QuickLogic KO'd by tablet inventory overhang

|About: QuickLogic Corporation (QUIK)|By:, SA News Editor

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