Semiconductor Firm Quicklogic Corporation: a Solid Play

Semiconductor Firm Quicklogic Corporation: a Solid Play

Semiconductor Firm Quicklogic Corporation: a Solid Play

Semiconductor Firm Quicklogic Corporation: a Solid Play

Technology concern Quicklogic Corporation (NASDAQ: QUIK) is being noticed by the Street, making it a good bet for portfolios. The Sunnydale California based semiconductor maker is under contract to Kyocera Corporation (NYSE: KYO) for its HoneyBee smart phones. Results of this deal are propelling Quicklogic into positive territory and bringing it notice from stock watchers.

The company’s market capitalization is at around $109 million and is trading at around $2 per share, which is midway to its 52 week high of around $4 per share. Even with revenues down the past several quarters, the company has highly liquid measure of around 7. Quicklogic Corporation also carries a low level  of debt. Its debt to equity ratio is around 14 percent and debt ratio is around 12 percent. As the company’s technology is distributed to additional clients, such as Kyocera Corporation, the financial prospects of Quicklogic should increase.

A comparable concern is PLX Technology, Inc. (NASDAQ: PLXT), a company whose shares are trading at around $5. PLXT is a Sunnyvale, California based manufacturer of integrated circuits. It has reported negative income over the past several quarters, and financially appears to be similar to Quicklogic Corporation. PLX Technology has a market capitalization around $215 million, which is about twice that of Quicklogic Corporation. Its quick ratio however is around 0.4, making it not as liquid as its counterpart. It also has debt to equity ratio of around 56 percent, and a debt ratio of around 36 percent, both of which are much higher than that of Quicklogic Corporation.

An altogether different story comes from Hillsboro, Oregon based Lattice Semiconductor (NASDAQ: LSCC). Lattice Semiconductor designs and develops programmable logic products and software. The company’s market capitalization is around $568 million, with its stock trading at around $5 per share. The company has had negative income in the last three quarters, ending fourth quarter 2012. Its liquidity measure or quick ratio is around 4, which is in the same area as that of Quicklogic Corporation. The respective debt to equity and debt ratios of Lattice Semiconductor are around 20 percent and 17 percent; lower than that of PLXT.

Looking at the fundamentals of Quicklogic Corporation, its prospects for continued positive growth hinges on its ability to sell more of its technology. Shares of Quicklogic Corporation were down by 3 percent to close at $2.41 per share.

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5 Responses

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  1. Lillie
    Mar 26, 2013 - 10:45 AM

    Will look to see how the company stacks up against larger players in the sector. Sounds as if it may have been having issues lately.

    Reply
  2. mrgambale@gmail.com
    Mar 26, 2013 - 02:19 PM

    The company was rated a new buy at Roth Capital recently, with a 12-month price target of $3.00 a share.

    Reply
  3. DanSlone
    Mar 29, 2013 - 04:41 PM

    QuickLogic has the balance sheet strength to weather more difficulties than the other two companies. Given its Kyocera contract and a nicely discounted share price at the moment, it’s not a bad buy at all. PLX and Lattice I would steer clear of for the time being.

    Reply
  4. Brian Prescott
    Mar 31, 2013 - 12:25 PM

    QuickLogic is an interesting play. US operators’ newly found focus on low-priced LTE handsets is a clear positive for companies like Kyocera and in turn, QuickLogic.

    Reply
  5. Tyokunbo Abiola
    Tyokunbo
    Apr 12, 2013 - 02:40 PM

    Buying Quicklogic could be risky.

    Reply

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