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Brian Coleman
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Brian G. Coleman is the founder of Domino Analytics (http://www.dominoanalytics.com/) a free investment research site for serious independent investors focused on emerging growth stocks. Our members include professional and individual investors, as well as engineers, technologists, physicians,... More
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  • Quicklogic (QUIK): Seeing is Believing 2 comments
    Nov 29, 2009 10:20 PM | about stocks: QUIK, T, SWIR, QCOM

    A considerable amount of time on the Domino Analytics’ forum (dominoanalytics.com) over the past few months has been spent trying to identify the upcoming products designed with Quicklogic’s CSSPs. Our approach has been to triangulate the publicly disclosed information Quicklogic has shared regarding its design activity—specifically, design wins with three of the top five USB data modem vendors and a production win with a major US wireless carrier being released during 4Q’09—with product announcements by USB modem vendors and wireless carriers, alongside FCC RF licensing information for new USB data modems. This approach recently led us to suspect that the AT&T USBConnect Lightning Modem--manufactured by Sierra Wireless and commercially available through AT&T Wireless starting on November 22--might be a Quicklogic production design win. So, in order to confirm our suspicions we bought one of these devices at an AT&T store in San Francisco the day they went on sale for the sole purpose of tearing it apart and seeing what we could learn. Our tear down of the USBConnect Lightning in fact revealed a Quicklogic CSSP (part number CSSP-EWDN110-6235) on the board. 

    Quicklogic CSSP
    The full tear down report (with complete photos) is available in the Research Library on the Domino Analytics' website.  Since the company is not permitted to  announce the products it is designed into due to customer confidentiality requests, we believe our tear down of this device is the first public confirmation of Quicklogic's new family of CSSP parts being designed into what should be a high-volume consumer electronic product.  Up until now investors have relied on qualitative updates from management regarding design activity and potentially large market opportunities without having any firm confirmation of the end products or end customers that the company's products are ultimately destined for.  This tear down report is an extremely important non-public insight that provides confirmation that Quicklogic's growth strategy is bearing fruit. 

    With the company's legacy revenues having bottomed and its first CSSP designs going into volume production--and major wireless carriers like AT&T driving end market sales--we believe that Quicklogic is on the cusp of a potentially significant revenue ramp.  While we believe the USBConnect Lightning at AT&T could generate significant sales for Quicklogic, our research suggests that the company has several other potentially high-volume USB data card design wins moving toward production during the next several months.  As well, the company has secured designs wins in the smartbook/netbook market which should be in production volume by mid-2010 and also in the smartphone market which should be in production during the second half of 2010.

    With the first (USB Data Cards) of its three very significant end markets now beginning to ramp, its revenues having bottomed, virtually no sell-side analyst research coverage, and a micro-cap valuation, Quicklogic qualifies as an extremely compelling emerging growth stock. 

    Disclosure: Long QUIK

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Comments (2)
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  • pmcw
    , contributor
    Comments (8) | Send Message
     
    Excellent research!! Thank you!! Catching micro-caps early can result in substantial returns. Looks like this one is running under the radar.
    1 Dec 2009, 04:09 PM Reply Like
  • hagar
    , contributor
    Comment (1) | Send Message
     
    One of Michael Murphy's NWI picks also.
    12 Dec 2009, 10:52 AM Reply Like
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