QuickLogic Corporation Q4 FY2025 earnings call

Brian mentioned that while 2025 revenue was lower than expected due to contract delays, numerous milestones were achieved. QuickLogic was awarded a $13 million tranche for a U.S. government contract, will recognize revenue from it in Q1. Developed an SRH FPGA test chip, received samples and orders for the dev kit. Leveraging the test chip for broader applications. Had delays in some contracts but also won smaller contracts. Worked with a large commercial customer on an Intel 18A contract, forecasted award in Q2. Announced expansion of involvement with a cybersecurity DIB. Explored chiplet potential, completed digital proof of concept. Epson case study showed success of eFPGA IP. Took a large impairment charge on Sensible.

Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025. New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025. Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025. Non-GAAP gross margin in Q4 was 20.8%. Non-GAAP operating expenses in Q4 were approximately $3.5 million. Non-GAAP net loss was $2.9 million or 17 cents per share.

For fiscal first quarter ending March 29, 2026, total revenue guidance is $5.5 million plus or minus 10%, composed of $4.5 million new product revenue and $1 million mature product revenue. Full year mature product revenue anticipated at approximately $4 million. Q1 non-GAAP gross margin expected to be approximately 45% plus or minus 5%. Full year 2026 non-GAAP gross profit margin modeled at 57%, but factors like services revenue and certain costs may impact. Q1 non-GAAP operating expenses expected to be approximately $3.2 million plus or minus 5%. Full-year non-GAAP operating expenses forecasted at approximately $13.5 million. Forecasted Q1 net loss of about $800,000 or loss of approximately $0.04 per share. Projected Q1 cash use net of ATM money raised is approximately $1.4 million. Working to secure new banking partner to reduce line of credit.

Comments include forward-looking statements with risks and uncertainties such as delays in market acceptance of new products, ability to convert design opportunities to revenue, replacing revenue from end-of-life products, customer design activity, market acceptance of customers' products, new orders not resulting in future revenues, introducing and producing new products based on advanced wafer technology, marketing new products, intense competition, hiring and retaining qualified personnel, changes in product demand or supply, general economic conditions, political events, international trade disputes, natural disasters, business interruptions, changes in tax rates and tax liabilities.

Q: Richard Shannon asked about revenue growth breakdown, strategic rad hard timing, net income/cash flow, and MPWs.

A: Brian responded on revenue components, evaluation and development timelines, cash flow and net income expectations, and MPW details.

Q: Neil Young asked about high performance data center application and competitive dynamics.

A: Brian provided details on the data center application and compared QuickLogic's competitive position with others.

Q: Tyler Burmeister asked about U.S. SRH Development Program milestones and revenue lumpiness.

A: Brian gave color on the program and noted Q1 as likely low point.

Q: Gus Richard asked about a commercial contract, test chip shipment, and gross margin trajectory.

A: Brian said the contract isn't in Q1 guide, talked about test chip validation and shipment, and gross margin outlook.

Q: Rick Neaton asked about chiplets use cases and bridging.

A: Brian elaborated on chiplet use cases in aerospace/defense and security, and bridging concepts.

Q: Richard Shannon asked about number of rad hard programs.

A: Brian said there are less than five major rad hard programs with 10-20 socket opportunities