QuickLogic Reports Fiscal Fourth Quarter and Full Year 2024 Financial Results

QuickLogic Corporation (NASDAQ: QUIK) (“QuickLogic” or the “Company”), a developer of embedded FPGA (eFPGA) IP, ruggedized FPGAs and Endpoint AI solutions, today announced its financial results for the fiscal fourth quarter and fiscal year that ended December 29, 2024.

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Recent Highlights

— Awarded $1.1 million eFPGA Hard IP contract with new defense industrial base customer last week

— Announced $6.6 million fourth tranche of the Strategic Radiation Hardened FPGA Technology US Government contract

— On track to complete the first eFPGA Hard IP core optimized for Intel 18A during Q1

— Announced the integration of the Synopsys Synplify® synthesis tool into Aurora 2.9 Pro FPGA User Tools

— Strengthened sales team with the appointment of former FlexLogix VP Andy Jaros to VP of IP Sales

— Signed distribution agreement with Magenta to expand distribution network to Turkiye and UAE

— Announced strategic process for SensiML

“With the continued execution on the Strategic Radiation Hardened FPGA contract with the US government, an influx of opportunities after a key competitor exited the market and being the first, and at this time, only company to offer eFPGA Hard IP for Intel 18A, we believe we are well positioned to return to sound revenue growth in 2025,” said Brian Faith, CEO of QuickLogic. “We believe this growth, combined with our ability to leverage the eFPGA Hard IP we have established for six unique fabrication processes and the Hard IP Cores in our library that are being reused; we believe we are very well positioned to achieve non-GAAP profitability and positive cash flow for full-year 2025.”

Fiscal Fourth Quarter2024Financial Results

Total revenue for the fourth quarter offiscal2024was $5.7million, a decrease of 23.7%compared with the fourthquarter of 2023 and an increaseof 33.5%compared with the third quarter of 2024.

New product revenue was approximately$4.7 million in the fourth quarter of 2024,a decreaseof $2.2 million, or 31.8%, compared with the fourth quarter of 2023 and an increaseof $1.1 million, or 31.7%, compared with the third quarter of 2024. The decreases in total revenue and new product revenue from the same period a year ago were mostly due to the timing of awards for certain large eFPGA IP contracts.

Mature product revenue was$1.0 millionin the fourth quarter of2024. This compares to$0.7 million in the fourth quarter of 2023 and$0.7 million in the third quarter of 2024.

Fourthquarter2024GAAP gross margin was59.8% compared with77.1%in the fourth quarter of 2023 and 55.8%in the third quarter of 2024.

Fourthquarter 2024non-GAAP gross margin was62.0% compared with78.3%in the fourth quarter of 2023 and 60.0%in the third quarter of 2024.

Fourthquarter 2024GAAP operating expenses were $3.6 millioncompared with$3.7 millionin the fourth quarter of 2023 and $4.2 millionin the third quarter of 2024.

Fourthquarter 2024non-GAAP operating expenses were $2.9 millioncompared with$3.1 millionin the fourth quarter of 2023 and $3.3 millionin the third quarter of 2024.

Fourthquarter 2024GAAP net loss was ($0.3 million), or ($0.02) per share, compared with net income of $2.0 million, or $0.15per basic share or $0.14 per diluted share, in the fourth quarter of 2023, and a net loss of ($2.1 million), or ($0.14) per share, in the third quarter of 2024.

Fourthquarter2024non-GAAP net income was $0.6 million, or $0.04per share, compared with net income of $2.6 million, or $0.19per basic share or $0.18 per diluted share, in the fourth quarter of 2023 and a net loss of ($0.9 million), or ($0.06) per share, in the third quarter of 2024.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time today, February 25, 2025, to discuss its current financial results. The conference call will be webcast on QuickLogic's IR Site Events Page at https://ir.quicklogic.com/ir-calendar. To join the live conference, you may dial (877) 407-0792 and international participants should dial (201) 689-8263 by 2:20 p.m. Pacific Time. No Passcode is needed to join the conference call. A recording of the call will be available approximately one hour after completion. To access the recording, please call (844) 512-2921 and reference the passcode 13751688.

The call recording, which can be accessed by phone, will be archived through March 4, 2025, and the webcast will be available for 12 months on the Company's website.

About QuickLogic

QuickLogic is a fabless semiconductor company that develops innovative embedded FPGA (eFPGA) IP, discrete FPGAs, and FPGA SoCs for a variety of industrial, aerospace and defense, edge and endpoint AI, consumer, and computing applications. Our wholly owned subsidiary, SensiML Corporation, completes the end-to-end solution portfolio with AI / ML software that accelerates AI at the edge/endpoint. For more information, visitwww.quicklogic.com.

QuickLogic uses its website (www.quicklogic.com), the company blog (https://www.quicklogic.com/blog/), corporate Twitter account (@QuickLogic_Corp), Facebook page (https://www.facebook.com/QuickLogic), and LinkedIn page (https://www.linkedin.com/company/13512/) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and QuickLogic may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the Company's website and its social media accounts in addition to following the Company's press releases, SEC filings, public conference calls, and webcasts.

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with United States Generally Accepted Accounting Principles, or U.S. 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 certain charges related to stock-based compensation, 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 like 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 periodsand serve as a basis for the allocation of the Company's resources, management of operations and the measurement of profit-dependent cash, and equity compensation paid to employees and executive officers.

Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures and may not be calculated in the same manner as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with U.S. GAAP. A reconciliation of U.S. GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable U.S. GAAP financial measures.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our future profitability and cash flows, expectations regarding our future business and statements regarding the timing, milestones, and payments related to our government contracts, and statements regarding our ability to successfully exit SensiML, and actual results may differ due to a variety of factors including: delays in the market acceptance of the Company's new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers' products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; general economic conditions; political events, international trade disputes, natural disasters and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products; and changes in tax rates and exposure to additional tax liabilities. These and other potential factors and uncertainties that could cause actual results to differ materially from the results contemplated or implied are described in more detail in the Company's public reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the risks discussed in the “Risk Factors” section in the Company's Annual Reports on Form10-K, Quarterly Reports on Form10-Q and in the Company's prior press releases, which are available on the Company's Investor Relations website athttp://ir.quicklogic.com/, and on the SEC website atwww.sec.gov/. In addition, please note that the date of this press release is February 25, 2025, and any forward-looking statements contained herein are based on management's current expectations and assumptions that we believe to be reasonable as of this date. We are not obliged to update these statements due to latest information or future events.

QuickLogic and logo are registered trademarks of QuickLogic. All other trademarks are the property of their respective holders and should be treated as such.

CODE: QUIK-E

Tables Follow –

QUICKLOGIC CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 September 29, 2024 December 29, 2024 December 31, 2023Revenue $ 5,705 $ 7,479 $ 4,273 $ 20,112 $ 21,198Cost of revenue 2,292 1,713 1,888 $ 8,226 6,711Gross profit 3,413 5,766 2,385 $ 11,886 14,487Operating expenses:Research and development 1,604 1,381 1,954 $ 6,544 6,448Selling, general and administrative 2,035 2,269 2,292 $ 8,773 7,969Total operating expense 3,639 3,650 4,246 $ 15,317 14,417Operating income (loss) (226) 2,116 (1,861) $ (3,431) 70Interest expense (111) (59) (186) $ (406) (215)Interest and other (expense) income, net 21 (17) (34) $ (1) (116)Income (loss) before income taxes (316) 2,040 (2,081) $ (3,838) (261)(Benefit from) provision for income taxes (11) (2) 13 $ 3 2Net income (loss) $ (305) $ 2,042 $ (2,094) $ (3,841) $ (263)Net income (loss) per share:Basic $ (0.02) $ 0.15 $ (0.14) $ (0.26) $ (0.02)Diluted $ (0.02) $ 0.14 $ (0.14) $ (0.26) $ (0.02)Weighted average shares outstanding:Basic 14,869 13,989 14,555 14,510 13,453Diluted 14,869 14,349 14,555 14,510 13,453Note: Net income (loss) equals to comprehensive income (loss) for all periods presented.QUICKLOGIC CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited) December 29, 2024 December 31, 2023ASSETSCurrent assets:Cash, cash equivalents and restricted cash $ 21,880 $ 24,606Accounts receivable, net of allowance for doubtful accounts of $30 and $34, as of December 29, 2024 and December 31, 2023, respectively 2,436 1,625Contract assets 2,682 3,609Note receivable, current – 1,200Inventories 940 2,029Prepaid expenses and other current assets 1,666 1,561Total current assets 29,604 34,630Property and equipment, net 16,077 8,948Capitalized internal-use software, net 2,451 2,069Right of use assets, net 758 981Intangible assets, net 430 537Non-marketable equity investment 300 300Goodwill 185 185Inventories, non-current 718 -Note receivable, non-current 1,292 -Other assets 118 142TOTAL ASSETS $ 51,933 $ 47,792LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Revolving line of credit $ 18,000 $ 20,000Trade payables 3,120 4,657Accrued liabilities 1,611 2,673Deferred revenue 454 1,052Notes payable, current 1,928 946Lease liabilities, current 284 302Total current liabilities 25,397 29,630Long-term liabilities:Lease liabilities, non-current 447 681Notes payable, non-current 1,202 461Other long-term liabilities – 125Total liabilities 27,046 30,897Commitments and contingenciesStockholders' equity:Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding – -Common stock, $0.001 par value; 200,000 authorized; 15,336 and 14,118 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively 15 14Additional paid-in capital 334,268 322,436Accumulated deficit (309,396) (305,555)Total stockholders' equity 24,887 16,895TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 51,933 $ 47,792QUICKLOGIC CORPORATIONSUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES(in thousands, except per share amounts and percentages)(Unaudited) Three Months Ended Year Ended December 29, 2024 December 31, 2023 September 29, 2024 December 29, 2024 December 31, 2023US GAAP income (loss) from operations $ (226) $ 2,116 $ (1,861) $ (3,431) $ 70Adjustment for stock-based compensation within:Cost of revenue 122 89 180 627 328Research and development 171 82 323 1,048 595Selling, general and administrative 575 434 645 2,706 1,599Non-GAAP income (loss) from operations $ 642 $ 2,721 $ (713) $ 950 $ 2,592US GAAP net income (loss) $ (305) $ 2,042 $ (2,094) $ (3,841) $ (263)Adjustment for stock-based compensation within:Cost of revenue 122 89 180 627 328Research and development 171 82 323 1,048 595Selling, general and administrative 575 434 645 2,706 1,599Non-GAAP net income (loss) $ 563 $ 2,647 $ (946) $ 540 $ 2,259US GAAP net income (loss) per share, basic $ (0.02) $ 0.15 $ (0.14) $ (0.26) $ (0.02)Adjustment for stock-based compensation 0.06 0.04 0.08 0.30 0.19Non-GAAP net income (loss) per share, basic $ 0.04 $ 0.19 $ (0.06) $ 0.04 $ 0.17US GAAP net income (loss) per share, diluted $ (0.02) $ 0.14 $ (0.14) $ (0.26) $ (0.02)Adjustment for stock-based compensation 0.06 0.04 0.08 0.30 0.19Non-GAAP net income (loss) per share, diluted $ 0.04 $ 0.18 $ (0.06) $ 0.04 $ 0.17US GAAP gross margin percentage 59.8 % 77.1 % 55.8 % 59.1 % 68.3 %Adjustment for stock-based compensation included in cost of revenue 2.2 % 1.2 % 4.2 % 3.1 % 1.6 %Non-GAAP gross margin percentage 62.0 % 78.3 % 60.0 % 62.2 % 69.9 %QUICKLOGIC CORPORATIONSUPPLEMENTAL DATA(Unaudited) Percentage of Revenue Change in Revenue Q4 2024 Q4 2023 Q3 2024 Q4 2024 to Q4 2023 Q4 2024 to Q3 2024COMPOSITION OF REVENUERevenue by product: (1)New products 82 % 91 % 83 % (32) % 32 %Mature products 18 % 9 % 17 % 61 % 42 %Revenue by geography:Asia Pacific 9 % 6 % 12 % 28 % 5 %North America 86 % 92 % 86 % (29) % 33 %Europe 5 % 2 % 2 % 90 % 208 %_____________________(1) New products include all products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP intellectual property,professional services, and QuickAI and SensiML AI software as a service (SaaS) revenue. Mature products include all products produced on semiconductor processes larger than 180 nanometer and includes related royalty revenue.

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