QuickLogic Corp. (QUIK, Financial) filed Quarterly Report for the period ended 2012-09-30.
Quicklogic Corporation has a market cap of $129.3 million; its shares were traded at around $2.47 with and P/S ratio of 6.2.
Our selling, general and administrative, or SG&A, expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources and general management. The $391,000 increase in SG&A expenses in the third quarter of 2012 as compared to the third quarter of 2011 was primarily due to a $214,000 increase in stock-based compensation expenses; a $169,000 increase in compensation expenses due to increased headcount; and a $26,000 increase in outside services.
The increase in new product revenue was primarily driven by the shipment of our ArcticLink II VX device to a smartphone customer and the shipment of our ArcticLink device to a secure access datacard customer. The decrease in mature product revenue is due primarily to low bookings from our customers in the aerospace, test and instrumentation sectors. One of our U.S. customers, purchasing primarily pASIC 3 devices, accounted for 14% and 17% of total revenue in the first nine months of 2012 and 2011, respectively.
The $4.9 million decrease in gross profit in the first nine months of 2012 as compared to the first nine months of 2011 was mainly due to lower revenue from our mature products, higher inventory reserve and higher unabsorbed overhead. The inventory reserve was $428,000 and $562,000 in the first nine months of 2012 and 2011, respectively. The increase in inventory reserve was primarily due to decreased demand for our Eclipse and pASIC 3 devices in our mature product family. In addition, the decrease in gross profit was partially offset by the sale of previously reserved inventories of $421,000 and $282,000 in the first nine months of 2012 and 2011, respectively.
Net cash used for operating activities was $1.1 million in the first nine months of 2011. The cash used for operating activities was primarily derived from (1) a net loss of $4.5 million; (2) $2.9 million of net non-cash charges; and (3) net changes in working capital, which provided cash of $461,000 in the first nine months of 2011. The non-cash charges consisted primarily of stock-based compensation of $1.3 million, depreciation and amortization of $1.0 million, and a write-down of inventory of $562,000. The net changes in working capital included an increase in inventories of $1.1 million; a decrease in other assets of $101,000; a decrease in accrued liabilities of $262,000; and a decrease in trade payables of $228,000. This was offset by a decrease in accounts receivable of $2.2 million and a decrease in deferred royalty revenue of $238,000.
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Quicklogic Corporation has a market cap of $129.3 million; its shares were traded at around $2.47 with and P/S ratio of 6.2.
Highlight of Business Operations:
During the third quarter of 2012, we generated total revenue of $3.7 million which represents a 10% sequential decrease and a 32% decrease from the third quarter of 2011. Our new product revenue was $1.6 million which represents a 9% sequential decrease and a 27% increase year over year. Our mature product revenue was $2.1 million which represents a 11% sequential decrease and a 49% decrease year over year. We shipped our new products into four out of our five target mobile market segments: Smartphones, Broadband Access Data Cards, Secure Access Data Cards and Mobile Enterprise. Demand for our mature products declined in fiscal 2011 and remained flat through the third quarter of 2012. Since we introduced CSSPs to the market in early 2007, we have devoted substantially all of our development, sales, and marketing efforts on our new solution platforms, PSBs and CSSPs. We expect our revenue from mature products to continue to decline over time. Overall, we reported a net loss of $2.8 million and $9.8 million for the third quarter and the first nine months of 2012.Our selling, general and administrative, or SG&A, expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources and general management. The $391,000 increase in SG&A expenses in the third quarter of 2012 as compared to the third quarter of 2011 was primarily due to a $214,000 increase in stock-based compensation expenses; a $169,000 increase in compensation expenses due to increased headcount; and a $26,000 increase in outside services.
The increase in new product revenue was primarily driven by the shipment of our ArcticLink II VX device to a smartphone customer and the shipment of our ArcticLink device to a secure access datacard customer. The decrease in mature product revenue is due primarily to low bookings from our customers in the aerospace, test and instrumentation sectors. One of our U.S. customers, purchasing primarily pASIC 3 devices, accounted for 14% and 17% of total revenue in the first nine months of 2012 and 2011, respectively.
The $4.9 million decrease in gross profit in the first nine months of 2012 as compared to the first nine months of 2011 was mainly due to lower revenue from our mature products, higher inventory reserve and higher unabsorbed overhead. The inventory reserve was $428,000 and $562,000 in the first nine months of 2012 and 2011, respectively. The increase in inventory reserve was primarily due to decreased demand for our Eclipse and pASIC 3 devices in our mature product family. In addition, the decrease in gross profit was partially offset by the sale of previously reserved inventories of $421,000 and $282,000 in the first nine months of 2012 and 2011, respectively.
Net cash used for operating activities was $1.1 million in the first nine months of 2011. The cash used for operating activities was primarily derived from (1) a net loss of $4.5 million; (2) $2.9 million of net non-cash charges; and (3) net changes in working capital, which provided cash of $461,000 in the first nine months of 2011. The non-cash charges consisted primarily of stock-based compensation of $1.3 million, depreciation and amortization of $1.0 million, and a write-down of inventory of $562,000. The net changes in working capital included an increase in inventories of $1.1 million; a decrease in other assets of $101,000; a decrease in accrued liabilities of $262,000; and a decrease in trade payables of $228,000. This was offset by a decrease in accounts receivable of $2.2 million and a decrease in deferred royalty revenue of $238,000.
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