QuickLogic Corporation Q3 FY2025 earnings call

• Progress in RadHard FPGA: Engineering team executed to accelerate storefront design wins, with expectation of storefront revenue in early 2026. SRH test chip interest from DIBs is higher than anticipated. • Government contracts: Q3 marked low point for revenue recognition of US Government SRH FPGA contract, with rebound expected in Q4 and increase in 2026. • eFPGA hard IP: Value contribution growing, penetration in commercial sectors expanding, with license revenue potentially surpassing NRE revenue. • Digital proof of concept chiplet program: Completed initial phase, with plans to move to next phases once external funding committed. • New contracts: Announced $1,000,000 EF hard IP contract for data center ASIC, and expanding involvement with DIBs in cybersecurity and other areas.

Total third quarter revenue was $2,000,000. New product revenue in Q3 was $1,000,000 (down 73.1% from Q3 2024 and 67.3% from Q2 2025) and mature product revenue was $1,100,000 (up from prior periods). Non-GAAP gross margin in Q3 was a negative 11.9%, non-GAAP operating expenses were approximately $2,900,000, and non-GAAP net loss was $3,200,000 or $0.19 per diluted share.

• Q4 revenue guidance: Targeting $6,000,000, but a key $3,000,000 contract's timing could push revenue to $3,500,000. Guidance range for Q4 revenue is $3,500,000 to $6,000,000. • Full year 2025: Non-GAAP gross profit margin expected to be 38% ±5%, non-GAAP OpEx expected ~$11,300,000. Q4 non-GAAP operating expenses expected ~$3,000,000 ±5%.

• Delays in market acceptance of new products. • Ability to convert design opportunities into customer revenue. • Risk new orders may not result in future revenue. • Intense competition from competitors. • Changes in demand or supply, general economic conditions, political events, etc.

Q: What is the impact of the government shutdown on your business and confidence in rebound of US strategic radiation Arden FPGA program in 4Q?

A: Programmable logic demand in defense is pervasive and not going away. Programs on contract not seeing delays, used ATM in October as anticipation for potential funding delays. New programs may have delays but not those fully executing on today.

Q: Can you size the range of storefront revenue possible in 2026?

A: Storefront revenue in 2026 is expected to be meaningful, likely in the 10% range of total revenue. Driven by demand from strategic defense systems modernization, hypersonics, and other programs needing radiation tolerant/strategic RadHard components.

Q: Explain Q4 guidance and share count forecast?

A: Q4 guidance is $3,500,000 to $6,000,000 due to a key contract's timing. Share count as of now is $1,717,090,252. The revenue range impacts gross margin and net loss/profit projections.