SUNNYVALE, Calif.--QuickLogic Corp. today blamed a weak global economy and reduced demand for products--especially in Europe--for lowering its revenues more than expected in the second quarter.
The Sunnyvale company said it now expects revenues to drop 25-to-30% in Q2 revenues from $10.8 million in the first quarter of 2001. The estimate includes $1.1 million revenues from products sold by V3 Semiconductor Corp., a Toronto-based chip supplier that was acquired by QuickLogic recently (see April 17 story). Without V3 product sales, QuickLogic said the decline would be 35-to-40% from Q1, instead of its previous guidance of a 15-to-25% drop.
"Bookings declined in each of the first five months of 2001," said Tom Hart, president and CEO of QuickLogic. "May bookings were particularly disappointing and are contributing to lower-than-expected revenues for the second quarter.
"At the same time, the decline in the booking rate appears to be bottoming, with a slight improvement in June," he added. "New design activity continues to be strong, so we remain optimistic about our long-term growth opportunities, particularly for our embedded standard products."