QuickLogic Showing Signs of Life

Posted on December 31, 2020 by Brad Steveson

QuickLogic (QUIK) share price has stalled since surprising investors with a June stock offering for $8.75 million @ $3.50 per share, trading mostly below that level until recently. The stock is showing signs of life again in the past few weeks moving back up over $4.50 per share just a few weeks ago. This week’s pullback may provide a buying opportunity for interested investors. While there is a fairly long history of disappointing results, this leading programmable technology company is interesting for a number of reasons.

Field-Programmable Gate Arrays — FPGAs — are an important class of semiconductor devices. They provide vital connective tissue in network communications, as well as AI endpoints, bringing intelligence to IoT sensors at the edge. FPGAs are also enabling
the faster rollout of 5G, in that their programmable nature makes them ideal for accommodating the kinds
of adjustments in the field that come with new technology introductions.

For reasons that I frankly do not fully understand, the collaboration with Google that the company has been talking about in recent investor events broadens access to the company’s FPGA technology and eFPGA IP. In addition, I am told by an industry insider that QUIK’s technology is the only technology approved for eFPGA by Global Foundries and therefore what they make will sell with significant demand. The benefit of being approved by global foundries is that eFPGA is seamlessly integrated with the SOC line of chips.

So, if you can wrap your head around that (I recommend consulting with an industry professional), QUIK looks like it is poised to rebound in 2021. The equity raise is behind us. The Covid impact to mature product revenues with disruptions and delays is likely to correct in 2021. The company is forecasting moving from a micro cap to a small cap company over the next year or two. This is one that is worth a look. As always, do your own due diligence.

Disclosure: I am long and I may buy or sell shares within the next 72 hours.

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