- Strong growth in mature products, EOS S3, QuickAI and SaaS revenues driving margin expansion
- GAAP gross margin increased to 62.0%, up from 50.3% in the first quarter of 2018
- Non-GAAP gross margin increased to 62.8%, up from 51.5% in the first quarter of 2018
- SiFive signed a strategic partnership with QuickLogic creating additional opportunities for software, IP, and SaaS revenues
- Launched the Merced EOS™ S3AI Hardware Development Kit (HDK) plus SensiML bundle to enable quick development of applications for endpoint Artificial Intelligence and Machine Learning
Fiscal 2019 First Quarter Financial Results
Total revenue for the first quarter of 2019 was $3.2 million, even with the fourth quarter of 2018 and up 16% compared with the first quarter of 2018. New product revenue was $0.7 million in the first quarter of 2019, a decline of 48% compared with the fourth quarter of 2018, and down 47% compared with the first quarter of 2018. This decline was due to significantly lower sales of display bridge and connectivity products that were not fully offset by increased EOS S3, QuickAI and SaaS subscription revenue. New product revenue accounted for 22% of the total revenue in the first quarter of 2019, compared with 41% in the fourth quarter of 2018, and 47% in the first quarter of 2018. Mature product revenue was $2.5 million in the first quarter of 2019, up 32% compared with the fourth quarter of 2018, and up 71% compared with the first quarter of 2018.
First quarter 2019 GAAP gross margin was 62.0%, up from 51.7% in the fourth quarter of 2018, and 50.3% in the first quarter of 2018.
First quarter 2019 non-GAAP gross margin was 62.8%, up from 52.6% in the fourth quarter of 2018 and 51.5% in the first quarter of 2018.
First quarter 2019 GAAP operating expenses were $5.7 million, up from $4.7 million in the fourth quarter of 2018, and $5.3 million in the first quarter of 2018. The higher operating expenses compared with the fourth quarter of 2018 were due to additional costs, primarily stock-based compensation, associated with the acquisition of SensiML Corporation, which closed on January 3, 2019.
First quarter 2019 non-GAAP operating expenses were $4.8 million, an increase from $4.3 million in the fourth quarter of 2018, and down from $4.9 million compared with the first quarter of 2018.
First quarter 2019 GAAP net loss was $3.5 million, or $0.04 per share, compared with $3.1 million, or $0.03 per share, in the fourth quarter of 2018, and $4.0 million, or $0.05 per share, in the first quarter of 2018.
First quarter 2019 non-GAAP net loss was $2.5 million, or $0.03 per share, compared with $2.6 million, or $0.03 per share, in the fourth quarter of 2018, and $3.5 million, or $0.04 per share, in the first quarter of 2018.
Please see the language included in the section below titled Non-GAAP Financial Measures for an explanation of the Company's non-GAAP financial measures.
QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time / 5:30 p.m. Eastern Daylight Time today, May 8, 2019, to discuss its current financial results. The conference call will be webcast at QuickLogic's IR Site Events Page. To join the live conference, you may dial (800) 239-9838 and international participants should dial (323) 794-2551 by 2:20 p.m. Pacific Daylight Time. The Conference ID is 4681178. A recording of the call will be available starting approximately one hour after completion of the call. To access the recording, please call (412) 317-6671 and reference the passcode 4681178. The call recording, which can be accessed by phone, will be archived until Wednesday, May 15, 2019, and the webcast will be available for 12 months on the Company's website.
QuickLogic develops low power, multi-core semiconductor platforms and Intellectual Property (IP) for Artificial Intelligence (AI), voice and sensor processing. The solutions include an embedded FPGA IP (eFPGA) for hardware acceleration and pre-processing, and heterogeneous multi-core SoCs that integrate eFPGA with other processors and peripherals. The Analytics Toolkit from the Company's wholly-owned subsidiary, SensiML Corporation, completes the end-to-end solution with accurate sensor algorithms using AI technology. The full range of platforms, software tools and eFPGA IP enables the practical and efficient adoption of AI, voice and sensor processing across the multitude of mobile, wearable, hearable, consumer, industrial, edge and endpoint IoT applications. For more information, visit www.quicklogic.com and https://www.quicklogic.com/blog/.
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 charges related to stock-based compensation, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income 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 similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.