SAN JOSE, Calif. - QuickLogic (NASDAQ:QUIK) Corporation (NASDAQ:QUIK), a prominent player in the development of embedded FPGA (eFPGA) Hard IP and ruggedized FPGAs, has announced that it is considering strategic alternatives for its subsidiary SensiML, including a potential sale. The company has initiated preliminary talks with various strategic partners regarding the sale of SensiML or its assets. According to InvestingPro data, QuickLogic’s market capitalization stands at $175 million, with the stock showing strong momentum, gaining over 15% in the past six months despite trading above its Fair Value.
The decision to explore such options for SensiML comes as QuickLogic aims to concentrate its efforts on its burgeoning eFPGA Hard IP and ruggedized FPGA segments. This shift in focus has been prompted by recent successes, including securing eFPGA Hard IP design wins with strategic customers, expanding significant government contracts, and improving the performance of its eFPGA Hard IP products. The company has demonstrated strong revenue growth of 23% over the last twelve months, maintaining a healthy gross profit margin of 65%. Additionally, changes in the competitive landscape of the eFPGA market and increased interest from customers of former competitors have played a role in this strategic direction.
Brian Faith, CEO of QuickLogic, remarked on the acquisition of SensiML, noting the initial synergy between SensiML’s AI/ML software and QuickLogic’s sensor processing technology. However, with the growing success of QuickLogic’s core products, the company has chosen to direct its resources towards the core business’s expansion.
QuickLogic, a fabless semiconductor company, is known for its innovative approach that combines advanced technology with open-source tools to deliver customizable, low-power solutions across various markets, including industrial, aerospace, consumer, and computing sectors.
Investors and interested parties are advised to review the company’s disclosures on Form 8-K, filed with the SEC today, in conjunction with the Form 10-K filed on March 27, 2024, and previously filed quarterly financials on Forms 10-Q for further details. InvestingPro analysis reveals that analysts expect the company to become profitable this year, with multiple ProTips and detailed financial metrics available for subscribers. The company’s next earnings report is scheduled for February 12, 2025, where investors can gauge the progress of its strategic initiatives.
This exploration of strategic alternatives for SensiML is based on a press release statement from QuickLogic Corporation.
In other recent news, QuickLogic Corporation reported a Q3 2024 revenue dip to $4.3 million, but anticipates a Q4 revenue increase to around $6 million, primarily due to IP contract delays. The company also reported a non-GAAP net loss of $0.9 million for Q3 and projects Q4 cash usage to be under $500,000. Furthermore, QuickLogic announced the hiring of Andy Jaros as its new Vice President of IP Sales, a move that is expected to bolster the company’s sales strategies and expand its market reach.
Northland initiated coverage on QuickLogic, setting an Outperform rating for the stock, indicating confidence in the company’s growth prospects. QuickLogic is focusing on eFPGA Hard IP optimized for Intel (NASDAQ:INTC) 18A and has renewed an OEM agreement with Synopsys (NASDAQ:SNPS). Despite not providing a full year revenue model for 2025 due to uncertainty in quarterly performance, QuickLogic anticipates growth due to a more diversified customer base and favorable market conditions. These are the recent developments for the company.
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