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01/10 18:20
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed picture: strategic partnerships and government contracts suggest potential growth, but financial performance shows increased losses and less favorable cost absorption. The Q&A section highlights positive sentiment towards defense market opportunities but also reveals management's reluctance to provide specific future guidance, indicating uncertainty. With no market cap data, the net result is a neutral stock price outlook over the next two weeks.
Total second quarter revenue $3.7 million, down 10.7% from Q2 2024 and down 15% compared to Q1 2025. The decrease was due to lower discrete FPGA revenue and slightly lower revenue recognition from existing IP customers than forecasted.
New product revenue in Q2 $2.9 million, down 4.5% from Q2 2024 and down 22.3% compared to Q1 2025. The decline was attributed to lower discrete FPGA revenue.
Mature product revenue in Q2 $0.8 million, down from $1.1 million in Q2 2024 but up from $0.6 million in Q1 2025. The increase from Q1 2025 was not elaborated upon.
Non-GAAP gross margin in Q2 31%, compared to 54.4% in Q2 2024 and 47.1% in Q1 2025. The decline was due to $350,000 of R&D costs allocated to COGS, a $100,000 inventory reserve, less favorable absorption of fixed costs, product mix, and certain investments.
Non-GAAP operating expenses in Q2 $2.5 million, approximately $350,000 below the low end of the outlook due to the COGS allocation. This compares to $2.9 million in Q2 2024 and $3.1 million in Q1 2025.
Non-GAAP net loss in Q2 $1.5 million or $0.09 per share, compared to $0.7 million or $0.05 per share in Q2 2024 and $1.1 million or $0.07 per share in Q1 2025. The increase in loss was due to lower revenue and higher costs.
Cash at the close of Q2 $19.2 million, inclusive of $15 million from a $20 million credit facility. This compares to $17.5 million at the close of Q1 2025. The increase was due to $2.9 million raised in ATM sales, offset by $1.3 million in cash usage.
SRH FPGA Test Chip: QuickLogic has developed a strategic radiation-hardened (SRH) FPGA test chip using GlobalFoundries' 12LP fabrication node. This initiative is expected to secure strategic design wins and accelerate the storefront business model. ROI is anticipated to begin in 2026, with potential production contracts worth hundreds of millions of dollars.
Australis 2.0: QuickLogic is set to release Australis 2.0, a significant update to its proprietary eFPGA hard IP generation tool. This update will support advanced fabrication nodes and high-density eFPGA IP cores, contributing to a substantial revenue increase in Q4 2025.
Aurora Pro 2.9: QuickLogic has integrated Synopsys Synplify into its Aurora Pro 2.9 development tool, optimizing it for high-density designs and advanced fabrication nodes. This integration improves design efficiency and resource utilization by up to 50%.
Defense Market Expansion: QuickLogic is targeting the U.S. defense market with its SRH FPGA technology, which aligns with the Department of Defense's priorities for strategic defense systems. The company is engaging with large defense industrial bases (DIBs) and anticipates significant contracts starting in 2026.
Advanced Fabrication Nodes: QuickLogic is expanding its market reach by targeting advanced fabrication nodes, including 12-nanometer nodes at GlobalFoundries and TSMC, and Intel 18A. This includes customer contracts and engagements for high-density eFPGA IP cores.
Revenue Outlook Adjustment: QuickLogic has adjusted its Q3 2025 revenue outlook due to resource allocation for strategic initiatives, expecting a rebound in Q4 2025.
Cost Management: The company has reallocated R&D costs to COGS and taken inventory reserves, impacting gross margins in Q2 2025.
Storefront Business Model: QuickLogic is focusing on its storefront business model, leveraging SRH FPGA technology to address high-density FPGA applications and expand its served available market.
Digital Proof-of-Concept Chiplet: QuickLogic is developing a digital proof-of-concept chiplet to target advanced fabrication nodes, aiming for high returns as a storefront device.
Revenue Decrease in Q3 2025: The allocation of engineering resources to strategic initiatives has pushed deliverables and associated revenue recognition forward, leading to a decreased revenue outlook for Q3 2025.
Delayed ROI from SRH FPGA Test Chip: The ROI from the SRH FPGA test chip initiative is not expected until 2026, creating a delay in financial returns despite significant investment.
Dependency on Subcontractor Deliverables: Revenue recognition from the U.S. government SRH FPGA contract is delayed due to pending deliverables from a subcontractor.
Lower Gross Margins in Q3 2025: Non-GAAP gross margin for Q3 2025 is expected to be approximately 5%, driven by unfavorable absorption of fixed costs due to lower anticipated revenue.
Competitive Pressures: The company faces intense competition in the FPGA and ASIC markets, which could impact its ability to secure design wins and maintain market share.
Economic and Political Risks: General economic conditions, political events, and international trade disputes could disrupt supply or demand for the company's products.
Customer Dependency: Revenue is highly concentrated, with three customers and one distributor accounting for 10% or more of total revenue, increasing risk if any of these relationships are disrupted.
Supply Chain Disruptions: Natural disasters and other business interruptions could disrupt the supply or delivery of the company's products.
Regulatory and Tax Risks: Changes in tax rates and exposure to additional tax liabilities could adversely affect financial performance.
Resource Allocation Risks: The focus on strategic initiatives like Australis 2.0 and the SRH FPGA test chip has diverted resources from other revenue-generating activities, impacting short-term financial performance.
Revenue Outlook for Q3 2025: Revenue guidance for Q3 2025 is approximately $2 million, plus or minus 10%. This is a decrease due to the reallocation of engineering resources, but it is expected to fuel a substantial increase in Q4 revenue.
Revenue Outlook for Q4 2025: A substantial sequential increase in Q4 revenue is anticipated due to the completion of deliverables for several contracts and the introduction of Australis 2.0.
Full Year 2025 Revenue Projection: Full year 2025 revenue is projected to be modestly lower than 2024 due to the Q3 revenue decrease, but a significant rebound is expected in Q4.
Gross Margin for Q3 2025: Non-GAAP gross margin for Q3 2025 is expected to be approximately 5%, primarily due to unfavorable absorption of fixed costs and lower anticipated revenue.
Full Year 2025 Gross Margin Projection: Non-GAAP gross profit margin for full year 2025 is expected to be in the low-to-mid 50% range.
Australis 2.0 Release: Australis 2.0 is expected to be completed and contribute to revenue in Q4 2025. It will support advanced fabrication nodes and high-density eFPGA IP cores.
SRH FPGA Test Chip Initiative: The SRH FPGA test chip initiative is expected to generate ROI beginning in 2026, with potential storefront production contracts worth hundreds of millions of dollars in the coming years.
Intel 18A Engagements: Multiple Intel 18A engagements are expected to result in significant contracts beginning in Q4 2025.
Digital Proof-of-Concept Chiplet: A digital proof-of-concept chiplet is expected to be completed before the next conference call, targeting advanced fabrication nodes and potentially serving as a storefront device.
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Despite a promising Q4 revenue outlook and potential future contracts, Q3 shows concerning financial metrics: a sharp decline in gross margin, increased net losses, and reduced cash reserves. The Q&A highlights further risks, including government shutdown impacts and delayed IP contracts. Management's lack of clarity on key metrics adds uncertainty. While Q4 guidance is optimistic, the current negative financial performance and uncertainties suggest a negative stock price movement in the short term.
The earnings call presents a mixed picture: strategic partnerships and government contracts suggest potential growth, but financial performance shows increased losses and less favorable cost absorption. The Q&A section highlights positive sentiment towards defense market opportunities but also reveals management's reluctance to provide specific future guidance, indicating uncertainty. With no market cap data, the net result is a neutral stock price outlook over the next two weeks.
The earnings call presents mixed signals. While the EPS beat expectations, indicating a positive surprise, there are several risks such as market acceptance delays and intense competition. The exit from SensiML is strategic but lacks immediate financial impact. The Q&A reveals potential revenue drivers and opportunities but also highlights management's vague responses, which may cause investor caution. Overall, the neutral sentiment reflects the balance of positive earnings surprise against potential risks and uncertainties in execution and market conditions.
The earnings call reveals significant challenges: a 28% revenue decline, reduced gross margins, and increased operating expenses. The Q&A section highlights uncertainties in key revenue streams and vague management responses, particularly regarding the Rad-Hard program. Despite some potential in new contracts and product development, the lack of a share repurchase program and substantial risks like market acceptance delays and competition further contribute to a negative outlook. The guidance for a net loss and absence of positive catalysts suggest a likely negative stock price reaction over the next two weeks.
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