QuickLogic Expects Strong Q4 Revenue Rebound Amid Shift in Q3 Outlook

QuickLogic is targeting a substantial revenue rebound in Q4 after a strategic shift in engineering resources to advance a radiation-hardened FPGA test chip and accelerate the release of Australis 2.0. CEO Brian C. Faith attributed the Q3 revenue shortfall to the shift in focus, but expressed optimism for future growth.

QuickLogic Corporation (NASDAQ: QUIK) has outlined a strategic shift in engineering resources that aims to drive a significant revenue rebound in the fourth quarter (Q4) of 2025. The company, led by CEO Brian C. Faith, has allocated considerable engineering resources to two key initiatives: the development of a radiation-hardened FPGA test chip and the acceleration of the release of Australis 2.0, their proprietary hard IP generation tool.

The Q2 2025 earnings call revealed that this strategic shift has led to a decrease in the company's revenue outlook for Q3 but is expected to fuel substantial growth in Q4. Faith attributed the Q3 revenue shortfall to the shift in focus, emphasizing that the move is critical for securing strategic design wins and accelerating the storefront business model.

The development of a radiation-hardened FPGA test chip is a key component of QuickLogic's strategy. The test chip, fabricated on the 12LP process, is designed to meet the requirements of certain large defense industrial bases (DIBs) that are developing strategic defense systems. QuickLogic anticipates that the test chip could be worth hundreds of millions of dollars in future production contracts if successful.

The release of Australis 2.0, a significant update to the company's proprietary hard IP generation tool, is also a critical element of the company's growth strategy. The tool is designed to support high-density eFPGA IP cores for advanced fabrication nodes, including 12-nanometer nodes at GlobalFoundries and TSMC and Intel 18A. QuickLogic expects Australis 2.0 to contribute to a substantial sequential increase in Q4 revenue, with some of the revenue potentially extending into early Q1 2026.

While the strategic shift has led to a modest decrease in full year 2025 revenue relative to 2024, QuickLogic remains optimistic about future growth prospects. The company's focus on advanced fabrication nodes and high-density eFPGA IP cores positions it well to capture a significant share of the defense industrial base semiconductor market.

References:
[1] https://seekingalpha.com/article/4812908-quicklogic-corporation-quik-q2-2025-earnings-call-transcript