QuickLogic (QUIK) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $5.7 million, down 24% year-over-year but up 34% sequentially, driven by timing of large eFPGA IP contracts.

• Awarded $1.1 million eFPGA Hard IP contract with a new defense customer and $6.6 million US Government contract tranche.

• Strategic investments in eFPGA hard IP, especially for Intel 18A, position the company as the only provider optimized for this node, with anticipated strong returns.

• Strengthened sales team with new VP of IP Sales and announced strategic process for SensiML.

• Expanding into new markets beyond aerospace and defense, including industrial, communications, and consumer sectors.

Financial highlights

• Q4 2024 new product revenue was $4.7 million, down 32% year-over-year, up 32% sequentially; mature product revenue was $1 million, up from $0.7 million in prior periods.

• Q4 2024 non-GAAP gross margin was 62% (vs. 78.3% year-over-year, 60% sequentially); GAAP gross margin was 59.8%.

• Q4 2024 non-GAAP net income was $0.6 million ($0.04 per share), down from $2.6 million ($0.18–$0.19 per share) year-over-year.

• Cash at Q4 end was $21.9 million, including an $18 million credit facility.

• Year-end 2024 total assets were $51.9 million, with stockholders' equity at $24.9 million.

Outlook and guidance

• Q1 2025 revenue guidance is approximately $4 million (±10%), with $3.4 million from new products and $0.6 million from mature products.

• Non-GAAP gross margin for Q1 2025 expected at ~50% (±5pp); full-year non-GAAP gross margin modeled in the mid-60% range.

• Management expects revenue growth, non-GAAP profitability, and positive cash flow for full year 2025.

• Non-GAAP operating expenses expected at ~$3.2 million for Q1 and ~$3.3 million per quarter for 2025.

• Significant revenue and profitability rebound anticipated in Q2 2025, driven by new and pending IP contracts.