QuickLogic's Q1 2025: Unraveling Contradictions in Revenue Projections and Intel 18A Strategy
Earnings DecryptTuesday, May 20, 2025 2:34 pm ET
2min read
Revenue and growth expectations, 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:
- 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.
Revenue and Earnings Performance:
- 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.
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