Q1 2024 Earnings Summary
- QuickLogic has submitted substantial proposals totaling over $40 million, including one in conjunction with YorChip, which could significantly boost revenue in 2024.
- SensiML, QuickLogic's subsidiary, has signed a six-figure contract with a major MCU company, positioning it for material revenue growth in 2024, and is adopting an open-source strategy expected to accelerate adoption and revenue.
- QuickLogic's unique position and decades of experience in designing and delivering FPGA-centric devices set it apart from competitors in the embedded FPGA IP space, making it an attractive partner for customers seeking such solutions, including in AI acceleration applications.
- The company's revenue guidance for Q2 2024 includes expected contributions from the third tranche of the RedHat contract, which has not yet been awarded and may be subject to U.S. federal government budget uncertainties. Any delays or issues in securing this contract could negatively impact revenue and profitability.
- Achieving the projected over 30% revenue growth in 2024 relies heavily on securing large, yet-to-be-awarded contracts, including $40 million in chiplet proposals. The dependence on these unfinalized contracts introduces significant risk to meeting growth targets.
- The embedded FPGA IP market remains competitive with established players like Flex Logix and Menta. The enduring competition may pose challenges for the company in capturing market share and could hinder growth.
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Revenue Guidance and RedHat Project
Q: Is RedHat project revenue included in Q2 guidance?
A: Yes, we are factoring our estimate for the third tranche of the RedHat project into our Q2 guidance. -
RedHat Deal Revenue Cadence
Q: Will the third tranche of the RedHat deal have a similar revenue cadence as the first tranche?
A: Yes, we expect the monthly funding rate for Tranche 3 to be similar to Tranche 1, spreading the value over approximately ten months. -
$40 Million Chiplet Proposals
Q: Can you provide details on the $40 million Chiplet proposals?
A: We have submitted two substantial Chiplet proposals totaling over $40 million, one with our partner YorChip. These could contribute to revenue later this year, underpinning our confidence in achieving over 30% revenue growth in 2024. -
Competitive Environment
Q: Has the competitive landscape changed in the past 1–2 years?
A: The competitive environment is largely unchanged, with Flex Logix and Menta as our main competitors. Our three decades of FPGA experience and ability to deliver full devices set us apart, attracting customers seeking comprehensive solutions. -
SensiML's $100K+ MCU Contract
Q: What can you tell us about SensiML's $100K+ contract with a major MCU company?
A: SensiML has signed a six-figure contract with a top-ten MCU company, positioning us for significant revenue growth in 2024. We plan to leverage open-source strategies to expand adoption rapidly. -
AI Opportunities in the Funnel
Q: Are there multiple AI accelerator opportunities in your funnel?
A: Yes, we have several AI opportunities, including recent proposals where AI acceleration is a key element. We see potential both within our $179 million funnel and in longer-term projects. -
Impact of Federal Budget Uncertainties
Q: Do federal budget uncertainties affect contract awards like RedHat tranches?
A: While federal budgeting can have some impact, we believe our programs are priorities with allocated funding, and we do not foresee significant issues affecting our tranches. -
FPGAs for AI at the Edge
Q: Are FPGAs better suited for AI at the edge?
A: Our low-power FPGAs are well-suited for AI at the edge, optimizing for power and performance in applications where power is critical, unlike traditional FPGAs used in data centers. -
SensiML Contracts with MCU Companies
Q: Is the five-figure SensiML contract with a different MCU company than existing agreements?
A: Due to NDAs, we cannot disclose specifics, but we have engagements with multiple MCU companies.
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