🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

QuickLogic (QUIK) Plans To Raise Funds Via Public Offering

Published 06/18/2019, 09:15 PM
Updated 07/09/2023, 06:31 AM

QuickLogic Corporation (NASDAQ:QUIK) has announced its plan to raise funds through an underwritten public offering. Oppenheimer & Co. Inc. will be the underwriter of the offering. Further, the company has allowed a 30-day window to the underwriter for the additional purchase of shares of common stock.

The provider of ultra-low power, comprehensive, flexible sensor processing solutions plans to utilize the net proceeds from this offering primarily to fund future acquisitions, to provide for its working capital and general corporate purposes. Moreover, it also intends to use part of the net proceeds for the expansion of its next generation new products.

The offering, which is subject to customary closing conditions, has no expected closing date.

QuickLogic has been executing strategic acquisitions to diversify offerings and expand operating markets. The company in January this year acquired SensiML Corporation in an all-stock deal. The buyout is anticipated to empower QuickLogic’s product portfolio with machine-learning (ML) tools required to devise embedded algorithms.

Growth Pospects

Increasing adoption of QuikLogic’s sensor processing solutions and embedded FPGA (eFPGA) Intellectual Property (IP) Licensing is a tailwind. The company’s new support center in Taiwan related to eFPGA IP has also aided it in developing relationships with prospective customers, which can eventually lead to design wins.

Further, the acquisition synergies will help QuickLogic to explore emerging markets, including AI in edge computing and IoT endpoint devices.

Notably, per ResearchAndMarkets report, “global AI in embedded IoT devices market” is anticipated to advance to nearly $26.2 billion by 2023. Moreover, the report predicts that by 2023, semiconductors and embedded devices exceeding 87 billion units “will be shipped in support of IoT”.

Meanwhile, QuickLogic’s strength in smartphone market and increasing demand for wearable products in the B2B market bode well. Furthermore, the company is working with a Japanese smartphone OEM, which is expected to adopt QuickLogic’s EOS S3 SoC for its new models scheduled to be launched in 2020.

To Conclude

The company reported a loss in first-quarter of fiscal 2019. Moreover, revenues missed the Zacks Consensus Estimate.

Further, consolidating semiconductor market and stiff competition from notable eFPGA chip makers, including Intel (NASDAQ:INTC) and Xilinx (NASDAQ:XLNX) , among others, remains a concern.

Additionally, QuickLogic’s eFPGA and SoC development, and enhancement efforts to stay afloat in the competitive market are resulting in higher capital expenditures, which remain an overhang on margin expansion.

Notably, the company exited the first quarter of fiscal 2019 (ending Mar 31, 2019) with cash and cash equivalents of $23.1 million compared with $26.4 million registered in the previous quarter. Moreover, the company has no long-term debt.

We believe raising funds will help the company to boost balance sheet and utilize resources to expand relationships with prospective customers, which will eventually lead to design wins.

Zacks Rank & Other Key Picks

QuickLogic carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Match Group, Inc. (NASDAQ:MTCH) and Autohome Inc. (NYSE:ATHM) , both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Match Group and Autohome have a long-term earnings growth rate of 15.2% and 20.9%, respectively.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>

Autohome Inc. (ATHM): Free Stock Analysis Report

Match Group, Inc. (MTCH): Free Stock Analysis Report

QuickLogic Corporation (QUIK): Free Stock Analysis Report

Xilinx, Inc. (XLNX): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.