QUIK - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, good afternoon. At this time, I would like to welcome everyone to QuickLogic Corporation's Fourth Quarter Fiscal 2024 Earnings Results Conference Call.

As a reminder, today's call is being recorded for replay purposes. I would now like to turn the conference over to Ms. Alison Zeigler of Darrow Associates. Ms. ahead. go please Zeigler,

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. Nadar, Officer; Executive

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

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

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

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

Brian C. Faith

customer. base very will near already first the Good fact eFPGA on also contract jam that that IP delays growth, cash expect XXXX. anticipate Due direct-to-storefront contract quarter will finalized afternoon, defense little our expected for and QX good XXXX news in full Last we perfectly revenue in $X.X all key pushed industrial a is This over rebound Thank will and term, or the profitability, we guidance, we QX we flow customer quarter a awards log processing significant hard we DIB use now with you, and joining will of Due fourth solution. than for revenue Alison. the the of recognition new previously anticipated. everyone, that to fabrication XXLP call. conference that midpoint external awards, enables contract we is you the certain at lower and XXXX and forecast below out we week, revenue hard application, thank of reported GlobalFoundries slightly QX in XXXX XXXX. books our algorithms, week, the several revenue by beginning the suited IP awarded which X-figure contract solid has With contracts in eFPGA be eFPGA our new some for loosened. a begin DIB eFPGA X be eFPGA changing QX new now we had more IP non-GAAP to and positive delayed profitability will a established for a revenue phase QX have were XXXX cash hard a flow Last low-power what and or process, IP million with process year GF. in hard another The

We the and in QX to revenue services balance recognition in IP be could carry half second of XXXX. awarded and into this expect We contract anticipate the of begin design XXXX.

as Following begin early as expect that, XXXX. could storefront we revenue

have contracts the our materialize years. this several another design may of existing the couple direct-to-storefront Earlier next eFPGA this be will earlier, that won what we While during we some IP good with hard believe storefront is an month, potential customer. new of of first contracts

is data core We these risks, benefits Having development to will the addition have our and this shortens The core form which IP year. off-the-shelf lowers and proprietary converter become for that revenue recognition designs financial leverage from wireless start in IP, to using a hard anticipate eFPGA also a fabrication benefit the design an developed we In established developed of us this our using improved processes big generation favorable process a hard and IP meaningful for a to customer in work we our we've completed Australis with previously cycles, fabrication deal. margins. hard tool. IP provides IP already application ability use for will

brings potential for of the to million. roughly the of government The of valued options, the is on FPGA $XX this total addition we million recent wins, tranche million. these awards In award currently $XX fourth at total tranches XX. approximately our X $X.X future contract, including announced the contract strategic through radiation-hardened to December This

permission are to and of scope seeking the expanded test We details more share program on chip timeline. the

for we anticipated these X we be our contracts QX figures. thereafter. the and value NDAs of within the process recognize the in awarded revenue is Intel Due If expect may both to the in all investment IP to there the for stands of mid-X hard be shortly Turning hard company significant it the delays that XXA. made awards be expect to XXXX. QuickLogic during outlined formal are eFPGA to contracts timeframes XXXX We and that as the to awarded of the XXA, customer, contracts forward. combined believe by the optimized one weeks Intel first very position second keep realize The contract the eFPGA Please that of unique returns with press investments of today, mind, has solid is provide in ahead this us in IP only contracts. release is we announcements on to going these will approval,

Analog value the November acquisition of products. companies landscape, our standard a incorporating competitive into Devices their Logix. announced that embracing last the is Flex testament the capable most are eFPGA of semiconductor to clear large competitor, Turning This

Since to Following VP this the we Sales. we customers of can as the secure void customers multiyear QuickLogic. IP there Jaros, IP a Logix longer to new now a announced for introduce Logix' acquisition, licensing, will appointment of the Sales, of is of moving fill. the that QuickLogic for the be no in with Andy eFPGA is Logix' true Flex former Flex benefits Flex partner. former notable is VP available particularly This new that Andy have market closely eFPGA that roadmaps long-term working need to

the production test during is a in an cases number progress for in that IP also existing revenue some XXXX A our in scheduled these of few chips to Now are our on decade. cases, royalties hard is long contribute to months. eFPGA our that hard contracts storefront eFPGA that contracts been let lead to to new and or are because cases, that chip me tail contracts stream some are update validation These good a more take IP to our years, license following IP. have a last revenue. will IP of hard can in a several include and cases, that eFPGA moment This commonly milestones completed in and several These of extend significant important test illustrations and tape-out, and have attached revenue for a designs than validation. achieved

we X first contracts target of the XXXX, processes. quarter During that announced XX-nanometer

will deliverables IP completed first QX with defense is and during QX. customer and core QX QX complete, during during cores support GFXXLP industrial-based The revenue fabricated we anticipate process. and contract initial first XXXX core deliverables that be X our development. of With the includes the second We our recognition for the a in customer chip on nominal test

eFPGA mentioned earlier. leverage We XXLP revenue we the hard to will recognition I contract for the this for accelerate contract IP new developed

of well-known second on manufactured been based SoC XX-nanometer a a the recognized is during chip our and IoT deliverables large evaluated design industrial process being is QX. targeting new ultra-low revenue a Their currently commercial applications. for that is the associated customer. with on and international company. The contract and power TSMC's variety test has AI completed contract is We by this This

to early IP. XXXX, shared incorporates in a We QX, In be the which eFPGA customer a expect that completed November evaluation at decision will taped device a for that design. we customer a make I second regarding new out our the hard point

revenue we are update IP revenue back revenues involvement that efforts engagements. eFPGA marketing will our This are GF's that half license year will The the second customer our goes generate to and company if of anticipate new substantial beyond. chips has a design platform. quick to tape-out Since and a fabrication. as In design have during will holding uptick be We with all customer we the IP QuickLogic going was anticipate design While of with completed and recognize of A and eFPGA a resume test second These definite these planned, XXFDX we production ASIC currently its YorChip. attended in half Summit September using delay are our has in subcontractors, with during XXXX, fabricated from in recognition eFPGA on successful for hard the incorporate this potential production IP call, November annual couple for royalty a last chip a UMC's fabrication expect starting their XX-nanometer for hard the be year. interest test IP. very announced well. in have chiplets. process. semiconductor We we In will engaged this fabricated winning pattern chiplet be hard work storefront technology multiple design a which believe design nodes we one on due already XXXX, means foundries our half we for we to that in XXXX target evaluations Chiplet this design a the are continued and XXXX the leader of developed a opportunities fabrication now a this in and global conference we of XXXX. other leading during has in very and will we January years. chose The hard announced that first chose continue customer IP. There customer eFPGA we able on and If revenue quickly fairly of their the designs

I schedules with YorChip's are seeing the chiplet, right YorChip's that in solutions. Kash year XXXX which also AI elevated we coincide of should think well Edge. merchant well the be CEO, with in his at interest dovetails is forecast Johal, will This the introduction for chiplet the inferencing

As technology our of previously for of eFPGA existing already our an one leveraging IP a AI Edge that mentioned is inferencing hard application. customers matter fact, I

contracts In for with some solutions. very solutions using existing may to X.X website. that targeting we with chiplet IP. evolve about can to hard you market ASIC Aurora include released our continuing read eFPGA work enhancements companies chiplet chiplet we QX. already that solutions our our internal ASIC significant includes Aurora in line that X.X We on forecast, While merchant are have develops, are the various

Pro integration helped which already and believe us software. this, the Following customers testing. Aurora integrates one us was we This large more will beta driven synthesis of integration worked X.X, who during Synplify of closely I win released The by many new contracts we FPGA Synplify earlier, strategic Synopsys' mentioned with has follow.

during our the they later Aurora calls The we've of We this discussed total, distributors are some X.X include with updates have for the last of In value more quarter. well. X further new version conference doubled release they opportunities to executing design addressing. very QuickLogic detail are in pace than are on that

in for a mentioned opportunities discrete QX is the quarter. IP I value forecast this are quarter, they of sequentially I shipments sequential shared with in advancing bulk the last EOS forecasting the SX in new SX of we hard designs, also eFPGA last XXXX. and In QX FPGA EOS modest increase new line While XXXX, increased are

likely XXXX, new extend While in the decrease demand to designs EOS our continue primary is that for smartphone older scheduled customer will to SX XXXX. using in designs

or that Turning comment SensiML, a assets. discussions exploring next Directors there now were of earnings ongoing, the results, before the now full company closing announced solid turn Due to call SensiML. Last financial sale we that and our and to than go review rejoin any for our Elias profitability for of month, for is other regarding With possible and of from SensiML. year actively preliminary please does Board so contributions our cannot include let will growth for we over our ahead. options and me diligence remarks. is a the conclusion I I outlook the call Elias, expect not its that,

Elias Nader

range. QX Brian, Total fourth and our XXXX, good you, Thank down to up $X.X compared within revenue quarter everyone. was but XX% million, guidance from afternoon, XX% XXXX. revenue Total QX was

year due million, XXXX expenses of diluted and of QX from product results of just $X XXXX. per mostly share from QX expenses range. the from in in with compares net non-GAAP ago eFPGA in for of a margin $X.XX decreases and below was GAAP QX $X.XX This gross non-GAAP XXXX. million, and product contracts. to $X.X Non-GAAP and in $X.X fiscal million period end in of QX IP $X.X quarter operating the fourth XXXX XXXX. third QX. net diluted low to revenue XX% between range. the XX%, our a of or per were compensation and total our XX.X% to The down million million, million margin XXXX up $X.X compared This in with quarter outlook the quarter This were in XXXX noncash was was $X.X and million. QX $X.X or in with XX% Non-GAAP per XXXX in The compared QX QX same revenue of third XXXX. net revenue the in line approximately outlook difference related XX% the was income QX non-GAAP certain million $X.XX income in gross Mature $X.X large expenses. and up non-GAAP revenue $X.X product QX in was both share our is Non-GAAP new timing operating of compares to of non-GAAP million million QX $X.X compensation stock-based loss New Stock-based or share.

more QX. revenue. million, close of facility. of quarter, total At credit accounted for at X million with cash customers $XX facility QX, timing the fourth XX% For the or This an compared million $XX.X of for a orders. credit integration the and of QX $XX.X QX. close IP for usage the development Synplify our our inclusive The of was was of inclusive $XX by impacted XXA increase the accounts, assets, which resulted Intel million continued usage payments receivable hard during combined Cash impacted ahead and during $X.X accounts contract in of eFPGA cash Synopsys of of a million also

and investments beyond. significant are that We XXXX anticipating will contract these leverage IP awards in

new eFPGA anticipate not do orders. of developing we fabrication hard ahead forward, Going processes IP for

Now end XXXX minus guidance for of $X which XX%. first fiscal XX. Revenue is on plus for quarter March our million, moving will QX XXXX, guidance approximately or the outlook and to

to First million quarter revenue and is in products. comprised new be approximately million in of expected products mature $X.X $X.X

QX Brian to his IP we would the awarded XXXX. is As our delay late that stated in large contracts attributable certain be QX of in revenue lower-than-anticipated thought we remarks, guidance

or profitability near growth, With beginning term to significant QX we revenue cash X the we the recent revenue the expect QX and revenue positive our margin flow is Based non-GAAP mostly that a be year non-GAAP for profitability anticipated wins noted, points. and to XX%, rebound XXXX. and and in is anticipate close for minus approximately outlook. first quarter This significant in percentage lower to full attributable expected contracts also solid in plus gross mix, the very revenue on Brian

We mid-XX% gross non-GAAP in are the to our modeling profit be year full range. margin

X%. Our or to expected minus be operating non-GAAP expenses approximately plus $X.X million, are

The OpEx capitalize mainly to XXXX. expenses be OpEx modeling the industry, that that note given $X.X $X.X quarter results may our million $X.X need million costs. our usually line. difference per compensation we per is COGS operating to occasionally income, as certain certain down be are of we to $X.XX to QX $X.X versus million will QX, corresponding capitalization We or This from approximately at non-GAAP to will alter QX and be the nature and compensation balance with Please cause approximately classify are OpEx the approximately XXXX. during classifications tooling In $X.XX out and stock-based this operating or our XX% may reduce the variability between IP non-GAAP we that After other currently loss for contracts quarterly our recognizing is and non-GAAP XXXX million. margins related in expect gross in COGS. expenses and expenses. forecast GAAP our interest will and to QX share. to The Such related may noncash This the same customers. labor timing for net results our

a highly there of compensation vary on As each for during movement in based and QX it stock-based quarter be the to quarter year, vary grants the it we will quarter. our of may reminder, may Cash employees. timing -- on flow we'll XXXX. we timing that the and be large full anticipate for the finalizing flow certain QX positive are cash this confident is in XXXX aside, Setting that contracts year dependent

for Looking XXXX, it the become eFPGA IP Intel contract as heavily XXA. of back and to invested ahead we first, today, supplier only stands to of awards hard

will which be we and Aurora ProSupp, of provide in place contracts aforementioned contracts over awarded us The opens anticipate of remarks. improved its that, following finalizing is charge With you. investments flexibility to details With before X-K market a and now a revenue closing of the call. ATM an pending large manage large flexibility, this and recently will we SEC from filing expanding also ahead covered and cash quarter, the leverage from the of later able being we be Brian that the QX. To his in this to let contract in invested Thank we the with with tomorrow. the well to back recognize prospective a to very for supplement, scope We the Synopsys available for an integrate use. as ATM positioned timing to and Synplify customers beginning turn the government the will me put benefits call are flow our this

Brian C. Faith

your Elias, us for that second management tight a finances and thank and of of you year Thank team profitability. our straight you, helped realize non-GAAP

We this unique are optimized will our the contracts. currently we to to being processes new achieve have position the X X process possibly offering during contracts for for of anticipate We year. beginning Intel deliver investments unique of positioning last very Inclusive as company unique solid hard XXA, excited established believe hard only XXA. by IP ROI that all We made about this or we funded during have with eFPGA XXXX expanding XX eFPGA ahead this fabrication months the IP X technologies. is customer

processes. be fabrication expansion towards this to expect weighted We TSMC

also direct-to-storefront benefit will example is our the contracts targeting margins profit contract and In of we flow. IP. higher these, expect GF's leverage This XXLP we cash new fabrication hard this investments our those with addition that new where to rearview contracts first mirror, established to processes will eFPGA generate win We mentioned too. in I higher I new contract already anticipate have means earlier. mentioned positive that this for An

we've In and the We IP our we provided will by customer benefits see our core a to designs we we developed. off-the-shelf developments. hard to These move hard In IP become beginning use core have eFPGA are past this short, the forward. the evident include leverage as momentum of recent in extended this win case, more will previously benefit that developed. leverage

a While element end further the be expect defense our industrial long-term base our XXXX. markets we will very diversify growth, short of continue to important during and to

these design, with we process believe others serve, and earlier are supplier's broadening customers once customers. new we expanding our of several bit are in programmable become signing highlighted adopt early tools too the also existing sticky they designs. fabrication to designs in coverage, with the to in Several process and were and short, remarks user markets win today. a In new opportunities a prepared addition end will contracts my our a specific in customers future logic In we discuss used and

are call like would that, now evidence the for this questions. With seeing We to QuickLogic. benefiting already of I open

Operator

Instructions) (Operator And from line the of comes Richard first question Craig-Hallum. the Shannon with

Richard Shannon

us second quarter, given the you've quarter. for to Obviously, a think mind here. interesting have think I what but see more about in the let's it's you for here guide Well, first

breakeven year. on talking kind about sure then And sizable expecting And You're for kind of of profitability I've levels here. a parameters couple I you're the just to about, thinking of a probably increase for got want follow-ups that. the the then make the in

Brian C. Faith

earnings release million one can design late first of take Richard, we had first remarks. brief our those on opening that question, QX the I expect QX that $X.X QX what in one pushes the we from recognized. part went call the of in one is IP transition. in in over the to That starting the that QX, be we to full definitely The in about and the talked bullet of today detail was

to We've mid-X-figure deal, felt all XXA. this like and is The we one in QX. be related one that is public that been of this a would second sort

the paints X, is the profitability in which up for And cash with answer positive forward. when that or at non-GAAP of and of add of you of the those kind dollar X and value, you time, baseline sort that Does the moving look in your X-ish and north being sort being it coinciding model question? up so today revenue picture of QX think of flow I

Richard Shannon

metric level. least about talk use but funnel, about follow you'll sure about if did we to progressing? not as a probably how you're I'm judge that's are which here. at how and that Yes. others for Very I Brian, to about up do something you that years that do and not, here. talked going to things we've continue some whether a way think continue X.X I'll think or high hear to

Brian C. Faith

quantitative that funnel the Yes, today. new coming net basis, not it talk you will up intentionally eFPGA opportunities terms in quantitatively, did I'm asked we from because on is numbers primarily of glad question say funnel. about I the into a

that given Given have receiving feedback we the other that is and investors call actually away now, to we hard actual to road. our first number business. we're will really that get IP qualitatively, the that's of call year these these been the year funnel ended that development the from until the contracts over on that folks where this we're because the community, rubber now part it talking out going the in say last contracts, of was of for on growth putting decided that the where from hits did the try eFPGA I the QX and and in But from and about, focusing most that grow more

Richard Shannon

risks An in generally XXA. some here, Intel many situation? here. Okay. amount up node? from broken of What's And very last here. worried over this everyone Intel on get worries this that more companies obviously on we about hasn't potentially let's across related the to we questions as announced here? is from of my one than how I your getting year manner, to How response might And which been over coverage my Intel interesting. seems focus twofold. people's is few touch Fair see about do the opportunities guess Maybe enough All see develop increasing this I customers right. different quarters question

Brian C. Faith

talk for let's heard I of for Yes. what but from while, a the view I've XXA. mean about felt on I've others what overall my just demand firstly,

established of look onshore sort if operated a advanced I that than a or line the foundries, foundries by foreign think are and is process Intel the And lot have ones, that the that's want clearly of talk the technology. base the how you U.S.-owned, being sort of government to depending they especially capability process owned XX done about on I aggressive U.S., by node. their are XX-nanometer physically and in the is or more there's XX-nanometer technology you a but U.S.-owned interest U.S. operated more or XXA to really end think from defense onshore There at that foundries, have ownership. industrial of advanced XX-nanometer foundry.

think I for lot with there's are reasons, demand that XXA. several those think to For a about talked And adopting XXA. promise respect companies Intel the of I there for has

of the parse this. power that nondefense you I or advanced the are think the for there's government the or some there's of defense within U.S. into because the government-oriented process side. nongovernment-oriented XXA U.S. then that the of X, lot If area sort interest of there and space defense side the the gains And and the performance like of a and

And XXA. Intel I strategic For announced Foundry Intel tape-outs last was think particular on that is of as whether the regardless recently, very I think to be for node. that interest are even ready parts, in that remains in now week, Intel reason, process I that think or different I think it they production there's still going

needing enable more be to then should going they're adding the or companies ready ASICs, is those XXA. very very wanting interested hope that. my publicly only and to that IP to so acquisition, see So ASIC. we'll provider be we're NRE want stand often. a to IP is ASIC expensive expensive more an think Because it, sets mass perspective, to you has eFPGA the chip from don't start And design they exploring or a And from programmability it more about designing or the redo for for acknowledging if to on, that value first you actually from to eFPGA that to and

you eFPGA to a of silicon And in markets. fact, lot serve XXA it cases, have I a of to level. use want successful. be believe a end that going You do exactly is at Intel lot is how

we will with think successful I be it.

supplier, in opportunity we that make and did it's win that be customer We we're we're that node that see And ASICs, more those IP one and for for to investment that We're more than funnel. eFPGA guy. if our be that. going they us then fact year speaks a the think on than be to to that have one to this that I successful to want conviction going going going

Richard Shannon

questions out of and line. X for Maybe I'll Okay. me, jump

one Flex first Logix. is to related The

commentary of those here. maybe you I of timeframe prior working your to What was hard is think that licensees work those in hired are do the or how process get expect up this time bookings recently convert a to to you IP Would then and funnel of would kind call VP period a or with a revenues? who that Sales pop see in subsequent designs shorter that? ultimately one, characterize and your or start you longer in or

Brian C. Faith

we definitely and would $X.X actually of what talked million Andy earnings it just win that have shorter accelerate naturally. that about it's and release our would bullet than is first say may in the I just close helped say the faster I one

we get somebody have I where there's value really having the of that proposition drop lot think he technology in very standpoint. I he the also an a of being it And in parts are. from well, the him communication of efficiency that the and for X the you pond years, sales knows understands that an helping sold Flex that's the And the knows efficiencies just line. when to fish think can from and Logix, organization clearly standpoint

he relationships was order. don't think you that long-term me combined that because And to for the I with on his those well first order that, speaks has trust future. have

Richard Shannon

of out here. end find the Brian, on very last I'm I That great. notes diversifying here at markets for here jump My end your comments of Talked is question -- here. to call trying Okay. my you, of about kind the before sounds

obviously about this from, sure a working While diversification, overlaps just wondering coming over to diversifying talk here. where this can it's mean expand growth you're is if -- you you defense great industrial be how as develops us we're not base would I'm that. nodes talked on with time. I Maybe can the give that on. about more you driver, see to but detail how any Maybe

Brian C. Faith

faster aerospace defense. becomes trying was sort where you mainstay have been in that has technology opportunities where war of see the price coming already of anything intentionally some in Logix of Yes. also started Flex with And has Flex more defense We don't Andy someplace of been of want back than areas that outside engagements overlap that proactively We think to because to that outside our see even of funnel areas go year you the of which last had with directly of and had I and process is already because time, that the else. if the part onboard to obviously Logix. aerospace not we a market. I'd somebody was say grown And ports were lot can a go that investing

those With the there. now like can that other greenfield Analog knowing I of more go there's earlier, ones by we acquisition nodes purposely more a TSMC after Devices, the mentioned

and year, to that done aerospace start outside opportunities defense. you'll of concert this see with again, so And and that's in

have We now industrial coming in.

in communications our ones, some have We it even funnel have not. consumer We some now. or believe

you're done that that be that so ports just coming focus the drive where are convert And targets knowing to said other technology should because the think And that general. see for less close ties And as going this use that focus to to needing that time of where efficiency do really understands really in well sale, to the I've bring likely resources a very our much and leverage bringing so have better And we that $X.X technical in customer. architects cores we efficiency. team. is if going to notion those, Faster we I ever and those on like to resources. they're times, prevalent in of of in I I he's that going are to million I team and QuickLogic. to our than the or market revenue, aerospace this do programmable work see balance. after mindful team is are And revenue got think mindset logic -- far. back to a to in this think selling a defense Andy be his that those opposed will all how interested over haven't second, thing he help when for in one, some technology is want energy we're done very think new for say, we to I'd time I process such he's and we already scarce he's well to our many don't we them and because that custom how of But And I and think we of speaks XX% for a also company, and and need this

Operator

from And line Martin of next (Operator the Instructions) Company. comes Oppenheimer Yang the question & with

Martin Yang

Do seasonality? regions. could or the U.S. get throughout ramp on follows question normal from revenue new that think distributors the you benefit continue into and you more there XXXX see through that you First

Brian C. Faith

the last Could Martin? question, revenue else? of your what 'XX or repeat you part

Martin Yang

U.S. the the to the revenue, revenue In go your continue Yes. sequential up get SX family would in distributor, 'XX from quarters? additional benefit that help you to having

Brian C. Faith

will. really really both before more an prefiltering offload licensing, they're I accounts partners, resources. into spend as I year, come -- IP so this sales definitely time do or from and good on revenue or our resources strategic be will whether SX. mean consume to external we They as IP, they well distributors EOS hard designs the reps funnel generating think direct

even I fact, the product a though to bring do then SX to run new EOS with just continue silicon, one all it's can come and EOS talking about great they need phone in, guys was a SX mature for so In when distributor. a our guys because in product. distributors very it's -- They stable to from just of infrastructure, today sell etc., closing. in deal a it with support It's opportunity software, it's being boards, the they on our

we directly. actually bottom before think accelerate will the to also on to is, direct from But this reps, deal. year we'll revenue get strategic need our it help guys some and I distributors line sales the IP in the more more focus sales more frees side, up contribution new that and folks see evangelizing that a cases the On from

Martin Yang

question it. inferencing. AI Got the FPGA on broader of one Edge potential in use then And

customer elaborate you applications? that in? one And maybe customer. on Can referenced how You verticals is utilizing their the are they what in FPGA

Brian C. Faith

that. to happy I'm do Yes,

in talking a does power in and lot research was Zurich Europe years If you of that Switzerland. a around we And few ETH go processing called with there university a a there in group collaborated in parallel now, semiconductors. back time, ultra-low in I'm

they the out so were convolution like and project to looking And even FPGA? this computational together showed so how consumption, it offload did we actually inferencing that is, RISC-V embedded power energy can I you a if what at embedded further computationally that by reduce to intensive And using algorithms, research do actually augmenting with joint reduce energy AI them, a that lot RISC-V of required how by And came minimize energy do I the published that XXx. then you of can with research processors research. joint consumption and energy and we paper, some in that FPGA use processors

battery a center. system, savings in when XXx is It's deal big a the data doing in batteries. Now powered deal big a It's a dealing deal. big a energy you're with

that not that year the So prospective this of of the about about just sort paper. of we eFPGA inspired last eFPGA talk the outputs would And other basis we customers, that the how XX-nanometer university. win paper with talked became was by benefits TSMC of

it's see eFPGA in that results silicon that involve Clearly, more consumption with Zurich that to what has themselves, we we be I other I'm they've with numbers contributing to there's think coming win hopeful will going beyond speak ETH customer measuring customers used paper, get about to just gain from supplement for so with one a for that I'm algorithms have -- that But that sales But in pretty one demonstrable the We're there. at the both as like their Clearly, you the if well. where and -- And bullish people is collateral talking published this back validation gone power the power will to net be the iron the me see the the silicon but it's matter. customer, clear, heavy-duty and just inferencing into that part with eFPGA doing and training, today not not the Edge, and want they're the of based that it's to batteries further found are about one that. running without we workload through and much on out the and that. through the after And another GPUs. validation. that's turn to sort going

Martin Yang

larger Got it. clarify, well-known customer? that just that is to international customer, And the

Brian C. Faith

That is correct.

Martin Yang

year. phasing And then revenue my last question is on this our

about puts of a the second patterns expect in very some revenue the quarterly can XQ. significant takes what on step-up from And -- You and talk are half? maybe you the

Brian C. Faith

from Like IP going qualitatively driven we're embedded what for QX, to mentioning contracts. be FPGA it's

investment big the now layering designs. year then We the to by the strategic here in more clearly into IP continued government these are We on the the planning U.S. contributing embedded QX. and that of throughout FPGA rad-hard talked ones FPGA X about

opportunity for recognition. these QX X-figure layering We revenue have several of more in timing from ones QX an and

core means designed question, already ported derivatives new is really to actual in and/or help which many a fact already pleased our much those place. A these the are significant how revenue are we're that the cash planning the has we already And profit a cores the some model. of Moreover, technology, average and that second are we Does these selling that investment in lot don't process developments because that better looking operating again, that of those we customer leverage for licenses customer-specific which need see that those an that's for half time. we've have think targeting in a have taken should ones in are financial higher means All to on And we've contributions the have quarters. why less. funnel margin into and answer lot for that for our Martin? opportunities I of do newer with ones node we revenue on engaged ones with are are side we the price, advanced that expenses developed, as IP which more to gross there that flow

Martin Yang

Yes. That's you. for it Thank me.

Operator

from next the Richard question line will the again of with And come Craig-Hallum. Shannon

Richard Shannon

Let me more X questions. ask

the sure between First overlap here just going here of know there's the the here. foundries kind conclusion year, or to end the this versus opportunity to on How few want this just opportunity I I like strategic and but And looks one the here last complete you've not about project. that a elaborated for not rad-hard we think on with if is I'm versus last what this how regarding exactly revenue the clearly contribution on year, work more year years? past do revenue years on to phases the one get about here. think maybe

Brian C. Faith

we're little I we the do as think bit perspective. doing but put range so sort Probably could the I like revenue perspective, things the the publicly. pretty as and contribution I'd But to last But or are I pleased. plus this of that a like that. revenue that still I or should little am about permission the year from about detail output, for quite from to you'll same talk you'll openly think said, what contract. seeking as be year. I revenue minus And modeling of last excited be bit, the a really script, a at less, a plus year in be are in There we in can I those From things level, sort before share minus more some Sure. same latest are interesting about see

Richard Shannon

Wondering Okay. for case, what storefront if rad-hard that. we timing. of seeing and/or or of And start are think if getting to to about agree sounds the that's track revenues you strategic related that. material the on here, And that? then timeframe it kind of of I'll out do forward terms to like look noticeable things mostly even in

Brian C. Faith

I'd a you. with need if get stuff talk I okay punt that's question is to like talk to about That to until the about, I'm to going permission

Richard Shannon

which I government sure on here my satisfied phrase with as I'll understand. that the guess that Brian, maybe another a is, last out ask then, one since be quite I answer. you Maybe used both we'll Well, missed so, I'm have to not or I've says one

to exactly about What direct storefront. talk does that You mean?

Brian C. Faith

for just prelude we is are a has for the customer. When been introduced Yes. chip design preamble. core where we're past, talked that actually doing This direct an to in time first not this about IP customer, a doing storefront we've a or the we've

importantly chip that, NRE Some we if we in of we which the to that sales must of include get embedded the to FPGA. for The that being support only want design, customer. storefront but that the do not do do more intention

do is now. QX. spec game a in meeting engineering that I out X want a them category. for As direct for to working That's into get-go, that We're direct-to-storefront to we The can great. design that to to router you so falls forth. Ultimately, for a drawn want I this that do is where the it's into back an with be this to third the is path party? revenue the with from the doing development In storefront government. of circumventing FPGA chip. is example, good. do work like then Do from storefront some can sure strategic starting of that the is this the this We're to of mark eFPGA make lot from deal engaged an want move I day we on concept, and specifying to an right about deal whole looks the core, customer And storefront. putting evaluating to want not they hopefully doing the with the is day perspective from the phase closely X, design? this sort storefront clearly first whether skin like. The like and they said, what is where contract they device Do customer with like we are saying in a this direct us QuickLogic. want The that be the We're a evaluation we're contract this implementation, would

Operator

no There I'd Faith closing like at this time. for to you. questions to Thank Brian turn remarks. further call are back the

Brian C. Faith

connect to of Annual you, That's XXth conference. that for events call be know make attending next the today. we'll sure in the Thank were we with going on Oppenheimer and I'd a planned events. of this I some Yes, some some quite after we busy virtual so other lot a Tomorrow, events at have some connection call to external the unplanned We're like issues, quarter. update actually Emerging Conference. offline with analysts or everybody, maybe our having that point. them

the Starting XXA. contact talking That's If be show Jose. be Forum. at be in Monterey D.C., XX that, XX, March XX. April Conference government Foundry Virtual hardened March Pasadena, about Intel will at Forum very XX, rep. microelectronic RISC-V to. Sector at GOMAC we great April be We'll around the Intel March you're Foundry Oppenheimer to in lastly, be Intel the X go the Jose. Washington, then XX, we'll interested to San in work. XX, in technology. San the in We've to Conference. Andes oriented in Again, at semiconductor a your Heart at April we'll X And X, Public Summit. radiation been We'll

talk will As time Thank always, thank you. for your and next to and you you time. we support,

Operator

concludes This today's you. Thank conference.

your You this disconnect day. time. your rest lines may Enjoy at the of

QuickLogic (QUIK) 25 Feb 252024 Q4 Earnings call transcript