QuickLogic (QUIK) Q3 Earnings call transcript Nov 11, 2024

QuickLogic Corporation held its third quarter fiscal 2024 earnings call, providing a comprehensive update on the company's financial performance and strategic initiatives. The call, led by Brian Faith, President and CEO, and Elias Nader, Senior Vice President and CFO, highlighted several key themes and trends that underscore QuickLogic's position in the market and its potential for future growth.

Strategic Opportunities and Challenges

QuickLogic is navigating a period of significant strategic opportunities and challenges, with a focus on expanding its eFPGA (embedded Field-Programmable Gate Array) technology and capitalizing on new market opportunities. One of the most notable developments is the acquisition of Flex Logix's assets and technical team by Analog Devices. This acquisition, according to Brian Faith, has created a unique opportunity for QuickLogic to be the sole supplier of eFPGA Hard IP, a position that could significantly impact the competitive landscape and enhance the value proposition for QuickLogic's customers.

Moreover, QuickLogic's early investment in eFPGA Hard IP for Intel 18A, a leading-edge process node, positions the company to be the first supplier of eFPGA Hard IP for this technology. This strategic move could help QuickLogic secure numerous contracts and establish itself as a trusted supplier in the defense industrial base, capitalizing on the U.S. government's commitment to onshore foundry capabilities.

Financial Performance and Guidance

The third quarter of fiscal 2024 saw a total revenue of $4.3 million, slightly above the midpoint of the company's revenue guidance. However, this represents a 36% decrease from the same quarter last year and a 4% increase compared to the second quarter of 2024. The decrease is primarily attributed to the timing of certain large eFPGA IP contracts. Looking ahead, QuickLogic expects a modest increase in display bridge and mature product shipments for the full year 2024, with a forecasted revenue guidance of approximately $6 million for the fourth quarter.

On the financial front, QuickLogic is anticipating a return to non-GAAP profitability in Q4 2024 and for the full fiscal year 2024. This optimistic outlook is driven by the strategic investments in eFPGA Hard IP for Intel 18A and the acquisition of Flex Logix's assets, which are expected to generate significant revenue in the coming quarters.

Market Position and Competitive Landscape

QuickLogic's strategic investments and acquisitions position the company well in the competitive landscape, particularly in the eFPGA market. With no other major competitors in this space, QuickLogic's eFPGA Hard IP has become a valuable asset for customers seeking a trusted and reliable supplier. The acquisition of Flex Logix's assets further strengthens QuickLogic's position, providing the company with a unique opportunity to be the sole supplier of eFPGA Hard IP in the market.

Looking Ahead

QuickLogic's third quarter fiscal 2024 earnings call underscores the company's strategic positioning and financial outlook. With a focus on expanding its eFPGA technology and capitalizing on new market opportunities, QuickLogic is well-positioned for future growth. The acquisition of Flex Logix's assets and early investments in eFPGA Hard IP for Intel 18A are expected to yield significant returns, positioning QuickLogic as a trusted supplier in the defense industrial base and beyond.

As the company moves into the fourth quarter of fiscal 2024 and beyond, investors and stakeholders will closely watch QuickLogic's progress in executing its strategic initiatives and capitalizing on the opportunities created by the competitive landscape. With a solid financial foundation and a clear vision for growth, QuickLogic is poised for an exciting future in the eFPGA market.