QuickLogic Announces Fiscal 2009 First Quarter Results

Business Wire, April 28, 2009

SUNNYVALE, Calif. -- QuickLogic Corporation (NASDAQ:QUIK), the lowest power programmable semiconductor solutions leader, today announced the financial results for its fiscal first quarter ended March 29, 2009.

Total revenue for the first quarter of 2009 was $4.6 million, down 23 percent from the fourth quarter of 2008 and down 59 percent from the first quarter of 2008. The sequential decline in revenue was due to declines in both our new product and legacy product lines. The decline in new product revenue was caused by the end of life of a product family by a tier 1 customer and delays in new product start-up with several major customers. The decline in legacy product revenue resulted from the general economic slowdown. New products - ArcticLink®, PolarPro® II, PolarPro, Eclipse™ II and QuickPCI® II - contributed 15 percent of revenue in the first quarter of 2009 compared to 26 percent in the fourth quarter of 2008 and 24 percent of revenue in the first quarter of 2008.

Under generally accepted accounting principles (GAAP), the net loss for the first quarter of 2009 was $1.6 million, or $0.05 per share, compared with a net loss of $2.6 million, or $0.09 per share, in the fourth quarter of 2008 and a net loss of $1.4 million, or $0.05 per share, in the first quarter of 2008. Non-GAAP net loss for the first quarter of 2009 was $1.2 million, or $0.04 per share, compared with a non-GAAP net loss of $1.2 million, or $0.04 per share, in the fourth quarter of 2008 and a non-GAAP net loss of $0.7 million, or $0.02 per share, in the first quarter of 2008.

“Our financial results were in line with our guidance for the first quarter, and we expect our new product revenue to grow in future quarters,” said E. Thomas Hart, Chairman of the Board and CEO. “During the first quarter we worked with our partners to finish development of our latest ArcticLink II VX4 solution platform. The VX family embeds the second generation Visual Enhancement Engine, or VEE™, Proven System Block (PSB), which improves the user’s video viewing experience while extending system battery life by allowing reduction in the power used by a mobile device’s single biggest consumer of power, the backlight. The VX4 platform also embeds the Qualcomm developed MDDI serial interface for ease of connection with their mobile processors.”

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, April 28, 2009, 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) 548-7912 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: 4199677. The call recording will be archived until May 1, 2009 and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ:QUIK) is the pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics original equipment manufacturers (OEMs) and original design manufacturers (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. Code: QUIK-G

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with 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, restructuring, the write-down of the Company’s investment in Tower Semiconductor Ltd. 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. 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.