QUIK — QuickLogic Corporation

Summary of QuickLogic Corporation Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $5.1 million, up 16.5% YoY and 35.3% QoQ, but $450,000 below the midpoint of guidance due to a contract delay.
• New Product Revenue: $4.3 million, up 14.2% YoY and 50.7% QoQ.
• Mature Product Revenue: $800,000, up 31.7% YoY but down 14.2% QoQ.
• Non-GAAP Gross Margin: 39.6%, below the expected range of 45% due to inventory reserves.
• Non-GAAP Operating Expenses: $3.3 million, slightly up from $3 million YoY.
• Net Loss: $1.3 million, or $0.08 per share, compared to a loss of $1.1 million YoY.
• Cash Position: $6 million in net cash, up from $3.8 million in Q4 2025.

2. Strategic Updates and Business Highlights:

• Introduction of the RadPro FPGA and development kit, with initial shipments contributing to Q2 revenue.
• Progress on contracts related to Intel 18A technology, with total contract value nearing $2 million.
• Collaboration with Idaho Scientific on eFPGA hard IP for cryptographic solutions.
• Successful demonstrations at the HEART conference, leading to multiple RadPro Dev kit orders.
• Expansion of customer base through partnerships, including a new sales representative channel with Quantum Leap Solutions.

3. Forward Guidance and Outlook:

• Q2 revenue guidance of $6 million (±10%), with expectations for continued growth in new product revenue.
• Anticipation of a non-GAAP gross margin of approximately 42% in Q2, with a full-year target of 57%.
• Expected net loss of about $800,000 in Q2, with a forecast for non-GAAP profitability by year-end 2026.
• Continued focus on strategic initiatives to support 50% to 100% revenue growth for the full year.

4. Bad News, Challenges, or Points of Concern:

• Q1 revenue was below guidance due to delays in contract awards, impacting revenue recognition timelines.
• Non-GAAP gross margin fell short of expectations, raising concerns about cost management and inventory reserves.
• Uncertainty regarding the timing of contract awards and customer evaluations could affect revenue projections.
• Competitive pressures in the FPGA market and the need to maintain a skilled workforce were highlighted as ongoing challenges.

5. Notable Q&A Insights:

• Customers are expected to take most of the year to evaluate the RadPro Dev kits, aligning with key program timelines.
• There is optimism about expanding the customer base beyond the current DIB, with potential commercial applications for Intel 18A.
• The company is tracking multiple opportunities for contracts and expects to see growth in the second half of the year.
• The new sales channel with Quantum Leap Solutions is expected to enhance customer acquisition and engagement, particularly in the defense and commercial sectors.

Overall, QuickLogic is making strides in product development and customer engagement, but faces challenges related to contract timing and margin pressures. The outlook remains positive, with a focus on achieving significant revenue growth in 2026.