QuickLogic ((QUIK)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for QuickLogic presented a mixed sentiment, highlighting both achievements and challenges. The company celebrated securing new contracts and potential growth opportunities, particularly with Intel 18A, while also acknowledging short-term hurdles such as revenue declines and reduced gross margins. Despite these challenges, QuickLogic remains optimistic about a strong rebound in Q2 2025 and beyond, driven by strategic investments and new contracts.
Successful eFPGA Hard IP Contracts
QuickLogic announced the finalization of a $1.1 million eFPGA Hard IP contract with a new defense industrial base customer. This contract is expected to contribute to a rebound in revenue and profitability starting in Q2 2025. The company is optimistic about securing additional contracts in the near term, which could further enhance its financial performance.
Strategic Radiation Hardened FPGA Contract Expansion
The company was awarded the fourth tranche of the Strategic Radiation Hardened FPGA government contract, valued at $6.6 million. This brings the total contract value to $34 million, with a potential to reach $72 million. This expansion underscores QuickLogic’s strong position in the defense sector and its ability to secure significant government contracts.
Intel 18A Opportunity
QuickLogic is uniquely positioned as the only company offering eFPGA Hard IP optimized for Intel 18A. This strategic positioning is expected to yield significant returns from investments made in 2024, marking a promising growth avenue for the company.
Increased Revenue from New Products
In Q4 2024, QuickLogic reported new product revenue of $4.7 million, representing a 32% increase compared to Q3 2024. This growth highlights the company’s successful product development and market penetration strategies.
Q4 2024 Revenue Miss
The company reported Q4 2024 revenue of $5.7 million, a 24% decrease from Q4 2023. This decline was primarily attributed to delays in certain large eFPGA IP contracts, impacting the company’s short-term financial performance.
Lower Q1 2025 Revenue Outlook
QuickLogic expects Q1 2025 revenue to be approximately $4 million, reflecting the impact of delayed IP contracts. This outlook suggests continued short-term financial challenges for the company.
Reduced Gross Margin
The non-GAAP gross margin for Q4 2024 was reported at 62%, down from 78.3% in Q4 2023. This reduction in gross margin has affected the company’s profitability, highlighting the need for strategic adjustments.
Net Income Decline
QuickLogic’s non-GAAP net income for Q4 2024 was $0.6 million, a significant decrease from $2.6 million in Q4 2023. This decline underscores the financial challenges the company faces amid contract delays and reduced margins.
Forward-Looking Guidance
Looking ahead, QuickLogic provided guidance for upcoming quarters, emphasizing a significant rebound in revenue and profitability starting in Q2 2025. The company anticipates Q1 2025 revenue to be around $4 million, with a non-GAAP gross margin of about 50%. Despite a forecasted Q1 non-GAAP net loss, QuickLogic expects solid revenue growth, non-GAAP profitability, and positive cash flow for the full year 2025, driven by new eFPGA Hard IP contracts.
In summary, QuickLogic’s earnings call presented a mixed outlook, balancing achievements in securing new contracts with short-term financial challenges. The company remains optimistic about future growth, particularly from strategic investments and new opportunities with Intel 18A. As QuickLogic navigates these challenges, its focus on innovation and strategic partnerships will be crucial for achieving long-term success.