QuickLogic Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue rose 48.7% year over year to $5.5 million, driven by new-product growth, while non-GAAP gross margin improved to 46.8%. However, a delayed customer-contract extension kept revenue at the low end of guidance.
• QuickLogic expects third-quarter revenue to remain flat at approximately $5.5 million and narrowed its full-year revenue-growth outlook to 70%–80%. Management still projects non-GAAP profitability and positive cash flow in the second half of fiscal 2026.
• The company removed the delayed contract extension and an Intel 18A commercial ASIC design from its 2026 forecast, but highlighted potential 2027 growth from eFPGA IP contracts, RadPro and Storefront demand, and new product opportunities.

QuickLogic NASDAQ: QUIK reported second-quarter fiscal 2026 revenue of $5.5 million, up 48.7% from the prior-year period and 8.5% sequentially, as growth in new product revenue offset a smaller mature-product business. Management said a delayed extension of an existing customer contract pushed revenue to the low end of its guidance range and will result in a flat outlook for the third quarter.

President and Chief Executive Officer Brian Faith said the company has narrowed its full-year revenue growth outlook to 70% to 80%. QuickLogic continues to model non-GAAP profitability and positive cash flow for the second half of fiscal 2026, supported by government-contract activity, existing IP contracts, mature-product sales and demand for RadPro development kits.

Contract Delay Affects Near-Term Revenue

Faith said QuickLogic had expected to finalize a seven-figure extension of an existing customer agreement late in the second quarter, with revenue expected to be recognized across the second and third quarters. The customer is now reassessing which functions should be incorporated into embedded FPGA technology and which should be fixed in the ASIC design before completing the extension.

The delay was the “sole reason” second-quarter revenue landed at the low end of guidance and why the company expects third-quarter revenue to remain flat, Faith said. While QuickLogic remains confident it can secure the extension, it has removed the opportunity from its fiscal 2026 forecast.

The company also removed a commercial ASIC design targeting Intel 18A from its second-half forecast because of recently identified uncertainties. Faith said an eFPGA hard-IP contract tied to that design could become a 2027 opportunity.

Despite these changes, management maintained the midpoint of its full-year growth outlook while raising the low end of the range. Faith said the outlook is supported by contracts and orders already in hand, including expected fourth-quarter contributions from the company’s U.S. government contract, which has a total ceiling value of $89 million.

Second-Quarter Financial Results

New product revenue totaled $4.7 million in the second quarter, increasing 59.7% year over year and 8.6% sequentially. Mature product revenue was $800,000, up 6.9% from a year earlier and 8.8% from the first quarter.

• Non-GAAP gross margin was 46.8%, above the company’s 42% outlook, compared with 31% a year earlier and 39.6% in the first quarter.
• Non-GAAP operating expenses were about $3.5 million, compared with $2.5 million in the prior-year quarter and $3.2 million in the first quarter.
• Non-GAAP net loss was $1.1 million, or $0.06 per share, compared with a loss of $1.5 million, or $0.09 per share, in the second quarter of 2025.
• At quarter-end, net cash was $13.5 million excluding a $5 million drawdown from the company’s line of credit.

Senior Vice President and Chief Financial Officer Elias Nader said the increase in net cash from $3.8 million at the end of fiscal 2025 included $9.8 million raised through the company’s at-the-market program before the prior earnings call. Two customers accounted for at least 10% of second-quarter revenue.

Third-Quarter and Full-Year Outlook

For the fiscal third quarter ending Sept. 27, QuickLogic forecast revenue of $5.5 million, plus or minus 10%, including $4.7 million of new product revenue and $800,000 of mature product revenue. It expects non-GAAP gross margin of approximately 47%, plus or minus 5%, and non-GAAP operating expenses of roughly $3.6 million, plus or minus 5%.

The company forecast a third-quarter non-GAAP net loss of about $900,000, or approximately $0.05 per share, and cash use of about $400,000. Nader said QuickLogic expects to end the quarter with net cash slightly above $13 million.

Management now expects mature-product revenue for the full year to be roughly flat with 2025 at approximately $3.3 million, rather than increasing in the second half as previously anticipated. The company raised its full-year non-GAAP operating expense outlook to a range of $13.7 million to $13.9 million, while projecting a full-year non-GAAP gross margin of about 51%.

Product Development and 2027 Opportunities

QuickLogic said it has received discrete FPGA test chips developed under a GlobalFoundries 12LP contract with a $2.7 million ceiling value. The company plans to characterize the chips and incorporate them into a 12LP evaluation kit scheduled for release in the fourth quarter. Faith said the kit will be compatible with third-party development environments and is intended to support evaluations of discrete-device and chiplet Storefront solutions.

The company also expects a follow-on contract related to its one-million-LUT development effort for Intel 18A, with the customer transitioning to Intel 18A-P. Faith said the prior development work should make the cost and time required for an Intel 18A-P implementation “de minimis.”

Management identified two potential eFPGA hard-IP contracts in late-stage negotiations: one for automotive, industrial automation and robotics applications, and another involving an international customer developing an ASIC for a low-Earth-orbit satellite application. QuickLogic also said it sees potential to secure an eFPGA IP architectural license late this year following a completed feasibility study with another customer.

Faith said RadPro development-kit evaluations have expanded to more groups within customer organizations, and the company expects initial Storefront demand in 2027. QuickLogic has also won two new designs for existing mature products and received a contract to qualify a smaller package option, which management believes could support a new multimillion-dollar opportunity beginning in 2027.

About QuickLogic (NASDAQ:QUIK)

QuickLogic Corporation NASDAQ: QUIK is a fabless semiconductor company that specializes in ultra-low power, multi-core sensor processing System-on-Chip (SoC) solutions and embedded field programmable gate array (eFPGA) intellectual property. The company's products are designed to enable always-on, voice-activated, and vision-driven applications at the edge, delivering a balance of performance, flexibility, and power efficiency. QuickLogic's technology is often deployed in consumer, mobile, and industrial IoT devices, where minimizing energy consumption is critical.

Among QuickLogic's key offerings is the EOS™ family of sensor processing SoCs, which integrate ARM Cortex-M cores alongside proprietary sensor fusion and neural network engines, coupled with customizable FPGA fabric.

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