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1. Company Snapshot

1.a. Company Description

QuickLogic Corporation, a semiconductor company, develops semiconductor platforms and intellectual property solutions for smartphones, wearable, hearable, tablets, and the Internet-of-Things devices.It also provides flexible sensor processing solutions, ultra-low power display bridges, ultra-low power field programmable gate arrays (FPGAs); and analytics toolkit, an end-to-end software suite that offers processes for developing pattern matching sensor algorithms using machine learning technology, as well as programming hardware and design software solutions.The company's products include pASIC 3, QuickRAM, QuickPCI, EOS, QuickAI, SensiML Analytics Studio, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II, as well as silicon platforms, IP cores, software drivers, firmware, and application software.


It delivers its solutions through ultra-low power customer programmable System on Chip (SoC) semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing, and enhanced visual experiences.In addition, the company licenses FPGA technology for use in other semiconductor companies SoCs. It markets and sells its products to original equipment manufacturers and original design manufacturers through a network of sales managers and distributors in North America, Europe, and the Asia Pacific.QuickLogic Corporation was founded in 1988 and is headquartered in San Jose, California.

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1.b. Last Insights on QUIK

Here is a 90-word analysis of the negative drivers behind QuickLogic Corporation's recent stock performance: The recent earnings release revealed a significant year-over-year decline in earnings per share, from $0.18 to $0.04, despite beating estimates. This decline may have sparked concerns about the company's ability to sustain profitability. Additionally, the medical care ratio increase may have contributed to the stock's underperformance. The lack of significant catalysts, such as new product launches or acquisitions, may have also weighed on the stock.

1.c. Company Highlights

2. QuickLogic's Q3 FY2025: Revenue Aligns with Guidance Amidst Industry Trends

QuickLogic Corporation reported total third-quarter revenue of $2,000,000, aligning with the midpoint of the company's guidance. The revenue was down 52.5% from Q3 2024 and 45% compared to Q2 2025. Non-GAAP gross margin in Q3 was a negative 11.9%, primarily due to unfavorable absorption of fixed costs and $300,000 of R&D costs allocated to COGS. The company's actual EPS came out at '-0.19', beating estimates at '-0.21'.

Publication Date: Nov -21

📋 Highlights
  • Q3 Revenue Decline:: Total revenue fell to $2,000,000, down 52.5% YoY and 45% QoQ, with non-GAAP gross margin at -11.9% due to $300,000 R&D costs.
  • Cash Usage & Balance:: Q3 cash usage was $1,900,000 for SRH FPGA test chip, leaving $17,300,000 cash, including $15,000,000 from a credit facility.
  • Q4 Revenue Guidance:: Projected $3.5M–$6M revenue, with non-GAAP gross margin of 45% at $3.5M vs. 68% at $6M, and net loss/profit range of -$1.9M to +$0.6M.
  • Storefront Revenue Outlook:: Expected 10% revenue contribution by 2026, driven by RadHard FPGA and eFPGA IP, with dev kit orders secured ahead of 2026 revenue recognition.
  • SRH Test Chip Momentum:: Higher-than-expected interest, with SRH dev kit orders committed by month-end, accelerating design wins for defense and ASIC applications.

Revenue and Margin Analysis

The company's revenue decline is attributed to the lumpiness of large IP contract values, which can impact revenue if they don't happen in the same fiscal year. However, with a forecasted revenue growth of 73.2% next year, it seems that the company is poised for a significant turnaround. The non-GAAP gross margin is expected to be approximately 45% at $3,500,000 of revenue and 68% at $6,000,000 of revenue in Q4.

Cash Flow and Funding

The company's cash usage during Q3 was approximately $1,900,000, driven by one-time costs associated with its internally financed SRH FPGA test chip. At the close of Q3, total cash was $17,300,000, inclusive of utilization of $15,000,000 from its $20,000,000 credit facility. The company is confident in its cash flow for Q4, despite potential delays in payments from the US Government contract, having raised $2,000,000 using its existing ATM in October.

Valuation Metrics

With a P/S Ratio of 5.95, the market is pricing in significant revenue growth, which is expected to be 73.2% next year. The EV/EBITDA ratio of -26.51 indicates that the company's valuation is sensitive to its EBITDA performance. Given the current valuation metrics, it is essential to monitor the company's progress in achieving its revenue and margin targets.

Industry Trends and Outlook

Brian Faith discussed industry trends driving the results, including the increased interest in FPGA technology and the need for larger blocks of eFPGA in ASIC designs. The company is developing an SRH FPGA test chip to address environmental requirements and accelerate its ability to pursue design wins, with commitments for SRH dev kit orders expected by the end of the month. As Brian Faith stated, "sophisticated smart systems designs typically target advanced fabrication nodes, resulting in higher fixed costs and longer design cycles for ASICs."

3. NewsRoom

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Idaho Scientific Selects QuickLogic eFPGA Hard IP to Enable Crypto Agility

Dec -02

Source: prnewswire.com

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QuickLogic eFPGA Hard IP Selected by Chipus for 12 nm High Performance Data Center ASIC

Nov -18

Source: prnewswire.com

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Critical Contrast: QuickLogic (NASDAQ:QUIK) versus SmartKem (NASDAQ:SMTK)

Nov -18

Source: defenseworld.net

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QuickLogic Corporation (QUIK) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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QuickLogic (QUIK) Reports Q3 Loss, Misses Revenue Estimates

Nov -11

Source: zacks.com

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QuickLogic Reports Fiscal Third Quarter 2025 Financial Results

Nov -11

Source: prnewswire.com

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QuickLogic Accelerates Space Innovation with Secure, Customizable eFPGA Hard IP

Nov -06

Source: prnewswire.com

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QuickLogic (QUIK) Stock Sinks As Market Gains: Here's Why

Nov -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.90%)

6. Segments

New Products - Embedded Field Programmable Gate Arrays Intellectual Property

Expected Growth: 9.03%

The 9.03% growth of New Products - Embedded Field Programmable Gate Arrays Intellectual Property from QuickLogic Corporation is driven by increasing demand for customizable and adaptable semiconductor solutions, advancements in IoT and AI applications, and the need for low-power, high-performance computing in emerging markets.

Mature Products

Expected Growth: 8.3%

Mature products from QuickLogic Corporation, with 8.3% growth, are driven by increasing demand for low-power, high-performance programmable logic solutions in established markets such as datacenter, networking, and industrial automation. Additionally, the company's focus on cost reduction, operational efficiency, and strategic partnerships contribute to its growth momentum.

New Products - Hardware Products

Expected Growth: 8.43%

QuickLogic Corporation's 8.43% growth in Hardware Products is driven by increasing demand for low-power, customizable, and programmable semiconductor solutions. The company's focus on IoT, AI, and 5G applications, as well as its strategic partnerships and expanding presence in Asia, contribute to this growth.

New Products - Software-as-a-Service & Other

Expected Growth: 14.03%

The 14.03% growth in New Products - Software-as-a-Service & Other from QuickLogic Corporation is driven by increasing adoption of IoT and AI-enabled devices, growing demand for low-power, high-performance SoCs, and expansion into new markets such as automotive and industrial automation.

7. Detailed Products

EOS S3

A low-power, multi-core processor SoC (System-on-Chip) designed for edge AI, IoT, and consumer applications

EOS S3-AI

A high-performance, low-power AI-enabled processor SoC designed for edge AI, IoT, and consumer applications

QuickAI

A hardware-based AI accelerator IP (Intellectual Property) for edge AI applications

Sensors and Sensor Processing

A range of sensor interfaces and processing solutions for IoT, industrial, and consumer applications

Display and Video Processing

A range of display and video processing solutions for IoT, industrial, and consumer applications

FPGA-based SoCs

A range of FPGA-based SoCs for IoT, industrial, and consumer applications

8. QuickLogic Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

QuickLogic Corporation's products are highly specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few key customers increases the threat of substitutes.

Bargaining Power Of Customers

QuickLogic Corporation's customers are large OEMs and ODMs, which gives them significant bargaining power. The company's reliance on a few key customers increases their bargaining power.

Bargaining Power Of Suppliers

QuickLogic Corporation's suppliers are primarily semiconductor foundries and packaging companies, which are numerous and competitive. This reduces their bargaining power.

Threat Of New Entrants

The barriers to entry in the semiconductor industry are high, requiring significant investments in R&D, manufacturing, and talent acquisition. This makes it difficult for new entrants to emerge.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with several established players. However, QuickLogic Corporation's focus on customized, low-power, and high-performance solutions differentiates it from its competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.24%
Debt Cost 3.95%
Equity Weight 43.76%
Equity Cost 11.98%
WACC 7.46%
Leverage 128.49%

11. Quality Control: QuickLogic Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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inTEST

A-Score: 4.1/10

Value: 6.7

Growth: 4.6

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

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Everspin Technologies

A-Score: 4.0/10

Value: 1.4

Growth: 4.2

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Applied Optoelectronics

A-Score: 3.3/10

Value: 6.8

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

1-Year Total Return ->

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Transphorm

A-Score: 3.2/10

Value: 6.0

Growth: 3.3

Quality: 3.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
QuickLogic

A-Score: 3.2/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Alpha Omega Semi

A-Score: 2.4/10

Value: 4.8

Growth: 1.8

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.42$

Current Price

6.42$

Potential

-0.00%

Expected Cash-Flows