QuickLogic Corp., a developer of ultra-low power multi-core voice-enabled SoCs, embedded FPGA IP, and Endpoint AI solutions, has announced a restructuring plan expected to reduce annual expenses by $4.0 million.
The majority of the restructuring will come from personnel reductions, which will be across all parts of the company and geographies, reducing total personnel by 30% by the end of the first quarter of fiscal 2020. QuickLogic estimates it will incur approximately $600,000 of restructuring expenses, of which approximately $500,000 will be cash expenditures with the majority coming in the first quarter of fiscal 2020.
"As we went through our year-end strategic planning it became clear that the vast majority of the software needed to support our announced EOS SoC design wins and near-term SoC growth strategy is completed,” said Brian Faith, QuickLogic president and CEO, in a statement. “Furthermore, we believe the future expansion into new markets and applications for our SoC and eFPGA products will leverage more of the previously disclosed open source software initiative being developed in conjunction with a Tier 1 service provider. Given this, we believe we can move forward with a leaner organization while still supporting our growth objectives in fiscal 2020.”
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Faith added, “The restructuring is expected to further accelerate our path to improved bottom line financial performance in fiscal 2020. We continue to forecast revenue growth this year and are confident the changes will result in a stronger organization, an optimized cost structure, and allow us to allocate our resources in the most efficient way possible."
QuickLogic also reaffirmed its fourth quarter fiscal 2019 revenue guidance of $3.0 million, plus or minus 10%.