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QuickLogic KO'd by tablet inventory overhang

  • Citing inventory rebalancing by tablet OEM customers using its display bridge ICs, QuickLogic (QUIK -18.1%) guided on its Q1 CC (transcript) for Q2 revenue of $6.5M and EPS of -$0.05, below a consensus of $10.4M and -$0.04.
  • The company also notes that while two of Samsung's three 7" tablet platforms use a QuickLogic display bridge, its new Galaxy Tab 4 7.0 doesn't need one.
  • QuickLogic insists strong smartphone design win activity will allow sales to rebound. The company claims a display bridge design win for Samsung's Galaxy Beam 2 phone, and expects its PolarPro 3 PLDs to start producing revenue in 2H14.
  • QuickLogic also says it's engaged with "engaged with numerous potential OEMs" regarding its new low-power sensor hub ICs (previous), and is "working on multiple smartphone and wearable designs."
  • Q1 results, PR
Comments (3)
  • Esekla
    , contributor
    Comments (2581) | Send Message
     
    I'd warned that contributors here were getting ahead of themselves when it comes to the success of the new sensor hub approach. They're interesting, but they represent a major development hurdle for would-be adopters. InvenSense offers an easier, lower power solution and I contrast the two approaches in the comments of my latest article on it.
    1 May, 03:21 PM Reply Like
  • swamis
    , contributor
    Comments (7) | Send Message
     
    If you listen to the complete conference call, you get a sense that management is very conservative in their guidance. Although QUIK has numerous design wins in place, they don't guide without production shipments in place. While the Samsung inventory adjustment has grabbed the headlines and traders have pummeled the stock today down 18%, QUIK's smartphone wins are potentially 7 times the revenue of tablets. I have followed the company for 4 years, and this is a rare buying opportunity for the stock and a bargain under $4.
    1 May, 04:01 PM Reply Like
  • cxin
    , contributor
    Comments (80) | Send Message
     
    The company has very limited new products in its product portfolio, not diversified. When one product doesn't sell, it immediately affected the company financial.
    3 May, 08:30 PM Reply Like
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