QuickLogic (QUIK) investor relations material

Executive summary

• Q2 2025 revenue was $3.7M, down 10% year-over-year and 15% sequentially, with net loss from continuing operations of $2.7M and non-GAAP net loss of $1.5M ($0.09/share); SensiML subsidiary operations were discontinued and held for sale.

• Significant engineering resources were allocated to accelerate the SRH FPGA test chip and Australis 2.0, delaying some contract deliverables and revenue to Q4 but positioning for substantial future growth, especially in defense.

• New eFPGA Hard IP license contract signed, feasibility contract awarded for high-density eFPGA IP core, and joined Intel Foundry Chiplet Alliance to expand eFPGA IP and chiplet solutions.

• Launched Aurora PRO FPGA User Tool and integrated Synopsys Simplify into Aurora Pro 2.9, improving design efficiency and resource utilization.

• Board changes: Christine Russell passed away; Ron Shelton appointed as Audit Committee Chair.

Financial highlights

• Q2 2025 revenue was $3.7M, down 10% year-over-year and 15% sequentially, with new product revenue at $2.9M (down 4% year-over-year) and mature product revenue at $0.8M (down 28% year-over-year but up sequentially).

• Non-GAAP gross margin was 31%, down from 54.4% a year ago; GAAP gross margin was 26%, down from 55% a year ago.

• Non-GAAP net loss was $1.5M ($0.09/share); GAAP net loss was $2.7M ($0.17/share).

• Cash and equivalents at Q2 end were $19.2M, including $15M drawn from a $20M credit facility.

• Operating expenses (GAAP) were $3.5M, flat year-over-year; non-GAAP operating expenses were $2.5M, below outlook due to cost reallocation.

Outlook and guidance

• Q3 revenue guidance is ~$2.0M (+/-10%), with a significant rebound expected in Q4 as delayed contracts are recognized; Australis 2.0 tool scheduled for Q4 deployment.

• Q3 non-GAAP gross margin expected at ~5%; full-year 2025 revenue projected modestly lower than 2024, with gross margin in the low-to-mid 50% range.

• Q3 non-GAAP net loss forecasted at $3.2M–$3.4M ($0.20–$0.22/share), with a return to positive cash flow and profitability in Q4.

• Management expects existing cash, proceeds from equity offerings, and the credit facility to be sufficient for operations and capital expenditures for the next twelve months.

• The company anticipates completing the disposal of SensiML within 12 months from the Q1 2025 announcement.