SAN JOSE, Calif. - QuickLogic (NASDAQ:QUIK) Corporation (NASDAQ: QUIK), a semiconductor company specializing in embedded FPGA (eFPGA) Hard IP and AI solutions, has announced a distribution agreement with Spur Microwave Inc. (Spur India), aiming to enhance its market reach in India. Spur India, known for distributing electronics in demanding environments, will now offer QuickLogic's FPGA products across the Indian market.
The partnership is expected to provide robust support to QuickLogic's customer base in India, ensuring access to the company's semiconductor products along with Spur India's established service quality. Owen Bateman, VP of worldwide sales at QuickLogic, expressed confidence that the collaboration with Spur India, which has over 25 years of experience in high-reliability components, will be advantageous for their customers in the region.
Vinay Chandran, CEO of Spur India, also shared enthusiasm for the partnership, highlighting the addition of QuickLogic's FPGAs and eFPGA Hard IP to their portfolio and the potential for stimulating innovation and growth within the Indian electronics sector.
The strategic alliance between QuickLogic and Spur India is effective immediately and is set to improve the availability of QuickLogic's semiconductor solutions in key Indian markets.
QuickLogic Corporation, headquartered in San Jose, California, operates as a fabless semiconductor company and through its subsidiary, SensiML Corporation, offers a comprehensive portfolio including AI/ML software to accelerate AI at the edge/endpoint. Spur India, on the other hand, is a prominent distributor of electronic components, recognized for its quality service and focus on customer needs.
This expansion into the Indian market represents QuickLogic's efforts to increase its global footprint and to cater to the growing demand for semiconductor products in various industrial and technological sectors.
The information is based on a press release statement from QuickLogic Corporation.
In other recent news, QuickLogic Corporation has announced a significant partnership with Intel (NASDAQ:INTC) Foundry Services for the development of embedded FPGA (eFPGA) solutions.
The collaboration will enhance QuickLogic's ability to offer its eFPGA Hard IP technology, optimized for power, performance, and area, on Intel's advanced 18A process technology. This strategic move is seen as a response to customer demand for customizable eFPGA solutions and is expected to accelerate the creation of custom IP cores.
In financial highlights, QuickLogic reported a 45% year-over-year revenue increase in its first quarter of fiscal 2024 earnings, 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 addition to financial growth, QuickLogic has been included in the Russell 3000® Index, a development that is expected to broaden the company's investor base and provide more exposure to the market. The company also secured strategic contracts in the defense sector and is making advancements in AI and ML through its subsidiary, SensiML.
These are among the recent developments from QuickLogic.
InvestingPro Insights
QuickLogic Corporation (NASDAQ: QUIK) has recently entered into a promising distribution agreement with Spur India, which could potentially enhance its market presence and customer support in the Indian region. As investors look at the implications of this expansion, certain financial metrics and analyst insights from InvestingPro may shed light on the company's current standing and what to expect moving forward.
InvestingPro Data indicates that QuickLogic has a market capitalization of $176.84 million, reflecting its size and market value within the semiconductor industry. The company's Price to Earnings (P/E) ratio stands at a high of 157.31, suggesting that investors are willing to pay a premium for its earnings potential. This is further emphasized by the adjusted P/E ratio for the last twelve months as of Q1 2024, which is 164.81. Additionally, the Revenue Growth for the same period was a robust 42.27%, indicating a strong upward trend in the company's sales.
Investors should note that QuickLogic has experienced a significant return over the last week, with a 16.87% price total return, which aligns with InvestingPro Tips highlighting the stock's recent performance. Moreover, the company is trading at a high revenue valuation multiple, which may suggest optimism about future growth prospects, especially considering the recent strategic move into the Indian market.
However, it is important for investors to be aware of the potential risks associated with this valuation. Two analysts have revised their earnings downwards for the upcoming period, which could signal caution regarding QuickLogic's short-term earnings outlook. Additionally, the stock has been noted for its volatility, which might be a factor for risk-averse investors to consider.
For those looking to delve deeper into QuickLogic's financials and forecasts, InvestingPro Tips provide a comprehensive list of 15 additional insights. These include various valuation multiples and profitability predictions, which could be critical for making informed investment decisions. To access these insights, visit the InvestingPro platform and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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