility get on a inbound a defense that, so of that get into now. and inbound oriented government higher out year. lot the licenses XX seeing on and what these, this a interest we starting nanometer, XX and on more we getting lot trade that’s increasing in shows lot doing interest we’re multiple we’re are confidence

include there the forecast, say the that at to much revenue other as than and we’re built well. On of to the liberty I’m the of contract, from is half obviously, really year that feeling government in in some not back to comfortable some

Richard Shannon

volatility as dynamics? delivery could pro about of on do here. operating gross then half about the there And be think Okay. we your talking the where we the margin income some contracts. embedded you’re understand second the FPGA of think How about I year forma positive

as do we gross margins how into the half? So go about the we think back

Elias Nader

that. Yes. The take has I’ll for changed. Richard, company’s sure outlook not

of that that getting take are to why so more or the scheme XX%. Give We’re bit, it’s XX%, with XX% still mix the early long-term. targeting XX% guiding work us on, changed that’s gross development deliverables margin a But halfway the right? we

definitely see the But XXs. long-term So down outlook you’re going for to some the road next is volatility year. until probably the

Richard Shannon

embedded to Fair right. Brian see. to the and more All and success space fairly you. although areas, levels to the here. a great of kind different which dynamics going one this I’m the lot line success? enough. topic, market. ask But are maybe do of is nice is can different a be where question some and you kind all That’d You’re about question, a how FPGA having me. I’ll slightly for the competitive concentrated out on for have just Okay. in talking of you about of in of see this QuickLogic greater market which jump evolving in be the one government that’s in improvement pipeline, again, great seems understanding talk competitive dynamics

Brian Faith

Sure.

to and the having space, embedded based there’s tend which QuickLogic primarily three they outside eFPGA the is focus on One product. range. an So end FPGA companies are does that Achronix, also devices, within of of performance high think the very chiplets, I

into Logix run a – Mentor. IP based a only based U.S. and Mentor startup French Flex the IP Logix’s in companies typically company, competitive we don’t being so are company. them being The Flex And situations.

company, different soft of Mentor’s have is They IP. Logix products do. types a Flex we than hard IP

both I on for tend proprietary every just like those company think that focus of Achronix other tools, FPGA and that to matter. almost

the IP, we have are devices why are that at we different only IP. Achronix other why and had So only companies winning? You and notice two

with the our our I’ve And we what that? how chiplets in offer customers we I are already offer they to to IP, we work is have that ability by want us. to discussed, with customer a the choice they roadmap, Increasingly, do mean what as seeing provides choose. on and We like devices,

them way forcing not of business. into doing We’re one

that requirements say get the approach their can an that to and don’t a this on version core meets product. a The it’s approach on I’ll to our tailored to and requirements. We other their that actually our Go the custom give automated based product node process very say, make quickly thing is of multiple copies them that provide development a you have. us allows here’s is choice. for a singular have customer We a Again, requirements.

And to that expectability then be starting now really providing our and that a around level company I of are are source we of obviously to source I’ll are that last, of that and the to open that customers. areas in gives now important other of security of the customer. tools, degree, end them of in customers our user tools look sort thing there’s And big and buzz expectability to would It first same to at developing that the the solution say transparency the security open has but tools, that embraced area. have as too, the part invested outside think

need. market ones IP way that very how I deliver can one and high again, mean, That’s all choice the starting has up today. the want the But ways details with company we’re And that approach give And they resonating fast think to there’s that’s some positioning. we customers, that go we’re to with we do customer, and the competitive full how the every you create on for into customers to back and stock we’re this turnkey product. winning the whether only us. level ultimately to if a wins comparison. tailored resonate other go I and each device not that would IP that’s a is only that level, to the we And high really they that for down really may the

Richard Shannon

detail, Love And Perfect. me. Brian. for Thanks that’s all the all that. for Okay.

Brian Faith

Thanks.

Operator

Thank you.

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

Martin Yang

revenue volume how to chips the is take bit does quarter. the question drivers us first Can the on a it from give details be higher My question. test shipments? timing on long my taking are higher chips of for the volume whose this And revenues? what you more for key you of recognized Thank will Hi. test a

Brian Faith

clarity, just referring Thanks Martin, you that customer question, we for are discussed tape-out for the to in particular? the

Martin Yang

Yes, the November, XXXX tape-out.

Brian Faith

Okay. Yes.

customer. from a reason general, of would go test resulting and that validation cycle some and would and tape-out chip bring I up then some customer the phase being a and final into bake couple manufacturing more then to shipments. validation years The the takes that say, to So in it some the tape-out by you times, is final then typically

that we’re So, for of say. a I years forecasting couple would typical, That’s reason. fairly

that four years even like government into be Sometimes probably when same it’s chips base. would the be years. selling and said why the in for to the project us longer, customer But it’s around doing we cases, by ourselves could longer. two saw bigger And were for the publicly, way, we understandable we that it’s most and

to If you for lined validate years and be before up takes take can ready that, couple into customers a designed have a some it still lead reasonable get system, they of something volume. it

Martin Yang

Thank look what own SaaS they you. customers? private involved it. Got in addition their revenues the upfront next traction there revenue And get to label is like? payment on SensiML. when My from does question Is pattern any

Brian Faith

question, it’s a Martin. Yes, great

own the start label it’s gone bit. And goes label you, develop but out or I contribution there’s dig think through the revenue a and then of as also think, private the you’ll existing out momentum we has private these customers we’ve for up things. Qs we before work, revenue whatnot, specifically for base on then financials gone if going their company up with I that, not some they little just lull So getting payment from the down is the agreement. a that SensiML of to and getting But follow-on that version and their work around little and The done subscriptions, then integration some customer business filings things of push sort and of customers. them and in the from through deliver that licensing their associated see

that what work. earlier some transition We where upfront they from need So, that us. we’re early had of have in point revenue they for recognition sort

and integrating going to they’re Now launch. they’re

those on to And the that second getting the be outlook of some that launching we that gave they interest basing and toolkit over then call of SaaS forecast production be today, converted assuming level are this customers successfully appropriate what going so the customer we’re half year those start and ultimately customers would system. start to using to agreements when using that royalties a AI models those and from in in the us

Martin Yang

it. you. Thank Got

Brian Faith

answer Did question? that

Martin Yang

question one XXXX? expect final to you this And as my related [ph]. And of deals more such do for one private this rest is label the

Brian Faith

We do deals. expect more label private

previous with is on I think calls we one exclusive. today I mentioned not have this that what first this some

and so is development that do given we once our to pursue within target this a but that customers rights certain is want numbers place, that about another in the this or that quickly in further have forecast thing other are very partners, our I proliferate nice well customers label deal to go model to depend we and case, have software intent. partners on on call we The that. And too. we and that would done our today say delivering it’s that for certainly certain the can having we private repackage a of that way not

with private cleaner in So again, time type sort a of pipe opportunities of label and partners. for rents in other once the first repeat is

doing focused I year. and repeat we’re so is SensiML rents team on the this know very that intense And and

Martin Yang

Great Thank Got to it. hear. you.

Brian Faith

Thanks Martin.

Operator

you. Thank

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

Rick Neaton

Elias. a on assets they reclassification they like assets from results. balance of extra that Hi the noticed about look you contract congratulations color reclassification why I I receivable. positive it provide Can question Brian. on happened? it accounts thanks, some into sheet. some involves and Hi, what Hey, and a had some came and

Brian Faith

a have and movement which AR We a auditors them. the bad just reserve of not bit. us of don’t assured pay independent you rest any People company, a there it part part wasn’t the certain much, take around through paying It time, sure just make call was in no but them assets review a resulted quarter great. debts around But that [ph] that Well, us a few mix. is is some we know every in bad that in we moving of were that the debts whoever to house the is we but is go we cleaning it with things sorts. of our there against

Rick Neaton

On for FPGA lot and interest all Okay. lot strength outlook the last Brian, of sudden? that. has XX data a year, the like at is for been companies. growth these driving that been FPGA larger with a customers strong pretty and markets consistent use percent of with plus trend your cases, year is What centers But revenue have there a FPGA this surge by in in of

Brian Faith

So, I’ve it’s good question, a a Rick, myself. this about lot And thought

perspective people that design think I in like people general, hardware from to use products. – are general, standard in a

So own and off FPGA chip can use they be to case. our their NREs personalized their great do standard And go products have pay because the to they design. customer is don’t for by

customers that sort So out of a customization and free of buying that standard use lot of of there’s get a product.

taken and know I lot this anywhere. opinion, think one previously, and is in not necessarily money is there made a a advantage designs, personal and designs to But but opinion that of that say personal be profit I were, own designs. let’s one have and maximizing my that prices of report don’t companies on pandemic research new lot a of lot of raised my winning the revenue continue that any

lot been years last that growth actually over and that a you’ve the I’m true. revenue has in two our proud of company seen actually the very

that perspective QuickLogic. for product new than two things not from ago more wins stream did New a exist wins, years revenue

So the good trend. I what would that’s may to contrast that general a market to seeing like you in think be

a they moving their choose perspective. are to put company think companies dollars from having I where forward, inventory semiconductor

XX that means And translate lot longer lead placing for weeks, moving that to faster needing into have now to a probably puts burden from that uncommon time is they’re lead going times have to these huge for hear than fewer their to and times days ones a exactly It’s so orders that much. more to suppliers. customers. move going to customer, the long that not what these they’re that be a lead these FPGAs and non-cancelable year And know over right, with a going are die shipping what to on times they’re that stockpile not than been

semi-custom lead I of that’s they impetus flexible companies better to think times or what more them that lead go to where off we’re to think certainly on that given that be and people starting customers work are may suppliers time And be. certainly able get the with I change should to QuickLogic from us, companies that some into of line the perhaps trickle allocation just the at and supplier earlier, products but that perspective, standard see looking of also doing from mentioned as translating, in I terms now not buying also now for are into devices below potentially themselves. cut FPGA

which that’s some to for although also we that say into forecast of a for don’t investors. these well the I hopefully into baked kind I would And they definitely – near-term thing driving us, that the that So the to some devices supply can a know positive of is that future. get year, think now they’re have message going interest this

Rick Neaton

color, that appreciate Brian. I Okay.

Brian Faith

Yes.

Rick Neaton

I five successfully that quarters, or a morphed if AI, the kind had last the using few called on a And stock price company’s jumps your in product Quick their being one or QuickAI. question. XX%, had about is ago QuickLogic CEO mentions AI of ago, you’ve In products. concept on and have final this you applications from What in that player moving made a years few you edge? that effort into changes what forward six and IP it working years a seems the learn moved your on did

Brian Faith

keep I’ll it Rick. to but could question, great My answer try a Another here long-time, take short.

product do low-power in to if QuickAI you applications. some So edge I EOS microcontroller rewind, SX was people think AI at that inferencing device software the our allowed – plus QuickAI. FPGA yes, along with a had so we

computer when the you we focused back where very silicon go to Typically, have do about see the So edge the I read to sensitive so power anything really the autonomous were mentioned far to applications and things of inferencing image don’t low in doing that about and typically not data cloud. very, that you like resides you AI, and it’s to things we’re when on because related recognition talking talking the driving power so about with news. centers, vision network are sensor

course of our software did want that, actually today. I solution that ultimately about I wrote very competitors. SensiML. or as go the we I acquisition ChatGPT of And learned script script to to talk – And the ChatGPT can which huge days. wants also, learned we very by far writer as for these guarantee we think We a is point we have that against that that entrenched everybody learned you The part that not is hand. of – the the difficult to to led it is It what AI, make

AI, have the don’t is if about for Nvidia comes needs to mind Nvidia probably right, something So you you think if king low power, run that AI GPUs. using at to extremely because silicon, of

Nvidia? small still how of of around startup said how competing list. tens or since the I now doing companies many them are AI hundreds in then, mean, pretty actually that years they’re company And the many and likes think of have It’s I a five with an chips,

path that – So that very of silicon we quickly. became – the very continue a bloody down market I’m new chips because AI a very actually I’m didn’t developing glad for was

acquired on that glad think SensiML. I’m side, the I software we

companies, AI alone about if made it’s look been year last on and the acquisitions and that more. light just number that actually increasing more you have software think you the in at think of I SensiML

was there a announced today, new fact. think I in one

in could that like what quite that software lead I or knows we for think I us but there and SensiML that Who so is the umbrella lot product within quick And the that that. shows value to fact the a for logic. Group, of that the expertise have of

contributed some And a edge. And I’ll we’ve we chip to on at say chip the eFPGA that then with looked us lastly, and that last that that the as of that call FPGA, it’s research out led the – the did or closing doing that XX-nanometer that the I mentioned FPGA that been the on processor XX-nanometer that call publicly directly at paper this to inferencing earlier, RISC-V of device, design AI research embedded came same on work, quarter. and the that same Arnold actually

think AI getting AI. the be to the that having of both I we the things value type all it’s could because software we the that probably best way is of intensive can doing and in out those of So, be IP adding into of capital that having least

like also, that against NVIDIA not the doing, it’s are something not so somebody we entrenched those and that’s of And competing is of likes NVIDIA. both are so

some way, we credible to where like for intensive we I that. like that’s it’s I and capital are chip have incredibly we like it’s It’s have I doing allows the the for think that lessons beneficial what as customer. to company story a chip AI So of the AI these not us learned, are. now and a companies standalone

we to that compare question fact, Richard’s tried in just to of and Logix think think AI I about think goes eFPGA don’t this and that I how back IP, they’re to competitors, I addition anymore. In to to doing Flex chips do fact different to on and in kind add that,

in it’s goes here. So funding you and were And it NVIDIA I’m that no what much how show glad somebody place, not a you do to we’re to tough go attempting team like with that after just pretty have solution. darn to matter

Rick Neaton

and I so the the of time Brian, questions. all answering you you last gave much. appreciate in detail both Thank of length my

Brian Faith

Thank welcome. you questions. You’re Rick. for the

Operator

you. Thank

& with proceed Jon Please from question. Gruber comes question next with Our McBaine. Gruber your

Jon Gruber

Because Hi, revenue when funnel happen, be where, a afternoon. funnel if million, $XX quarter and the there’d $X when Yes million unless yet. $XXX years the XX does million be per hasn’t million, if years, you should that? point drawing sure that it’s to $X is many good how happened it

Brian Faith

Yes, that. we’re now, I thanks are numbers perspective, XXX% for about, to out funnel going years that from the total of two talking about would and Jon. using in we’re question, a close The the not we’re a funnel say

with even believe were that a But these percentage discussions into believe nobody starting revenue contract those can think translate qualified really or customers healthy are the of and from quarter. would that. we’re current definitely architecture opportunities in in that that discussions I

and part quarter, this revenue this of growth converting would the then that to be fact that into level the for revenue quarter this rest In $X of year. million this some sequentially of

Jon Gruber

not, if $X $X it’s it’s rate be, two if – down a and win you Yes, so XXX drawing XX% million we’re should increase, quarter. your happening? but is [ph] you’re of million talking $X years, million, isn’t Why that

Brian Faith

on be think a this a revenue. out qualifying much starting at And is of on. I going we’ll continuing said, see and get there converting to next in think quarter instead point much, these first getting from a the fives five long, that I better hopefully And opportunities some you time. year, revenue long quarter team now And at quarterly I revenue. that into will Like growth we’re throwing this to is XX-handle

all I that. think like we’d to see

Jon Gruber

Thank you.

Brian Faith

Thanks, Jon.

Operator

There are like Brian this further would Thank no the closing over to turn for I you. comments. back time. questions at floor Faith to

Brian Faith

attending for of today’s thank quarter including day. months, continued second to Xth. want we August conferences next your or May report August are in to in and fiscal August our for year I a look speaking Xth the June we you. you call forward XXst, on all Have and Thank at We participating XXXX some when Oppenheimer support. on few Xth great on the over Stifel Craig-Hallum and results

Operator

teleconference. today’s concludes This

disconnect for You Thank may this lines time. your you at participation. your

QuickLogic (QUIK) 16 May 232023 Q1 Earnings call transcript