QuickLogic Corporation reports 4.0% revenue growth in FY2018 and 6.0 pp EBITDA Margin growth from -104% to -97.6%
02/13/2019 • About QuickLogic Corporation (
$QUIK) • By InTwits
QuickLogic Corporation reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -97.6%
- QuickLogic Corporation motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -84.0% for the sames years
- QuickLogic Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $0m in FY2018, $1m in FY2017, $2m in FY2016, $0m in FY2015, $1m in FY2014
- The company has unprofitable business model: ROIC is -50.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
QuickLogic Corporation's Revenue increased on 4.0%. Revenue growth showed acceleration in FY18Q4 - it increased 8.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.9 pp from -15.1% to -4.2% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2016 at -153% and was growing since that time.
Gross Margin increased on 4.7 pp from 45.5% to 50.2% in FY2018. SG&A as a % of Revenue decreased on 2.4 pp from 81.5% to 79.0% in FY2018. During the last 5 years SG&A as a % of Revenue topped in FY2016 at 90.3% and was declining since that time.
Net Income margin increased on 7.2 pp from -116% to -109% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2016 at -168% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.8% in FY2018. CAPEX/Revenue increased slightly on 0.95 pp from 1.8% in FY2015 to 2.8% in FY2018. Average CAPEX/Revenue for the last three years was 8.4%.
Return on investment
The company operates at negative ROIC (-50.2%) and ROE (-85.8%). ROIC surged on 20.1 pp from -70.2% to -50.2% in FY2018. ROE jumped on 19.4 pp from -105% to -85.8% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2016 at -91.7% and was growing since that time. During the last 5 years ROE bottomed in FY2016 at -119% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.8x and Debt / EBITDA is . Debt surged on 132% while cash surged on 59.5%.
QuickLogic Corporation has no short term refinancing risk: cash is higher than short term debt (172.1%).
Management team
Brian Faith is a the company's CEO. Brian Faith is a founder and has spent 3 years with the company. The company's CFO Suping Cheung "Sue" has spent 2 years with the company.
Financial and operational results
FY ended 12/30/2018
QuickLogic Corporation ($QUIK) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 27.845 | 18.956 | 11.421 | 12.149 | 12.629 | 4.0% |
| Gross Profit | 11.049 | 7.545 | 3.773 | 5.522 | 6.334 | 14.7% |
| SG&A | 11.663 | 10.619 | 10.310 | 9.900 | 9.982 | 0.8% |
| EBITDA | -11.290 | -16.104 | -17.470 | -12.577 | -12.320 | |
| Net Income | -13.079 | -17.848 | -19.148 | -14.131 | -13.779 | |
Balance Sheet
|
|---|
| Cash | 30.050 | 19.136 | 14.870 | 16.527 | 26.363 | 59.5% |
| Short Term Debt | 0.225 | 0.281 | 6.209 | 6.299 | 15.316 | 143.1% |
| Long Term Debt | 1.191 | 2.208 | 0.000 | 0.355 | 0.108 | -69.6% |
Cash flow
|
|---|
| Capex | 1.046 | 0.346 | 1.954 | 0.642 | 0.351 | -45.3% |
Ratios
|
|---|
| Revenue growth | 6.8% | -31.9% | -39.7% | 6.4% | 4.0% | |
| EBITDA growth | 8.0% | 42.6% | 8.5% | -28.0% | -2.0% | |
|
|---|
| Gross Margin | 39.7% | 39.8% | 33.0% | 45.5% | 50.2% | 4.7% |
| EBITDA Margin | -40.5% | -85.0% | -153.0% | -103.5% | -97.6% | 6.0% |
| SG&A, % of revenue | 41.9% | 56.0% | 90.3% | 81.5% | 79.0% | -2.4% |
| Net Income Margin | -47.0% | -94.2% | -167.7% | -116.3% | -109.1% | 7.2% |
| CAPEX, % of revenue | 3.8% | 1.8% | 17.1% | 5.3% | 2.8% | -2.5% |
|
|---|
| ROIC | -32.4% | -58.6% | -91.7% | -70.2% | -50.2% | 20.1% |
| ROE | -34.3% | -63.9% | -118.5% | -105.2% | -85.8% | 19.4% |
QuickLogic Corporation ($QUIK) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 3 | 4 | 3 | | -12.8% | 3.2% | 18.1% | 8.5% |
| EBITDA | -4 | -3 | -3 | -3 | | | | | |
| Net Income | -4 | -3 | -3 | -3 | | | | | |
Balance Sheet
|
|---|
| Cash | 13 | 23 | 24 | 26 | | -52.9% | 2.6% | 27.3% | 59.5% |
| Short Term Debt | 6 | 6 | 9 | 15 | | 2.0% | 2.2% | 52.3% | 143.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | | 459.5% | -10.9% | 10.1% | -69.6% |
Ratios
|
|---|
| Gross Margin | 50.3% | 49.0% | 49.7% | 51.7% | | 6.9% | 3.4% | 7.1% | 1.3% |
| EBITDA Margin | -127.8% | -99.6% | -83.2% | -85.2% | | -29.6% | 6.1% | 21.8% | 20.2% |
| Net Income Margin | -143.6% | -111.6% | -92.9% | -94.8% | | -31.2% | 7.6% | 26.6% | 19.6% |
Peers in Semiconductors
Below you can find QuickLogic Corporation benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (67 companies) | 54.6% | 9.7% | 5.2% | 11.0% | 5.0% |
|---|
| QuickLogic Corporation ($QUIK) | | -31.9% | -39.7% | 6.4% | 4.0% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 51.0% |
|---|
| QuickLogic Corporation ($QUIK) | 39.7% | 39.8% | 33.0% | 45.5% | 50.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.9% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| QuickLogic Corporation ($QUIK) | -40.5% | -85.0% | -153.0% | -103.5% | -97.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.6% | 4.7% | 4.6% |
|---|
| QuickLogic Corporation ($QUIK) | 3.8% | 1.8% | 17.1% | 5.3% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.7% | 3.8% | 1.7% | 3.2% | 5.2% |
|---|
| QuickLogic Corporation ($QUIK) | -32.4% | -58.6% | -91.7% | -70.2% | -50.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| |
|---|
| Median (46 companies) | -0.5x | -0.2x | 0.2x | 0.4x | 0.3x |
|---|
