QuickLogic's Q1 2025: Unraveling Contradictions in Revenue Projections and Intel 18A Strategy

Revenue and growth expectations, Intel 18A customers and revenue generation, revenue ramp and Intel 18A program, storefront opportunity revenue expectations, revenue push-outs and customer issues are the key contradictions discussed in QuickLogic's latest 2025Q1 earnings call.



Revenue and Earnings Performance:
- QuickLogic reported first quarter revenue of $4.3 million, which was $0.3 million above the midpoint of their guidance range, but was 28% below Q1 2024 and 24% below Q4 2024.
- The decrease in revenue was mainly due to timing of certain large eFPGA IP contracts.

Intel 18A and Strategic Contract Impact:
- The first of two eFPGA Hard IP contracts for Intel 18A was awarded, and the second contract was delayed to Q4 due to funding issues, affecting Q2 revenue guidance to $4 million.
- QuickLogic's strategic position with Intel, including presentations at Intel events and test chip deliveries, is expected to drive future revenue growth.

Storefront Business Model and Strategic Partnerships:
- QuickLogic announced its first direct-to-storefront eFPGA Hard IP contract, and several other storefront opportunities are in the pipeline.
- The partnership with Faraday, which integrates QuickLogic's eFPGA Hard IP in its SoC development platform, is expected to generate future revenue.

Cost Management and Cash Flow:
- Non-GAAP gross margin for Q1 was 45.7%, below expectations due to R&D costs allocated to COGS, versus 71.3% in Q1 2024.
- Cash flow was impacted by payments to subcontractors for the Strategic Rad Hard FPGA contract and investments in eFPGA Hard IP for Intel 18A.