QuickLogic CEO Discusses Q3 2010 Results – Earnings Call Transcript
For the third quarter of 2010, total revenue was 7.3 million. This represents a sequential increase of 13% and was within our guidance range. New product revenue grew to 2.8 million, representing a 20% sequential increase. Legacy product revenue totaled 4.6 million, which was a 9% sequential increase. Both product lines were within our guidance range.
Our non-GAAP gross profit margin for Q3 was 64.5%, and was above our guidance due to the mix of product shipped. Non-GAAP operating expenses for Q3 totaled 3.8 million, which was at the low-end of our guidance. These lower expenses, combined with higher than planned gross margin produced a non-GAAP operating profit of 921,000.
Non-GAAP operating expenses increased compared to Q2, primarily due to an increase in third-party engineering expenses and a modest increase in SG&A. On a non-GAAP basis, tax and other expenses totaled approximately 4,000. This resulted in a non-GAAP net profit of 917,000 or $0.02 per diluted share, compared with a net profit of 418,000 or $0.01 per diluted share in the second quarter of 2010.
Our ending cash position of 19.2 million reflects an increase of approximately 1.3 million from the Q2 ending balance. This increase was driven by our higher than expected gross margin, lower than expected operating expenses and the exercise of warrants from our November 2009 Registered Direct offering. Why investors from our November offering exercised (inaudible) provided cash to the company of approximately 556,000.Our Q3 GAAP net profit was 550,000 or $0.01 per diluted share. Our GAAP results include stock-based compensation charges of 568,000, which was partially offset by a one-time tax benefit of 209,000 related to our investment in TowerJazz shares. Because of our GAAP profit, shares outstanding are now calculated on a fully diluted basis. Weighted average fully diluted shares outstanding at the end of Q3 totaled 38.7 million shares. Please see today’s press release for a detailed reconciliation of our GAAP to non-GAAP results.
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