QuickLogic Announces Fiscal 2008 First Quarter Results - VEE™ Rapidly Gaining Design Traction

Business Wire, April 24, 2008

SUNNYVALE, Calif. -- QuickLogic Corporation (NASDAQ:QUIK), the lowest power programmable solutions leader, today announced the financial results for its fiscal first quarter ended March 30, 2008.

Total revenue for the first quarter of 2008 was $11.0 million, up three percent from the fourth quarter of 2007 and up 77 percent from the first quarter of 2007. The sequential growth in revenue was primarily due to higher end-of-life and mature product revenue; this growth was partially offset by a decline in new product revenue. Revenue from new products, mature products and end-of-life products each increased significantly compared to the first quarter of 2007.

Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2008 was $1.4 million, or $0.05 per share, compared with a net loss of $1.7 million, or $0.06 per share, in the fourth quarter of 2007 and a net loss of $5.9 million, or $0.20 per share, in the first quarter of 2007. Non-GAAP net loss for the first quarter of 2008 was $712,000, or $0.02 per share, compared with a non-GAAP net loss of $1.1 million, or $0.04 per share, in the fourth quarter of 2007 and a non-GAAP net loss of $5.5 million, or $0.19 per share, in the first quarter of 2007.

QuickLogic reports certain financial measures, including net loss, in accordance with GAAP and also on a non-GAAP basis. Non-GAAP results, where applicable, exclude stock-based compensation recorded in accordance with Statement of Financial Accounting Standards (SFAS) No. 123(R), "Share-based Payment" and the write-off of long-lived assets. For a full reconciliation of GAAP net loss to non-GAAP net loss, please refer to the schedule on page 5 of this press release.

"Our results were in line with or better than our guidance for the first quarter, and new product revenue, while down sequentially, was at the high end of our guidance for the quarter," said E. Thomas Hart, chairman, president and CEO. "During the first quarter we launched our Visual Enhancement Engine, or VEE, which addresses the mobile market's need to provide users with a vastly improved user viewing experience even while significantly extending battery life. Top customers, in our target markets, see VEE as a clear way to differentiate their products as video moves into hand-held, battery-powered prosumer products."

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, April 24, 2008, to discuss the first quarter financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To participate, please call (877) 548-7911 by 2:20 p.m. Pacific Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (719) 457-0820 and reference the pass code: 4474570. The call recording will be archived until May 1, 2008 and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ:QUIK) is the inventor and pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics OEMs and ODMs. These silicon plus software solutions are called Customer Specific Standard Products (CSSPs). CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market. For more information about QuickLogic and CSSPs, visit www.quicklogic.com.

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation and the effect of the write-off of long-lived assets in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. For a full reconciliation of these GAAP measures to non-GAAP measures, please refer to the schedule on page 5 of this press release. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.

Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company's core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company's future periods, and serve as a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.