In This Article:
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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QuickLogic Corp (NASDAQ:QUIK) secured the first of two EFPGA hard IP contracts for Intel 18A designs, with the second expected in Q4.
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The company has been recognized as the first available source for EFPGA hard IP for Intel 18A, enhancing its market position.
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QuickLogic Corp (NASDAQ:QUIK) has been named a partner in the Intel Foundry Accelerator Chilet Alliance, indicating strong industry partnerships.
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The inclusion of EFPGA hard IP in Faraday's new SOC development platform is expected to generate revenue in the second half of 2025.
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QuickLogic Corp (NASDAQ:QUIK) anticipates solid revenue growth, non-gap profitability, and positive cash flow for the full year 2025.
Negative Points
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Revenue guidance for Q2 2025 is lower than anticipated due to a delay in a large IP contract, impacting short-term financial performance.
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Total revenue for Q1 2025 was down 28% from Q1 2024, indicating a decline in year-over-year performance.
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Non-gap gross margin in Q1 was significantly lower than previous quarters, affected by cost allocations.
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The company reported a non-gap net loss of $1.1 million for Q1 2025, compared to a net income in the previous year.
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QuickLogic Corp (NASDAQ:QUIK) continues to face risks related to market acceptance of new products and intense competition.
Q & A Highlights
Q: Can you discuss the progress and revenue expectations related to Intel 18A and its applications in commercial and defense markets? A: Brian Faith, CEO: We have been working on Intel 18A since we got access to the PDK version 1.0. Our efforts have led to a robust IP core, particularly appealing to the defense industrial base. We anticipate revenue from Intel 18A licenses this fiscal year, with royalties expected next year. The process is considered de-risked, and we are the only provider of EFPGA hard IP for Intel 18A, which is attracting significant interest from both commercial and defense sectors.
Q: What are the key drivers for QuickLogic's anticipated revenue growth and profitability in the second half of 2025? A: Brian Faith, CEO: The growth will be driven by new IP contracts, including those related to Intel 18A and strategic radar contracts. These contracts have higher average selling prices compared to previous years. Our automated Australis platform allows us to adapt designs efficiently, supporting this growth with our current team size.
Q: Can you elaborate on the storefront opportunities and their potential impact on QuickLogic's business? A: Brian Faith, CEO: We have several storefront opportunities, including the strategic radar contract and a direct-to-storefront contract. We are also exploring new opportunities from the Intel Direct Connect conference. Our EFPGA technology is well-suited for these applications, and we expect these storefront opportunities to contribute significantly to our revenue.