QuickLogic Corporation (NASDAQ:QUIK) Q4 2022 Earnings Call Transcript

I think I may have mentioned before that we have customers now in high performance computing and automotive also coming to us with interest in eFPGA. The other part of it is that we are expanding our sales €“ external sales force and we’re doing it in a way that’s very mindful to operating expenses by using external distributors or sales reps that are largely paid on commission. So that keeps our fixed costs low while we’re generating these opportunities to closure. And so just as an example, that new 12-nanometer opportunity I just talked about that we won that we start to recognize revenue this quarter and probably throughout the entirety of this year, that actually came from a new sales rep in a different geography. So we are starting to see the €“ I think, the fruits of the labor on the growth of the funnel side.

And the good news, again, is that because our development process is so highly optimized and now automated, we can handle it pretty large increase in the funnel without dramatically needing to increase the R&D spending, which is one thing that Elias is alluding to on OpEx.

Martin Yang: Got it. Thank you so much, Brian.

Operator: Thank you. Our next question is from Richard Shannon with Craig-Hallum. Please proceed with your question.

Richard Shannon: Well, hey Brian, Elias, thanks for taking my questions as well. I think I’ll follow-up on this 12 nanometer government contract. I think kind of two pieces to this. I think from what you just said like a minute ago, this sounds like it’s from a government outside of the United States. Did I €“ am I concluding this accurately?

Brian Faith: I don’t know if I said that, but sure.

Richard Shannon: I think you said the sales rep was from another geography, I think that’s what you said so.

Brian Faith: I maybe.

Richard Shannon: Okay. Following-up, I think you said that you had mentioned this in the last quarter, and I was just trying to quickly review those comments from last quarter’s call. And I guess, I didn’t pick up exactly what you’re referring to. Is this the large tape out that you did €“ that you announced last quarter, or was this related to something else?

Brian Faith: You’re talking about the delta in Q4 revenue?

Richard Shannon: No, just the €“ I mean, when you mentioned your prelude to talking about this government contract and 12 nanometer process, and you said it was following-up an issue just from the last call. And so I just want to make sure I’m referring to the right one here. So is that the one that you’re referring to or not?

Brian Faith: Well, the 12 nanometer one is entirely new. We didn’t mention that previously, I don’t believe.

Richard Shannon: Okay. Okay. All right. I caught the €“ then I misunderstood that. Okay, that’s helpful. I’ll probably follow-up on that one later. Brian, maybe a top down question as we look at your calendar year sales growth of 30%, obviously pretty clear that the rad-hard is contributing a good deal at the dollar growth here. I would assume that your expectations are for some other embedded-FPGA programs to build in here as well. Maybe help us fill this kind of gap between 2022 and 2023 and other dynamics here. How much will €“ any way help us think about SensiML, I think you mentioned royalties and chiplets are probably a small contributor, but if I caught that incorrectly, please correct me. And then how do we think about the mature products and display and the phone stuff? I think I got a sense, but just like to hear it from in your words as well.