Good morning, ladies and gentlemen. I am Brian Faith, President and CEO of QuickLogic Corporation. It is a pleasure to welcome you to QuickLogic's 2026 Annual Meeting of Stockholders. The meeting is called to order. I've asked our General Counsel to record the minutes. First, I would like to introduce our Directors and Corporate Officers. Mr. Farese, our Chairman of the Board, Ron Shelton, our Audit Committee Chair, Andrew Pease, our Nominating and Corporate Governance Committee Chair, Gary Tauss, our Compensation Committee Chair, and Joyce Kim as well. Tim Saxe , CTO and SVP of Engineering, Elias Nader, CFO and SVP Finance, Owen Bateman, VP Worldwide Sales, Rajiv Jain, VP Worldwide Operations, and Andy Jaros, VP of IP Sales. In addition, I would like to introduce Tyrel Wilcox and Alex Homer of Frank Rimerman, QuickLogic's independent outside auditors.
They will be available to answer questions during the Q&A portion of the meeting. They are attending virtually. I have proof by affidavit, signed by Kathleen Archula, an employee of Broadridge Financial Solutions, that notice of this meeting has been duly given and that records relating to this annual meeting of stockholders were first sent on or about March 27, 2026 to all stockholders of record at the close of business on March 9th, 2026. The affidavit, together with copies of the notice, proxy statement, and proxy, will be filed with the minutes of this meeting. In addition, the Inspector of Election, Cathy Weeden, representing Broadridge Financial Solutions, has signed her oath of office. The Oath of Inspector of Election will be filed with the minutes of this meeting.
The Inspector of Election has advised me that we have present in person and by proxy a sufficient number of shares to constitute a quorum. The meeting is duly constituted and the polls are now open for voting. Stockholders entitled to vote at this meeting have the ability to vote online. If you have turned in a proxy and do not intend to change your vote, it is not necessary that you vote online. Your vote will be cast as previously instructed. If you want to vote online or you turned in a proxy and wish to change your vote, please do so via the virtual web meeting portal. The first item of business is the nomination and election of two class three directors to serve until the date of the 2029 Annual Meeting of Stockholders. The following directors are nominated by the Board of Directors: Brian C.
Faith, Ron Shelton. Since we have not received timely notice of any additional stockholder nominations as required by the advance notice provisions of our bylaws, the director nomination process is now closed. The second item of business is to approve on a non-binding advisory basis the compensation of our named executive officers as disclosed in the proxy statement. The third item is to ratify the appointment of Frank, Rimerman + Co. LLP, as QuickLogic's independent registered public accounting firm for the fiscal year ending January 3rd, 2027. At this time, I would like Ms. Weeden, the Inspector of Election, to report on the preliminary results of the voting.
Each of the directors has received more than 99% of the vote in favor of his or her re-election. More than 98% of the votes were in favor of, on a non-binding advisory basis, the compensation of the named executive officers as disclosed in the proxy statement. More than 99% of the votes were in favor of ratification of the appointment of Frank, Rimerman + Co. LLP, as the company's independent registered public accounting firm for the 2026 fiscal year.
Thank you, Ms. Weeden. Based on those results, I declare that the named two class three directors have been elected to serve until the date of the 2029 Annual Meeting of Stockholders, and Frank Rimerman has been ratified as the company's independent registered public accounting firm for the fiscal year ending January 3rd, 2027. Following this meeting, the Inspector of Elections will tabulate any votes cast during the meeting and certify and provide final voting results. The final confirmed votes will be included in the minutes of the meeting and in the company's current report on Form 8-K to be filed with the SEC within four business days from the date of this meeting. I now declare the polls closed and the official portion of the meeting concluded. I will now provide a business presentation, after which we will have a question and answer session.
Please note that we may make forward-looking statements during the presentation or the question and answer session regarding future events or future results of the company. Actual events or results may differ materially from those in the forward-looking statements. Please refer to the Risk Factors section of our most recent annual report on Form 10-K and quarterly report on Form 10-Q for a description of important factors that could cause actual events or results to differ materially from those in the forward-looking statements. In addition, for any non-GAAP financial measures used in the presentation, a reconciliation to the most directly comparable GAAP measures is provided on the investor relations page of our website at www.quicklogic.com. On behalf of the board of directors and the entire QuickLogic team, thank you to our stockholders for your continued support.
At a high level, QuickLogic's core programmable logic IP enables hardware to be as adaptable as software. Our discrete and embedded FPGA solutions enable our customer systems to adapt even after a deployment to support algorithm updates, new interfaces, and changing mission requirements. These benefits can extend product life cycles, substantially reduce power consumption while improving performance, and enable advanced security that cannot be effectively executed in software. In addition to these growing demand drivers, as we detailed in a February blog post and SemiWiki covered in a March article, integrating eFPGA in ASICs and SoCs can also lower the risk of respins to fix errors or make last-minute updates to a design. The cost and added time to market to respin an ASIC or SoC has grown significantly due to the extremely high fixed costs and longer lead times for advanced fabrication processes.
Let me take a moment to share just two recent examples of how our eFPGA Hard IP is being leveraged by our customers. The first is a commercial application, and the second is defense industrial base or DIB application. In a January 2026 blog post, we published a case study of an Epson ASIC. Among other things, this ASIC needed to adapt to changing algorithms over its lifecycle. In its first design, Epson used adaptable software running on an embedded processor. The problem was processing algorithms and software took way too much power, and there was no ability to increase battery capacity. Epson changed its design from adaptable software to adaptable hardware processing by integrating our eFPGA Hard IP into its ASIC. The new design worked on the first pass and reduced power consumption by 50%.
In a December 2025 press release, we announced that Idaho Scientific, which has used discrete FPGAs for its sophisticated security applications for a long time, adopted our eFPGA Hard IP for new designs. The vice president of Idaho Scientific said our eFPGA Hard IP enabled it to integrate hardware adaptability into its SoC that it would normally allocate to discrete FPGA devices to deliver new forward-leaning hardware-based cryptographic solutions for mobile, IoT, infrastructure, and defense systems. U.S. military contractors, collectively known as the DIB, spend more on FPGAs than any other category of semiconductor devices. The second highest spend category is ASICs. These design trends appear to be growing across the rest of the critical infrastructure sector, which in addition to DIB, includes aerospace, industrial, and communications applications. Common threads across these sectors are long product life cycles and a desire to reduce total chip count.
Many of the use cases also check other FPGA boxes I mentioned previously. There will always be applications where a discrete FPGA makes more sense, and we are well equipped to address those. However, our primary focus is to eliminate the need for a discrete FPGA by enabling the integration of our eFPGA Hard IP into ASIC and SoC designs. If you boil it down to just one thing, integration is what has driven the growth of the semiconductor industry since day one, and being on the right side of integration is a common thread for the most successful semiconductor companies. A key element of our strategy is the leverage and scalability of our operating model. This is enabled by a combination of our proprietary Australis eFPGA Hard IP generator and Aurora user tools.
When combined with our core eFPGA Hard IP and operating processes, Australis and Aurora enable us to grow our business in a capital-efficient way while maintaining high levels of productivity and responsiveness. This operating leverage is evidenced by our full-year outlook for 50%-100% revenue growth with only a 15%-20% increase in non-GAAP OpEx. Australis enables us to automate and streamline the development of fabrication-specific and customer-specific eFPGA Hard IP. This enables our engineering organization to support multiple programs concurrently and efficiently and far more quickly than our competition. Australis has enabled us to be the first, and as it stands today, only company to deliver eFPGA Hard IP for Intel 18A, where we have already won four modest contracts totaling nearly $2 million and expect at least one major contract this year.
Funded by one of these contracts, we made significant architectural enhancements in late 2025 that enable us to address very high-density discrete and embedded FPGA designs. This has substantially increased our SAM on all advanced fabrication process nodes. Australis has also enabled us to execute an internally funded initiative that has led QuickLogic to be the first, and as it stands today, only company to deliver eFPGA Hard IP for a radiation-hardened discrete FPGA fabricated in the U.S. on GlobalFoundries' 12LP process. We received test chips earlier this year and have shipped a number of them with our new RadPro FPGA development kit for customer evaluations. In addition to this, the U.S. government expanded our prime contract to develop a strategic radiation-hardened FPGA to a total potential value of $89 million and awarded us a $13 million tranche last February to fund our work this year.
We continue to believe the strategic RadHard FPGA market could represent hundreds of millions of dollars of revenue for QuickLogic in the coming years. Australis is complemented by our Aurora user tools. Aurora enables our customers to target their own IP into our programmable logic, be it eFPGA Hard IP or our discrete FPGAs within an intuitive development environment. Together, these tools form a unified platform that supports both our internal execution and our customers' long-term adoption of our IP. In our target markets, success depends not just on having the right technology, but also on the ability to deliver consistently, efficiently, and at scale. With our sophisticated tools and processes, we can often shorten time to market, and our customers know that lowers their total cost and risk.
Once customers build their internal workflows, train their teams, and deploy designs using Aurora with our eFPGA Hard IP, the risk and cost of switching becomes significant, and that enhances our odds of winning subsequent designs. QuickLogic is the only eFPGA Hard IP company in the world that can boast of over three decades of experience in delivering discrete FPGAs and integrated solutions with embedded FPGA. This experience uniquely positions us among our competitors. Our established infrastructure to manage fabrication, package, test, and inventory enables us to reliably storefront finished products for our customers as well. At the bottom line, our focus is on expanding markets that have long product life cycles, where the value of our proprietary IP, discrete FPGA solutions, and capability to storefront customer designs sets us apart from inherently limited competition.
Taken together, we believe we are building a business designed to deliver durable long-term growth and with the operating leverage I've discussed scale very favorably at the operating line on our income statement. Thank you. We will now move to the Q&A portion of the meeting.