SAN JOSE, Calif. - QuickLogic (NASDAQ:QUIK) Corporation (NASDAQ: QUIK), specializing in embedded FPGA (Field Programmable Gate Array) and AI solutions, has entered into a distribution agreement with Astute Electronics. This partnership is aimed at extending QuickLogic's distribution network across Europe and into Australia, Israel, Turkey, and New Zealand.
Astute Electronics, recognized for its expertise in electronic component distribution and supply chain management, will now offer QuickLogic's advanced FPGA and eFPGA Hard IP solutions. This move is expected to strengthen QuickLogic's presence in various market segments, particularly in Aerospace and Defense, where Astute has a significant footprint.
Owen Bateman, QuickLogic's VP of worldwide sales, expressed enthusiasm about the partnership, emphasizing Astute's commitment to innovation and customer service as key factors for this collaboration.
The alliance between QuickLogic and Astute Electronics is poised to foster growth and innovation, providing access to QuickLogic's semiconductor solutions in the targeted regions. QuickLogic, a fabless semiconductor company, offers a range of products for industrial, aerospace and defense, edge and endpoint AI, consumer, and computing applications. The company's subsidiary, SensiML Corporation, enhances their offerings with AI/ML software that accelerates AI at the edge/endpoint.
QuickLogic Corporation reported a 45% year-over-year revenue increase in its first quarter of fiscal 2024, primarily driven by robust EFPGAIP contract growth. The company's new product revenue saw a near 60% rise, contributing to a forecast of over 30% expected revenue growth for the year. QuickLogic also anticipates a $4.5 billion revenue forecast for Q2, marking a 55% increase year-over-year. In other developments, QuickLogic has expanded its presence in India through a distribution agreement with Spur Microwave Inc. (Spur India).
Furthermore, QuickLogic announced a significant partnership with Intel (NASDAQ:INTC) Foundry Services for the development of embedded FPGA (eFPGA) solutions. Lastly, QuickLogic is set to join the Russell 3000® Index, a move expected to broaden the company's investor base.
InvestingPro Insights
As QuickLogic Corporation (NASDAQ: QUIK) expands its distribution network through the partnership with Astute Electronics, current and potential investors may find the following InvestingPro Insights particularly informative. QuickLogic's market capitalization stands at $153.9 million, showcasing the company's moderate scale within the semiconductor industry.
InvestingPro Data shows a notable P/E ratio of 137.5, which indicates a high valuation relative to the company's earnings. Despite this high earnings multiple, analysts predict the company will be profitable this year, as reflected in the basic and diluted EPS (Continuing Operations) of $0.08 for the last twelve months as of Q1 2024. This profitability is further supported by a substantial revenue growth of 42.27% during the same period, underscoring the company's expanding financial performance.
However, the stock has experienced a significant price drop of 32.15% over the last three months, which might present a buying opportunity for investors who believe in the company's long-term prospects, especially considering the recent distribution agreement aimed at market expansion.
InvestingPro Tips highlight that QuickLogic is operating with a moderate level of debt and does not pay a dividend to shareholders. These factors may influence investment decisions depending on individual strategies and the importance of dividend income to investors.
For those seeking more in-depth analysis, additional InvestingPro Tips are available, providing insights into QuickLogic's financial health and market performance. There are currently 11 more InvestingPro Tips listed on https://www.investing.com/pro/QUIK, which can offer further guidance to investors considering QuickLogic as part of their investment portfolios.
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