QuickLogic (QUIK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 41% year-over-year to $4.1M, but fell 31% sequentially, driven by eFPGA IP and professional services, at the low end of guidance due to contract timing and lower connectivity revenue.

• Net loss for Q2 2024 was $1.6M, improved from $2.3M loss last year, but down from Q1 2024 net income; non-GAAP net loss was $0.7M ($0.05/share).

• Full-year growth projection lowered to 15% from 30% due to customer-driven scheduling pushouts, not competitive losses or internal delays; a sharp Q4 rebound is expected.

• Major government and commercial contracts remain intact, with a $5.26M US government contract tranche awarded and expanded strategic partnerships.

• The company continues to focus on eFPGA IP licensing, professional services, and SensiML AI initiatives, with new storefront and chiplet revenue expected in late 2025.

Financial highlights

• Q2 2024 revenue: $4.1M, up 41% year-over-year, down 31% sequentially; new product revenue: $3.1M, up 37% year-over-year, down 37% sequentially; mature product revenue: $1.1M, up 56% year-over-year.

• Q2 2024 gross margin: 51% (GAAP), 53.1% (non-GAAP), up from 41%–44% last year, but down from Q1 2024.

• Q2 2024 net loss: $1.6M (GAAP), $0.7M (non-GAAP); Q2 2024 EPS: $(0.11) (GAAP), $(0.05) (non-GAAP).

• Q2 2024 operating expenses: $3.6M (GAAP), up 6% year-over-year; non-GAAP OpEx: $2.9M, flat year-over-year.

• Cash and equivalents at Q2 end: $23.3M, including a $20M revolving credit facility.

Outlook and guidance

• Full-year 2024 growth outlook revised to 15%, with a sharp Q4 rebound expected; Q3 2024 revenue guidance: ~$4.2M (±10%).

• Q3 non-GAAP gross margin expected at ~55% (±5pp); OpEx expected at ~$3M (±10%).

• Q3 non-GAAP net loss forecast: $0.6M–$1.6M ($0.02–$0.09/share).

• Full-year non-GAAP gross margin expected in the upper 60% range; company expects to be cash flow positive and report double-digit earnings for 2024.

• Existing cash, recent equity raise, and revolving credit facility expected to fund operations and capital expenditures for at least the next twelve months.