Net revenues for the second quarter of 2001 were $8.1 million, down 25% from net revenues of $10.8 million reported in the first quarter of 2001 and down 42% from net revenues of $14.1 million in the second quarter of 2000.
The company reported a net loss for the second quarter of 2001 of $7.8 million compared to a net loss of $732,000 in the first quarter of 2001 and a net profit of $2.7 million in the second quarter of 2000. The second quarter loss per share was $(0.38) on approximately 20.4 million shares outstanding, compared to a loss per share of $(0.04) on approximately 20.2 million shares outstanding in the first quarter of 2001. Diluted earnings per share were $0.12 on approximately 22.2 million shares outstanding in the second quarter of 2000.
On a pro forma basis, the company’s net loss for the second quarter of 2001 was $4.3 million, compared to a net loss of $732,000 in the first quarter of 2001 and a net profit of $2.7 million in the second quarter of 2000. Pro forma net income excludes the effects of the V3 acquisition, which is expected to be completed in the third quarter, and the write down of $3.7 million of excess inventory. The second quarter pro forma loss per share was $(0.21) on approximately 20.4 million shares outstanding, compared to a loss per share of $(0.04) on approximately 20.2 million shares outstanding in the first quarter of 2001.
The business climate in the second quarter continued to be as challenging for QuickLogic as it was for the rest of the semiconductor industry, said Tom Hart, chairman, president and CEO. Our net loss was disappointing and reflects the softness in the market and our decision to write off $3.7 million of die inventory. Even with our high-velocity, low-inventory business model, die inventory had increased significantly over the past two quarters owing to the long-term nature of our wafer fab agreements.
The good news is that inventories at distributors at the end of Q2 were only nine days, and we expect our die inventory to decline in the third quarter now that wafer start reductions initiated earlier this year have begun to take effect, continued Hart.
We also reported a drop in the gross margin caused by under-absorption of overhead as production rates fell faster than our relatively fixed operational costs and a shift in product mix to lower density, lower speed products, said Hart. We are focused on tightening our belts where we can, but believe that the market promise for Embedded Standard Products requires our continued commitment to investing in new products and in strengthening our team through this downturn. Design activity for our Embedded Standard Products continues to be a very positive sign. We plan to come out of this downturn in a stronger position than we went in.
SOURCE: COMPANY PRESS RELEASE
