Ladies and gentlemen, good morning. At this time, I'd like to welcome everyone to QuickLogic Corporation's and Fiscal Year 2019 Earnings Results Conference Call. As a reminder, today's call is being recorded. For replay purposes through February 1920 over to Mr. James Fernecki of Darrow Associates.
Mr. Fernecki, please go ahead.
Thank you, operator, and thanks all of you for joining us Our speakers today are Brian Faith, President and Chief Executive Officer and Doctor. Sue Chung, Chief Financial Officer. As a reminder, some of the comments ClickLogic makes today are forward looking statements that involve risks and uncertainties, including, but not limited to stated expectations relating to revenue from new and mature products, statements pertaining to QuickLogic's future stock performance, design activity and shipments, timing and market acceptance of customers' products, risks associated with potential disruption caused by the coronavirus, schedule changes and product projected production start dates that could impact the timing of shipments, the company's future evaluation broadening the number of our ecosystem partners and expected results and financial expectations for revenue, gross margin, operating expenses, profitability and cash. These statements should be considered in conjunction with the cautionary warnings that appear in QuickLogic's SEC filings. For additional information, please refer to the SEC filings posted on its website and the SEC's website.
Investors are cautioned that all forward looking statements of this call involve risks and uncertainties and that future events may differ materially from the statements made. For more details of the risks, uncertainties, and assumptions, please refer to those discussed under the heading Risk Factors in the most recent annual report on Form 10 K, the most recent quarterly report on Form 10 Q, recent Form 8 K and other documents we periodically file with the SEC. These forward looking statements are made as of today and management takes no obligation to revise or publicly release any revisions of the forward looking statements in light of any new information or future events. In today's call, we will be reporting non GAAP financial measures. These non GAAP measures should not be considered as a substitute for or superior financials prepared in accordance with GAAP.
You may refer to the earnings release we issued today for a detailed reconciliation of our GAAP to non GAAP results and other financial statements. We have also posted an updated financial table on our IR webpage that provides current and historical non GAAP data. And please know, QuickLogic uses its website, the company blog, corporate Twitter account, Facebook page, and LinkedIn page is channels of distribution. Of information about its products, plan, financial, and other announcements of attendance at upcoming investor and industry conferences and other matters. Such information may be dematerial information and quick logic may use these channels to comply with its disclosure obligations under Regulation FD.
A copy of prepared remarks made on today's call will be posted at QuickLogic's IR webpage shortly after conclusion of today's earnings call. And I would now like to turn the call over to Brian. Thank you, Jim. Good afternoon, everyone, and thank you all for joining our fourth quarter and fiscal 2019 financial results conference call. Many positive developments have taken place since our last earnings call that set the stage for 2020, and will better define our long term success.
We announced design wins with large multinational companies, added more open source software initiatives to increase our scale and reach, and expanded the ecosystem of partners for our SensiML AI software platform business. We expect all of these will contribute to larger revenue opportunities later this year and into the future. In addition, we took significant steps to And while we remain excited about our prospects in 2020, admittedly looking back at 2019, we were disappointed with our revenue performance. Many of these challenges we talked about in prior earning calls were due to factors beyond our control. While some issues will linger into the first quarter of this year, I am as positive as ever about the fundamentals in our business and believe we will achieve profitability in 2020.
I want to first cover a few items that have happened in the last couple of months and then move into a more detailed discussion on the growth drivers for 2020 and beyond. Later, Sue will review our financial results and provide our near term outlook. In December, we announced the passing of Board Chairman Tom Hart. Tom had a long history with QuickLogic, serving as the company's CEO for 15 years and a board member for 25 years. His insight into the company and semiconductor industry were valuable to me and its presence is missed by all of us at QuickLogic.
Current board member, Doctor. Michael Farice, was subsequently named as the Chairman of the Board of Directors. Mike has been immensely helpful to me and the company as we refine our long term strategy. Which is scheduled to deliver about $4,000,000 in annualized savings once fully implemented in the middle of our second quarter. There will also be a positive The decision to make these changes came as a result of our year end strategic planning efforts.
During the process, we reviewed our current product development plans and market positions for the EFS3, SOC and EFPGA Technologies. Through the review, it became clear that the vast majority of the software development support our announced EOS SoC design wins and near term SSE growth strategy was completed. We believe the future expansion in the new markets and cases for our SoC will be driven from engagements with our numerous void software partners and recently announced relationship of Flexronics. In addition, our eFPGA products will leverage the open source software initiative being developed in conjunction with a mega cap cloud service provider. The headcount reductions were across all business functions.
With the many partnerships we have in place, we believe we now have a more scalable business. In fact, we will be announcing a new authorized design partner, optimist logic, for the development of customer embedded system hardware and software in the coming days. This led to the conclusion that we don't need to take on engineering for everybody and can operate more efficiently with fewer personnel. As we continue to expand our reach. One result of the restructuring and refined go to market strategy with partners is that we are able to streamline and reset our sales organization including eliminating the role of Vice President of Sales.
We felt the structure of the organization to reflect a deeper collaboration with ecosystem partners to drive our long term growth. The bottom line result of these actions is that our leaner organization puts us on a trajectory to achieve our profitability goals, which is by far our highest priority this year. Sue will provide additional details on the restructuring later in the call. With these items as a backdrop, I want to shift the discussion to review the growth drivers we see for 2020 to help everyone understand our plan for 1, continued strength in what we define as our mature product segment 2, expansion of our SoC products with several multinational OEMs and 3, expanded SensiML AI Software SaaS and EFPGA IP Sales. Starting with our largest revenue area in mature products, Our military business remains strong.
Push outs that delayed spending in the second half of twenty nineteen have been mostly resolved, and we are starting to see purchases come back. We expect to see most of the delayed orders, While the ramp is later than we originally expected, we have better visibility of a recovery, which gives us greater confidence in our revenue outlook for the year. We currently believe a little less than half of the twenty twenty total revenue will come from the mature product segment. The other portion of revenue comes from what we define as new products, This includes primarily our EOS S3 SOC products, SensiML AI SaaS revenue, and EFPGA IP Licensing. After a challenging 2019 for our new product segment, we have greater clarity on our outlook and expect sales in this category to grow significantly in 2020.
The improvement will be led by a combination of items including before, such as Kia Sarah and a well known and fast growing streaming and smart TV provider. Joint programs with companies such as Flextronics and Infineon, and the opportunity with the mega cap cloud service provider I mentioned last quarter. On Kyocera, We recently announced a significant design win for QuickLogic's Ultra Low Power EOS S3 voice and center processing SOC platform. PSARA has chosen our platform for its Tork G4 smartphone. We are now designed into 3 released phones, up from 0 just two quarters ago.
With our growing relationship, we could see Kyra double the number of phones using QuickLogic's platform in 2020. Our collaboration with Flextronics and Infineon was also highlighted last month. This relationship is important on several levels. We announced our inclusion in the flexino sensor fusion development kit from Flexronics. This kit includes a sensor fusion data board, which features our EOSF III SOC along with Infineon Sensors.
Flexronics has developed a complimentary, tiny system and package, or SIP, version of the development board, which can be integrated into existing IoT system architectures. IoT developers will now have access to a world class prototyping to high volume manufacturing solution for several more proactive joint sales and marketing campaigns with electronics and Infineon, which will broaden our exposure to a wider universe of opportunities. Since our product is embedded in the Flexronics SIP, their broad sales channel should offer a more scalable growth path. In the consumer market, always on voice will drive the next generation of almost every consumer device we use today. Are now engaged in a new platform with a well known and fast growing streaming and smart TV provider and are on track to ship to them in Q2 this year.
We expect the market for wireless and hands free remote controls will accelerate, giving us more opportunities to generate revenue in this developing market, potentially generating at least several $100,000 per quarter. We are also engaging with several OEMs and ODMs to deploy the next generation of wireless earbuds. While the largest player continues to dominate the market, Amazon recently This alternative is expected to spur additional demand for earbud type devices. We are gaining acceptance with several white box ODM wireless earbuds and expect this market to contribute meaningful revenue later in 2020. That being said, speaking to the quality and breadth of our sales funnel, we Even with the coronavirus situation that's going on in China right now, we are planning on achieving our financial goals without needing to have those in place.
Moving to our QuickAI and SensiML business. SensiML continues to gain momentum as more companies explore how AI can be integrated into their suite of products. The growth in auto code generating AI tools such as those from SensiML is enabling a broader range of companies to get products to market more quickly and efficiently. Last month, Nordic Semiconductor recognized the value SensiML brings to develop AI enabled products. We look forward to broadening this relationship with Nordic.
We also announced SensiML joined the SP Microelectronics Partner Program and is now an ST authorized partner. By joining the Select program, SensiML can better reach developers using the FTM32 MCU with its analytics toolkit. Symphom will close Q4 with a total of 44 customers, 4 of which are Global Fortune 500 Companies. This total is up from 26 customers in Q3 and 3, going back to Q1. Currently, most are still using the evaluation version of the product, not yet the full SaaS product.
Most of the 40 plus customers are affiliated with the industrial market segment. These types of customers tend to have much longer evaluation periods. While the ramp conversion has been slower than we originally thought. The good news is that we continue to build momentum and are planning on percentage of our expected with a mega cap company I mentioned earlier. This company has the ability to deliver up to 100 times more development kits than our current sales channel under our previous go to market strategy.
The EOS S3 and SensiML AI software platform. We expect to launch the first of 2 IoT development systems bean co develop with this company in the quarter. I have covered several areas that will serve as catalysts for revenue growth, and I know that now question is, what does this mean in terms of an outlook for 2020? As I had mentioned before, given the variability in our customer base timing of product launches, it is our policy to not discuss the financial outlook beyond 1 quarter at a time, which she will provide in her comments. However, I will offer the following context regarding our current outlook for 2020.
First, related to the coronavirus outbreak, We have a very limited presence in China, no direct manufacturing in the country, and have a small footprint from the China supply chain point of view. However, it is apparent that travel restrictions still in place in many areas and the longer lunarier holiday mandated by the government the impact on the China economy could last longer than currently anticipated. This situation makes us believe that development schedules from our Chinese customers as well as sales for hearable and consumer electronics products into the China domestic market will be slower than expected. We are in constant contact with our suppliers and ODMs. And at this stage, we are taking the approach that shutdowns will have a lingering effect on at least our first quarter and possibly contribution from these Chinese ODMs.
Given this fluid situation, we are taking a very conservative approach to our outlook for 2020. When factoring the impact this could have, we believe revenue growth this year will be in stair step increases starting in Q2 and through the rest of 2020. Based on current expectations, we believe revenue for fiscal 2020 could end up in the mid to high teens. With an expected product mix containing more SaaS and IP sales, we could see gross profit margin for the year in the we should be close to non GAAP operating income breakeven or becoming profitable towards the end of the year. And one other key point I want to stress Through the combination of restructuring activities, expected higher revenue and improved gross margin We expect cash usage need to raise capital to achieve profitability.
In summary, we have streamlined operations enhanced product development and refined our go to market strategy. When tying all of these items together, I am confident the foundation is in place to drive quick to profitability and improved overall financial performance in 2020. I would now like to turn the call over to Sue for a discussion of our recent financial performance and full Q1 outlook. Sue?
Thank you, Brian. Good afternoon, and thanks to everyone for joining us. For the fourth quarter of 2019, revenue increased sequentially to 2.9 within the guidance range we provided. Our Q4 revenue compared with revenue of $3,200,000 in the fourth quarter of 20 With our Q4 revenue, sales of new products were 720,000 as compared with $1,300,000 in the fourth quarter of 2018. The lower new product revenue from the prior year was mainly due to the ongoing declines in display bridge sales and a approximately $500,000 in revenue from our large initial EFPGA license.
Our mature product revenue was $2,200,000, an increase compared with $1,900,000 in Q4 last year. In the fourth quarter of 2019, we have had 3 customers who each accounted for 10% or greater of our sales. 6% compared with 52.6% in the same quarter last year. Increase was mostly due to the higher mix of mature product revenue and additional fabs this Non GAAP operating expenses for Q4 were approximately $4,200,000, down slightly from 4 $300,000 in fourth quarter of last year. Within our Q4 operating expenses, R and D was $2,200,000 and SG and A was $1,900,000.
This compares with R and D and G and A of $2,300,000 $2,000,000, respectively, in Q4 last year. The net total for other income expense and taxes in Q4 was a charge of 135,000 compared with a charge of 13,000 in fourth quarter last year. Increase was mainly due to interest expense and adjustments to past attributes associated with benchmarks at the end 2019. Non GAAP net loss in or $0.29 per share. This compares with a net loss of $2,600,000 or $38 per share in the fourth quarter of last year.
The per share calculation for both periods reflects 1414 reverse split that went into effect on December 24th, 2019. Total share count used for calculation purposes in Q4 2019 was at proximity $8,300,000 compared with $6,800,000 in the same quarter a year ago. That offering we completed in June 2019 accounts for most of the difference. Finally, the total cash at the end of Q4 was 21,500,000 compared were the $24,800,000 at the end of last quarter. Our cash balance also includes the full draw from our $15,000,000 line of credit.
Before moving to our guidance, I would like to expand on the reason to announce the restructuring plan. We expect approximately 30% headcount reduction and a closing of some facilities to generate about $4,000,000 in annualized savings when compared with fiscal 2019. The restructuring should be completed in the May timeframe within this of 4,000,000 approximately $3,750,000 while being the operating expense line with the remainder in cost of goods sold. We expect to incur approximately 600,000 of which about $500,000 will be cash expenditures with the majority coming in the first quarter of 2020 When factoring these changes, we believe non GAAP operating expenses will be at a quarter run rate of approximately $3,500,000 starting in the second quarter of 2020. Now turning to the full year fiscal 2019 results.
Total revenue was 10 points $3,000,000, down from $12,600,000 in fiscal 2018. View product revenue was 3,100,000 compared with 5,700,000 in the prior year. Lower display bridge revenue was the largest component of this decline. Mature product revenue was $7,200,000 compared with a $6,900,000 in 2018. The year, we had 2 customers that each accounted for greater than 10% of our total run Gross margin for 2019 was 58%, up from 51 0.2% in 2018.
The higher gross margin in 2019 was primarily driven by revenue generated from sensor processing, Centamalai SAS, EmpTA IP licenses, and a mature product. Even with the acquisition of Fantmore at the beginning of 2019. Our operating expenses for the year were $18,200,000, which were flat was the prior year. Our net loss for 2019 was $12,300,000 or $1.60 per share compared with $11,900,000 or $1.80 per share for 2018. The share count used to calculate the EPS was $7,700,000 for 2019 and the $6,400,000 for 2018.
Now moving into our forecast for the first quarter of 2020, which will end on March 29. Our revenue guidance for the 1st quarter is a $2,300,000, plus or minus 10%. As Brian already discussed, we're taking a conservative outlook based on the potential impact from the coronavirus. We believe total revenue will be comprised of approximately $600,000 of new product revenue and $1,700,000 of mature product revenue. With the sales mix having truth increasing SaaS sales and across the savings from the restructuring.
We expect our non GAAP gross margin to be approximately 64%, plus or -3 percent. We're forecasting that Total non GAAP operating expenses, excluding the one time restructuring costs, will drop to approximately $3,900,000, plus or minus $300,000. Looking operating expenses, we expect our R and D to be approximately $2,200,000 and SG and A to be approximately 1.7 units. As a reminder, the full benefit of the savings from the restructuring will be realized in Q2 $1,900,000 $1,600,000 respectively. After interest expense, other income and taxes, At the midpoint, recurrently forecast of our non GAAP net loss will be approximately $2,400,000 or $2.9 per share based on approximately 8,500,000 shares outstanding.
Most of the difference between our GAAP and non GAAP results is our stock based compensation expense, which we're expecting to be a approximately $850,000. We expect this expense will remain in the mid $800,000 range for the 4 seasonal future. Finally, in Q1, we expect that cash usage to decline and be in the range of $2,300,000 to $2,700,000. This includes both the approximately $500,000 restructuring costs and the cash used for full operations. With that, let me now turn the call back over to Brian for his closing remarks.
Thank you, Sue. With 2019 behind us, our focus is squarely on the future. We know revenue growth will be the key to delivering on our profitability goals. 2019 was a year when we made great strides in building the foundation for improved financial performance. 2020 will be the year.
We begin to see the benefits from the heavy lifting we did last year as we execute on our plans for creating a sustainably profitable business. Before opening the call for Q And A, I want to let everyone know we are scheduled to participate in the Roth Conference in March in Newport Beach. We look forward to seeing some of you at that event. That completes our prepared
We will now take our first question from Sutti.
Hi, Brian. Hi, Sue. So, on the new product, well, let's step up the mature products first. What's the What's the run rate to think about for the mature products as they recover here from your 1Q guidance of $1,700,000?
So, Sujal, what? The model at about 1.7 plus or minus? 10%. Each of the quarter.
That's a good run rate level. Okay. Good. And then, if that's the case, then your kind of teens guidance, high teens guidance, Brian, would indicate that, new products would triple roughly year over year, if I do my math, right? So can you talk about the three areas and which ones do you think will help if growth in the 700 k per quarter?
Seeing now, yeah, across the FPGA, SensiML and then the CoreOS S3 upgrade. Yes. So the biggest growth area is going to be from the EOS S3 because that is a higher ASP and we've been designing that in for some time. And again, for this This outlook for 2020, we took a more conservative approach. We're looking primarily at Multinational Williams.
So one's from Kyocera from the streaming TV provider. From the what we're getting out of the Flex and Infineon deals that they've been pushing the modules and Sips into the market. So we're really benefiting from their channel. That's the primary driver for new product. Secondarily, we do see a lot of opportunity coming to fruition with SensiML now signing up these big partners.
So that'll be the 2nd area. And then the 3rd area will be the EFPGA. We didn't give a lot of airtime to those just because the script is long today, but those opportunities we talked about last time continue to move forward I think one of them is going to tape out in March on one of their test strips. So we're thinking that those will also have a material contribution to revenue this year for new products. Okay.
And then can you specifically size the KSR opportunity as best you can for us to understand the TAM and the contribution opportunity in 2020? Yes. So from a TAM point of view, I think they probably do somewhere between 10,201,201,000,000 phones per year. We're focusing on the domestic market with them. If we are successful in doubling the number of phones that we're in with them, that would put it somewhere between 6.8 tons this year.
Typical funds for them are a few 100,000 units up to a 1,000,000 units So I think we're modeling KSR for us this year somewhere between around $2,000,000 worth of business. Depending on when films are launched throughout the year could be higher? You're fine. You said $2,000,000 is going in aggregate? Correct.
Okay, great. Then last question, the gross margin very high here, nice mix. Can you talk about how sustainable the 64 level you guys is and what the puts and takes might be there?
Suji, so we think we estimate that the mid-sixty percent for 2020. So I want to model at that range. The 684 is a, is a kind of a, is a right on the mid quarter.
We will now take our next question from Richard Samu, Greg Helen.
Hi, Brian. Sue, thanks for taking my questions as well. Maybe I'll follow-up on the topic of kind of looking at the view of 2020 here Just following on Suji's question. I think you talked about EOS being the kind of the biggest driver for the year obviously at Kyocera would fit into that well. If you could help us understand the contribution you're expecting from hearables and how much did this did the kind of conservative view from China and the virus stuff impact that outlook?
And how would you compare that versus what you thought about maybe 2, 3 quarters ago when we started hearing about the the Amazon compliance testing dynamics. Lot of questions. I have one question. So if I forget to answer one of them, just hit me on it. So in general, so for the hearable space, Actually, let me step back.
So for voice recognition, that's a dominant use case driving a lot of these outside of the Kia SIR business for us this year. And I think that's probably on the order of $50,000,000 of revenue that we think will be voice enabled. Previously to your question, we did think the hearables component of that and a lot of that were Chinese ODM hearables. That was probably just in China alone. It was going to be more than $5,000,000, $6,000,000 this year in revenue.
As we said on call, we've tempered that view back because of the uncertainty created by the coronavirus. I mean, there's still customers of ours that are not going back to the office for work yet. And so there's going to be some impact. We just haven't sized that yet. That being said, we do see some of the other variables for export out of China to U.
S. And other markets moving forward. And we're expecting that'll be a couple of $1,000,000 of revenue contribution to the new product side this year. I know you mentioned something with respect to Amazon. So our solution now is certified and qualified matched the specs for Amazon.
We shared in our CVS suite, one of the headsets from customer of ours called 1 more. I clearly showed it connecting to my phone and accessing Alexa, and our solution does pass all the requirements that our AVS dictates that product is still not yet on the ODM page for Amazon. I think this is actually one of the challenges of the coronavirus. Is that one more is located in China? Push out some of their development for that.
So we're still fully expecting that, that will land on that page and that will drive revenue for us. But from a solution point of view, that put into the market. We are now certified and qualified to match the specs of Amazon. Okay. That's helpful.
Thanks for that feedback. Maybe a question on SensiML. I think you talked about ending the year with 44 customer, if I remember correctly, most are still on the eval platform. Maybe if you can kind of give us a sense of, what you're expecting for this year in terms of the customer funnel. You know, is that a you think you can double or triple or even more of that customer base?
And then I guess more importantly, how, How do you see the converting some of these existing new customers into the full Flash platform? Yes. So I'm going to give you a near term answer and then an answer that I think will be reflective of what you'll see later in the year. So in the near term, we're putting a lot more emphasis on our current funnel, assigning a little bit of our data sciences to these customers because we're seeing some of them are getting lost on how to collect data correctly, which seems to be a common problem in the AI space right now. We are seeing when we do that, we have a higher hit rate fact, we just got a signed full staff agreement earlier this week from a customer, a really big one in fact in India doing a wearable and they needed to be gesture recognition for the wearable.
So when we get our guys involved a little bit, we see it go much smoother. We're gonna keep doing that in the near term. That helps close things to to fruition in the full SaaS in the near term. What we wanna do is build out a more scalable model from a SaaS business point of view. So we're actually going to be in the process of bringing in some, web specialists that do work around staff to make sure that we're getting better hit rates coming through lead gen and the web and we'll see some of that results coming in later in the year.
The other thing I'll mention is that It's very different when we can get on other people's platform, other microcontrollers, and have their Salesforce selling. So part of our our thesis and plan for this year's revenue growth in SensiML is to make sure that these partners are trained very well in the solution like STMicro and Nordic. That's getting a bit word out to their sales force and leveraging them to be showing it so that we're not having to do all that of ourselves. And I think all those efforts are going to result in a pretty significant revenue for that line this year. Okay, that's helpful.
So Brian, maybe one fundamental question, I'll jump over to Sue for a quick financial one. So this, this mega cap company or call it service provider company we've talked about for the quarter and, and talked about it at CS as well. I think you mentioned in your prepared remarks that you've you've moved it over to an open source development platform that's helped you to be able to shed some internal resources and cut costs here. I guess I want to make sure that I understand kind of the full strategic nature of this move And ultimately, what do you expect from this customer this year and especially in context of all the other customers and dynamics you've talked about so far on the call? So let me start with the strategic value.
Firstly, I think in the IoT space, a very fragmented market and not everybody that's a developer in that market is hardware savvy to the extent that they can actually go make hardware changes to things like FPGA they want to start with a very easy to use development kit and design primarily in software. And what we're doing on the open source tooling side with the health of this mega cap company is going to be to put open source tooling in place that is more it's what these engineers are more accustomed to, this new generation of engineers. The result is that we should see a significant increase, a couple hours of magnitude increase in the people that can design in our product that couldn't have done that otherwise. And so we see it as a TAM expansion. The benefit of working with a company like this mega cap company is that they can help fund the development of all this.
So that's that's happening. And then the last thing I'll say is that at some point in the near future, they're going to be putting us out through their channels. I wouldn't say distributors because they're not a fun electric company, but they're going to be getting these desk kits out into channels. In fact, they've committed to take 2000 of these systems and put them out in the hands of customers. And so we're planning on that, increasing our sales funnel by virtue of their muscle and their each.
Okay, that answers your question. Yes, yes, that's helpful. Thanks for that, Brian. Last question, Sue, maybe just going to detail what the the breakeven model looks like. You've given us some numbers on OpEx after the restructuring was completed, but just want to get your your just kind of put the math together here just to make sure we're breaking pointless.
So, Martin, our breakeven point now is at the revenue level of about $6,000,000 per quarter. With the gross margin at above 60 at a mid-sixty level and was all packed at LIP 3,000,000. So we said, I think, on the call today is a 3,500,000. At that OpEx level. So we should be able to receive it.
And we can see that in our model. It's a it's a roughly a so.
Okay. I think that's all the questions I had. Thank you. The
We'll take our next question from Rick Meather from River Shore Investment Research.
Thank you. Hello, Brian and Sue. Hi, Russ. Hi. In Q4, did you burn any cash, paying back for fractional shares and the reverse split.
Rick, yes, we did, but there was, like, so minimal amount, not even around to fuel level. I can't tell you it's above like a, 2 or 3000. Okay.
In the restructuring that you announced at the end of last month, does it include, already the cuts you announced to the QuickAI program back in August?
I don't remember what cuts we said to QuickAI program back in August.
You said you were going to mothball the program, the module program. Yeah.
That was the module that we were going to do. That was already factored in earlier. So everything that we just talked about in the last month and the reductions was in addition to what we had taken back in the middle of last a quick AI module.
Okay. In Q4, what percentage of the new product revenue was SaaS?
I would say close to 10%, not 10% yet, but close to.
Okay. Do you know if the board's going to appoint a replacement for Tom Hart?
We don't currently have a plan to do that. We, as I said on the prepared remarks, Mike Harris was elected to be chairman of the board. Perfect. Right. And I think we are, we're appropriately sized and with the right experience levels for the board to operate as a company that we need right now.
Okay.
I want to ask you some questions about the general outlook you revenue outlook you gave for 2020, where you, targeted revenue in the mid to high teens In that outlook, are you assuming any, revenue from Flextronics or Infineon for actual sales of S3s?
Yes, we are.
Okay. Are you assuming any revenue from the mega cap cloud service provider?
Yes. Not a not a huge amount, but yes, we are.
So you will get some revenue from the development kits?
For sure, but I'm counting on more than that for the year. That I think is right now.
Okay. Does the upper end of your revenue target for 2020 assume the revenue from the Chinese ODMs and OEMs that you said you're conservatively not counting on.
The upper end of that range that it's in a little bit, but not nearly as much as what we had, had forecasted last time. We spoke.
Okay. What percentage of new product revenue in your 2020 target, are you assuming to come from SensiML?
If we get them to be a at the 10% for this year. I think that would be a good target for them. Okay.
When you talked about the product from the streaming service customer, is that the voice remote control product that you talked about in the past?
Yes, it is Rick. It's the remote control that's voice enabled. That's correct.
Okay. And in your outlook for 2020, in the general range that you set as a target, are you assuming any license revenue from your year PGA initiative?
For the year, yes, we are. On the same order of magnitude as SensiML.
Is the coronavirus, having any effects on your relationship with Tinto Gal or however you would properly pronounce, I would say the semiconductor
efforts. It doesn't impact the relationship with them. Certainly we're in contact with folks via email. It does reduce any of our face to face time that we send with them. And I think that they have had extended time off.
And in fact, I think the Hangzhou province in fact was even more strict about when people should be going back to the office to work which is where C Scott and Alibaba are located. So I'm not sure from a scheduled point of view, it's impacting that, but, as far as the relationship goes, no, I don't there at all. Operator, is there any more other questions?
It appears there's no further questions at this time. Mr. Brian, I'd like to turn the conference back to you for any additional or closing remarks. Thank you.
Yes, so thank you for your participation in today's call and continued support. We look forward to speaking with you again when we report our 1st fiscal quarter results in May. Thank you and goodbye.
This concludes today's call. Thank you for your participation. You may now disconnect.