In a recent transaction, Brian C. Faith, the President and CEO of QuickLogic Corp (NASDAQ:QUIK), purchased 1,250 shares of the company’s common stock on the open market. The shares were acquired at a price of $7.01 each, amounting to a total transaction value of $8,762. Following this purchase, Faith's direct ownership of QuickLogic shares stands at 171,954 shares. This transaction was disclosed in a Form 4 report filed with the Securities and Exchange Commission.
In other recent news, QuickLogic Corporation, a significant player in the embedded FPGA (eFPGA) market, reported a dip in its Q3 2024 revenue, which came in at $4.3 million, a 36% decrease from the previous year. Despite this, the company has projected a Q4 2024 revenue of approximately $6 million, primarily due to delays in IP contract finalizations. The firm's non-GAAP net loss for Q3 was $0.9 million, and they aim to achieve non-GAAP profitability for the full year.
QuickLogic also anticipates positive cash flow in Q1 2025 and estimates Q4 cash usage to be under $500,000. The firm has recently renewed an OEM agreement with Synopsys (NASDAQ:SNPS) to integrate enhanced capabilities into their Aurora open-source tool. Furthermore, QuickLogic is focusing on eFPGA Hard IP optimized for Intel (NASDAQ:INTC) 18A, with proposals in the Defense Industrial Base and other sectors.
These recent developments also include QuickLogic's expansion of its distribution agreements internationally and anticipation of growth in shipments of its EOS S3 chips. Despite not being selected for two chiplet proposals valued at $40 million, the company remains optimistic due to a strong contract funnel valued at $164 million. QuickLogic anticipates growth in 2025 due to a more diversified customer base and favorable market conditions.
InvestingPro Insights
Brian C. Faith's recent purchase of QuickLogic Corp (NASDAQ:QUIK) shares comes at a time when the stock is trading near its 52-week low, according to InvestingPro data. This insider buying activity could be seen as a vote of confidence in the company's future prospects, despite recent market challenges.
InvestingPro Tips reveal that QuickLogic's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook aligns with the CEO's decision to increase his stake in the company. However, it's worth noting that the stock has experienced significant volatility, with a 13.51% decline in the past week and a 41.04% drop over the last six months.
The company's financial metrics show a mixed picture. While QuickLogic boasts a strong gross profit margin of 65.06% for the last twelve months as of Q3 2023, it operates with a moderate level of debt and is not currently profitable. The revenue growth of 22.93% over the same period is encouraging, although the most recent quarter saw a 35.89% decline in revenue.
For investors considering QuickLogic, it's important to note that the stock does not pay a dividend, which is typical for growth-oriented technology companies. The current market capitalization stands at $101.04 million, reflecting the company's small-cap status.
These insights are just a sample of the comprehensive analysis available on InvestingPro. Subscribers can access 11 additional tips for QuickLogic, providing a more in-depth understanding of the company's financial health and market position.
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