QuickLogic Reports 24% Revenue Decline and Net Loss in Q1 2025

QuickLogic Corporation reported a significant decline in its financial performance for the first quarter of 2025, with total revenue of $4.3 million, down 24% from $5.7 million in the same period last year. The company experienced a net loss of $2.2 million, compared to a net income of $0.1 million in the first quarter of 2024. The loss per share for the quarter was $(0.14), a stark contrast to the earnings of $0.01 per share reported in the previous year. The decrease in revenue was attributed to lower sales of both new and mature products, particularly in the eFPGA IP licensing and professional services segments.

Operating expenses increased to $3.9 million from $3.7 million year-over-year, driven primarily by higher selling, general, and administrative costs, which rose to $2.5 million from $2.4 million. Research and development expenses slightly decreased to $1.3 million from $1.3 million, reflecting a strategic focus on cost management amid declining revenues. The company also incurred $54,000 in restructuring costs related to the discontinuation of its subsidiary, SensiML Corporation, which is currently being explored for sale.

In terms of operational metrics, QuickLogic's customer base remains concentrated, with a significant portion of revenue derived from a few key customers. The company reported that 90% of its revenue came from the United States, with total cash and cash equivalents at $17.5 million as of March 30, 2025. The company has drawn $15 million from its revolving line of credit with Heritage Bank, which carries an interest rate of 8.00%. QuickLogic is in compliance with all loan covenants and has extended the maturity date of its loan agreement to December 31, 2026.

Looking ahead, QuickLogic anticipates that its future growth will depend on the successful commercialization of its new product offerings, particularly in the eFPGA and silicon solutions markets. The company is focused on leveraging its existing cash reserves and financing arrangements to support ongoing operations and product development. However, management has acknowledged the challenges posed by the cyclicality of the semiconductor industry and the need for increased revenue generation to achieve profitability.

Overall, QuickLogic's first-quarter results reflect a challenging environment, with significant declines in revenue and profitability. The company's strategic focus on restructuring and product development will be critical as it navigates these challenges and seeks to enhance its market position in the semiconductor industry.