QuickLogic (QUIK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $4.3 million, down 36% year-over-year but up 4% sequentially; new product revenue was $3.5 million, down 42% year-over-year but up 16% sequentially; mature product revenue was $0.7 million.

• Major contract delays, especially a significant defense contract, shifted $4 million in expected Q4 revenue into 2025, reducing Q4 guidance to $6 million.

• Net loss for Q3 2024 was $2.1 million (GAAP), or $0.14 per share, compared to net income of $1.2 million in Q3 2023 and a net loss of $1.6 million in Q2 2024.

• The company focuses on eFPGA IP licensing, professional services, and SensiML AI software, targeting growth in Defense, IoT, and Consumer Electronics markets.

• Influx of new customer inquiries and strategic investments in eFPGA hard IP for Intel 18A and Synopsys Synplify software are expected to drive future contract wins and revenue.

Financial highlights

• Q3 non-GAAP gross margin was 60%, down from 78% year-over-year but up from 53.1% sequentially; GAAP gross margin was 55.8%.

• Q3 non-GAAP net loss was $0.9 million (6 cents/share), compared to net income of $1.8 million last year and a $0.7 million loss in Q2.

• Cash at Q3 end was $22.4 million, including a $20 million credit facility; cash usage was slightly higher than outlook due to contract timing and investments.

• Operating expenses for Q3 2024 were $4.2 million (GAAP), up 10% year-over-year, mainly due to higher SG&A costs.

• For the nine months ended September 29, 2024, revenue was $14.4 million (up 5% year-over-year), with a net loss of $3.5 million.

Outlook and guidance

• Q4 2024 revenue guidance is $6 million (±10%), with $5 million from new products and $1 million from mature products.

• Q4 non-GAAP gross margin expected at 60% (±5pp); non-GAAP operating expenses at $3.3 million (±10%).

• Q4 non-GAAP net income forecasted at $0.35–$0.48 million ($0.02–$0.03/share); full-year 2024 non-GAAP net income expected at $0.33–$0.45 million ($0.02–$0.03/share).

• Q4 cash usage expected under $500,000; Q1 2025 projected to be cash flow positive.

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