On November 14, 2023, QuickLogic Corp (QUIK, Financial) released its 8-K filing, detailing a robust financial performance for the third quarter of fiscal year 2023. The company, known for its embedded FPGA (eFPGA) IP, ruggedized FPGAs, and Endpoint AI solutions, reported a record non-GAAP net income and a significant year-over-year increase in revenue.
Financial Highlights
QuickLogic Corp (QUIK, Financial) experienced a surge in total revenue, reaching $6.7 million in Q3 2023, marking a 92.7% increase compared to the same quarter in the previous year. This growth was primarily driven by the second phase of a large government contract for Strategic Radiation Hardened FPGA Technology, which contributed to a 93% year-over-year increase in third-quarter revenue.
New product revenue was a key growth driver, totaling approximately $6.1 million, representing a 171% increase from Q3 2022. This was mainly due to higher eFPGA IP license and professional services revenue, partially offset by a reduction in smart connectivity and sensor product revenues. Mature product revenue, on the other hand, saw a decline of 52.9% compared to the same quarter last year.
GAAP gross margin for Q3 2023 stood at 76.9%, a substantial improvement from 48.5% in Q3 2022. Non-GAAP gross margin also saw an increase to 78.0% from 49.8% in the previous year. GAAP operating expenses rose to $3.8 million, while non-GAAP operating expenses were reported at $3.3 million.
QuickLogic Corp (QUIK, Financial) achieved a GAAP net income of $1.2 million, or $0.09 per basic share and $0.08 per diluted share, a significant turnaround from a net loss in both the previous quarter and the same quarter last year. Non-GAAP net income reached a record $1.8 million, or $0.13 per basic and diluted share, compared to a net loss in the prior periods.
Operational and Market Developments
The company's sales funnel grew to a record $162 million, with accelerated conversions from funnel opportunities contributing to new bookings during the quarter. QuickLogic Corp (QUIK, Financial) also expanded its served available market with growing opportunities on additional cores and nodes, and collaborations for chiplet designs. A top-tier microcontroller company has launched a private label version of SensiML AI/ML solutions, with initial revenues expected in the fourth quarter.
CEO Brian Faith expressed confidence in the company's trajectory, stating,
With phase two of the large eFPGA contract contributing to revenues and new bookings generated from our growing sales funnel, we reaffirm full year revenue growth of 30% as well as full year non-GAAP profitability for 2023."
Looking Ahead
QuickLogic Corp (QUIK, Financial) is optimistic about its future performance, reaffirming a full-year revenue growth of 30% and full-year non-GAAP profitability for 2023. The company's strategic initiatives and expanding market presence position it well for sustained growth and profitability.
For more detailed information on QuickLogic Corp (QUIK, Financial)'s financial performance, investors and stakeholders are encouraged to review the full financial statements and supplemental data provided in the company's 8-K filing.
QuickLogic Corp (QUIK, Financial) will hold a conference call to discuss these financial results and provide further insights into the company's performance and strategy.
Value investors and those interested in the semiconductor space may find QuickLogic Corp (QUIK, Financial)'s recent financial achievements and strategic advancements indicative of the company's potential for long-term growth and profitability.
Explore the complete 8-K earnings release (here) from QuickLogic Corp for further details.
