QuickLogic Corporation (NASDAQ:QUIK) 2Q Results Continues To Cast Shadow On Stock

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Dallas, Texas 03/13/2014 (FINANCIALSTRENDS) – QuickLogic Corporation (NASDAQ:QUIK) reported is 4Q and full year 2013 operation results to SEC in a mandatory filing on 6th March. It recorded a dip in revenue sequentially, for the quarter sequentially to $8.8 million in 4Q as against $9.06 million in 3Q. Overall gross profits also dipped for the quarter to $2.7 million in 4Q as against $3 million in 3Q13. On the contrary, its quarter spending on R&D saw a increase to $2.4 million as against $2 million in 3Q13.Over all expenses ballooned to $3.05 million as against $2.19 million in 3Q13. Over all its net losses from continuing operations had gone up to $3.1 million after registering a dip to $2.2 million in 3Q13.

Full Year Operations Update

For full year operations in 2013, the company reported total revenue of $26.1 million which translates into a 74% increase in comparison to its FY12. For the full year, saw a big jump in revenue from its new products which grew at a impressive 208 percent in comparison to 2012. The revenue the company accrued from its older products actually saw a 13 percent dip for the quarter, indicating a truncated product life cycle for its products and the need to keep investing in R&D to keep its product bucket fresh and appealing to its customers. The key market segments that the company benefited from in terms of revenue were “Smartphones, Mobile enterprise and tablets”.

R&D Cost Analysis

Company officials in their attempts to explain the increase in the cost of R&D during the reporting period have gone on to explain that “Research and development expense was $8.4 million and $8.7 million in 2013 and 2012, respectively, which represented 32% and 59% of revenue for those periods. The $368,000 decrease in R&D expenses in 2013 as compared to 2012 is attributable primarily to a $1.6 million decrease in outside services due to a reduction in third-party chip design costs.”