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Form 8-K QUICKLOGIC CORPORATION For: Aug 03

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August 3, 2016 4:18 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549 
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 3, 2016
QuickLogic Corporation
(Exact name of registrant as specified in its charter)  
 
 
 
 
 
Delaware
 
000-22671
 
77-0188504
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
1277 Orleans Drive, Sunnyvale, CA
 
 
 
94089-1138
(Address of principal executive offices)
 
 
 
(Zip Code)
Registrant’s telephone number, including area code (408) 990-4000
N/A
(Former name or former address, if changed since last report) 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





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Section 2 – Financial Information
Item 2.02 Results of Operation and Financial Condition.
On August 3, 2016, QuickLogic Corporation (“QuickLogic”) issued a press release regarding it’s financial results for the fiscal 2016 second quarter ended July 3, 2016. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

QuickLogic is making reference to non-GAAP financial information in the press release. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.

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Section 9 – Financial Statements and Exhibits
Item 9.01(d) Exhibits.
The following exhibit is furnished as a part of this report:
 
99.1
Press release of QuickLogic Corporation dated August 3, 2016 announcing financial results for the fiscal 2016 second quarter ended July 3, 2016.


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
Date: August 3, 2016
 
QuickLogic Corporation
 
 
 
 
/s/ Suping (Sue) Cheung
 
 
 
 
 
Suping (Sue) Cheung
Principal Accounting Officer and Corporate Controller


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EXHIBIT INDEX
 
 
 
 
Exhibit
No.
  
Description
 
 
99.1
  
Press release of QuickLogic Corporation dated August 3, 2016 announcing financial results for the fiscal 2016 second quarter ended July 3, 2016.




Exhibit 99.1
 
 
 
 
 
 
 
  
Contacts:
Sue Cheung
Principal Accounting Officer and Corporate Controller
(408) 990-4076
  
Andrea Vedanayagam
(408) 656-4494

QuickLogic Announces Fiscal 2016 Second Quarter Results

SUNNYVALE, Calif. – August 3, 2016 – QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power programmable sensor processing solutions, today announced the financial results for its fiscal second quarter ended July 3, 2016.
Total revenue for the second quarter of 2016 was $2.72 million, representing a decrease of 8% compared to $2.95 million in the first quarter of 2016 and a decrease of 45% compared to $4.97 million in the second quarter of 2015. New product revenue for the second quarter of 2016 was $1.20 million, a decrease of 20% compared to $1.49 million in the first quarter of 2016 and a decrease of 59% compared to $2.95 million in the second quarter of 2015. During the second quarter of 2016, mature product revenue was $1.52 million, an increase of 4% compared to $1.46 million sequentially and a decrease of 25% compared to $2.02 million in the second quarter of 2015. New product revenue accounted for 44% of the total revenue in the second quarter of 2016 compared to 51% in the first quarter of 2016 and 59% in the second quarter of 2015.
Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the second quarter of 2016 was $5.57 million, or $0.08 per share, compared to a net loss of $5.09 million, or $0.09 per share in the first quarter of 2016 and a net loss of $4.28 million, or $0.08 per share, in the second quarter of 2015. Non-GAAP net loss for the second quarter of 2016 was $4.82 million, or $0.07 per share, compared to a non-GAAP net loss of $4.53 million, or $0.08 per share in the first quarter of 2016 and a non-GAAP net loss of $3.62 million, or $0.06 per share, in the second quarter of 2015.
GAAP and Non-GAAP cost of goods (COGS) for three and six months period ended July 3, 2016, include an inventory reserve of $203,000 for PolarPro III product. This reserve had an impact of 7.5% and 3% on gross margins for the three and six months period ended July 3, 2016. GAAP research and development (R&D) costs include a fixed asset write down of $312,000. This write down was eliminated in the presentation of non-GAAP consolidated statement of operation in the three and six months period ended

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July 3, 2016. The impact of write down on the earnings per share for the three and six months period ended July 3, 2016 was not material.
Conference Call

QuickLogic Corporation (NASDAQ: QUIK) will hold a conference call at 2:30 p.m. Pacific Daylight Saving Time/ 5:30 p.m. Eastern Daylight Saving Time today, August 3, 2016, to discuss its current financial results. The conference call will be webcasted and can be accessed via the Company's website at http://ir.quicklogic.com/events.cfm. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Saving Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 50333781. The call recording will be archived until Wednesday, August 10, 2016 and the webcast will be available for 12 months on the Company's website.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) enables OEMs to maximize battery life for highly differentiated, immersive user experiences with smartphone, wearable and IoT devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable SoC semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing, and enhanced visual experiences. For more information about QuickLogic, please visit www.quicklogic.com.

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with GAAP, but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company’s industry.
Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company’s core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company’s future periods, and serve as a basis for the allocation of the Company's resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.
Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial

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measures and the reconciliation of non-GAAP financial measures with their most directly comparable GAAP financial measures.

Forward Looking Statements

This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: delays in the market acceptance of the Company’s new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers’ products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; and general economic conditions. These and other potential factors and uncertainties that could cause actual results to differ from the results predicted are described in more detail in the Company’s public reports filed with the Securities and Exchange Commission (the "SEC"), including the risks discussed in the “Risk Factors” section in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the Company’s prior press releases, which are available on the Company's Investor Relations website at http://ir.quicklogic.com/and on the SEC website at www.sec.gov. In addition, please note that the date of this press release as August 3, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
QuickLogic and the QuickLogic logo are registered trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.
###













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QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 
 
Three Months Ended
 
Six Months Ended
 
 
July 3, 2016
 
June 28, 2015
 
April 3, 2016
 
July 3, 2016
 
June 28, 2015
Revenue
 
$
2,717

 
$
4,973

 
$
2,950

 
$
5,667

 
$
11,132

Cost of revenue
 
1,941

 
2,830

 
1,794

 
3,735

 
6,110

Gross profit
 
776

 
2,143

 
1,156

 
1,932

 
5,022

Operating expenses:
 
 
 
 
 

 
 
 
 
Research and development
 
3,683

 
3,493

 
3,447

 
7,130

 
6,970

Selling, general and administrative
 
2,591

 
2,690

 
2,693

 
5,284

 
5,650

Restructuring cost
 
—

 
169

 
—

 
—

 
169

Total operating expense
 
6,274

 
6,352

 
6,140

 
12,414

 
12,789

Loss from operations
 
(5,498
)
 
(4,209
)
 
(4,984
)
 
(10,482
)
 
(7,767
)
Interest expense
 
(34
)
 
(15
)
 
(38
)
 
(72
)
 
(29
)
Interest income and other (expense), net
 
(15
)
 
(33
)
 
(7
)
 
(22
)
 
(59
)
Loss before income taxes
 
(5,547
)
 
(4,257
)
 
(5,029
)
 
(10,576
)
 
(7,855
)
Provision for income taxes
 
27

 
21

 
64

 
91

 
61

Net loss
 
$
(5,574
)
 
$
(4,278
)
 
$
(5,093
)
 
$
(10,667
)
 
$
(7,916
)
Net loss per share:
 
 
 
 
 

 
 
 
 
Basic
 
$
(0.08
)
 
$
(0.08
)
 
$
(0.09
)
 
$
(0.17
)
 
$
(0.14
)
Diluted
 
$
(0.08
)
 
$
(0.08
)
 
$
(0.09
)
 
$
(0.17
)
 
$
(0.14
)
Weighted average shares:
 
 
 
 
 

 
 
 
 
Basic
 
67,415

 
56,359

 
58,371

 
62,893

 
56,275

Diluted
 
67,415

 
56,359

 
58,371

 
62,893

 
56,275


























4


QUICKLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 
 
July 3, 2016
 
January 3, 2016 (1)
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
18,970

 
$
19,136

Accounts receivable, net
 
1,485

 
1,601

Inventories
 
2,318

 
2,878

Other current assets
 
983

 
1,312

Total current assets
 
23,756

 
24,927

Property and equipment, net
 
3,090

 
3,315

Other assets
 
307

 
219

TOTAL ASSETS
 
$
27,153

 
$
28,461

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 
Current liabilities:
 

 
 
Trade payables
 
$
1,537

 
$
4,032

Accrued liabilities
 
1,434

 
1,482

Current portion of capital lease obligations
 
142

 
281

Total current liabilities
 
3,113

 
5,795

Long-term liabilities:
 

 
 
Revolving line of credit
 
4,000

 
2,000

Capital lease obligations, less current portion
 
109

 
208

Other long-term liabilities
 
120

 
133

Total liabilities
 
7,342

 
8,136

Stockholders’ equity:
 

 
 
Common stock, at par value
 
68

 
57

Additional paid-in capital
 
251,166

 
241,024

Accumulated deficit
 
(231,423
)
 
(220,756
)
Total stockholders’ equity
 
19,811

 
20,325

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
27,153

 
$
28,461

 
________________________
(1)
Derived from the January 3, 2016 audited balance sheet included in the 2015 Annual Report on Form 10-K of QuickLogic Corporation.











5


QUICKLOGIC CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts and percentages)
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
 
July 3, 2016
 
June 28, 2015
 
April 3, 2016
 
July 3, 2016
 
June 28, 2015
GAAP loss from operations
 
$
(5,498
)
 
$
(4,209
)
 
$
(4,984
)
 
$
(10,482
)
 
$
(7,767
)
Adjustment for stock-based compensation within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
47

 
27

 
38

 
85

 
66

Research and development
 
175

 
212

 
291

 
466

 
403

Selling, general and administrative
 
217

 
252

 
233

 
450

 
519

Adjustment for the write-off of equipment within:
 
 
 
 
 
 
 
 
 
 
Research and development
 
312

 
—

 
—

 
312

 
—

Adjustment for restructuring costs
 
—

 
169

 
—

 
—

 
169

Non-GAAP loss from operations
 
$
(4,747
)
 
$
(3,549
)
 
$
(4,422
)
 
$
(9,169
)
 
$
(6,610
)
GAAP net loss
 
$
(5,574
)
 
$
(4,278
)
 
$
(5,093
)
 
$
(10,667
)
 
$
(7,916
)
Adjustment for stock-based compensation within:
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
47

 
27

 
38

 
85

 
66

Research and development
 
175

 
212

 
291

 
466

 
403

Selling, general and administrative
 
217

 
252

 
233

 
450

 
519

Adjustment for the write-off of equipment within:
 
 
 
 
 
 
 
 
 
 
Research and development
 
312

 
—

 
—

 
312

 
—

Adjustment for restructuring costs
 
—

 
169

 
—

 
—

 
169

Non-GAAP net loss
 
$
(4,823
)
 
$
(3,618
)
 
$
(4,531
)
 
$
(9,354
)
 
$
(6,759
)
GAAP net loss per share
 
$
(0.08
)
 
$
(0.08
)
 
$
(0.09
)
 
$
(0.17
)
 
$
(0.14
)
Adjustment for stock-based compensation
 
0.01

 
0.01

 
0.01

 
0.02

 
0.02

Adjustment for the write-off of equipment
 
*

 
—

 
—

 
*

 
—

Adjustment for restructuring costs
 
—

 
0.01

 
—

 
—

 
*

Non-GAAP net loss per share
 
$
(0.07
)
 
$
(0.06
)
 
$
(0.08
)
 
$
(0.15
)
 
$
(0.12
)
GAAP gross margin percentage
 
28.6
%
 
43.1
%
 
39.2
%
 
34.1
%
 
45.1
%
Adjustment for stock-based compensation
 
1.7
%
 
0.5
%
 
1.3
%
 
1.5
%
 
0.6
%
       Adjustment for the write-off equipment
 
*

 
—
%
 
—
%
 
*

 
—
%
Adjustment for restructuring costs
 
—
%
 
*

 
—
%
 
—
%
 
*

Non-GAAP gross margin percentage
 
30.3
%
 
43.6
%
 
40.5
%
 
35.6
%
 
45.7
%

* Figures were not considered for reconciliation due to the insignificant amount.












6


QUICKLOGIC CORPORATION
SUPPLEMENTAL DATA
(Unaudited)
 
 
 
Percentage of Revenue
 
Change in Revenue
 
 
Q2 2016
 
Q2 2015
 
Q1 2016
 
Q2 2015 to
Q2 2016
 
Q1 2016 to
Q2 2016
COMPOSITION OF REVENUE
 

 

 

 

 

Revenue by product: (1)
 

 

 

 

 

New products
 
44
%
 
59
%
 
51
%
 
(59
)%
 
(20
)%
Mature products
 
56
%
 
41
%
 
49
%
 
(25
)%
 
4
 %
Revenue by geography:
 

 

 

 

 

Asia Pacific
 
65
%
 
70
%
 
58
%
 
(49
)%
 
3
 %
North America
 
24
%
 
22
%
 
28
%
 
(41
)%
 
(22
)%
Europe
 
11
%
 
8
%
 
14
%
 
(26
)%
 
(26
)%
 
_____________________
(1)
New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers.



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