QuickLogic Announces Fiscal 2006 and Fourth Quarter Results - New Products Contribute 20% of 2006 Revenue

2006 2005 2006 2006 2005
-------- -------- --------- -------- --------
GAAP cost of revenue $4,387 $4,296 $5,371 $17,739 $18,124
Adjustment for the
write-off of long-
lived assets -- -- (33) (33) (3)
Adjustment for stock-
based compensation (45) -- (36) (183) --
-------- -------- --------- -------- --------
Non-GAAP cost of revenue $4,342 $4,296 $5,302 $17,523 $18,121
======== ======== ========= ======== ========

GAAP research and
development $2,117 $2,411 $2,429 $9,303 $9,648
Adjustment for the
write-off of long-
lived assets -- -- -- -- (62)
Adjustment for stock-
based compensation (47) -- (57) (368) --
-------- -------- --------- -------- --------
Non-GAAP research and
development $2,070 $2,411 $2,372 $8,935 $9,586
======== ======== ========= ======== ========

GAAP selling, general
and administrative $4,857 $4,375 $3,994 $18,062 $16,855
Adjustment for the
write-off of long-
lived assets -- -- (1) (1) (1)
Adjustment for stock-
based compensation (208) -- (197) (894) --
-------- -------- --------- -------- --------
Non-GAAP selling,
general and
administrative $4,649 $4,375 $3,796 $17,167 $16,854
======== ======== ========= ======== ========

                        QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

December December
31, 31,
2006 (2) 2005(1)
--------- ---------
ASSETS

Current assets:
Cash and cash equivalents $24,621 $28,283
Short-term investment in Tower Semiconductor Ltd. 1,530 1,297
Accounts receivable, net 2,839 5,556
Inventory 9,064 7,830
Other current assets 1,894 1,265
--------- ---------
Total current assets 39,948 44,231
Property and equipment, net 5,480 5,697
Investment in Tower Semiconductor Ltd. 769 653
Other assets 4,038 4,415

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