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    QUICKLOGIC (QUIK)

    Q2 2024 Earnings Summary

    Reported on Apr 1, 2025 (After Market Close)
    Pre-Earnings Price$9.42Last close (Aug 13, 2024)
    Post-Earnings Price$8.01Open (Aug 14, 2024)
    Price Change
    $-1.41(-14.97%)
    • QuickLogic is experiencing an increasing win rate in IP contracts and aims to achieve 10 IP contracts for the year, which could significantly boost revenue.
    • The company plans to be the first eFPGA company to offer Hard eFPGA IP on Intel's 18A node, potentially providing a competitive advantage and opening up significant revenue opportunities.
    • QuickLogic has significant potential revenue from chiplet and storefront opportunities not fully reflected in the current sales funnel, including $40 million in potential chiplet deals and a Strategic Radiation Hardened FPGA development contract that could lead to several hundred million dollars in future storefront revenue.
    • The company lowered its full-year growth projection from 30% to 15% due to delays in contracts and customer push outs, indicating potential challenges in meeting growth targets.
    • Approximately $3 million of revenue is being pushed into next year because of delays not under the company's control, impacting current year revenue.
    • A significant portion of the company's $189 million sales funnel includes opportunities with revenues beyond the next two years, creating uncertainty in near-term revenue realization and possible pressure on short-term financial performance.
    1. Revenue Guidance Reduction
      Q: Is $3 million revenue pushed to next year due to customer delays?
      A: Yes, about $3 million of revenue is being pushed into next year because of customer delays not under our control.

    2. Guidance Decrease Explanation
      Q: Is the growth reduction from 30% to 15% split equally between factors?
      A: It's close to half and half between different factors contributing to the lowered guidance from 30% to 15% growth.

    3. Future Revenue Acceleration
      Q: Will revenues from the Strategic Rad Hard program increase in '25 and '26?
      A: Yes, as we move into manufacturing and testing, revenues from the program will accelerate significantly in 2025 and 2026.

    4. Pipeline and Win Rate
      Q: How many proposals are in the funnel, and what's the expected win rate?
      A: Our win rate is increasing. We aim to win 10 IP contracts this year and expect to close more deals by early fall.

    5. Storefront and Chiplet Opportunities
      Q: How will storefront and chiplet deals contribute to growth next year?
      A: About 25% of IP opportunities now include device development and storefront responsibility. We received $8 million in development deals recently, indicating increased interest in storefront-oriented designs.

    6. Sales Funnel Composition
      Q: What percentage of the $189 million funnel is storefront deals?
      A: More than half of the $189 million sales funnel is related to storefront deals. Actual storefront revenue potential is significantly higher outside the 2-year window.

    7. November 2022 Customer Delay
      Q: Is the November '22 customer delaying due to funding or resources?
      A: Yes, they are pushing their needs into 2025 due to subcontractor delays. Delays are mainly due to funding and rescheduling.

    8. CTG Partnership Impact
      Q: How will the CTG partnership affect your sales funnel?
      A: CTG will help accelerate funnel growth by pre-qualifying opportunities, especially in the Defense Industrial Base, leading to increased demand for both storefront and IP.

    9. First eFPGA on Intel 18A
      Q: Will you be first to offer eFPGA Hard IP on Intel 18A node?
      A: Yes, that is our target, and we believe we will be the first eFPGA company on Intel 18A node.

    10. Operating Expenses Outlook
      Q: How should we think about OpEx for the year?
      A: OpEx was $2.9 million in Q2, and we expect it to remain flat quarter-over-quarter through the end of the year.

    11. $40 Million Chiplet Deals
      Q: Is the $40 million in chiplet deals included in the $189 million funnel?
      A: No, the $40 million chiplet proposals are not entirely included in the $189 million funnel, as one project extends beyond the 2-year window.

    12. Connectivity Revenue Outlook
      Q: Is connectivity revenue expected to improve or decline?
      A: Some connectivity revenue was pushed from Q2 to the second half due to customer funding delays, but we expect it to improve going forward.

    13. Strategic Rad Hard Program Transition
      Q: How will the Strategic Rad Hard deal change after the third tranche?
      A: After development, we aim to become the storefront supplier of the resulting device, with market potential of several hundred million dollars beyond the $72 million development contract.

    14. Assurance of Deliverables
      Q: Are deliverables on track despite the lowered guidance?
      A: Yes, we have not lost any contracts to competitors, and we're performing on or ahead of schedule on all contracts.

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