QuickLogic Corporation (NASDAQ:QUIK)
QuickLogic Corporation (NASDAQ:QUIK) stock traded higher after the company announced it had increased the number of engagements with wearable companies, expected to support the growth of EOS S3 Sensor Processing platform. The stock was up by 12.50% in Wednesday’s trading session to end the day at $1.71 a share.
QuickLogic’s Stock Performance
Wednesday’s rally helped strengthen a bullish run on QUIK stock that began in June. The stock has since bounced back from lows of $1.20 a share, to current highs of $1.71 per share. It awaits to be seen if the stock will continue to edge higher especially after closing above the $1.64 level, which traders believe acts as a key resistance level.
QuickLogic Corporation (NASDAQ:QUIK) still has a long way to go given that it is still trading in a downtrend after dropping from this year’s highs of $2.40 a share. The stock is down by more than 20% for the year, compared to a 24.6% overall industry growth. However, a bevy of positive news has brought to light the company’s growth prospects thereby reinvigorating investor’s sentiments.
In a bid to support robust growth of the entire EOS S sensor processing platform, QuickLogic Corporation (NASDAQ:QUIK) has filled three senior positions for product management, hardware solutions architecture, and system engineering. The company expects the new appointees to expand the total sensor processing team bandwidth, which should lead to an increase customer engagements.
QuickLogic Corporation (NASDAQ:QUIK) has also renewed its credit line with Silicon Valley Bank paving way for it to gain access to $6 million in line of credit. Under the terms of the agreement, the company will have to maintain unrestricted cash or cash equivalent at the bank at all times.
QUIK Q2 Earnings Report
Separately, the Sunnyvale California Company reported a net loss of (-$3.6) million or (-$0.05) a share for the second quarter, compared to a net loss of (-$5.6) million reported last year. Revenues were up by 11.4% to come in at $3 million – meeting analysts’ consensus estimates. Gross margin increased to 46.3% from 44.4% in the first quarter and 30.3% from the corresponding quarter last year.
QuickLogic management lowered the third and fourth quarter guidance on concerns of certain key design wins. However, the company remains confident of growth drivers in the wearable hearable and IOT applications leading to new product revenue in the fourth quarter.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.