Timothy Saxe, Senior Vice President and Chief Technology Officer at QuickLogic Corp (NASDAQ:QUIK), recently sold 10,000 shares of the company's common stock. These shares were sold at a weighted average price of $6.9463, resulting in a total transaction value of approximately $69,463. The sales were carried out under a Rule 10b5-1 trading plan that Saxe had adopted on November 21, 2023. Following this transaction, Saxe holds 108,004 shares in the company, which includes shares acquired through an Employee Stock Purchase Plan.
In other recent news, QuickLogic Corporation, a significant player in the embedded FPGA (eFPGA) market, reported a 36% year-over-year revenue decrease in Q3 2024, with earnings of $4.3 million. Despite this, the company is forecasting a Q4 revenue of around $6 million, primarily due to IP contract delays, and is aiming for non-GAAP profitability for the quarter and the full year. QuickLogic also anticipates a cash flow positivity in Q1 2025 and expects Q4 cash usage to be under $500,000.
The company has expanded its distribution agreements internationally and sees potential growth in shipments of its EOS S3 chips. QuickLogic also renewed its OEM agreement with Synopsys (NASDAQ:SNPS) to integrate enhanced capabilities into their Aurora open-source tool. As part of their strategic focus, QuickLogic is targeting the eFPGA market, especially after Analog Devices (NASDAQ:ADI) acquired competitor Flex (NASDAQ:FLEX) Logix.
The company's contract funnel currently stands at a robust $164 million, and executives are confident in their strategic advantages in the Defense Industrial Base and Intel (NASDAQ:INTC) 18A technology. Despite not being selected for two chiplet proposals valued at $40 million and a cautious approach to forecasting full-year revenue for 2025, QuickLogic remains optimistic about its future growth due to a more diversified customer base and favorable market conditions.
InvestingPro Insights
As Timothy Saxe reduces his stake in QuickLogic Corp (NASDAQ:QUIK), investors may want to consider additional insights from InvestingPro to better understand the company's current position and future prospects.
According to InvestingPro data, QuickLogic's market capitalization stands at $103.1 million, reflecting its position as a small-cap technology firm. The company's revenue for the last twelve months as of Q3 2023 was $21.89 million, with a notable revenue growth of 22.93% over the same period. This growth aligns with an InvestingPro Tip suggesting that net income is expected to grow this year, potentially indicating improving financial health.
However, investors should note that QuickLogic is currently trading near its 52-week low, with the stock price experiencing significant volatility. The company's P/E ratio of -66.9 and the fact that it's not been profitable over the last twelve months underscore the challenges it faces. Despite these hurdles, analysts predict that the company will turn profitable this year, which could explain why insiders like Saxe might be taking the opportunity to realize gains.
For those considering an investment in QuickLogic, it's worth noting that the company operates with a moderate level of debt and does not pay a dividend to shareholders. These factors, combined with the recent insider sale, suggest that potential investors should conduct thorough due diligence.
InvestingPro offers 12 additional tips for QuickLogic, providing a more comprehensive analysis for those looking to delve deeper into the company's prospects. To access these insights and make more informed investment decisions, consider checking out the full range of tips available on InvestingPro.
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