On February 25, 2025, QuickLogic Corp (QUIK, Financial) released its 8-K filing detailing its financial results for the fiscal fourth quarter and full year 2024. QuickLogic, a fabless semiconductor company, specializes in providing programmable silicon and software platforms, including embedded FPGA (eFPGA) intellectual property (IP), low power, multi-core semiconductor system-on-chips (SoCs), discrete FPGAs, and AI software. These offerings cater to various markets such as Aerospace, Defense, Consumer/Industrial IoT, and Consumer Electronics.
Performance Overview and Challenges
QuickLogic reported a total revenue of $5.7 million for Q4 2024, which fell short of the analyst estimate of $6.07 million. This represents a 23.7% decrease compared to the same quarter in 2023 but a 33.5% increase from Q3 2024. The decline in revenue year-over-year was primarily attributed to the timing of awards for large eFPGA IP contracts. Despite the revenue shortfall, QuickLogic's non-GAAP net income was $0.6 million, or $0.04 per share, surpassing the estimated EPS of -$0.05.
Financial Achievements and Industry Implications
QuickLogic's strategic achievements include securing a $1.1 million eFPGA Hard IP contract with a new defense industrial base customer and a $6.6 million tranche from the US Government for Strategic Radiation Hardened FPGA Technology. These contracts highlight the company's strong positioning in the defense sector and its potential for future growth. The integration of the Synopsys Synplify synthesis tool into Aurora 2.9 Pro FPGA User Tools and the expansion of its distribution network to Turkiye and UAE further strengthen its market presence.
Key Financial Metrics
QuickLogic's GAAP gross margin for Q4 2024 was 59.8%, down from 77.1% in Q4 2023 but up from 55.8% in Q3 2024. The non-GAAP gross margin was 62.0%, compared to 78.3% in Q4 2023 and 60.0% in Q3 2024. Operating expenses on a GAAP basis were $3.6 million, slightly lower than $3.7 million in Q4 2023 and significantly reduced from $4.2 million in Q3 2024. The company's GAAP net loss was $0.3 million, or $0.02 per share, contrasting with a net income of $2.0 million in Q4 2023 and a net loss of $2.1 million in Q3 2024.
With the continued execution on the Strategic Radiation Hardened FPGA contract with the US government, an influx of opportunities after a key competitor exited the market and being the first, and at this time, only company to offer eFPGA Hard IP for Intel 18A, we believe we are well positioned to return to sound revenue growth in 2025," said Brian Faith, CEO of QuickLogic.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | Q3 2024 |
|---|---|---|---|
| Revenue | $5.7 million | $7.5 million | $4.3 million |
| GAAP Gross Margin | 59.8% | 77.1% | 55.8% |
| Non-GAAP Net Income | $0.6 million | $2.6 million | ($0.9 million) |
Analysis and Outlook
QuickLogic's performance in Q4 2024 reflects both challenges and opportunities. The decline in revenue year-over-year highlights the impact of contract timing, yet the company's strategic contracts and technological advancements position it well for future growth. The improvement in non-GAAP profitability and positive cash flow expectations for 2025 indicate a potential turnaround. As QuickLogic continues to leverage its eFPGA Hard IP and expand its market reach, it remains a company to watch in the semiconductor industry.
Explore the complete 8-K earnings release (here) from QuickLogic Corp for further details.
