QuickLogic ((QUIK)) has held its Q2 earnings call. Read on for the main highlights of the call.
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QuickLogic’s recent earnings call revealed a mixed sentiment, highlighting strategic investments in defense and advanced technology with promising future revenue potential. However, the company is currently grappling with short-term revenue declines due to delayed project deliverables, painting a picture of cautious optimism for stakeholders.
Strategic Initiatives with SRH FPGA and Australis 2.0
QuickLogic is channeling its engineering resources towards strategic projects like the radiation-hardened FPGA and Australis 2.0. These initiatives are expected to significantly boost revenue starting in Q4 2025 and beyond, showcasing the company’s commitment to long-term growth.
Significant Potential in Defense Segment
The company is setting its sights on the defense sector, eyeing potential contracts that could be worth hundreds of millions of dollars in the coming years. This strategic focus underscores QuickLogic’s ambition to cement its presence in a lucrative market.
Successful Engineering Milestones
QuickLogic’s engineering team has achieved a key milestone by delivering design files to GlobalFoundries for a strategic rad-hard FPGA test chip. This achievement marks a significant step forward in utilizing the 12LP fabrication node, enhancing the company’s technological capabilities.
New Tools and Partnerships
The integration of Synopsys Synplify into Aurora Pro has led to notable improvements in design performance, with up to a 35% increase in maximum frequency and a 50% improvement in resource utilization. These advancements highlight QuickLogic’s commitment to innovation and efficiency.
Strong Interest in QuickLogic’s Technology
There is a growing interest in QuickLogic’s technology from the defense industrial base and advanced node customers, indicating substantial growth potential. This interest is a testament to the company’s cutting-edge solutions and market relevance.
Reduced Revenue and Gross Margin
In Q2 2025, QuickLogic reported a revenue of $3.7 million, marking a 10.7% decline from Q2 2024. The non-GAAP gross margin also fell to 31% from 54.4% in the previous year, reflecting the financial challenges faced by the company.
Delayed Revenue Recognition
The allocation of engineering resources has led to delayed revenue recognition for several contracts, impacting the revenue outlook for Q3 2025. This delay underscores the challenges of balancing strategic priorities with immediate financial performance.
Overall Yearly Forecast Adjusted Downward
QuickLogic has adjusted its full-year 2025 revenue forecast downward, projecting it to be modestly lower than 2024. This adjustment reflects the company’s strategic project prioritization and its impact on short-term financials.
Increased Net Loss
The company reported a non-GAAP net loss of $1.5 million in Q2 2025, compared to $0.7 million in Q2 2024. This increase in net loss highlights the financial pressures QuickLogic is facing amid its strategic investments.
Forward-Looking Guidance
QuickLogic’s forward-looking guidance indicates a strategic shift towards developing a radiation-hardened FPGA test chip using GlobalFoundries’ 12LP fabrication node. While this initiative is expected to decrease Q3 revenue, it is anticipated to significantly boost Q4 revenue. The company expects to start seeing financial returns from this initiative by 2026, potentially leading to production contracts worth hundreds of millions of dollars. Additionally, the release of Australis 2.0 is prioritized to support high-density designs, although full-year 2025 revenue is projected to be modestly lower than 2024.
In summary, QuickLogic’s earnings call reflects a strategic pivot towards long-term growth through investments in advanced technology and defense. Despite facing short-term revenue declines and increased net loss, the company remains optimistic about its future prospects, driven by promising initiatives like the SRH FPGA and Australis 2.0. Stakeholders are advised to keep an eye on these developments as QuickLogic navigates its path to sustainable growth.