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QuickLogic Corporation (Nasdaq: QUIK), the inventor and pioneer of Embedded Standard Products (ESPs), today announced its financial results for the fourth quarter and year ended December 31, 2004.

Revenue for 2004 was $44.6 million, up 6% from revenue of $42.0 million in 2003. ESP and Advanced ESP products contributed 41% of revenue in 2004. Under generally accepted accounting principles (GAAP), the 2004 net loss was $8.8 million, or $0.35 per share, compared to a net loss of $4.7 million, or $0.20 per share, in 2003.

Revenue for the fourth quarter of 2004 was $11.1 million, up 3% from revenue of $10.8 million in the fourth quarter of 2003, and down 7% sequentially as compared to the third quarter of 2004. Our revenue for the fourth quarter of 2004 was in line with the guidance provided during the Company’s last earnings call. ESP and Advanced ESP products contributed 36% of revenue for the fourth quarter of 2004. On a GAAP basis, the net loss for the fourth quarter of 2004 was $6.0 million, or $0.23 per share, as compared to a net loss of $2.4 million, or $0.10 per share, in the fourth quarter of 2003, and as compared to a net loss of $899,000, or $0.03 per share, in the third quarter of 2004.

The pro forma net loss for 2004 was $3.9 million or $0.15 per share, as compared to a net loss of $4.7 million or $0.19 per share in 2003.

The pro forma net loss for the fourth quarter of 2004 was $1.3 million, or $0.05 per share, as compared to a net loss of $1.9 million, or $0.08 per share, in the fourth quarter of 2003, and as compared to a net loss of $734,000, or $0.03 per share, in the third quarter of 2004.

QuickLogic reports net loss and net loss per share in accordance with GAAP and additionally on a non-GAAP, or pro forma, basis. Pro forma results, where applicable, exclude the effect of gains on sale of the Company’s investment in Tower Semiconductor Ltd., write-downs of the Company’s investment in Tower Semiconductor Ltd., write-off of long-lived assets and long-lived asset impairments.

“Our annual 2004 revenue increased 6% over 2003, and our fourth quarter was up 3% compared to the same quarter last year,” said Tom Hart, Chairman, President and CEO. “Our fourth quarter new orders were the highest in our history. In addition, our QuickPCI II and Eclipse II FPGAs – the lowest power FPGAs in the industry – continued to gain design traction during the fourth quarter. We believe that this design activity will begin generating significant revenue early this year.”

Conference Call

The Company’s conference call is being webcast by CCBN and can be accessed via QuickLogic's website at www.quicklogic.com. For access to the conference call, please call 1-800-884-5695 or 1-617-786-2960 (international) by 2:20 p.m. Pacific Time on February 2, 2005. You will need to reference the pass code: 82967460. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call 1-888-286-8010 or 1-617-801-6888 (international). You will need to reference the pass code: 48129612. Both the webcast and the call recording will be archived until February 18th, 2005.

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP, or pro forma, financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company also uses calculations of (i) non-GAAP net loss, which represents net loss excluding the effect of the gain on sale of investment in Tower Semiconductor Ltd., the write-down of investment in Tower Semiconductor Ltd., long-lived asset impairment and the write-off of long-lived assets; and (ii) non-GAAP net loss per share, which represents basic and diluted net loss per share excluding the effect of the gain on sale of investment in Tower Semiconductor Ltd., the write-down of investment in Tower Semiconductor Ltd., long-lived asset impairment and the write-off of long-lived assets. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company’s industry. Investors should note, however, that the non-GAAP financial measures used by the Company may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. The Company does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP net income to non-GAAP net income is included in the financial statements portion of this release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made by our CEO relating to our new products, the market acceptance of our products and the level of customer orders. Actual results could differ materially from any such forward-looking statements. Factors that could cause actual results to differ materially include our ability to introduce and produce new products based on advanced wafer technology on a timely basis; delays in the acceptance of the Company’s ESPs or new products; our ability to convert new design opportunities into customer activity; the level of customer design activity; the risk that new orders may not result in revenue either in the first part of 2005 or thereafter; our ability to adequately market the low power, competitive pricing and short time-to market of our new product families; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; unforeseen changes in product demand or supply; and general economic conditions. These factors and others are described in more detail in the Company’s public reports filed with the Securities and Exchange Commission, including the risks discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company’s prior press releases.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the inventor and pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics OEMs and ODMs. These silicon plus software solutions are called Customer Specific Standard Products (CSSPs). CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market. For more information about QuickLogic and CSSPs, visit www.quicklogic.com.

The QuickLogic name and logo are registered trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.