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QuickLogic Corporation (NASDAQ: QUIK), the lowest power programmable solutions leader, today announced the financial results for its fourth quarter and fiscal year ended December 28, 2008.

Total revenue for the fourth quarter of 2008 was $5.9 million, down 5 percent from the third quarter of 2008 and down 45 percent from the fourth quarter of 2007. The sequential decline in revenue was primarily due to anticipated declines in our legacy product revenue. New products – ArcticLink®, PolarPro® II, PolarPro , Eclipse™ II and QuickPCI® II – grew to contribute 26 percent of revenue in the fourth quarter of 2008 compared to 23 percent in the third quarter of 2008 and was 33 percent of revenue in the fourth quarter of 2007.

Under generally accepted accounting principles (GAAP), the net loss for the fourth quarter of 2008 was $2.6 million, or $0.09 per share, compared with a net loss of $615,000, or $0.02 per share, in the third quarter of 2008 and a net loss of $1.7 million, or $0.06 per share, in the fourth quarter of 2007. Non-GAAP net loss for the fourth quarter of 2008 was $1.2 million, or $0.04 per share, compared with a non-GAAP net loss of $196,000, or $0.01 per share, in the third quarter of 2008 and a non-GAAP net loss of $1.1 million, or $0.04 per share, in the fourth quarter of 2007.

Revenue for 2008 was $31.9 million, compared with revenue of $34.4 million in 2007. Under GAAP, the net loss for 2008 was $9.4 million, or $0.32 per share, compared with a net loss of $11.1 million, or $0.38 per share, in 2007. Non-GAAP net loss for 2008 improved to $3.0 million, or $0.10 per share, compared with a non-GAAP net loss of $9.3 million, or $0.32 per share, in 2007.

“New product revenue in our fiscal year 2008 was $8.1 million, a $1.8 million increase over new product revenue in fiscal year 2007. The sale of Customer Specific Standard Products, or CSSPs, into the portable navigation device market was the primary driver of the increase in new product sales,” said E. Thomas Hart, chairman, president and CEO. “Our low power CSSPs allow mobile device manufacturers to bring their new products to market more quickly and cost effectively with lower risk. The CSSP message – ‘Your idea, our platform, customized for you’ – resonates well in our target markets, as we continue to engage with more top tier mobile device manufacturers.”

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Time today, February 3, 2009, to discuss the fourth quarter and fiscal year financial results. The conference call is being webcast and can be accessed via QuickLogic’s website at www.quicklogic.com/investors. To participate, please call (877) 591-4958 by 2:20 p.m. Pacific Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (719) 457-0820 and reference the pass code: 7884431. The call recording will be archived until February 6, 2008 and the webcast will be available for 12 months.

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with GAAP, but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation, restructuring, long-lived asset impairment, the write-down of the Company’s investment in Tower Semiconductor Ltd. and the effect of the write-off of equipment in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. 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.

Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company’s core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company’s future periods, and serve as a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.

Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic 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 financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures with 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 the interest of the market in our new products and the revenue generating potential of such new products, which is dependent on the market acceptance of our products and the level of customer orders. Actual results could differ materially from the results described in these forward-looking statements. Factors that could cause actual results to differ materially include: delays in the market acceptance of the Company’s new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers’ products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; 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.

ArcticLink, pASIC, PolarPro, QuickLogic, QuickPCI, and QuickRAM are registered trademarks and Eclipse and the QuickLogic logo are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.