QuickLogic ((QUIK)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for QuickLogic Corporation presented a mixed sentiment, with significant achievements and challenges. The company showcased its progress with the Intel 18A eFPGA Hard IP and the expansion of its Strategic Radiation Hardened FPGA contract, highlighting promising growth potential. However, the delay in securing a second eFPGA Hard IP contract and a notable decline in Q1 financial performance posed considerable challenges.
Intel 18A eFPGA Hard IP Milestone
QuickLogic has made a significant leap by delivering design-specific eFPGA Hard IP for a customer’s Intel 18A test chip. This achievement establishes QuickLogic as the first available source for eFPGA Hard IP for Intel 18A, marking a crucial milestone in the company’s technological advancements and market positioning.
Strategic Radiation Hardened FPGA Contract Expansion
The Strategic Radiation Hardened FPGA contract with the government has been expanded with an additional $1.4 million funding modification, bringing the total contract value to approximately $8 million. This expansion underscores QuickLogic’s growing influence and capability in the defense sector, providing a solid foundation for future growth.
Faraday Partnership
QuickLogic’s collaboration with Faraday has resulted in the inclusion of its eFPGA Hard IP in the new Faraday FlashKit 22RRAM SoC development platform. This partnership is expected to generate production eFPGA Hard IP license revenue in the second half of 2025, opening new revenue streams and strengthening QuickLogic’s market presence.
Delay in Second eFPGA Hard IP Contract
The anticipated funding for the second eFPGA Hard IP contract has been delayed until Q4, impacting the Q2 revenue guidance. This delay presents a short-term challenge for QuickLogic, affecting its immediate financial outlook but not its long-term strategic goals.
Q1 Financial Performance
QuickLogic reported a total revenue of $4.3 million for Q1, marking a 28% decrease from Q1 2024. The company also reported a non-GAAP net loss of $1.1 million, a significant downturn compared to a net income of $1.7 million in the previous year. This financial performance highlights the challenges QuickLogic faces in maintaining profitability amid delays and market fluctuations.
Forward-Looking Guidance
Looking ahead, QuickLogic has provided guidance for the second quarter of 2025, projecting approximately $4 million in revenue, a slight decline from Q1 due to contract delays. Despite this, the company remains optimistic about achieving solid revenue growth, non-GAAP profitability, and positive cash flow for the full year. QuickLogic’s strategic investments in eFPGA Hard IP for Intel 18A and its partnership with Faraday are expected to drive future revenue, with increased interest from commercial and defense markets.
In conclusion, QuickLogic’s earnings call reflects a blend of optimism and caution. While the company has made significant strides in technological advancements and strategic partnerships, it faces immediate financial challenges due to contract delays and declining revenues. Nevertheless, QuickLogic’s forward-looking guidance suggests a positive outlook, with expectations of growth and profitability in the coming years.